Illinois General Assembly - Full Text of HB3503
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Full Text of HB3503  102nd General Assembly

HB3503 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3503

 

Introduced 2/22/2021, by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/5-45
410 ILCS 705/7-30
410 ILCS 705/15-25
410 ILCS 705/15-35
410 ILCS 705/20-5
410 ILCS 705/25-40
410 ILCS 705/30-5
410 ILCS 705/35-5
410 ILCS 705/35-31

    Amends the Cannabis Regulation and Tax Act. Removes references to the Illinois Cannabis Regulation Oversight Officer and replaces them with references to the Office of Cannabis Regulation and Oversight. Makes conforming changes throughout the Act. Removes language providing that the Illinois Cannabis Regulation Oversight Officer is within the Department of Financial and Professional Regulation under the Secretary of Financial and Professional Regulation. Provides that the Director of the Office of Cannabis Regulation and Oversight shall be appointed by the Governor with the advice and consent of the Senate. Transfers all powers, duties, rights, responsibilities, personnel, and property of the Illinois Cannabis Regulation Oversight Officer to the Office of Cannabis Regulation and Oversight.


LRB102 13959 CPF 19311 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3503LRB102 13959 CPF 19311 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 5-45, 7-30, 15-25, 15-35, 20-5, 25-40,
630-5, 35-5, and 35-31 as follows:
 
7    (410 ILCS 705/5-45)
8    Sec. 5-45. Office of Cannabis Regulation and Oversight
9Illinois Cannabis Regulation Oversight Officer.
10    (a) The Office of Cannabis Regulation and Oversight
11position of Illinois Cannabis Regulation Oversight Officer is
12created within the Department of Financial and Professional
13Regulation under the Secretary of Financial and Professional
14Regulation. The Director of the Office of Cannabis Regulation
15and Oversight Illinois Cannabis Regulation Oversight Officer
16shall be appointed by the Governor with the advice and consent
17of the Senate. The term of office of the Director Officer shall
18expire on the third Monday of January in odd-numbered years
19provided that he or she shall hold office until a successor is
20appointed and qualified. In case of vacancy in office during
21the recess of the Senate, the Governor shall make a temporary
22appointment until the next meeting of the Senate, when the
23Governor shall nominate some person to fill the office, and

 

 

HB3503- 2 -LRB102 13959 CPF 19311 b

1any person so nominated who is confirmed by the Senate shall
2hold office during the remainder of the term and until his or
3her successor is appointed and qualified.
4    (b) Subject to appropriation, the Office of Cannabis
5Regulation and Oversight The Illinois Cannabis Regulation
6Oversight Officer may:
7        (1) maintain a staff;
8        (2) make recommendations for policy, statute, and rule
9    changes;
10        (3) collect data both in Illinois and outside Illinois
11    regarding the regulation of cannabis;
12        (4) compile or assist in the compilation of any
13    reports required by this Act;
14        (5) ensure the coordination of efforts between various
15    State agencies involved in regulating and taxing the sale
16    of cannabis in Illinois; and
17        (6) encourage, promote, suggest, and report best
18    practices for ensuring diversity in the cannabis industry
19    in Illinois.
20    (c) The Office of Cannabis Regulation and Oversight
21Illinois Cannabis Regulation Oversight Officer shall not:
22        (1) participate in the issuance of any business
23    licensing or the making of awards; or
24        (2) participate in any adjudicative decision-making
25    process involving licensing or licensee discipline.
26    (d) Any funding required for the Office of Cannabis

 

 

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1Regulation and Oversight Illinois Cannabis Regulation
2Oversight Officer, its staff, or its activities shall be drawn
3from the Cannabis Regulation Fund.
4    (e) The Illinois Cannabis Regulation Oversight Officer
5created under Public Act 101-27 shall commission and publish a
6disparity and availability study by March 1, 2021 that: (1)
7evaluates whether there exists discrimination in the State's
8cannabis industry; and (2) if so, evaluates the impact of such
9discrimination on the State and includes recommendations to
10the Department of Financial and Professional Regulation and
11the Department of Agriculture for reducing or eliminating any
12identified barriers to entry in the cannabis market. The
13Illinois Cannabis Regulation Oversight Officer shall forward a
14copy of its findings and recommendations to the Department of
15Financial and Professional Regulation, the Department of
16Agriculture, the Department of Commerce and Economic
17Opportunity, the General Assembly, and the Governor. The
18Office of Cannabis Regulation and Oversight shall carry out
19any duties that remain under this subsection on the effective
20date of this amendatory Act of the 102nd General Assembly.
21    (f) The Office of Cannabis Regulation and Oversight
22Illinois Cannabis Regulation Oversight Officer may compile,
23collect, or otherwise gather data necessary for the
24administration of this Act and to carry out the Officer's duty
25relating to the recommendation of policy changes. The Office
26of Cannabis Regulation and Oversight Illinois Cannabis

 

 

HB3503- 4 -LRB102 13959 CPF 19311 b

1Regulation Oversight Officer may direct the Department of
2Agriculture, Department of Financial and Professional
3Regulation, Department of Public Health, Department of Human
4Services, and Department of Commerce and Economic Opportunity
5to assist in the compilation, collection, and data gathering
6authorized pursuant to this subsection. The Office of Cannabis
7Regulation and Oversight Illinois Cannabis Regulation
8Oversight Officer shall compile all of the data into a single
9report and submit the report to the Governor and the General
10Assembly and publish the report on its website.
11    (g) On the effective date of this amendatory Act of the
12102nd General Assembly, all powers, duties, rights, and
13responsibilities of the Illinois Cannabis Regulation Oversight
14Officer within the Department of Financial and Professional
15Regulation are transferred to the Office of Cannabis
16Regulation and Oversight. The personnel of the Illinois
17Cannabis Regulation Oversight Officer are transferred to the
18Office of Cannabis Regulation and Oversight. The status and
19rights of such personnel under the Personnel Code are not
20affected by the transfer. The rights of the employees and the
21State of Illinois and its agencies under the Personnel Code
22and applicable collective bargaining agreements or under any
23pension, retirement, or annuity plan are not affected by this
24amendatory Act of the 102nd General Assembly. All books,
25records, papers, documents, property (real and personal),
26contracts, causes of action, and pending business pertaining

 

 

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1to the powers, duties, rights, and responsibilities
2transferred by this amendatory Act of the 102nd General
3Assembly from the Illinois Cannabis Regulation Oversight
4Officer to the Office of Cannabis Regulation and Oversight,
5including, but not limited to, material in electronic or
6magnetic format and necessary computer hardware and software,
7are transferred to the Office of Cannabis Regulation and
8Oversight. The powers, duties, rights, and responsibilities
9relating to the Illinois Cannabis Regulation Oversight Officer
10transferred by this amendatory Act of the 102nd General
11Assembly are vested in the Office of Cannabis Regulation and
12Oversight. Whenever reports or notices are required to be made
13or given or papers or documents furnished or served by any
14person to or upon the Illinois Cannabis Regulation Oversight
15Officer in connection with any of the powers, duties, rights,
16and responsibilities transferred by this amendatory Act of the
17102nd General Assembly, the Office of Cannabis Regulation and
18Oversight shall make, give, furnish, or serve them. This
19amendatory Act of the 102nd General Assembly does not affect
20any act done, ratified, or canceled, any right occurring or
21established, or any action or proceeding had or commenced in
22an administrative, civil, or criminal cause by the Illinois
23Cannabis Regulation Oversight Officer before the effective
24date of this amendatory Act of the 102nd General Assembly.
25Such actions or proceedings may be prosecuted and continued by
26the Office of Cannabis Regulation and Oversight. Any rules

 

 

HB3503- 6 -LRB102 13959 CPF 19311 b

1that relate to the powers, duties, rights, and
2responsibilities of the Illinois Cannabis Regulation Oversight
3Officer and are in force on the effective date of this
4amendatory Act of the 102nd General Assembly become the rules
5of the Office of Cannabis Regulation and Oversight. This
6amendatory Act of the 102nd General Assembly does not affect
7the legality of any such rules. Any proposed rules filed with
8the Secretary of State by the Department of Financial and
9Professional Regulation that are pending in the rulemaking
10process on the effective date of this amendatory Act of the
11102nd General Assembly and pertain to the transferred powers,
12duties, rights, and responsibilities are deemed to have been
13filed by the Office of Cannabis Regulation and Oversight. As
14soon as practicable, the Office of Cannabis Regulation and
15Oversight shall revise and clarify the rules transferred to it
16under this amendatory Act of the 102nd General Assembly to
17reflect the reorganization of powers, duties, rights, and
18responsibilities affected by this amendatory Act of the 102nd
19General Assembly, using the procedures for recodification of
20rules available under the Illinois Administrative Procedure
21Act, except that existing title, part, and section numbering
22for the affected rules may be retained. The Office of Cannabis
23Regulation and Oversight may propose and adopt under the
24Illinois Administrative Procedure Act other rules of the
25Department of Financial and Professional Regulation pertaining
26to this amendatory Act of the 102nd General Assembly that are

 

 

HB3503- 7 -LRB102 13959 CPF 19311 b

1administered by the Office of Cannabis Regulation and
2Oversight.
3(Source: P.A. 101-27, eff. 6-25-19.)
 
4    (410 ILCS 705/7-30)
5    Sec. 7-30. Reporting. By January 1, 2021, and on January 1
6of every year thereafter, or upon request by the Office of
7Cannabis Regulation and Oversight Illinois Cannabis Regulation
8Oversight Officer, each cannabis business establishment
9licensed under this Act shall report to the Office of Cannabis
10Regulation and Oversight Illinois Cannabis Regulation
11Oversight Officer, on a form to be provided by the Office of
12Cannabis Regulation and Oversight Illinois Cannabis Regulation
13Oversight Officer, information that will allow it to assess
14the extent of diversity in the medical and adult use cannabis
15industry and methods for reducing or eliminating any
16identified barriers to entry, including access to capital. The
17information to be collected shall be designed to identify the
18following:
19        (1) the number and percentage of licenses provided to
20    Social Equity Applicants and to businesses owned by
21    minorities, women, veterans, and people with disabilities;
22        (2) the total number and percentage of employees in
23    the cannabis industry who meet the criteria in (3)(i) or
24    (3)(ii) in the definition of Social Equity Applicant or
25    who are minorities, women, veterans, or people with

 

 

HB3503- 8 -LRB102 13959 CPF 19311 b

1    disabilities;
2        (3) the total number and percentage of contractors and
3    subcontractors in the cannabis industry that meet the
4    definition of a Social Equity Applicant or who are owned
5    by minorities, women, veterans, or people with
6    disabilities, if known to the cannabis business
7    establishment; and
8        (4) recommendations on reducing or eliminating any
9    identified barriers to entry, including access to capital,
10    in the cannabis industry.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/15-25)
13    Sec. 15-25. Awarding of Conditional Adult Use Dispensing
14Organization Licenses prior to January 1, 2021.
15    (a) The Department shall issue up to 75 Conditional Adult
16Use Dispensing Organization Licenses before May 1, 2020.
17    (b) The Department shall make the application for a
18Conditional Adult Use Dispensing Organization License
19available no later than October 1, 2019 and shall accept
20applications no later than January 1, 2020.
21    (c) To ensure the geographic dispersion of Conditional
22Adult Use Dispensing Organization License holders, the
23following number of licenses shall be awarded in each BLS
24Region as determined by each region's percentage of the
25State's population:

 

 

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

 

 

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

 

 

HB3503- 11 -LRB102 13959 CPF 19311 b

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

 

 

HB3503- 12 -LRB102 13959 CPF 19311 b

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

 

 

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

 

 

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1    the disparity and availability study referenced in
2    subsection (e) of Section 5-45.
3    (e) An applicant who receives a Conditional Adult Use
4Dispensing Organization License under this Section has 180
5days from the date of award to identify a physical location for
6the dispensing organization retail storefront. Before a
7conditional licensee receives an authorization to build out
8the dispensing organization from the Department, the
9Department shall inspect the physical space selected by the
10conditional licensee. The Department shall verify the site is
11suitable for public access, the layout promotes the safe
12dispensing of cannabis, the location is sufficient in size,
13power allocation, lighting, parking, handicapped accessible
14parking spaces, accessible entry and exits as required by the
15Americans with Disabilities Act, product handling, and
16storage. The applicant shall also provide a statement of
17reasonable assurance that the issuance of a license will not
18have a detrimental impact on the community. The applicant
19shall also provide evidence that the location is not within
201,500 feet of an existing dispensing organization. If an
21applicant is unable to find a suitable physical address in the
22opinion of the Department within 180 days of the issuance of
23the Conditional Adult Use Dispensing Organization License, the
24Department may extend the period for finding a physical
25address another 180 days if the Conditional Adult Use
26Dispensing Organization License holder demonstrates concrete

 

 

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1attempts to secure a location and a hardship. If the
2Department denies the extension or the Conditional Adult Use
3Dispensing Organization License holder is unable to find a
4location or become operational within 360 days of being
5awarded a conditional license, the Department shall rescind
6the conditional license and award it to the next highest
7scoring applicant in the BLS Region for which the license was
8assigned, provided the applicant receiving the license: (i)
9confirms a continued interest in operating a dispensing
10organization; (ii) can provide evidence that the applicant
11continues to meet all requirements for holding a Conditional
12Adult Use Dispensing Organization License set forth in this
13Act; and (iii) has not otherwise become ineligible to be
14awarded a dispensing organization license. If the new awardee
15is unable to accept the Conditional Adult Use Dispensing
16Organization License, the Department shall award the
17Conditional Adult Use Dispensing Organization License to the
18next highest scoring applicant in the same manner. The new
19awardee shall be subject to the same required deadlines as
20provided in this subsection.
21    (e-5) If, within 180 days of being awarded a Conditional
22Adult Use Dispensing Organization License, a dispensing
23organization is unable to find a location within the BLS
24Region in which it was awarded a Conditional Adult Use
25Dispensing Organization License because no jurisdiction within
26the BLS Region allows for the operation of an Adult Use

 

 

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

 

 

HB3503- 17 -LRB102 13959 CPF 19311 b

1information to the Department.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    (410 ILCS 705/15-35)
4    Sec. 15-35. Conditional Adult Use Dispensing Organization
5License after January 1, 2021.
6    (a) In addition to any of the licenses issued in Sections
715-15, Section 15-20, or Section 15-25 of this Act, by
8December 21, 2021, the Department shall issue up to 110
9Conditional Adult Use Dispensing Organization Licenses,
10pursuant to the application process adopted under this
11Section. Prior to issuing such licenses, the Department may
12adopt rules through emergency rulemaking in accordance with
13subsection (gg) of Section 5-45 of the Illinois Administrative
14Procedure Act. The General Assembly finds that the adoption of
15rules to regulate cannabis use is deemed an emergency and
16necessary for the public interest, safety, and welfare. Such
17rules may:
18        (1) Modify or change the BLS Regions as they apply to
19    this Article or modify or raise the number of Adult
20    Conditional Use Dispensing Organization Licenses assigned
21    to each region based on the following factors:
22            (A) Purchaser wait times;
23            (B) Travel time to the nearest dispensary for
24        potential purchasers;
25            (C) Percentage of cannabis sales occurring in

 

 

HB3503- 18 -LRB102 13959 CPF 19311 b

1        Illinois not in the regulated market using data from
2        the Substance Abuse and Mental Health Services
3        Administration, National Survey on Drug Use and
4        Health, Illinois Behavioral Risk Factor Surveillance
5        System, and tourism data from the Illinois Office of
6        Tourism to ascertain total cannabis consumption in
7        Illinois compared to the amount of sales in licensed
8        dispensing organizations;
9            (D) Whether there is an adequate supply of
10        cannabis and cannabis-infused products to serve
11        registered medical cannabis patients;
12            (E) Population increases or shifts;
13            (F) Density of dispensing organizations in a
14        region;
15            (G) The Department's capacity to appropriately
16        regulate additional licenses;
17            (H) The findings and recommendations from the
18        disparity and availability study commissioned under by
19        the Illinois Cannabis Regulation Oversight Officer in
20        subsection (e) of Section 5-45 to reduce or eliminate
21        any identified barriers to entry in the cannabis
22        industry; and
23            (I) Any other criteria the Department deems
24        relevant.
25        (2) Modify or change the licensing application process
26    to reduce or eliminate the barriers identified in the

 

 

HB3503- 19 -LRB102 13959 CPF 19311 b

1    disparity and availability study commissioned under
2    subsection (e) of Section 5-45 by the Illinois Cannabis
3    Regulation Oversight Officer and make modifications to
4    remedy evidence of discrimination.
5    (b) After January 1, 2022, the Department may by rule
6modify or raise the number of Adult Use Dispensing
7Organization Licenses assigned to each region, and modify or
8change the licensing application process to reduce or
9eliminate barriers based on the criteria in subsection (a). At
10no time shall the Department issue more than 500 Adult Use
11Dispensing Organization Licenses.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
13    (410 ILCS 705/20-5)
14    Sec. 20-5. Issuance of licenses. On or after July 1, 2021,
15the Department of Agriculture by rule may:
16        (1) Modify or change the number of cultivation center
17    licenses available, which shall at no time exceed 30
18    cultivation center licenses. In determining whether to
19    exercise the authority granted by this subsection, the
20    Department of Agriculture must consider the following
21    factors:
22            (A) The 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

 

 

HB3503- 20 -LRB102 13959 CPF 19311 b

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            (B) Whether there is an adequate supply of
7        cannabis and cannabis-infused products to serve
8        registered medical cannabis patients;
9            (C) Whether there is an adequate supply of
10        cannabis and cannabis-infused products to serve
11        purchasers;
12            (D) Whether there is an oversupply of cannabis in
13        Illinois leading to trafficking of cannabis to any
14        other state;
15            (E) Population increases or shifts;
16            (F) Changes to federal law;
17            (G) Perceived security risks of increasing the
18        number or location of cultivation centers;
19            (H) The past security records of cultivation
20        centers;
21            (I) The Department of Agriculture's capacity to
22        appropriately regulate additional licensees;
23            (J) The findings and recommendations from the
24        disparity and availability study commissioned under by
25        the Illinois Cannabis Regulation Oversight Officer
26        referenced in subsection (e) of Section 5-45 to reduce

 

 

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1        or eliminate any identified barriers to entry in the
2        cannabis industry; and
3            (K) Any other criteria the Department of
4        Agriculture deems relevant.
5        (2) Modify or change the licensing application process
6    to reduce or eliminate the barriers identified in the
7    disparity and availability study commissioned under
8    subsection (e) of Section 5-45 commission by the Illinois
9    Cannabis Regulation Oversight Officer and shall make
10    modifications to remedy evidence of discrimination.
11(Source: P.A. 101-27, eff. 6-25-19.)
 
12    (410 ILCS 705/25-40)
13    (Section scheduled to be repealed on July 1, 2026)
14    Sec. 25-40. Study. By December 31, 2025, the Office of
15Cannabis Regulation and Oversight Illinois Cannabis Regulation
16Oversight Officer, in coordination with the Board, must issue
17a report to the Governor and the General Assembly which
18includes, but is not limited to, the following:
19        (1) Number of security incidents or infractions at
20    each licensee and any action taken or not taken;
21        (2) Statistics, based on race, ethnicity, gender, and
22    participating community college of:
23            (A) students enrolled in career in cannabis
24        classes;
25            (B) successful completion rates by community

 

 

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1        college students for the Certificate;
2            (C) postgraduate job placement of students who
3        obtained a Certificate, including both cannabis
4        business establishment jobs and non-cannabis business
5        establishment jobs; and
6        (3) Any other relevant information.
7(Source: P.A. 101-27, eff. 6-25-19.)
 
8    (410 ILCS 705/30-5)
9    Sec. 30-5. Issuance of licenses.
10    (a) The Department of Agriculture shall issue up to 40
11craft grower licenses by July 1, 2020. Any person or entity
12awarded a license pursuant to this subsection shall only hold
13one craft grower license and may not sell that license until
14after December 21, 2021.
15    (b) By December 21, 2021, the Department of Agriculture
16shall issue up to 60 additional craft grower licenses. Any
17person or entity awarded a license pursuant to this subsection
18shall not hold more than 2 craft grower licenses. The person or
19entity awarded a license pursuant to this subsection or
20subsection (a) of this Section may sell its craft grower
21license subject to the restrictions of this Act or as
22determined by administrative rule. Prior to issuing such
23licenses, the Department may adopt rules through emergency
24rulemaking in accordance with subsection (gg) of Section 5-45
25of the Illinois Administrative Procedure Act, to modify or

 

 

HB3503- 23 -LRB102 13959 CPF 19311 b

1raise the number of craft grower licenses and modify or change
2the licensing application process to reduce or eliminate
3barriers. The General Assembly finds that the adoption of
4rules to regulate cannabis use is deemed an emergency and
5necessary for the public interest, safety, and welfare. In
6determining whether to exercise the authority granted by this
7subsection, the Department of Agriculture must consider the
8following factors:
9        (1) the percentage of cannabis sales occurring in
10    Illinois not in the regulated market using data from the
11    Substance Abuse and Mental Health Services Administration,
12    National Survey on Drug Use and Health, Illinois
13    Behavioral Risk Factor Surveillance System, and tourism
14    data from the Illinois Office of Tourism to ascertain
15    total cannabis consumption in Illinois compared to the
16    amount of sales in licensed dispensing organizations;
17        (2) whether there is an adequate supply of cannabis
18    and cannabis-infused products to serve registered medical
19    cannabis patients;
20        (3) whether there is an adequate supply of cannabis
21    and cannabis-infused products to serve purchasers;
22        (4) whether there is an oversupply of cannabis in
23    Illinois leading to trafficking of cannabis to states
24    where the sale of cannabis is not permitted by law;
25        (5) population increases or shifts;
26        (6) the density of craft growers in any area of the

 

 

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1    State;
2        (7) perceived security risks of increasing the number
3    or location of craft growers;
4        (8) the past safety record of craft growers;
5        (9) the Department of Agriculture's capacity to
6    appropriately regulate additional licensees;
7        (10) the findings and recommendations from the
8    disparity and availability study commissioned under
9    subsection (e) of Section 5-45 by the Illinois Cannabis
10    Regulation Oversight Officer to reduce or eliminate any
11    identified barriers to entry in the cannabis industry; and
12        (11) any other criteria the Department of Agriculture
13    deems relevant.
14    (c) After January 1, 2022, the Department of Agriculture
15may by rule modify or raise the number of craft grower licenses
16and modify or change the licensing application process to
17reduce or eliminate barriers based on the criteria in
18subsection (b). At no time may the number of craft grower
19licenses exceed 150. Any person or entity awarded a license
20pursuant to this subsection shall not hold more than 3 craft
21grower licenses. A person or entity awarded a license pursuant
22to this subsection or subsection (a) or subsection (b) of this
23Section may sell its craft grower license or licenses subject
24to the restrictions of this Act or as determined by
25administrative rule.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

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1    (410 ILCS 705/35-5)
2    Sec. 35-5. Issuance of licenses.
3    (a) The Department of Agriculture shall issue up to 40
4infuser licenses through a process provided for in this
5Article no later than July 1, 2020.
6    (b) The Department of Agriculture shall make the
7application for infuser licenses available on January 7, 2020,
8or if that date falls on a weekend or holiday, the business day
9immediately succeeding the weekend or holiday and every
10January 7 or succeeding business day thereafter, and shall
11receive such applications no later than March 15, 2020, or, if
12that date falls on a weekend or holiday, the business day
13immediately succeeding the weekend or holiday and every March
1415 or succeeding business day thereafter.
15    (c) By December 21, 2021, the Department of Agriculture
16may issue up to 60 additional infuser licenses. Prior to
17issuing such licenses, the Department may adopt rules through
18emergency rulemaking in accordance with subsection (gg) of
19Section 5-45 of the Illinois Administrative Procedure Act, to
20modify or raise the number of infuser licenses and modify or
21change the licensing application process to reduce or
22eliminate barriers. The General Assembly finds that the
23adoption of rules to regulate cannabis use is deemed an
24emergency and necessary for the public interest, safety, and
25welfare.

 

 

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1    In determining whether to exercise the authority granted
2by this subsection, the Department of Agriculture must
3consider the following 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 any other
19    state;
20        (5) population increases or shifts;
21        (6) changes to federal law;
22        (7) perceived security risks of increasing the number
23    or location of infuser organizations;
24        (8) the past security records of infuser
25    organizations;
26        (9) the Department of Agriculture's capacity to

 

 

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1    appropriately regulate additional licenses;
2        (10) the findings and recommendations from the
3    disparity and availability study commissioned under
4    subsection (e) of Section 5-45 by the Illinois Cannabis
5    Regulation Oversight Officer to reduce or eliminate any
6    identified barriers to entry in the cannabis industry; and
7        (11) any other criteria the Department of Agriculture
8    deems relevant.
9    (d) After January 1, 2022, the Department of Agriculture
10may by rule modify or raise the number of infuser licenses, and
11modify or change the licensing application process to reduce
12or eliminate barriers based on the criteria in subsection (c).
13(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
14    (410 ILCS 705/35-31)
15    Sec. 35-31. Ensuring an adequate supply of raw materials
16to serve infusers.
17    (a) As used in this Section, "raw materials" includes, but
18is not limited to, CO2 hash oil, "crude", "distillate", or any
19other cannabis concentrate extracted from cannabis flower by
20use of a solvent or a mechanical process.
21    (b) The Department of Agriculture may by rule design a
22method for assessing whether licensed infusers have access to
23an adequate supply of reasonably affordable raw materials,
24which may include but not be limited to: (i) a survey of
25infusers; (ii) a market study on the sales trends of

 

 

HB3503- 28 -LRB102 13959 CPF 19311 b

1cannabis-infused products manufactured by infusers; and (iii)
2the costs cultivation centers and craft growers assume for the
3raw materials they use in any cannabis-infused products they
4manufacture.
5    (c) The Department of Agriculture shall perform an
6assessment of whether infusers have access to an adequate
7supply of reasonably affordable raw materials that shall start
8no sooner than January 1, 2022 and shall conclude no later than
9April 1, 2022. The Department of Agriculture may rely on data
10from the Office of Cannabis Regulation and Oversight Illinois
11Cannabis Regulation Oversight Officer as part of this
12assessment.
13    (d) The Department of Agriculture shall perform an
14assessment of whether infusers have access to an adequate
15supply of reasonably affordable raw materials that shall start
16no sooner than January 1, 2023 and shall conclude no later than
17April 1, 2023. The Department of Agriculture may rely on data
18from the Office of Cannabis Regulation and Oversight Cannabis
19Regulation Oversight Officer as part of this assessment.
20    (e) The Department of Agriculture may by rule adopt
21measures to ensure infusers have access to an adequate supply
22of reasonably affordable raw materials necessary for the
23manufacture of cannabis-infused products. Such measures may
24include, but not be limited to (i) requiring cultivation
25centers and craft growers to set aside a minimum amount of raw
26materials for the wholesale market or (ii) enabling infusers

 

 

HB3503- 29 -LRB102 13959 CPF 19311 b

1to apply for a processor license to extract raw materials from
2cannabis flower.
3    (f) If the Department of Agriculture determines processor
4licenses may be available to infuser organizations based upon
5findings made pursuant to subsection (e), infuser
6organizations may submit to the Department of Agriculture on
7forms provided by the Department of Agriculture the following
8information as part of an application to receive a processor
9license:
10        (1) experience with the extraction, processing, or
11    infusing of oils similar to those derived from cannabis,
12    or other business practices to be performed by the
13    infuser;
14        (2) a description of the applicant's experience with
15    manufacturing equipment and chemicals to be used in
16    processing;
17        (3) expertise in relevant scientific fields;
18        (4) a commitment that any cannabis waste, liquid
19    waste, or hazardous waste shall be disposed of in
20    accordance with 8 Ill. Adm. Code 1000.460, except, to the
21    greatest extent feasible, all cannabis plant waste will be
22    rendered unusable by grinding and incorporating the
23    cannabis plant waste with compostable mixed waste to be
24    disposed of in accordance with Ill. Adm. Code
25    1000.460(g)(1); and
26        (5) any other information the Department of

 

 

HB3503- 30 -LRB102 13959 CPF 19311 b

1    Agriculture deems relevant.
2    (g) The Department of Agriculture may only issue an
3infuser organization a processor license if, based on the
4information pursuant to subsection (f) and any other criteria
5set by the Department of Agriculture, which may include but
6not be limited an inspection of the site where processing
7would occur, the Department of Agriculture is reasonably
8certain the infuser organization will process cannabis in a
9safe and compliant manner.
10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)