410 ILCS 705/ Cannabis Regulation and Tax Act.

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PUBLIC HEALTH
(410 ILCS 705/) Cannabis Regulation and Tax Act.

410 ILCS 705/65-35
    (410 ILCS 705/65-35)
    Sec. 65-35. Deposit of proceeds. All moneys received by the Department under this Article shall be paid into the Cannabis Regulation Fund.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-36
    (410 ILCS 705/65-36)
    Sec. 65-36. Recordkeeping; books and records.
    (a) Every retailer of cannabis, whether or not the retailer has obtained a certificate of registration under Section 65-20, shall keep complete and accurate records of cannabis held, purchased, sold, or otherwise disposed of, and shall preserve and keep all invoices, bills of lading, sales records, and copies of bills of sale, returns, and other pertinent papers and documents relating to the purchase, sale, or disposition of cannabis. Such records need not be maintained on the licensed premises but must be maintained in the State of Illinois. However, all original invoices or copies thereof covering purchases of cannabis must be retained on the licensed premises for a period of 90 days after such purchase, unless the Department has granted a waiver in response to a written request in cases where records are kept at a central business location within the State of Illinois. The Department shall adopt rules regarding the eligibility for a waiver, revocation of a waiver, and requirements and standards for maintenance and accessibility of records located at a central location under a waiver provided under this Section.
    (b) Books, records, papers, and documents that are required by this Article to be kept shall, at all times during the usual business hours of the day, be subject to inspection by the Department or its duly authorized agents and employees. The books, records, papers, and documents for any period with respect to which the Department is authorized to issue a notice of tax liability shall be preserved until the expiration of that period.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-38
    (410 ILCS 705/65-38)
    Sec. 65-38. Violations and penalties.
    (a) When the amount due is under $300, any retailer of cannabis who fails to file a return, willfully fails or refuses to make any payment to the Department of the tax imposed by this Article, or files a fraudulent return, or any officer or agent of a corporation engaged in the business of selling cannabis to purchasers located in this State who signs a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Article is guilty of a Class 4 felony.
    (b) When the amount due is $300 or more, any retailer of cannabis who files, or causes to be filed, a fraudulent return, or any officer or agent of a corporation engaged in the business of selling cannabis to purchasers located in this State who files or causes to be filed or signs or causes to be signed a fraudulent return filed on behalf of the corporation, or any accountant or other agent who knowingly enters false information on the return of any taxpayer under this Article is guilty of a Class 3 felony.
    (c) Any person who violates any provision of Section 65-20, fails to keep books and records as required under this Article, or willfully violates a rule of the Department for the administration and enforcement of this Article is guilty of a Class 4 felony. A person commits a separate offense on each day that he or she engages in business in violation of Section 65-20 or a rule of the Department for the administration and enforcement of this Article. If a person fails to produce the books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Article. A person who is unable to rebut this presumption is in violation of this Article and is subject to the penalties provided in this Section.
    (d) Any person who violates any provision of Sections 65-20, fails to keep books and records as required under this Article, or willfully violates a rule of the Department for the administration and enforcement of this Article, is guilty of a business offense and may be fined up to $5,000. If a person fails to produce books and records for inspection by the Department upon request, a prima facie presumption shall arise that the person has failed to keep books and records as required under this Article. A person who is unable to rebut this presumption is in violation of this Article and is subject to the penalties provided in this Section. A person commits a separate offense on each day that he or she engages in business in violation of Section 65-20.
    (e) Any taxpayer or agent of a taxpayer who with the intent to defraud purports to make a payment due to the Department by issuing or delivering a check or other order upon a real or fictitious depository for the payment of money, knowing that it will not be paid by the depository, is guilty of a deceptive practice in violation of Section 17-1 of the Criminal Code of 2012.
    (f) Any person who fails to keep books and records or fails to produce books and records for inspection, as required by Section 65-36, is liable to pay to the Department, for deposit in the Tax Compliance and Administration Fund, a penalty of $1,000 for the first failure to keep books and records or failure to produce books and records for inspection, as required by Section 65-36, and $3,000 for each subsequent failure to keep books and records or failure to produce books and records for inspection, as required by Section 65-36.
    (g) Any person who knowingly acts as a retailer of cannabis in this State without first having obtained a certificate of registration to do so in compliance with Section 65-20 of this Article shall be guilty of a Class 4 felony.
    (h) A person commits the offense of tax evasion under this Article when he or she knowingly attempts in any manner to evade or defeat the tax imposed on him or her or on any other person, or the payment thereof, and he or she commits an affirmative act in furtherance of the evasion. As used in this Section, "affirmative act in furtherance of the evasion" means an act designed in whole or in part to (i) conceal, misrepresent, falsify, or manipulate any material fact or (ii) tamper with or destroy documents or materials related to a person's tax liability under this Article. Two or more acts of sales tax evasion may be charged as a single count in any indictment, information, or complaint and the amount of tax deficiency may be aggregated for purposes of determining the amount of tax that is attempted to be or is evaded and the period between the first and last acts may be alleged as the date of the offense.
        (1) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is less than $500, a person is guilty of a Class 4 felony.
        (2) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $500 or more but less than $10,000, a person is guilty of a Class 3 felony.
        (3) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $10,000 or more but less than $100,000, a person is guilty of a Class 2 felony.
        (4) When the amount of tax, the assessment or payment

of which is attempted to be or is evaded is $100,000 or more, a person is guilty of a Class 1 felony.
    Any person who knowingly sells, purchases, installs, transfers, possesses, uses, or accesses any automated sales suppression device, zapper, or phantom-ware in this State is guilty of a Class 3 felony.
    As used in this Section:
    "Automated sales suppression device" or "zapper" means a software program that falsifies the electronic records of an electronic cash register or other point-of-sale system, including, but not limited to, transaction data and transaction reports. The term includes the software program, any device that carries the software program, or an Internet link to the software program.
    "Phantom-ware" means a hidden programming option embedded in the operating system of an electronic cash register or hardwired into an electronic cash register that can be used to create a second set of records or that can eliminate or manipulate transaction records in an electronic cash register.
    "Electronic cash register" means a device that keeps a register or supporting documents through the use of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales transaction data in any manner.
    "Transaction data" includes: items purchased by a purchaser; the price of each item; a taxability determination for each item; a segregated tax amount for each taxed item; the amount of cash or credit tendered; the net amount returned to the customer in change; the date and time of the purchase; the name, address, and identification number of the vendor; and the receipt or invoice number of the transaction.
    "Transaction report" means a report that documents, without limitation, the sales, taxes, or fees collected, media totals, and discount voids at an electronic cash register and that is printed on a cash register tape at the end of a day or shift, or a report that documents every action at an electronic cash register and is stored electronically.
    A prosecution for any act in violation of this Section may be commenced at any time within 5 years of the commission of that act.
    (i) The Department may adopt rules to administer the penalties under this Section.
    (j) Any person whose principal place of business is in this State and who is charged with a violation under this Section shall be tried in the county where his or her principal place of business is located unless he or she asserts a right to be tried in another venue.
    (k) Except as otherwise provided in subsection (h), a prosecution for a violation described in this Section may be commenced within 3 years after the commission of the act constituting the violation.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-40
    (410 ILCS 705/65-40)
    Sec. 65-40. Department administration and enforcement. The Department shall have full power to administer and enforce this Article, to collect all taxes and penalties due hereunder, to dispose of taxes and penalties so collected in the manner hereinafter provided, and to determine all rights to credit memoranda, arising on account of the erroneous payment of tax or penalty hereunder.
    In the administration of, and compliance with, this Article, the Department and persons who are subject to this Article shall have the same rights, remedies, privileges, immunities, powers, and duties, and be subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and employ the same modes of procedure, as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Sections 1, 2-12, 2b, 4 (except that the time limitation provisions shall run from the date when the tax is due rather than from the date when gross receipts are received), 5 (except that the time limitation provisions on the issuance of notices of tax liability shall run from the date when the tax is due rather than from the date when gross receipts are received and except that in the case of a failure to file a return required by this Act, no notice of tax liability shall be issued on and after each July 1 and January 1 covering tax due with that return during any month or period more than 6 years before that July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax Act and all of the provisions of the Uniform Penalty and Interest Act, which are not inconsistent with this Article, as fully as if those provisions were set forth herein. References in the incorporated Sections of the Retailers' Occupation Tax Act and the Use Tax Act to retailers, to sellers, or to persons engaged in the business of selling tangible personal property mean cannabis retailers when used in this Article. References in the incorporated Sections to sales of tangible personal property mean sales of cannabis subject to tax under this Article when used in this Article.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-41
    (410 ILCS 705/65-41)
    Sec. 65-41. Arrest; search and seizure without warrant. Any duly authorized employee of the Department: (i) may arrest without warrant any person committing in his or her presence a violation of any of the provisions of this Article; (ii) may without a search warrant inspect all cannabis located in any place of business; (iii) may seize any cannabis in the possession of the retailer in violation of this Act; and (iv) may seize any cannabis on which the tax imposed by Article 60 of this Act has not been paid. The cannabis so seized is subject to confiscation and forfeiture as provided in Sections 65-42 and 65-43.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-42
    (410 ILCS 705/65-42)
    Sec. 65-42. Seizure and forfeiture. After seizing any cannabis as provided in Section 65-41, the Department must hold a hearing and determine whether the retailer was properly registered to sell the cannabis at the time of its seizure by the Department. The Department shall give not less than 20 days' notice of the time and place of the hearing to the owner of the cannabis, if the owner is known, and also to the person in whose possession the cannabis was found, if that person is known and if the person in possession is not the owner of the cannabis. If neither the owner nor the person in possession of the cannabis is known, the Department must cause publication of the time and place of the hearing to be made at least once in each week for 3 weeks successively in a newspaper of general circulation in the county where the hearing is to be held.
    If, as the result of the hearing, the Department determines that the retailer was not properly registered at the time the cannabis was seized, the Department must enter an order declaring the cannabis confiscated and forfeited to the State, to be held by the Department for disposal by it as provided in Section 65-43. The Department must give notice of the order to the owner of the cannabis, if the owner is known, and also to the person in whose possession the cannabis was found, if that person is known and if the person in possession is not the owner of the cannabis. If neither the owner nor the person in possession of the cannabis is known, the Department must cause publication of the order to be made at least once in each week for 3 weeks successively in a newspaper of general circulation in the county where the hearing was held.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-43
    (410 ILCS 705/65-43)
    Sec. 65-43. Search warrant; issuance and return; process; confiscation of cannabis; forfeitures.
    (a) If a peace officer of this State or any duly authorized officer or employee of the Department has reason to believe that any violation of this Article or a rule of the Department for the administration and enforcement of this Article has occurred and that the person violating this Article or rule has in that person's possession any cannabis in violation of this Article or a rule of the Department for the administration and enforcement of this Article, that peace officer or officer or employee of the Department may file or cause to be filed his or her complaint in writing, verified by affidavit, with any court within whose jurisdiction the premises to be searched are situated, stating the facts upon which the belief is founded, the premises to be searched, and the property to be seized, and procure a search warrant and execute that warrant. Upon the execution of the search warrant, the peace officer, or officer or employee of the Department, executing the search warrant shall make due return of the warrant to the court issuing the warrant, together with an inventory of the property taken under the warrant. The court must then issue process against the owner of the property if the owner is known; otherwise, process must be issued against the person in whose possession the property is found, if that person is known. In case of inability to serve process upon the owner or the person in possession of the property at the time of its seizure, notice of the proceedings before the court must be given in the same manner as required by the law governing cases of attachment. Upon the return of the process duly served or upon the posting or publishing of notice made, as appropriate, the court or jury, if a jury is demanded, shall proceed to determine whether the property so seized was held or possessed in violation of this Article or a rule of the Department for the administration and enforcement of this Article. If a violation is found, judgment shall be entered confiscating the property and forfeiting it to the State and ordering its delivery to the Department. In addition, the court may tax and assess the costs of the proceedings.
    (b) When any cannabis has been declared forfeited to the State by the Department, as provided in Section 65-42 and this Section, and when all proceedings for the judicial review of the Department's decision have terminated, the Department shall, to the extent that its decision is sustained on review, destroy or maintain and use such cannabis in an undercover capacity.
    (c) The Department may, before any destruction of cannabis, permit the true holder of trademark rights in the cannabis to inspect such cannabis in order to assist the Department in any investigation regarding such cannabis.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-45
    (410 ILCS 705/65-45)
    Sec. 65-45. Cannabis retailers; purchase and possession of cannabis. Cannabis retailers shall purchase cannabis for resale only from cannabis business establishments as authorized by this Act.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/65-50
    (410 ILCS 705/65-50)
    Sec. 65-50. Rulemaking. The Department may adopt rules in accordance with the Illinois Administrative Procedure Act and prescribe forms relating to the administration and enforcement of this Article as it deems appropriate.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/Art. 900

    (410 ILCS 705/Art. 900 heading) Article 900. Amendatory Provisions(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/900-5
    (410 ILCS 705/900-5)
    Sec. 900-5. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-8
    (410 ILCS 705/900-8)
    Sec. 900-8. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-10
    (410 ILCS 705/900-10)
    Sec. 900-10. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-12
    (410 ILCS 705/900-12)
    Sec. 900-12. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-15
    (410 ILCS 705/900-15)
    Sec. 900-15. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-15.5
    (410 ILCS 705/900-15.5)
    Sec. 900-15.5. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-16
    (410 ILCS 705/900-16)
    Sec. 900-16. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-17
    (410 ILCS 705/900-17)
    Sec. 900-17. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-18
    (410 ILCS 705/900-18)
    Sec. 900-18. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-19
    (410 ILCS 705/900-19)
    Sec. 900-19. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-20
    (410 ILCS 705/900-20)
    Sec. 900-20. The Cannabis and Controlled Substances Tax Act is repealed.
(Source: P.A. 101-27, eff. 6-25-19.)

410 ILCS 705/900-22
    (410 ILCS 705/900-22)
    Sec. 900-22. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-25
    (410 ILCS 705/900-25)
    Sec. 900-25. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)

410 ILCS 705/900-30
    (410 ILCS 705/900-30)
    Sec. 900-30. (Amendatory provisions; text omitted).
(Source: P.A. 101-27, eff. 6-25-19; text omitted.)