102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3306

 

Introduced 2/19/2021, by Rep. La Shawn K. Ford

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10

    Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes.


LRB102 14605 CPF 19958 b

 

 

A BILL FOR

 

HB3306LRB102 14605 CPF 19958 b

1    AN ACT concerning regulation.
 
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, 30-5, 30-30, 40-25, 55-20, and
660-10 as follows:
 
7    (410 ILCS 705/1-10)
8    Sec. 1-10. Definitions. In this Act:
9    "Adult Use Cultivation Center License" means a license
10issued by the Department of Agriculture that permits a person
11to act as a cultivation center under this Act and any
12administrative rule made in furtherance of this Act.
13    "Adult Use Dispensing Organization License" means a
14license issued by the Department of Financial and Professional
15Regulation that permits a person to act as a dispensing
16organization under this Act and any administrative rule made
17in furtherance of this Act.
18    "Advertise" means to engage in promotional activities
19including, but not limited to: newspaper, radio, Internet and
20electronic media, and television advertising; the distribution
21of fliers and circulars; billboard advertising; and the
22display of window and interior signs. "Advertise" does not
23mean exterior signage displaying only the name of the licensed

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1conditions as determined by the Department of Agriculture by
2rule, but does not entitle the recipient to begin growing,
3processing, or selling cannabis or cannabis-infused products.
4    "Craft grower" means a facility operated by an
5organization or business that is licensed by the Department of
6Agriculture to cultivate, dry, cure, and package cannabis and
7perform other necessary activities to make cannabis available
8for sale at a dispensing organization or use at a processing
9organization. A craft grower may contain up to 14,000 5,000
10square feet of canopy space on its premises for plants in the
11flowering state. The Department of Agriculture may authorize
12an increase or decrease of flowering stage cultivation space
13in increments of 14,000 3,000 square feet by rule based on
14market need, craft grower capacity, and the licensee's history
15of compliance or noncompliance, with a maximum space of 56,000
1614,000 square feet for cultivating plants in the flowering
17stage, which must be cultivated in all stages of growth in an
18enclosed and secure area. A craft grower may share premises
19with a processing organization or a dispensing organization,
20or both, provided each licensee stores currency and cannabis
21or cannabis-infused products in a separate secured vault to
22which the other licensee does not have access or all licensees
23sharing a vault share more than 50% of the same ownership.
24    "Craft grower agent" means a principal officer, board
25member, employee, or other agent of a craft grower who is 21
26years of age or older.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1this Act and upon the licensed premises where cannabis sales
2occur with access limited to purchasers, dispensing
3organization owners and other dispensing organization agents,
4or service professionals conducting business with the
5dispensing organization, or, if sales to registered qualifying
6patients, caregivers, provisional patients, and Opioid
7Alternative Pilot Program participants licensed pursuant to
8the Compassionate Use of Medical Cannabis Program Act are also
9permitted at the dispensary, registered qualifying patients,
10caregivers, provisional patients, and Opioid Alternative Pilot
11Program participants.
12    "Member of an impacted family" means an individual who has
13a parent, legal guardian, child, spouse, or dependent, or was
14a dependent of an individual who, prior to the effective date
15of this Act, was arrested for, convicted of, or adjudicated
16delinquent for any offense that is eligible for expungement
17under this Act.
18    "Mother plant" means a cannabis plant that is cultivated
19or maintained for the purpose of generating clones, and that
20will not be used to produce plant material for sale to an
21infuser or dispensing organization.
22    "Ordinary public view" means within the sight line with
23normal visual range of a person, unassisted by visual aids,
24from a public street or sidewalk adjacent to real property, or
25from within an adjacent property.
26    "Ownership and control" means ownership of at least 51% of

 

 

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1the business, including corporate stock if a corporation, and
2control over the management and day-to-day operations of the
3business and an interest in the capital, assets, and profits
4and losses of the business proportionate to percentage of
5ownership.
6    "Person" means a natural individual, firm, partnership,
7association, joint stock company, joint venture, public or
8private corporation, limited liability company, or a receiver,
9executor, trustee, guardian, or other representative appointed
10by order of any court.
11    "Possession limit" means the amount of cannabis under
12Section 10-10 that may be possessed at any one time by a person
1321 years of age or older or who is a registered qualifying
14medical cannabis patient or caregiver under the Compassionate
15Use of Medical Cannabis Program Act.
16    "Principal officer" includes a cannabis business
17establishment applicant or licensed cannabis business
18establishment's board member, owner with more than 1% interest
19of the total cannabis business establishment or more than 5%
20interest of the total cannabis business establishment of a
21publicly traded company, president, vice president, secretary,
22treasurer, partner, officer, member, manager member, or person
23with a profit sharing, financial interest, or revenue sharing
24arrangement. The definition includes a person with authority
25to control the cannabis business establishment, a person who
26assumes responsibility for the debts of the cannabis business

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    produce cannabis.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/30-5)
4    Sec. 30-5. Issuance of licenses.
5    (a) The Department of Agriculture shall issue up to 40
6craft grower licenses by July 1, 2020. Any person or entity
7awarded a license pursuant to this subsection shall only hold
8up to 3 one craft grower licenses license and may not sell that
9license until after December 21, 2021.
10    (b) By December 21, 2021, the Department of Agriculture
11shall issue up to 60 additional craft grower licenses. Any
12person or entity awarded a license pursuant to this subsection
13shall not hold more than 6 2 craft grower licenses. The person
14or entity awarded a license pursuant to this subsection or
15subsection (a) of this Section may sell its craft grower
16license subject to the restrictions of this Act or as
17determined by administrative rule. Prior to issuing such
18licenses, the Department may adopt rules through emergency
19rulemaking in accordance with subsection (gg) of Section 5-45
20of the Illinois Administrative Procedure Act, to modify or
21raise the number of craft grower licenses and modify or change
22the licensing application process to reduce or eliminate
23barriers. The General Assembly finds that the adoption of
24rules to regulate cannabis use is deemed an emergency and
25necessary for the public interest, safety, and welfare. In

 

 

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1determining whether to exercise the authority granted by this
2subsection, the Department of Agriculture must consider the
3following factors:
4        (1) the percentage of cannabis sales occurring in
5    Illinois not in the regulated market using data from the
6    Substance Abuse and Mental Health Services Administration,
7    National Survey on Drug Use and Health, Illinois
8    Behavioral Risk Factor Surveillance System, and tourism
9    data from the Illinois Office of Tourism to ascertain
10    total cannabis consumption in Illinois compared to the
11    amount of sales in licensed dispensing organizations;
12        (2) whether there is an adequate supply of cannabis
13    and cannabis-infused products to serve registered medical
14    cannabis patients;
15        (3) whether there is an adequate supply of cannabis
16    and cannabis-infused products to serve purchasers;
17        (4) whether there is an oversupply of cannabis in
18    Illinois leading to trafficking of cannabis to states
19    where the sale of cannabis is not permitted by law;
20        (5) population increases or shifts;
21        (6) the density of craft growers in any area of the
22    State;
23        (7) perceived security risks of increasing the number
24    or location of craft growers;
25        (8) the past safety record of craft growers;
26        (9) the Department of Agriculture's capacity to

 

 

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1    appropriately regulate additional licensees;
2        (10) the findings and recommendations from the
3    disparity and availability study commissioned by the
4    Illinois Cannabis Regulation Oversight Officer to reduce
5    or eliminate any identified barriers to entry in the
6    cannabis industry; and
7        (11) any other criteria the Department of Agriculture
8    deems relevant.
9    (c) After January 1, 2022, the Department of Agriculture
10may by rule modify or raise the number of craft grower licenses
11and modify or change the licensing application process to
12reduce or eliminate barriers based on the criteria in
13subsection (b). At no time may the number of craft grower
14licenses exceed 150. Any person or entity awarded a license
15pursuant to this subsection shall not hold more than 10 3 craft
16grower licenses. A person or entity awarded a license pursuant
17to this subsection or subsection (a) or subsection (b) of this
18Section may sell its craft grower license or licenses subject
19to the restrictions of this Act or as determined by
20administrative rule.
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
22    (410 ILCS 705/30-30)
23    Sec. 30-30. Craft grower requirements; prohibitions.
24    (a) The operating documents of a craft grower shall
25include procedures for the oversight of the craft grower, a

 

 

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

 

 

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1infuser or dispensing organization, agents from those other
2licensees may access the craft grower portion of the premises
3if that is the location of common bathrooms, lunchrooms,
4locker rooms, or other areas of the building where work or
5cultivation of cannabis is not performed. At no time may an
6infuser or dispensing organization agent perform work at a
7craft grower without being a registered agent of the craft
8grower.
9    (d) A craft grower may not sell or distribute any cannabis
10to any person other than a cultivation center, a craft grower,
11an infuser organization, a dispensing organization, or as
12otherwise authorized by rule.
13    (e) A craft grower may not be located in an area zoned for
14residential use.
15    (f) A craft grower may not either directly or indirectly
16discriminate in price between different cannabis business
17establishments that are purchasing a like grade, strain,
18brand, and quality of cannabis or cannabis-infused product.
19Nothing in this subsection (f) prevents a craft grower from
20pricing cannabis differently based on differences in the cost
21of manufacturing or processing, the quantities sold, such as
22volume discounts, or the way the products are delivered.
23    (g) All cannabis harvested by a craft grower and intended
24for distribution to a dispensing organization must be entered
25into a data collection system, packaged and labeled under
26Section 55-21, and, if distribution is to a dispensing

 

 

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1organization that does not share a premises with the
2dispensing organization receiving the cannabis, placed into a
3cannabis container for transport. All cannabis harvested by a
4craft grower and intended for distribution to a cultivation
5center, to an infuser organization, or to a craft grower with
6which it does not share a premises, must be packaged in a
7labeled cannabis container and entered into a data collection
8system before transport.
9    (h) Craft growers are subject to random inspections by the
10Department of Agriculture, local safety or health inspectors,
11and the Department of State Police.
12    (i) A craft grower agent shall notify local law
13enforcement, the Department of State Police, and the
14Department of Agriculture within 24 hours of the discovery of
15any loss or theft. Notification shall be made by phone, in
16person, or written or electronic communication.
17    (j) A craft grower shall comply with all State and any
18applicable federal rules and regulations regarding the use of
19pesticides.
20    (k) A craft grower or craft grower agent shall not
21transport cannabis or cannabis-infused products to any other
22cannabis business establishment without a transport
23organization license unless:
24        (i) If the craft grower is located in a county with a
25    population of 3,000,000 or more, the cannabis business
26    establishment receiving the cannabis is within 2,000 feet

 

 

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1    of the property line of the craft grower;
2        (ii) If the craft grower is located in a county with a
3    population of more than 700,000 but fewer than 3,000,000,
4    the cannabis business establishment receiving the cannabis
5    is within 2 miles of the craft grower; or
6        (iii) If the craft grower is located in a county with a
7    population of fewer than 700,000, the cannabis business
8    establishment receiving the cannabis is within 15 miles of
9    the craft grower.
10    (l) A craft grower may enter into a contract with a
11transporting organization to transport cannabis to a
12cultivation center, a craft grower, an infuser organization, a
13dispensing organization, or a laboratory.
14    (m) No person or entity shall hold any legal, equitable,
15ownership, or beneficial interest, directly or indirectly, of
16more than 10 3 craft grower licenses. Further, no person or
17entity that is employed by, an agent of, or has a contract to
18receive payment from or participate in the management of a
19craft grower, is a principal officer of a craft grower, or
20entity controlled by or affiliated with a principal officer of
21a craft grower shall hold any legal, equitable, ownership, or
22beneficial interest, directly or indirectly, in a craft grower
23license that would result in the person or entity owning or
24controlling in combination with any craft grower, principal
25officer of a craft grower, or entity controlled or affiliated
26with a principal officer of a craft grower by which he, she, or

 

 

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1it is employed, is an agent of, or participates in the
2management of more than 10 3 craft grower licenses.
3    (n) It is unlawful for any person having a craft grower
4license or any officer, associate, member, representative, or
5agent of the licensee to offer or deliver money, or anything
6else of value, directly or indirectly, to any person having an
7Early Approval Adult Use Dispensing Organization License, a
8Conditional Adult Use Dispensing Organization License, an
9Adult Use Dispensing Organization License, or a medical
10cannabis dispensing organization license issued under the
11Compassionate Use of Medical Cannabis Program Act, or to any
12person connected with or in any way representing, or to any
13member of the family of, the person holding an Early Approval
14Adult Use Dispensing Organization License, a Conditional Adult
15Use Dispensing Organization License, an Adult Use Dispensing
16Organization License, or a medical cannabis dispensing
17organization license issued under the Compassionate Use of
18Medical Cannabis Program Act, or to any stockholders in any
19corporation engaged in the retail sale of cannabis, or to any
20officer, manager, agent, or representative of the Early
21Approval Adult Use Dispensing Organization License, a
22Conditional Adult Use Dispensing Organization License, an
23Adult Use Dispensing Organization License, or a medical
24cannabis dispensing organization license issued under the
25Compassionate Use of Medical Cannabis Program Act to obtain
26preferential placement within the dispensing organization,

 

 

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1including, without limitation, on shelves and in display cases
2where purchasers can view products, or on the dispensing
3organization's website.
4    (o) A craft grower shall not be located within 1,500 feet
5of another craft grower or a cultivation center.
6    (p) A craft grower may process cannabis, cannabis
7concentrates, and cannabis-infused products.
8    (q) A craft grower must comply with any other requirements
9or prohibitions set by administrative rule of the Department
10of Agriculture.
11(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
12    (410 ILCS 705/40-25)
13    Sec. 40-25. Transporting organization requirements;
14prohibitions.
15    (a) The operating documents of a transporting organization
16shall include procedures for the oversight of the transporter,
17an inventory monitoring system including a physical inventory
18recorded weekly, accurate recordkeeping, and a staffing plan.
19    (b) A transporting organization may not transport cannabis
20or cannabis-infused products to any person other than a
21cultivation center, a craft grower, an infuser organization, a
22dispensing organization, a testing facility, a transporting
23organization depot or other transporting organization transfer
24facility, or as otherwise authorized by rule.
25    (c) All cannabis transported by a transporting

 

 

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

 

 

HB3306- 29 -LRB102 14605 CPF 19958 b

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

 

 

HB3306- 30 -LRB102 14605 CPF 19958 b

1identification card upon request of any law enforcement
2officer engaged in his or her official duties.
3    (k) A copy of the transporting organization's registration
4and a manifest for the delivery shall be present in any vehicle
5transporting cannabis.
6    (l) Cannabis shall be transported so it is not visible or
7recognizable from outside the vehicle.
8    (m) A vehicle transporting cannabis must not bear any
9markings to indicate the vehicle contains cannabis or bear the
10name or logo of the cannabis business establishment.
11    (n) Cannabis must be transported in an enclosed, locked
12storage compartment that is secured or affixed to the vehicle.
13    (o) The Department of Agriculture may, by rule, impose any
14other requirements or prohibitions on the transportation of
15cannabis.
16(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
17    (410 ILCS 705/55-20)
18    Sec. 55-20. Advertising and promotions.
19    (a) No cannabis business establishment nor any other
20person or entity shall engage in advertising that contains any
21statement or illustration that:
22        (1) is false or misleading;
23        (2) promotes overconsumption of cannabis or cannabis
24    products;
25        (3) depicts the actual consumption of cannabis or

 

 

HB3306- 31 -LRB102 14605 CPF 19958 b

1    cannabis products;
2        (4) depicts a person under 21 years of age consuming
3    cannabis;
4        (5) makes any health, medicinal, or therapeutic claims
5    about cannabis or cannabis-infused products;
6        (6) includes the image of a cannabis leaf or bud; or
7        (7) includes any image designed or likely to appeal to
8    minors, including cartoons, toys, animals, or children, or
9    any other likeness to images, characters, or phrases that
10    is designed in any manner to be appealing to or encourage
11    consumption by persons under 21 years of age; or .
12        (8) includes a description of, or reference to, a
13    cannabis product as "craft" unless the cannabis product or
14    the raw material used to create the cannabis product is
15    produced by a craft grower licensed under this Act.
16    (b) No cannabis business establishment nor any other
17person or entity shall place or maintain, or cause to be placed
18or maintained, an advertisement of cannabis or a
19cannabis-infused product in any form or through any medium:
20        (1) within 1,000 feet of the perimeter of school
21    grounds, a playground, a recreation center or facility, a
22    child care center, a public park or public library, or a
23    game arcade to which admission is not restricted to
24    persons 21 years of age or older;
25        (2) on or in a public transit vehicle or public
26    transit shelter;

 

 

HB3306- 32 -LRB102 14605 CPF 19958 b

1        (3) on or in publicly owned or publicly operated
2    property; or
3        (4) that contains information that:
4            (A) is false or misleading;
5            (B) promotes excessive consumption;
6            (C) depicts a person under 21 years of age
7        consuming cannabis;
8            (D) includes the image of a cannabis leaf; or
9            (E) includes any image designed or likely to
10        appeal to minors, including cartoons, toys, animals,
11        or children, or any other likeness to images,
12        characters, or phrases that are popularly used to
13        advertise to children, or any imitation of candy
14        packaging or labeling, or that promotes consumption of
15        cannabis.
16    (c) Subsections (a) and (b) do not apply to an educational
17message.
18    (d) Sales promotions. No cannabis business establishment
19nor any other person or entity may encourage the sale of
20cannabis or cannabis products by giving away cannabis or
21cannabis products, by conducting games or competitions related
22to the consumption of cannabis or cannabis products, or by
23providing promotional materials or activities of a manner or
24type that would be appealing to children.
25(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

HB3306- 33 -LRB102 14605 CPF 19958 b

1    (410 ILCS 705/60-10)
2    Sec. 60-10. Tax imposed.
3    (a) Beginning September 1, 2019, a tax is imposed upon the
4privilege of cultivating cannabis at the rate of 7% of the
5gross receipts from the first sale of cannabis by a
6cultivator. The sale of any product that contains any amount
7of cannabis or any derivative thereof is subject to the tax
8under this Section on the full selling price of the product.
9The Department may determine the selling price of the cannabis
10when the seller and purchaser are affiliated persons, when the
11sale and purchase of cannabis is not an arm's length
12transaction, or when cannabis is transferred by a craft grower
13to the craft grower's dispensing organization or infuser or
14processing organization and a value is not established for the
15cannabis. The value determined by the Department shall be
16commensurate with the actual price received for products of
17like quality, character, and use in the area. If there are no
18sales of cannabis of like quality, character, and use in the
19same area, then the Department shall establish a reasonable
20value based on sales of products of like quality, character,
21and use in other areas of the State, taking into consideration
22any other relevant factors.
23    (b) The Cannabis Cultivation Privilege Tax imposed under
24this Article is solely the responsibility of the cultivator
25who makes the first sale and is not the responsibility of a
26subsequent purchaser, a dispensing organization, or an

 

 

HB3306- 34 -LRB102 14605 CPF 19958 b

1infuser. Persons subject to the tax imposed under this Article
2may, however, reimburse themselves for their tax liability
3hereunder by separately stating reimbursement for their tax
4liability as an additional charge.
5    (c) The tax imposed under this Article shall be in
6addition to all other occupation, privilege, or excise taxes
7imposed by the State of Illinois or by any unit of local
8government.
9    (d) The Cannabis Cultivation Privilege Tax imposed under
10this Article shall not be assessed against or collected from
11any craft grower awarded a license during the first group of
12licenses issued by the Department of Agriculture under Section
1330-5 until 2 years after the date the craft grower was awarded
14the license.
15(Source: P.A. 101-27, eff. 6-25-19.)