Illinois General Assembly - Full Text of SB2404
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Full Text of SB2404  102nd General Assembly

SB2404 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2404

 

Introduced 2/26/2021, by Sen. Napoleon Harris, III

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Compassionate Use of Medical Cannabis Program Act. Provides that Nonstorefront Delivery Organizations and Storefront Delivery Organizations are "medical cannabis dispensing organizations". Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any other provision of law, a Nonstorefront Delivery Organization or Storefront Delivery Organization may acquire cannabis for the purpose of selling or dispensing, exclusively through delivery, cannabis products to purchasers or to qualified registered medical cannabis patients and caregivers under the Compassionate Use of Medical Cannabis Program Act. Requires the Department of Financial and Professional Regulation to issue up to 200 Conditional Nonstorefront Adult Use Cannabis Delivery Organization Licenses and unlimited Conditional Storefront Adult Use Cannabis Delivery Organization Licenses before May 1st, 2022. Provides that the Department shall make the application for the licenses available no later than October 1, 2021. Contains requirements for application, licensure, and background checks. Provides that a Nonstorefront or Storefront Delivery Organization may only engage in sales or deliveries or receive shipments between the hours of 6:00 a.m. and 10:00 p.m. Provides that a Nonstorefront or Storefront Delivery Organization may contract with a service that provides a technology platform to facilitate the sale and delivery of cannabis products. Contains requirements regarding delivery of cannabis products. Provides that Nonstorefront and Storefront Delivery Organizations are "cannabis business establishments". Contains other provisions. Effective immediately.


LRB102 15258 CPF 20613 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2404LRB102 15258 CPF 20613 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Compassionate Use of Medical Cannabis
5Program Act is amended by changing Section 10 as follows:
 
6    (410 ILCS 130/10)
7    Sec. 10. Definitions. The following terms, as used in this
8Act, shall have the meanings set forth in this Section:
9    (a) "Adequate supply" means:
10        (1) 2.5 ounces of usable cannabis during a period of
11    14 days and that is derived solely from an intrastate
12    source.
13        (2) Subject to the rules of the Department of Public
14    Health, a patient may apply for a waiver where a
15    certifying health care professional provides a substantial
16    medical basis in a signed, written statement asserting
17    that, based on the patient's medical history, in the
18    certifying health care professional's professional
19    judgment, 2.5 ounces is an insufficient adequate supply
20    for a 14-day period to properly alleviate the patient's
21    debilitating medical condition or symptoms associated with
22    the debilitating medical condition.
23        (3) This subsection may not be construed to authorize

 

 

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1    the possession of more than 2.5 ounces at any time without
2    authority from the Department of Public Health.
3        (4) The pre-mixed weight of medical cannabis used in
4    making a cannabis infused product shall apply toward the
5    limit on the total amount of medical cannabis a registered
6    qualifying patient may possess at any one time.
7    (a-5) "Advanced practice registered nurse" means a person
8who is licensed under the Nurse Practice Act as an advanced
9practice registered nurse and has a controlled substances
10license under Article III of the Illinois Controlled
11Substances Act.
12    (b) "Cannabis" has the meaning given that term in Section
133 of the Cannabis Control Act.
14    (c) "Cannabis plant monitoring system" means a system that
15includes, but is not limited to, testing and data collection
16established and maintained by the registered cultivation
17center and available to the Department for the purposes of
18documenting each cannabis plant and for monitoring plant
19development throughout the life cycle of a cannabis plant
20cultivated for the intended use by a qualifying patient from
21seed planting to final packaging.
22    (d) "Cardholder" means a qualifying patient or a
23designated caregiver who has been issued and possesses a valid
24registry identification card by the Department of Public
25Health.
26    (d-5) "Certifying health care professional" means a

 

 

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1physician, an advanced practice registered nurse, or a
2physician assistant.
3    (e) "Cultivation center" means a facility operated by an
4organization or business that is registered by the Department
5of Agriculture to perform necessary activities to provide only
6registered medical cannabis dispensing organizations with
7usable medical cannabis.
8    (f) "Cultivation center agent" means a principal officer,
9board member, employee, or agent of a registered cultivation
10center who is 21 years of age or older and has not been
11convicted of an excluded offense.
12    (g) "Cultivation center agent identification card" means a
13document issued by the Department of Agriculture that
14identifies a person as a cultivation center agent.
15    (h) "Debilitating medical condition" means one or more of
16the following:
17        (1) cancer, glaucoma, positive status for human
18    immunodeficiency virus, acquired immune deficiency
19    syndrome, hepatitis C, amyotrophic lateral sclerosis,
20    Crohn's disease (including, but not limited to, ulcerative
21    colitis), agitation of Alzheimer's disease,
22    cachexia/wasting syndrome, muscular dystrophy, severe
23    fibromyalgia, spinal cord disease, including but not
24    limited to arachnoiditis, Tarlov cysts, hydromyelia,
25    syringomyelia, Rheumatoid arthritis, fibrous dysplasia,
26    spinal cord injury, traumatic brain injury and

 

 

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1    post-concussion syndrome, Multiple Sclerosis,
2    Arnold-Chiari malformation and Syringomyelia,
3    Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,
4    Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD
5    (Complex Regional Pain Syndromes Type I), Causalgia, CRPS
6    (Complex Regional Pain Syndromes Type II),
7    Neurofibromatosis, Chronic Inflammatory Demyelinating
8    Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial
9    Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella
10    syndrome, residual limb pain, seizures (including those
11    characteristic of epilepsy), post-traumatic stress
12    disorder (PTSD), autism, chronic pain, irritable bowel
13    syndrome, migraines, osteoarthritis, anorexia nervosa,
14    Ehlers-Danlos Syndrome, Neuro-Behcet's Autoimmune
15    Disease, neuropathy, polycystic kidney disease, superior
16    canal dehiscence syndrome, or the treatment of these
17    conditions;
18        (1.5) terminal illness with a diagnosis of 6 months or
19    less; if the terminal illness is not one of the qualifying
20    debilitating medical conditions, then the certifying
21    health care professional shall on the certification form
22    identify the cause of the terminal illness; or
23        (2) any other debilitating medical condition or its
24    treatment that is added by the Department of Public Health
25    by rule as provided in Section 45.
26    (i) "Designated caregiver" means a person who: (1) is at

 

 

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1least 21 years of age; (2) has agreed to assist with a
2patient's medical use of cannabis; (3) has not been convicted
3of an excluded offense; and (4) assists no more than one
4registered qualifying patient with his or her medical use of
5cannabis.
6    (j) "Dispensing organization agent identification card"
7means a document issued by the Department of Financial and
8Professional Regulation that identifies a person as a medical
9cannabis dispensing organization agent.
10    (k) "Enclosed, locked facility" means a room, greenhouse,
11building, or other enclosed area equipped with locks or other
12security devices that permit access only by a cultivation
13center's agents or a dispensing organization's agent working
14for the registered cultivation center or the registered
15dispensing organization to cultivate, store, and distribute
16cannabis for registered qualifying patients.
17    (l) "Excluded offense" for cultivation center agents and
18dispensing organizations means:
19        (1) a violent crime defined in Section 3 of the Rights
20    of Crime Victims and Witnesses Act or a substantially
21    similar offense that was classified as a felony in the
22    jurisdiction where the person was convicted; or
23        (2) a violation of a state or federal controlled
24    substance law, the Cannabis Control Act, or the
25    Methamphetamine Control and Community Protection Act that
26    was classified as a felony in the jurisdiction where the

 

 

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1    person was convicted, except that the registering
2    Department may waive this restriction if the person
3    demonstrates to the registering Department's satisfaction
4    that his or her conviction was for the possession,
5    cultivation, transfer, or delivery of a reasonable amount
6    of cannabis intended for medical use. This exception does
7    not apply if the conviction was under state law and
8    involved a violation of an existing medical cannabis law.
9    For purposes of this subsection, the Department of Public
10Health shall determine by emergency rule within 30 days after
11the effective date of this amendatory Act of the 99th General
12Assembly what constitutes a "reasonable amount".
13    (l-5) (Blank).
14    (l-10) "Illinois Cannabis Tracking System" means a
15web-based system established and maintained by the Department
16of Public Health that is available to the Department of
17Agriculture, the Department of Financial and Professional
18Regulation, the Illinois State Police, and registered medical
19cannabis dispensing organizations on a 24-hour basis to upload
20written certifications for Opioid Alternative Pilot Program
21participants, to verify Opioid Alternative Pilot Program
22participants, to verify Opioid Alternative Pilot Program
23participants' available cannabis allotment and assigned
24dispensary, and the tracking of the date of sale, amount, and
25price of medical cannabis purchased by an Opioid Alternative
26Pilot Program participant.

 

 

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1    (m) "Medical cannabis cultivation center registration"
2means a registration issued by the Department of Agriculture.
3    (n) "Medical cannabis container" means a sealed,
4traceable, food compliant, tamper resistant, tamper evident
5container, or package used for the purpose of containment of
6medical cannabis from a cultivation center to a dispensing
7organization.
8    (o) "Medical cannabis dispensing organization", or
9"dispensing organization", or "dispensary organization" means
10a facility operated by an organization or business that is
11registered by the Department of Financial and Professional
12Regulation to acquire medical cannabis from a registered
13cultivation center for the purpose of dispensing cannabis,
14paraphernalia, or related supplies and educational materials
15to registered qualifying patients, individuals with a
16provisional registration for qualifying patient cardholder
17status, or an Opioid Alternative Pilot Program participant.
18"Medical cannabis dispensing organization" includes a
19Nonstorefront Delivery Organization licensed under Section
2015-123 of the Cannabis Regulation and Tax Act and a Storefront
21Delivery Organization licensed under Section 15-124 of the
22Cannabis Regulation and Tax Act.
23    (p) "Medical cannabis dispensing organization agent" or
24"dispensing organization agent" means a principal officer,
25board member, employee, or agent of a registered medical
26cannabis dispensing organization who is 21 years of age or

 

 

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1older and has not been convicted of an excluded offense.
2    (q) "Medical cannabis infused product" means food, oils,
3ointments, or other products containing usable cannabis that
4are not smoked.
5    (r) "Medical use" means the acquisition; administration;
6delivery; possession; transfer; transportation; or use of
7cannabis to treat or alleviate a registered qualifying
8patient's debilitating medical condition or symptoms
9associated with the patient's debilitating medical condition.
10    (r-5) "Opioid" means a narcotic drug or substance that is
11a Schedule II controlled substance under paragraph (1), (2),
12(3), or (5) of subsection (b) or under subsection (c) of
13Section 206 of the Illinois Controlled Substances Act.
14    (r-10) "Opioid Alternative Pilot Program participant"
15means an individual who has received a valid written
16certification to participate in the Opioid Alternative Pilot
17Program for a medical condition for which an opioid has been or
18could be prescribed by a certifying health care professional
19based on generally accepted standards of care.
20    (s) "Physician" means a doctor of medicine or doctor of
21osteopathy licensed under the Medical Practice Act of 1987 to
22practice medicine and who has a controlled substances license
23under Article III of the Illinois Controlled Substances Act.
24It does not include a licensed practitioner under any other
25Act including but not limited to the Illinois Dental Practice
26Act.

 

 

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1    (s-1) "Physician assistant" means a physician assistant
2licensed under the Physician Assistant Practice Act of 1987
3and who has a controlled substances license under Article III
4of the Illinois Controlled Substances Act.
5    (s-5) "Provisional registration" means a document issued
6by the Department of Public Health to a qualifying patient who
7has submitted: (1) an online application and paid a fee to
8participate in Compassionate Use of Medical Cannabis Program
9pending approval or denial of the patient's application; or
10(2) a completed application for terminal illness.
11    (t) "Qualifying patient" means a person who has been
12diagnosed by a certifying health care professional as having a
13debilitating medical condition.
14    (u) "Registered" means licensed, permitted, or otherwise
15certified by the Department of Agriculture, Department of
16Public Health, or Department of Financial and Professional
17Regulation.
18    (v) "Registry identification card" means a document issued
19by the Department of Public Health that identifies a person as
20a registered qualifying patient or registered designated
21caregiver.
22    (w) "Usable cannabis" means the seeds, leaves, buds, and
23flowers of the cannabis plant and any mixture or preparation
24thereof, but does not include the stalks, and roots of the
25plant. It does not include the weight of any non-cannabis
26ingredients combined with cannabis, such as ingredients added

 

 

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1to prepare a topical administration, food, or drink.
2    (x) "Verification system" means a Web-based system
3established and maintained by the Department of Public Health
4that is available to the Department of Agriculture, the
5Department of Financial and Professional Regulation, law
6enforcement personnel, and registered medical cannabis
7dispensing organization agents on a 24-hour basis for the
8verification of registry identification cards, the tracking of
9delivery of medical cannabis to medical cannabis dispensing
10organizations, and the tracking of the date of sale, amount,
11and price of medical cannabis purchased by a registered
12qualifying patient.
13    (y) "Written certification" means a document dated and
14signed by a certifying health care professional, stating (1)
15that the qualifying patient has a debilitating medical
16condition and specifying the debilitating medical condition
17the qualifying patient has; and (2) that (A) the certifying
18health care professional is treating or managing treatment of
19the patient's debilitating medical condition; or (B) an Opioid
20Alternative Pilot Program participant has a medical condition
21for which opioids have been or could be prescribed. A written
22certification shall be made only in the course of a bona fide
23health care professional-patient relationship, after the
24certifying health care professional has completed an
25assessment of either a qualifying patient's medical history or
26Opioid Alternative Pilot Program participant, reviewed

 

 

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1relevant records related to the patient's debilitating
2condition, and conducted a physical examination.
3    (z) "Bona fide health care professional-patient
4relationship" means a relationship established at a hospital,
5certifying health care professional's office, or other health
6care facility in which the certifying health care professional
7has an ongoing responsibility for the assessment, care, and
8treatment of a patient's debilitating medical condition or a
9symptom of the patient's debilitating medical condition.
10    A veteran who has received treatment at a VA hospital
11shall be deemed to have a bona fide health care
12professional-patient relationship with a VA certifying health
13care professional if the patient has been seen for his or her
14debilitating medical condition at the VA Hospital in
15accordance with VA Hospital protocols.
16    A bona fide health care professional-patient relationship
17under this subsection is a privileged communication within the
18meaning of Section 8-802 of the Code of Civil Procedure.
19(Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)
 
20    Section 10. The Cannabis Regulation and Tax Act is amended
21by changing Section 1-10 and by adding Sections 15-123 and
2215-124 as follows:
 
23    (410 ILCS 705/1-10)
24    Sec. 1-10. Definitions. In this Act:

 

 

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1    "Adult Use Cultivation Center License" means a license
2issued by the Department of Agriculture that permits a person
3to act as a cultivation center under this Act and any
4administrative rule made in furtherance of this Act.
5    "Adult Use Dispensing Organization License" means a
6license issued by the Department of Financial and Professional
7Regulation that permits a person to act as a dispensing
8organization under this Act and any administrative rule made
9in furtherance of this Act.
10    "Advertise" means to engage in promotional activities
11including, but not limited to: newspaper, radio, Internet and
12electronic media, and television advertising; the distribution
13of fliers and circulars; billboard advertising; and the
14display of window and interior signs. "Advertise" does not
15mean exterior signage displaying only the name of the licensed
16cannabis business establishment.
17    "BLS Region" means a region in Illinois used by the United
18States Bureau of Labor Statistics to gather and categorize
19certain employment and wage data. The 17 such regions in
20Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
21Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
22Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
23Rockford, St. Louis, Springfield, Northwest Illinois
24nonmetropolitan area, West Central Illinois nonmetropolitan
25area, East Central Illinois nonmetropolitan area, and South
26Illinois nonmetropolitan area.

 

 

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1    "Cannabis" means marijuana, hashish, and other substances
2that are identified as including any parts of the plant
3Cannabis sativa and including derivatives or subspecies, such
4as indica, of all strains of cannabis, whether growing or not;
5the seeds thereof, the resin extracted from any part of the
6plant; and any compound, manufacture, salt, derivative,
7mixture, or preparation of the plant, its seeds, or resin,
8including tetrahydrocannabinol (THC) and all other naturally
9produced cannabinol derivatives, whether produced directly or
10indirectly by extraction; however, "cannabis" does not include
11the mature stalks of the plant, fiber produced from the
12stalks, oil or cake made from the seeds of the plant, any other
13compound, manufacture, salt, derivative, mixture, or
14preparation of the mature stalks (except the resin extracted
15from it), fiber, oil or cake, or the sterilized seed of the
16plant that is incapable of germination. "Cannabis" does not
17include industrial hemp as defined and authorized under the
18Industrial Hemp Act. "Cannabis" also means cannabis flower,
19concentrate, and cannabis-infused products.
20    "Cannabis business establishment" means a cultivation
21center, craft grower, processing organization, infuser
22organization, dispensing organization, or transporting
23organization , nonstorefront delivery organization as defined
24under Section 15-123, or storefront delivery organization as
25defined under Section 15-124.
26    "Cannabis concentrate" means a product derived from

 

 

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

 

 

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1processing, preparing, testing, analyzing, packaging,
2repackaging, storing, containing, concealing, ingesting, or
3otherwise introducing cannabis into the human body.
4    "Cannabis plant monitoring system" or "plant monitoring
5system" means a system that includes, but is not limited to,
6testing and data collection established and maintained by the
7cultivation center, craft grower, or processing organization
8and that is available to the Department of Revenue, the
9Department of Agriculture, the Department of Financial and
10Professional Regulation, and the Department of State Police
11for the purposes of documenting each cannabis plant and
12monitoring plant development throughout the life cycle of a
13cannabis plant cultivated for the intended use by a customer
14from seed planting to final packaging.
15    "Cannabis testing facility" means an entity registered by
16the Department of Agriculture to test cannabis for potency and
17contaminants.
18    "Clone" means a plant section from a female cannabis plant
19not yet rootbound, growing in a water solution or other
20propagation matrix, that is capable of developing into a new
21plant.
22    "Community College Cannabis Vocational Training Pilot
23Program faculty participant" means a person who is 21 years of
24age or older, licensed by the Department of Agriculture, and
25is employed or contracted by an Illinois community college to
26provide student instruction using cannabis plants at an

 

 

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1Illinois Community College.
2    "Community College Cannabis Vocational Training Pilot
3Program faculty participant Agent Identification Card" means a
4document issued by the Department of Agriculture that
5identifies a person as Community College Cannabis Vocational
6Training Pilot Program faculty participant.
7    "Conditional Adult Use Dispensing Organization License"
8means a license awarded to top-scoring applicants for an Adult
9Use Dispensing Organization License that reserves the right to
10an Adult Use Dispensing Organization License if the applicant
11meets certain conditions described in this Act, but does not
12entitle the recipient to begin purchasing or selling cannabis
13or cannabis-infused products.
14    "Conditional Adult Use Cultivation Center License" means a
15license awarded to top-scoring applicants for an Adult Use
16Cultivation Center License that reserves the right to an Adult
17Use Cultivation Center License if the applicant meets certain
18conditions as determined by the Department of Agriculture by
19rule, but does not entitle the recipient to begin growing,
20processing, or selling cannabis or cannabis-infused products.
21    "Craft grower" means a facility operated by an
22organization or business that is licensed by the Department of
23Agriculture to cultivate, dry, cure, and package cannabis and
24perform other necessary activities to make cannabis available
25for sale at a dispensing organization or use at a processing
26organization. A craft grower may contain up to 5,000 square

 

 

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

 

 

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1    "Cultivation center agent" means a principal officer,
2board member, employee, or other agent of a cultivation center
3who is 21 years of age or older.
4    "Cultivation Center Agent Identification Card" means a
5document issued by the Department of Agriculture that
6identifies a person as a cultivation center agent.
7    "Currency" means currency and coin of the United States.
8    "Dispensary" means a facility operated by a dispensing
9organization at which activities licensed by this Act may
10occur.
11    "Dispensing organization" means a facility operated by an
12organization or business that is licensed by the Department of
13Financial and Professional Regulation to acquire cannabis from
14a cultivation center, craft grower, processing organization,
15or another dispensary for the purpose of selling or dispensing
16cannabis, cannabis-infused products, cannabis seeds,
17paraphernalia, or related supplies under this Act to
18purchasers or to qualified registered medical cannabis
19patients and caregivers. As used in this Act, "dispensing
20organization" includes a registered medical cannabis
21organization as defined in the Compassionate Use of Medical
22Cannabis Program Act or its successor Act that has obtained an
23Early Approval Adult Use Dispensing Organization License.
24    "Dispensing organization agent" means a principal officer,
25employee, or agent of a dispensing organization who is 21
26years of age or older.

 

 

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

 

 

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

 

 

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1building, or other enclosed area equipped with locks or other
2security devices that permit access only by cannabis business
3establishment agents working for the licensed cannabis
4business establishment or acting pursuant to this Act to
5cultivate, process, store, or distribute cannabis.
6    "Enclosed, locked space" means a closet, room, greenhouse,
7building or other enclosed area equipped with locks or other
8security devices that permit access only by authorized
9individuals under this Act. "Enclosed, locked space" may
10include:
11        (1) a space within a residential building that (i) is
12    the primary residence of the individual cultivating 5 or
13    fewer cannabis plants that are more than 5 inches tall and
14    (ii) includes sleeping quarters and indoor plumbing. The
15    space must only be accessible by a key or code that is
16    different from any key or code that can be used to access
17    the residential building from the exterior; or
18        (2) a structure, such as a shed or greenhouse, that
19    lies on the same plot of land as a residential building
20    that (i) includes sleeping quarters and indoor plumbing
21    and (ii) is used as a primary residence by the person
22    cultivating 5 or fewer cannabis plants that are more than
23    5 inches tall, such as a shed or greenhouse. The structure
24    must remain locked when it is unoccupied by people.
25    "Financial institution" has the same meaning as "financial
26organization" as defined in Section 1501 of the Illinois

 

 

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1Income Tax Act, and also includes the holding companies,
2subsidiaries, and affiliates of such financial organizations.
3    "Flowering stage" means the stage of cultivation where and
4when a cannabis plant is cultivated to produce plant material
5for cannabis products. This includes mature plants as follows:
6        (1) if greater than 2 stigmas are visible at each
7    internode of the plant; or
8        (2) if the cannabis plant is in an area that has been
9    intentionally deprived of light for a period of time
10    intended to produce flower buds and induce maturation,
11    from the moment the light deprivation began through the
12    remainder of the marijuana plant growth cycle.
13    "Individual" means a natural person.
14    "Infuser organization" or "infuser" means a facility
15operated by an organization or business that is licensed by
16the Department of Agriculture to directly incorporate cannabis
17or cannabis concentrate into a product formulation to produce
18a cannabis-infused product.
19    "Kief" means the resinous crystal-like trichomes that are
20found on cannabis and that are accumulated, resulting in a
21higher concentration of cannabinoids, untreated by heat or
22pressure, or extracted using a solvent.
23    "Labor peace agreement" means an agreement between a
24cannabis business establishment and any labor organization
25recognized under the National Labor Relations Act, referred to
26in this Act as a bona fide labor organization, that prohibits

 

 

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1labor organizations and members from engaging in picketing,
2work stoppages, boycotts, and any other economic interference
3with the cannabis business establishment. This agreement means
4that the cannabis business establishment has agreed not to
5disrupt efforts by the bona fide labor organization to
6communicate with, and attempt to organize and represent, the
7cannabis business establishment's employees. The agreement
8shall provide a bona fide labor organization access at
9reasonable times to areas in which the cannabis business
10establishment's employees work, for the purpose of meeting
11with employees to discuss their right to representation,
12employment rights under State law, and terms and conditions of
13employment. This type of agreement shall not mandate a
14particular method of election or certification of the bona
15fide labor organization.
16    "Limited access area" means a room or other area under the
17control of a cannabis dispensing organization licensed under
18this Act and upon the licensed premises where cannabis sales
19occur with access limited to purchasers, dispensing
20organization owners and other dispensing organization agents,
21or service professionals conducting business with the
22dispensing organization, or, if sales to registered qualifying
23patients, caregivers, provisional patients, and Opioid
24Alternative Pilot Program participants licensed pursuant to
25the Compassionate Use of Medical Cannabis Program Act are also
26permitted at the dispensary, registered qualifying patients,

 

 

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1caregivers, provisional patients, and Opioid Alternative Pilot
2Program participants.
3    "Member of an impacted family" means an individual who has
4a parent, legal guardian, child, spouse, or dependent, or was
5a dependent of an individual who, prior to the effective date
6of this Act, was arrested for, convicted of, or adjudicated
7delinquent for any offense that is eligible for expungement
8under this Act.
9    "Mother plant" means a cannabis plant that is cultivated
10or maintained for the purpose of generating clones, and that
11will not be used to produce plant material for sale to an
12infuser or dispensing organization.
13    "Ordinary public view" means within the sight line with
14normal visual range of a person, unassisted by visual aids,
15from a public street or sidewalk adjacent to real property, or
16from within an adjacent property.
17    "Ownership and control" means ownership of at least 51% of
18the business, including corporate stock if a corporation, and
19control over the management and day-to-day operations of the
20business and an interest in the capital, assets, and profits
21and losses of the business proportionate to percentage of
22ownership.
23    "Person" means a natural individual, firm, partnership,
24association, joint stock company, joint venture, public or
25private corporation, limited liability company, or a receiver,
26executor, trustee, guardian, or other representative appointed

 

 

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1by order of any court.
2    "Possession limit" means the amount of cannabis under
3Section 10-10 that may be possessed at any one time by a person
421 years of age or older or who is a registered qualifying
5medical cannabis patient or caregiver under the Compassionate
6Use of Medical Cannabis Program Act.
7    "Principal officer" includes a cannabis business
8establishment applicant or licensed cannabis business
9establishment's board member, owner with more than 1% interest
10of the total cannabis business establishment or more than 5%
11interest of the total cannabis business establishment of a
12publicly traded company, president, vice president, secretary,
13treasurer, partner, officer, member, manager member, or person
14with a profit sharing, financial interest, or revenue sharing
15arrangement. The definition includes a person with authority
16to control the cannabis business establishment, a person who
17assumes responsibility for the debts of the cannabis business
18establishment and who is further defined in this Act.
19    "Primary residence" means a dwelling where a person
20usually stays or stays more often than other locations. It may
21be determined by, without limitation, presence, tax filings;
22address on an Illinois driver's license, an Illinois
23Identification Card, or an Illinois Person with a Disability
24Identification Card; or voter registration. No person may have
25more than one primary residence.
26    "Processing organization" or "processor" means a facility

 

 

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1operated by an organization or business that is licensed by
2the Department of Agriculture to either extract constituent
3chemicals or compounds to produce cannabis concentrate or
4incorporate cannabis or cannabis concentrate into a product
5formulation to produce a cannabis product.
6    "Processing organization agent" means a principal officer,
7board member, employee, or agent of a processing organization.
8    "Processing organization agent identification card" means
9a document issued by the Department of Agriculture that
10identifies a person as a processing organization agent.
11    "Purchaser" means a person 21 years of age or older who
12acquires cannabis for a valuable consideration. "Purchaser"
13does not include a cardholder under the Compassionate Use of
14Medical Cannabis Program Act.
15    "Qualified Social Equity Applicant" means a Social Equity
16Applicant who has been awarded a conditional license under
17this Act to operate a cannabis business establishment.
18    "Resided" means an individual's primary residence was
19located within the relevant geographic area as established by
202 of the following:
21        (1) a signed lease agreement that includes the
22    applicant's name;
23        (2) a property deed that includes the applicant's
24    name;
25        (3) school records;
26        (4) a voter registration card;

 

 

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1        (5) an Illinois driver's license, an Illinois
2    Identification Card, or an Illinois Person with a
3    Disability Identification Card;
4        (6) a paycheck stub;
5        (7) a utility bill;
6        (8) tax records; or
7        (9) any other proof of residency or other information
8    necessary to establish residence as provided by rule.
9    "Smoking" means the inhalation of smoke caused by the
10combustion of cannabis.
11    "Social Equity Applicant" means an applicant that is an
12Illinois resident that meets one of the following criteria:
13        (1) an applicant with at least 51% ownership and
14    control by one or more individuals who have resided for at
15    least 5 of the preceding 10 years in a Disproportionately
16    Impacted Area;
17        (2) an applicant with at least 51% ownership and
18    control by one or more individuals who:
19            (i) have been arrested for, convicted of, or
20        adjudicated delinquent for any offense that is
21        eligible for expungement under this Act; or
22            (ii) is a member of an impacted family;
23        (3) for applicants with a minimum of 10 full-time
24    employees, an applicant with at least 51% of current
25    employees who:
26            (i) currently reside in a Disproportionately

 

 

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1        Impacted Area; or
2            (ii) have been arrested for, convicted of, or
3        adjudicated delinquent for any offense that is
4        eligible for expungement under this Act or member of
5        an impacted family.
6    Nothing in this Act shall be construed to preempt or limit
7the duties of any employer under the Job Opportunities for
8Qualified Applicants Act. Nothing in this Act shall permit an
9employer to require an employee to disclose sealed or expunged
10offenses, unless otherwise required by law.
11    "Tincture" means a cannabis-infused solution, typically
12comprised of alcohol, glycerin, or vegetable oils, derived
13either directly from the cannabis plant or from a processed
14cannabis extract. A tincture is not an alcoholic liquor as
15defined in the Liquor Control Act of 1934. A tincture shall
16include a calibrated dropper or other similar device capable
17of accurately measuring servings.
18    "Transporting organization" or "transporter" means an
19organization or business that is licensed by the Department of
20Agriculture to transport cannabis or cannabis-infused product
21on behalf of a cannabis business establishment or a community
22college licensed under the Community College Cannabis
23Vocational Training Pilot Program.
24    "Transporting organization agent" means a principal
25officer, board member, employee, or agent of a transporting
26organization.

 

 

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1    "Transporting organization agent identification card"
2means a document issued by the Department of Agriculture that
3identifies a person as a transporting organization agent.
4    "Unit of local government" means any county, city,
5village, or incorporated town.
6    "Vegetative stage" means the stage of cultivation in which
7a cannabis plant is propagated to produce additional cannabis
8plants or reach a sufficient size for production. This
9includes seedlings, clones, mothers, and other immature
10cannabis plants as follows:
11        (1) if the cannabis plant is in an area that has not
12    been intentionally deprived of light for a period of time
13    intended to produce flower buds and induce maturation, it
14    has no more than 2 stigmas visible at each internode of the
15    cannabis plant; or
16        (2) any cannabis plant that is cultivated solely for
17    the purpose of propagating clones and is never used to
18    produce cannabis.
19(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
20    (410 ILCS 705/15-123 new)
21    Sec. 15-123. Nonstorefront Delivery Organizations;
22Conditional Nonstorefront Adult Use Cannabis Delivery
23Organization Licenses.
24    (a) In this Section:
25    "Conditional Nonstorefront Adult Use Cannabis Delivery

 

 

SB2404- 30 -LRB102 15258 CPF 20613 b

1Organization License" means a license issued by the Department
2under this Section that permits a person or entity to act as a
3Nonstorefront Delivery Organization under this Section, the
4Compassionate Use of Medical Cannabis Program Act, or any
5rules adopted in furtherance of those Acts.
6    "Delivery agent" means a principal officer, board member,
7employee, or other agent of a Nonstorefront Delivery
8Organization who is 21 years of age or older.
9    "Delivery agent identification card" means a document
10issued by the Department that identifies a person as a
11delivery agent.
12    "Nonstorefront Delivery Organization" means a business
13entity that is operated by an organization or business that is
14issued a Conditional Nonstorefront Adult Use Cannabis Delivery
15Organization License, subject to the conditions of this
16Section.
17    (b) Notwithstanding any other provision of law, a
18Nonstorefront Delivery Organization may acquire cannabis from
19a cultivation center, craft grower, or processing organization
20for the purpose of selling or dispensing, exclusively through
21delivery, cannabis, cannabis-infused products, cannabis seeds,
22paraphernalia, or related supplies under this Act to
23purchasers or to qualified registered medical cannabis
24patients and caregivers under the Compassionate Use of Medical
25Cannabis Program Act. A Nonstorefront Delivery Organization
26may operate a secure premises that is closed to the public to

 

 

SB2404- 31 -LRB102 15258 CPF 20613 b

1store cannabis, cannabis-infused products, cannabis seeds,
2paraphernalia, or related supplies.
3    (c) The Department shall issue up to 200 Conditional
4Nonstorefront Adult Use Cannabis Delivery Organization
5Licenses before May 1st, 2022.
6    (d) After January 1, 2023, the Department may by rule
7modify or raise the number of Conditional Nonstorefront Adult
8Use Cannabis Delivery Organization Licenses assigned to each
9BLS Region, and modify or change the licensing application
10process to reduce or eliminate barriers based on the disparity
11and availability study commissioned by the Illinois Cannabis
12Regulation Oversight Officer under Section 5-45.
13    (e) The Department shall make the application for a
14Conditional Nonstorefront Adult Use Cannabis Delivery
15Organization License available no later than October 1, 2021.
16    (f) To ensure geographic dispersion of Conditional
17Nonstorefront Adult Use Cannabis Delivery Organization License
18holders, the following number of licenses shall be awarded in
19each BLS Region as determined by each BLS Region's percentage
20of the State's population:
21        (1) Bloomington: 4
22        (2) Cape Girardeau: 4
23        (3) Carbondale-Marion: 6
24        (4) Chicago - Naperville - Elgin: 100
25        (5) Danville: 4
26        (6) Davenport - Moline - Rock Island: 5

 

 

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1        (7) Decatur: 4
2        (8) Kankakee:4
3        (9) Peoria: 7
4        (10) Rockford: 7
5        (11) East St. Louis: 25
6        (12) Springfield: 7
7        (13) Northwest Illinois nonmetropolitan: 5
8        (14) West Central Illinois nonmetropolitan: 5
9        (15) East Central Illinois nonmetropolitan: 5
10        (16) South Central Illinois nonmetropolitan: 5
11    (g) An applicant seeking issuance of a Conditional
12Nonstorefront Adult Use Dispensing Organization License shall
13submit an application on forms provided by the Department. An
14applicant must meet the following requirements:
15        (1) Payment of a nonrefundable application fee of
16    $2,500 for each license for which the applicant is
17    applying, which shall be deposited into the Cannabis
18    Regulation Fund.
19        (2) Certification that the applicant will comply with
20    the requirements contained in this Act.
21        (3) The legal name of the proposed delivery
22    organization.
23        (4) A statement that the delivery organization agrees
24    to respond to the Department's supplemental requests for
25    information.
26        (5) For each principal officer, a statement indicating

 

 

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1    the following:
2            (A) Whether that person has previously held or
3        currently holds an ownership interest in a cannabis
4        business establishment in Illinois.
5            (B) Whether that person has held an ownership
6        interest in a dispensing organization or its
7        equivalent in another state or territory of the United
8        States that had its dispensing organization
9        registration or license suspended, revoked, placed on
10        probationary status, or subjected to other
11        disciplinary action.
12            (C) Whether that person has ever filed for
13        bankruptcy or defaulted on a spousal support or child
14        support obligation.
15        (6) A resume for each principal officer, including
16    whether that person has an academic degree, certification,
17    or relevant experience with a cannabis business
18    establishment or in a related industry.
19        (7) A description of the training and education that
20    will be provided to delivery agents.
21        (8) A copy of the proposed operating bylaws.
22        (9) A copy of the proposed business plan that complies
23    with the requirements of this Act, including, at a
24    minimum, the following:
25            (A) A description of the services to be offered.
26            (B) A description of the process of delivering

 

 

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1        cannabis.
2        (10) A copy of the proposed security plan that
3    complies with the requirements in this Article; including:
4            (A) The process or controls that will be
5        implemented to monitor the warehouse, secure the
6        premises, agents, and currency, and prevent the
7        diversion, theft, or loss of cannabis.
8            (B) The process to ensure that access to the
9        warehouse is restricted to registered agents, service
10        professionals, transporting organizations, delivery
11        agents, Department inspectors, and security personnel.
12            (C) The process or controls that will be
13        implemented to monitor delivery agents, delivery
14        vehicles, cash-on-hand, and product-on-hand during the
15        process of delivery.
16        (11) A proposed inventory control plan that complies
17    with this Section.
18        (12) A proposed floor plan, a square footage estimate,
19    and a description of the proposed security devices,
20    including, without limitation, cameras, motion detectors,
21    servers, video storage capabilities, alarm service
22    providers, dash-cams with internal and external recording,
23    and global positioning system (GPS) trackers.
24        (13) The name, address, social security number, and
25    date of birth of each principal officer and board member
26    of the delivery organization. Each of those individuals

 

 

SB2404- 35 -LRB102 15258 CPF 20613 b

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

 

 

SB2404- 36 -LRB102 15258 CPF 20613 b

1        (22) The dated signature of each principal officer.
2        (23) A description of the enclosed, locked facility
3    where cannabis will be stored by the Nonstorefront
4    Delivery Organization.
5        (24) Signed statements from each delivery agent
6    stating that he or she will not divert cannabis.
7        (25) The number of licenses the applicant is applying
8    for in each BLS Region.
9        (26) A diversity plan that includes a narrative of at
10    least 2,500 words that establishes a goal of diversity in
11    ownership, management, employment, and contracting to
12    ensure that diverse participants and groups are afforded
13    equality of opportunity.
14        (27) A contract with a private security contractor
15    that is licensed under Section 10-5 of the Private
16    Detective, Private Alarm, Private Security, Fingerprint
17    Vendor, and Locksmith Act of 2004 in order for the
18    warehouse to have adequate security at its facility.
19        (28) Other information deemed necessary by the
20    Illinois Cannabis Regulation Oversight Officer to conduct
21    the disparity and availability study referred to in
22    Section 5-45.
23    (h) An applicant who receives a Conditional Nonstorefront
24Adult Use Cannabis Delivery Organization License under this
25Section has 180 days after the date of award to identify a
26physical location for the Nonstorefront Delivery

 

 

SB2404- 37 -LRB102 15258 CPF 20613 b

1Organization's warehouse. Before a licensee receives an
2authorization to build out the warehouse, the Department shall
3inspect the physical space selected by the licensee. The
4Department shall verify that the site is suitable for
5warehousing and the location is sufficient in size, power
6allocation, lighting, product handling, and storage. If an
7applicant is unable to find a suitable physical address in the
8opinion of the Department within 180 days after the issuance
9of the Conditional Nonstorefront Adult Use Cannabis Delivery
10Organization License, the Department may extend the period for
11finding a physical address another 180 days if the Conditional
12Nonstorefront Adult Use Cannabis Delivery Organization License
13holder demonstrates concrete attempts to secure a location and
14a hardship. If the Department denies the extension or the
15Nonstorefront Cannabis Delivery Organization is unable to find
16a location or become operational within 360 days after being
17awarded a license, the Department shall rescind the
18Conditional Nonstorefront Adult Use Cannabis Delivery
19Organization License and award it to the next highest scoring
20applicant in the BLS Region for which the license was
21assigned, provided the applicant receiving the license (i)
22confirms a continued interest in operating a Nonstorefront
23Delivery Organization; (ii) can provide evidence that the
24applicant continues to meet all the requirements for holding a
25Conditional Nonstorefront Adult Use Cannabis Delivery
26Organization License set forth in this Section; and (iii) has

 

 

SB2404- 38 -LRB102 15258 CPF 20613 b

1not otherwise become ineligible to be awarded a Conditional
2Nonstorefront Adult Use Cannabis Delivery Organization
3License. If the new awardee is unable to accept the
4Conditional Nonstorefront Adult Use Cannabis Delivery
5Organization License, the Department shall award the
6Conditional Nonstorefront Adult Use Cannabis Delivery
7Organization License to the next highest scoring applicant in
8the same manner. The new awardee shall be subject to the same
9required deadlines as provided in this subsection.
10    (i) A Nonstorefront Delivery Organization that is awarded
11a Conditional Nonstorefront Adult Use Cannabis Delivery
12Organization License pursuant to this Section shall not
13purchase, possess, sell, or deliver cannabis or cannabis
14infused products until the Nonstorefront Delivery Organization
15has received the Conditional Nonstorefront Adult Use Cannabis
16Delivery Organization License.
17    (j) The Department shall conduct a background check of the
18prospective organization agents in order to carry out this
19Section. The Department of State Police shall charge the
20applicant a fee for conducting the criminal history record
21check, which shall be deposited into the State Police Services
22Fund and shall not exceed the actual cost of the record check.
23Each person applying as a delivery agent shall submit a full
24set of fingerprints to the Department of State Police for the
25purpose of obtaining a State and federal criminal records
26check. These fingerprints shall be checked against the

 

 

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1fingerprint records now and hereafter, to the extent allowed
2by law, filed in the Department of State Police and the Federal
3Bureau of Identification criminal history records database.
4The Department of State Police shall furnish, following
5positive identification, all Illinois conviction information
6to the Department.
7    (k) A Nonstorefront Delivery Organization may only engage
8in sales or deliveries between the hours of 6:00 a.m. and 10:00
9p.m. Central Standard Time.
10    (l) Except as provided in subsection (m), a Nonstorefront
11Delivery Organization shall not sell or otherwise transfer any
12cannabis, cannabis-infused products, cannabis seeds,
13paraphernalia, or related supplies to a customer through the
14use of an unlicensed third party, intermediary business,
15broker, or any other business or entity.
16    (m) Notwithstanding subsection (l), a Nonstorefront
17Delivery Organization may contract with a service that
18provides a technology platform to facilitate the sale and
19delivery of cannabis, cannabis-infused products, cannabis
20seeds, paraphernalia, or related supplies, in accordance with
21all of the following:
22        (1) The Nonstorefront Delivery Organization does not
23    allow for delivery of cannabis, cannabis-infused products,
24    cannabis seeds, paraphernalia, or related supplies by the
25    technology platform service provider.
26        (2) The Nonstorefront Delivery Organization does not

 

 

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1    share in the profits of the sale of cannabis,
2    cannabis-infused products, cannabis seeds, paraphernalia,
3    or related supplies with the technology platform service
4    provider, or otherwise provide for a percentage or portion
5    of the cannabis, cannabis-infused products, cannabis
6    seeds, paraphernalia, or related supplies sales to the
7    technology platform service provider.
8        (3) The Nonstorefront Delivery Organization shall not
9    advertise or market cannabis, cannabis-infused products,
10    cannabis seeds, paraphernalia, or related supplies in
11    conjunction with the technology platform service provider
12    outside of the technology platform, and shall ensure that
13    the technology platform service provider does not use the
14    Nonstorefront Delivery Organization's license number or
15    legal business name on any advertisement or marketing that
16    primarily promotes the services of the technology
17    platform.
18        (4) The Nonstorefront Delivery Organization shall
19    ensure the following information is provided to customers.
20            (A) Any cannabis, cannabis-infused products,
21        cannabis seeds, paraphernalia, or related supplies
22        advertised or offered for sale on or through the
23        technology platform shall disclose, at a minimum, the
24        Nonstorefront Delivery Organization's legal business
25        name and license number.
26            (B) Customers placing an order for cannabis,

 

 

SB2404- 41 -LRB102 15258 CPF 20613 b

1        cannabis-infused products, cannabis seeds,
2        paraphernalia, or related supplies through the
3        technology platform shall be able to easily identify
4        the Nonstorefront Delivery Organization that each
5        cannabis good is being ordered or purchased from. This
6        information shall be available to the customer prior
7        to the customer placing an order or purchasing the
8        cannabis, cannabis-infused products, cannabis seeds,
9        paraphernalia, or related supplies.
10            (C) All required sales invoices and receipts,
11        including any receipts provided to the customer, shall
12        disclose, at a minimum, the Nonstorefront Delivery
13        Organization's legal business name and license number.
14            (D) All other delivery, marketing, and advertising
15        requirements under this Act are complied with.
16    (n) All delivery customers must provide a valid proof of
17identification.
18    (o) A delivery agent must verify age by inspecting a valid
19form of identification of all delivery customers, in person,
20before he or she completes delivery of the cannabis,
21cannabis-infused products, cannabis seeds, paraphernalia, or
22related supplies.
23    (p) Delivery must be made to a physical address in any
24jurisdiction within Illinois that is not on publicly owned
25land, a school, a daycare, or a youth center.
26    (q) During delivery the delivery agent must carry a copy

 

 

SB2404- 42 -LRB102 15258 CPF 20613 b

1of the Conditional Nonstorefront Adult Use Cannabis Delivery
2Organization License and the delivery agents'
3government-issued delivery agent identification cards,
4provided by the Department.
5    (r) A delivery agent shall not carry cannabis,
6cannabis-infused products, cannabis seeds, paraphernalia, or
7related supplies valued in excess of $5,000 at any time, with
8no more than $3,000 of cannabis, cannabis-infused products,
9cannabis seeds, paraphernalia, or related supplies that are
10not already part of a customer order that was processed prior
11to leaving the premises.
12    (s) A delivery request receipt must be prepared for each
13delivery of cannabis, cannabis-infused products, cannabis
14seeds, paraphernalia, or related supplies, and contain all of
15the items listed in paragraph (4) of subsection (m).
16    (t) Delivery must be made in person by a delivery agent.
17    (u) Delivery must be made using an enclosed motor vehicle
18equipped with a GPS device and secure storage for cannabis,
19cannabis-infused products, cannabis seeds, paraphernalia, or
20related supplies. A vehicle used by a Nonstorefront Delivery
21Organization is not required to be owned by the licensee.
22    (v) A Nonstorefront Delivery Organization may not accept,
23possess, or sell cannabis, cannabis-infused products, cannabis
24seeds, paraphernalia, or related supplies that are not
25packaged for final sale. A Nonstorefront Delivery Organization
26may not package or label cannabis, cannabis-infused products,

 

 

SB2404- 43 -LRB102 15258 CPF 20613 b

1cannabis seeds, paraphernalia, or related supplies.
2    (w) All cannabis, cannabis-infused products, cannabis
3seeds, paraphernalia, or related supplies must be in an opaque
4package before delivery to the customer.
5    (x) All cannabis packaging must be in a child-resistant
6package.
7    (y) All packaging shall be tamper-evident and resealable
8if it contains more than one serving.
9    (z) Immature cannabis plants and seeds sold by a
10Nonstorefront Delivery Organization are not required to be
11placed in resealable, tamper-evident, child resistant
12packaging.
13    (aa) A Nonstorefront Delivery Organization may only
14receive shipments from licensed cultivators, craft growers, or
15processors between the hours of 6:00 a.m. and 10:00 p.m.
16Central Standard Time.
17    (bb) A Nonstorefront Delivery Organization must be able to
18account for all inventory of cannabis, cannabis-infused
19products, cannabis seeds, paraphernalia, or related supplies
20and provide the Department with inventory records upon
21request.
22    (cc) A Nonstorefront Delivery Organization must maintain
23financial records, personnel records, training records,
24contracts, permits, security records, destruction records,
25data entered into track-and-trace, and an accurate record of
26all sales for 5 years. All records must be made available to

 

 

SB2404- 44 -LRB102 15258 CPF 20613 b

1the Department upon request.
 
2    (410 ILCS 705/15-124 new)
3    Sec. 15-124. Conditional Storefront Adult Use Cannabis
4Delivery Organizations; Licenses.
5    (a) In this Section:
6    "Conditional Storefront Adult Use Cannabis Delivery
7Organization License" means a license issued by the Department
8that permits a person or entity to act as a Storefront Delivery
9Organization under this Act, the Compassionate Use of Medical
10Cannabis Program Act, or any rules adopted in furtherance of
11those Acts.
12    "Delivery agent" means a principal officer, board member,
13employee, or other agent of a Storefront Delivery Organization
14who is 21 years of age or older.
15    "Delivery agent identification card" means a document
16issued by the Department that identifies a person as a
17delivery agent.
18    "Storefront Delivery Organization" means a business entity
19that is operated by an organization or business that is issued
20a Conditional Storefront Adult Use Cannabis Delivery
21Organization License, subject to the conditions of this
22Section.
23    (b) Notwithstanding any other provision of law, a
24Storefront Delivery Organization may acquire cannabis from a
25licensed dispensing organization for the purpose of delivering

 

 

SB2404- 45 -LRB102 15258 CPF 20613 b

1cannabis, cannabis-infused products, cannabis seeds,
2paraphernalia, or related supplies under this Act to
3purchasers or to qualified registered medical cannabis
4patients and caregivers under the Compassionate Use of Medical
5Cannabis Program Act, exclusively through delivery.
6    (c) The Department shall begin issuing unlimited
7Conditional Storefront Adult Use Cannabis Delivery
8Organization Licenses before May 1, 2022.
9    (d) The Department shall make the application for a
10Conditional Storefront Adult Use Cannabis Delivery
11Organization License available no later than October 1, 2021.
12    (e) An applicant seeking issuance of a Conditional
13Storefront Adult Use Dispensing Organization License shall
14submit an application on forms provided by the Department. An
15applicant must meet the following requirements:
16        (1) Payment of a nonrefundable application fee of
17    $1,500 for each license for which the applicant is
18    applying, which shall be deposited into the Cannabis
19    Regulation Fund.
20        (2) Certification that the applicant will comply with
21    the requirements of this Act.
22        (3) The legal name of the proposed delivery
23    organization.
24        (4) A statement that the delivery organization agrees
25    to respond to the Department's supplemental requests for
26    information.

 

 

SB2404- 46 -LRB102 15258 CPF 20613 b

1        (5) For each principal officer, a statement indicating
2    the following:
3            (A) Whether that person has previously held or
4        currently holds an ownership interest in a cannabis
5        business establishment in Illinois.
6            (B) Whether that person held an ownership interest
7        in a dispensing organization or its equivalent in
8        another state or territory of the United States that
9        had the dispensing organization registration or
10        license suspended, revoked, placed on probationary
11        status, or subjected to other disciplinary action.
12            (C) Whether that person has ever filed for
13        bankruptcy or defaulted on a spousal support or child
14        support obligation.
15        (6) A resume for each principal officer, including
16    whether that person has an academic degree, certification,
17    or relevant experience with a cannabis business
18    establishment or in a related industry.
19        (5) A description of the training and education that
20    will be provided to delivery agents.
21        (6) A copy of the proposed operating bylaws.
22        (7) A copy of the proposed business plan that complies
23    with the requirements of this Act, including, at a
24    minimum, the following:
25            (A) A description of the services to be offered.
26            (B) A description of the process of delivering

 

 

SB2404- 47 -LRB102 15258 CPF 20613 b

1        cannabis.
2        (8) A proposed security plan, a copy of the proposed
3    security plan, and a description of proposed security
4    devices, including, without limitation, dash-cams with
5    internal and external recording, and global positioning
6    system (GPS) trackers.
7        (9) A proposed inventory control plan that complies
8    with this Section.
9        (10) The name, address, social security number, and
10    date of birth of each principal officer and board member
11    of the delivery organization. Each of the individuals
12    shall be at least 21 years of age.
13        (11) Evidence of the applicant's status as a Social
14    Equity Applicant, if applicable, and whether the Social
15    Equity Applicant plans to apply for a loan or grant issued
16    by the Department of Commerce and Economic Opportunity.
17        (12) The address, telephone number, and email address
18    of the applicant's principal place of business, if
19    applicable. A post office box is not permitted.
20        (13) Written summaries of any information regarding
21    instances in which a business or not-for-profit that a
22    prospective board member previously managed or served on
23    was fined or censured, or any instances in which a board
24    member previously managed or served a business or
25    not-for-profit that had its registration suspended or
26    revoked in any administrative or judicial proceeding.

 

 

SB2404- 48 -LRB102 15258 CPF 20613 b

1        (14) A plan for community engagement.
2        (15) Procedures to ensure accurate recordkeeping and
3    security measures that are in accordance with this Article
4    and Department rules.
5        (16) A reasonable assurance that the issuance of a
6    license will not have a detrimental impact on the
7    community in which the applicant wishes to locate.
8        (17) The dated signature of each principal officer.
9        (18) A description of the enclosed, locked compartment
10    where cannabis will be stored by delivery agents enroute
11    to the delivery location.
12        (19) Signed statements from each delivery agent
13    stating that he or she will not divert cannabis.
14        (20) The number of licenses the applicant is applying
15    for in each BLS Region.
16        (21) A diversity plan that includes a narrative of at
17    least 2,500 words that establishes a goal of diversity in
18    ownership, management, employment, and contracting to
19    ensure that diverse participants and groups are afforded
20    equality of opportunity.
21        (22) Other information deemed necessary by the
22    Illinois Cannabis Regulation Oversight Officer to conduct
23    the disparity and availability study under Section 5-45.
24    (f) A Storefront Delivery Organization may only engage in
25sales or deliveries between the hours of 6:00 a.m. and 10:00
26p.m. Central Standard Time.

 

 

SB2404- 49 -LRB102 15258 CPF 20613 b

1    (g) Except as provided in subsection (h), a Storefront
2Delivery Organization shall not sell or otherwise transfer any
3cannabis, cannabis-infused products, cannabis seeds,
4paraphernalia, or related supplies to a customer through the
5use of an unlicensed third party, intermediary business,
6broker, or any other business or entity.
7    (h) Notwithstanding subsection (g), a Storefront Delivery
8Organization may contract with a service that provides a
9technology platform to facilitate the sale and delivery of
10cannabis, cannabis-infused products, cannabis seeds,
11paraphernalia, or related supplies, in accordance with all of
12the following:
13        (1) The Storefront Delivery Organization does not
14    allow for delivery of cannabis, cannabis-infused products,
15    cannabis seeds, paraphernalia, or related supplies by the
16    technology platform service provider.
17        (2) The Storefront Delivery Organization does not
18    share in the profits of the sale of cannabis,
19    cannabis-infused products, cannabis seeds, paraphernalia,
20    or related supplies with the technology platform service
21    provider, or otherwise provide for a percentage or portion
22    of the cannabis, cannabis-infused products, cannabis
23    seeds, paraphernalia, or related supplies sales to the
24    technology platform service provider.
25        (3) The Storefront Delivery Organization shall not
26    advertise or market cannabis, cannabis-infused products,

 

 

SB2404- 50 -LRB102 15258 CPF 20613 b

1    cannabis seeds, paraphernalia, or related supplies in
2    conjunction with the technology platform service provider,
3    outside of the technology platform, and shall ensure that
4    the technology platform service provider does not use the
5    Storefront Delivery Organization's license number or legal
6    business name on any advertisement or marketing that
7    primarily promotes the services of the technology
8    platform.
9        (4) The Storefront Delivery Organization shall ensure
10    the following information is provided to customers:
11            (A) Any cannabis, cannabis-infused products,
12        cannabis seeds, paraphernalia, or related supplies
13        advertised or offered for sale on or through the
14        technology platform shall disclose, at a minimum, the
15        Storefront Delivery Organization's legal business name
16        and license number.
17            (B) Customers placing an order for cannabis,
18        cannabis-infused products, cannabis seeds,
19        paraphernalia, or related supplies through the
20        technology platform shall be able to easily identify
21        the Storefront Delivery Organization that each
22        cannabis good is being ordered or purchased from. This
23        information shall be available to the customer prior
24        to the customer placing an order or purchasing the
25        cannabis, cannabis-infused products, cannabis seeds,
26        paraphernalia, or related supplies.

 

 

SB2404- 51 -LRB102 15258 CPF 20613 b

1            (C) All required sales invoices and receipts,
2        including any receipts provided to the customer, shall
3        disclose, at a minimum, the Storefront Delivery
4        Organization's legal business name and license number.
5            (D) All other delivery, marketing, and advertising
6        requirements under this division are complied with.
7    (i) All delivery customers must provide a valid proof of
8identification.
9    (j) A delivery agent must verify age by inspecting a valid
10form of identification of all delivery customers, in person,
11before he or she completes delivery of the cannabis,
12cannabis-infused products, cannabis seeds, paraphernalia, or
13related supplies.
14    (k) Delivery must be made to a physical address in any
15jurisdiction within Illinois that is not on publicly owned
16land, a school, a daycare, or a youth center.
17    (l) During delivery, the delivery agent must carry a copy
18of the Conditional Storefront Adult Use Cannabis Delivery
19Organization License and the delivery agents'
20government-issued delivery agent identification cards,
21provided by the Department.
22    (m) A delivery agent shall not carry cannabis,
23cannabis-infused products, cannabis seeds, paraphernalia, or
24related supplies valued in excess of $5,000 at any time, with
25no more than $3,000 of cannabis, cannabis-infused products,
26cannabis seeds, paraphernalia, or related supplies that are

 

 

SB2404- 52 -LRB102 15258 CPF 20613 b

1not already part of a customer order that was processed prior
2to leaving the premises.
3    (n) A delivery request receipt must be prepared for each
4delivery of cannabis, cannabis-infused products, cannabis
5seeds, paraphernalia, or related supplies, and contain all of
6the items listed in paragraph (4) of subsection (h).
7    (o) Delivery must be made in person by a delivery agent.
8    (p) Delivery must be made using an enclosed motor vehicle
9equipped with a GPS device and secure storage for cannabis,
10cannabis-infused products, cannabis seeds, paraphernalia, or
11related supplies. A vehicle used by a Storefront Delivery
12Organization is not required to be owned by the licensee.
13    (q) A Storefront Delivery Organization may not accept,
14possess, or sell cannabis, cannabis-infused products, cannabis
15seeds, paraphernalia, or related supplies that are not
16packaged for final sale. A Storefront Delivery Organization
17may not package or label cannabis, cannabis-infused products,
18cannabis seeds, paraphernalia, or related supplies.
19    (r) All cannabis, cannabis-infused products, cannabis
20seeds, paraphernalia, or related supplies must be in an opaque
21package before delivery to the customer.
22    (s) All cannabis packaging must either be in a
23child-resistant package.
24    (t) All packaging shall be tamper-evident and resealable
25if it contains more than one serving.
26    (u) Immature cannabis plants and seeds sold by a

 

 

SB2404- 53 -LRB102 15258 CPF 20613 b

1Storefront Delivery Organization are not required to be placed
2in resealable, tamper-evident, child resistant packaging.
3    (v) A Storefront Delivery Organization may only receive
4shipments from licensed cultivators, craft growers, or
5processors between the hours of 6:00 a.m. and 10:00 p.m.
6Central Standard Time.
7    (w) A Storefront Delivery Organization must be able to
8account for all inventory of cannabis, cannabis-infused
9products, cannabis seeds, paraphernalia, or related supplies
10and provide the Department with inventory records upon
11request.
12    (x) A Storefront Delivery Organization must maintain
13financial records, personnel records, training records,
14contracts, permits, security records, destruction records,
15data entered into track-and-trace, and an accurate record of
16all sales for 5 years. All records must be made available to
17the Department upon request.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.

 

 

SB2404- 54 -LRB102 15258 CPF 20613 b

1 INDEX
2 Statutes amended in order of appearance
3    410 ILCS 130/10
4    410 ILCS 705/1-10
5    410 ILCS 705/15-123 new
6    410 ILCS 705/15-124 new