(410 ILCS 705/10-45) Sec. 10-45. Cannabis Equity Commission. (a) The Cannabis Equity Commission is created and shall reflect the diversity of the State of Illinois, including geographic, racial, and ethnic diversity. The Cannabis Equity Commission shall be responsible for the following: (1) Ensuring that equity goals in the Illinois |
| cannabis industry, as stated in Section 10-40, are met.
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(2) Tracking and analyzing minorities in the
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(3) Ensuring that revenue is being invested
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| properly into R3 areas under Section 10-40.
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(4) Recommending changes to make the law more
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| equitable to communities harmed the most by the war on drugs.
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(5) Create standards to protect true social equity
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| applicants from predatory businesses.
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(b) The Cannabis Equity Commission's ex officio members shall, within 4 months after the effective date of this amendatory Act of the 101st General Assembly, convene the Commission to appoint a full Cannabis Equity Commission and oversee, provide guidance to, and develop an administrative structure for the Cannabis Equity Commission. The ex officio members are:
(1) The Governor, or his or her designee, who shall
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(2) The Attorney General, or his or her designee.
(3) The Director of Commerce and Economic
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| Opportunity, or his or her designee.
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(4) The Director of Public Health, or his or her
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(5) The Director of Corrections, or his or her
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(6) The Director of Financial and Professional
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| Regulation, or his or her designee.
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(7) The Director of Agriculture, or his or her
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(8) The Executive Director of the Illinois Criminal
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| Justice Information Authority, or his or her designee.
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(9) The Secretary of Human Services, or his or her
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(10) A member of the Senate, designated by the
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(11) A member of the House of Representatives,
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| designated by the Speaker of the House of Representatives.
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(12) A member of the Senate, designated by the
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| Minority Leader of the Senate.
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(13) A member of the House of Representatives,
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| designated by the Minority Leader of the House of Representatives.
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(c) Within 90 days after the ex officio members convene, the following members shall be appointed to the Commission by the chair:
(1) Four community-based providers or community
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| development organization representatives who provide services to treat violence and address the social determinants of health, or promote community investment, including, but not limited to, services such as job placement and training, educational services, workforce development programming, and wealth building. No more than 2 community-based organization representatives shall work primarily in Cook County. At least one of the community-based providers shall have expertise in providing services to an immigrant population.
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(2) Two experts in the field of violence reduction.
(3) One male who has previously been incarcerated
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| and is over the age of 24 at the time of appointment.
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(4) One female who has previously been incarcerated
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| and is over the age of 24 at the time of appointment.
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(5) Two individuals who have previously been
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| incarcerated and are between the ages of 17 and 24 at the time of appointment.
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As used in this subsection (c), "an individual who has been previously incarcerated" has the same meaning as defined in paragraph (2) of subsection (e) of Section 10-40.
(Source: P.A. 101-658, eff. 3-23-21.)
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(410 ILCS 705/10-50)
Sec. 10-50. Employment; employer liability. (a) Nothing in this Act shall prohibit an employer from adopting reasonable zero tolerance or drug free workplace policies, or employment policies concerning drug testing, smoking, consumption, storage, or use of cannabis in the workplace or while on call provided that the policy is applied in a nondiscriminatory manner. (b) Nothing in this Act shall require an employer to permit an employee to be under the influence of or use cannabis in the employer's workplace or while performing the employee's job duties or while on call. (c) Nothing in this Act shall limit or prevent an employer from disciplining an employee or terminating employment of an employee for violating an employer's employment policies or workplace drug policy. (d) An employer may consider an employee to be impaired or under the influence of cannabis if the employer has a good faith belief that an employee manifests specific, articulable symptoms while working that decrease or lessen the employee's performance of the duties or tasks of the employee's job position, including symptoms of the employee's speech, physical dexterity, agility, coordination, demeanor, irrational or unusual behavior, or negligence or carelessness in operating equipment or machinery; disregard for the safety of the employee or others, or involvement in any accident that results in serious damage to equipment or property; disruption of a production or manufacturing process; or carelessness that results in any injury to the employee or others. If an employer elects to discipline an employee on the basis that the employee is under the influence or impaired by cannabis, the employer must afford the employee a reasonable opportunity to contest the basis of the determination. (e) Nothing in this Act shall be construed to create or imply a cause of action for any person against an employer for: (1) actions taken pursuant to an employer's |
| reasonable workplace drug policy, including but not limited to subjecting an employee or applicant to reasonable drug and alcohol testing, reasonable and nondiscriminatory random drug testing, and discipline, termination of employment, or withdrawal of a job offer due to a failure of a drug test;
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(2) actions based on the employer's good faith belief
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| that an employee used or possessed cannabis in the employer's workplace or while performing the employee's job duties or while on call in violation of the employer's employment policies;
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(3) actions, including discipline or termination of
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| employment, based on the employer's good faith belief that an employee was impaired as a result of the use of cannabis, or under the influence of cannabis, while at the employer's workplace or while performing the employee's job duties or while on call in violation of the employer's workplace drug policy; or
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(4) injury, loss, or liability to a third party if
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| the employer neither knew nor had reason to know that the employee was impaired.
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(f) Nothing in this Act shall be construed to enhance or diminish protections afforded by any other law, including but not limited to the Compassionate Use of Medical Cannabis Program Act or the Opioid Alternative Pilot Program.
(g) Nothing in this Act shall be construed to interfere with any federal, State, or local restrictions on employment including, but not limited to, the United States Department of Transportation regulation 49 CFR 40.151(e) or impact an employer's ability to comply with federal or State law or cause it to lose a federal or State contract or funding.
(h) As used in this Section, "workplace" means the employer's premises, including any building, real property, and parking area under the control of the employer or area used by an employee while in the performance of the employee's job duties, and vehicles, whether leased, rented, or owned. "Workplace" may be further defined by the employer's written employment policy, provided that the policy is consistent with this Section.
(i) For purposes of this Section, an employee is deemed "on call" when such employee is scheduled with at least 24 hours' notice by his or her employer to be on standby or otherwise responsible for performing tasks related to his or her employment either at the employer's premises or other previously designated location by his or her employer or supervisor to perform a work-related task.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
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(410 ILCS 705/15-15)
Sec. 15-15. Early Approval Adult Use Dispensing Organization License. (a) Any medical cannabis dispensing organization holding a valid registration under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act may, within 60 days of the effective date of this Act, apply to the Department for an Early Approval Adult Use Dispensing Organization License to serve purchasers at any medical cannabis dispensing location in operation on the effective date of this Act, pursuant to this Section. (b) A medical cannabis dispensing organization seeking issuance of an Early Approval Adult Use Dispensing Organization License to serve purchasers at any medical cannabis dispensing location in operation as of the effective date of this Act shall submit an application on forms provided by the Department. The application must be submitted by the same person or entity that holds the medical cannabis dispensing organization registration and include the following: (1) Payment of a nonrefundable fee of $30,000 to be |
| deposited into the Cannabis Regulation Fund;
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(2) Proof of registration as a medical cannabis
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| dispensing organization that is in good standing;
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(3) Certification that the applicant will comply with
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| the requirements contained in the Compassionate Use of Medical Cannabis Program Act except as provided in this Act;
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(4) The legal name of the dispensing organization;
(5) The physical address of the dispensing
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(6) The name, address, social security number, and
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| date of birth of each principal officer and board member of the dispensing organization, each of whom must be at least 21 years of age;
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(7) A nonrefundable Cannabis Business Development Fee
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| equal to 3% of the dispensing organization's total sales between June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to be deposited into the Cannabis Business Development Fund; and
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(8) Identification of one of the following Social
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| Equity Inclusion Plans to be completed by March 31, 2021:
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(A) Make a contribution of 3% of total sales from
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| June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to the Cannabis Business Development Fund. This is in addition to the fee required by item (7) of this subsection (b);
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(B) Make a grant of 3% of total sales from June
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| 1, 2018 to June 1, 2019, or $100,000, whichever is less, to a cannabis industry training or education program at an Illinois community college as defined in the Public Community College Act;
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(C) Make a donation of $100,000 or more to a
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| program that provides job training services to persons recently incarcerated or that operates in a Disproportionately Impacted Area;
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(D) Participate as a host in a cannabis business
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| establishment incubator program approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval Adult Use Dispensing Organization License holder agrees to provide a loan of at least $100,000 and mentorship to incubate, for at least a year, a Social Equity Applicant intending to seek a license or a licensee that qualifies as a Social Equity Applicant. As used in this Section, "incubate" means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. The Early Approval Adult Use Dispensing Organization License holder or the same entity holding any other licenses issued pursuant to this Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection. If an Early Approval Adult Use Dispensing Organization License holder fails to find a business to incubate to comply with this subsection before its Early Approval Adult Use Dispensing Organization License expires, it may opt to meet the requirement of this subsection by completing another item from this subsection; or
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(E) Participate in a sponsorship program for at
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| least 2 years approved by the Department of Commerce and Economic Opportunity in which an Early Approval Adult Use Dispensing Organization License holder agrees to provide an interest-free loan of at least $200,000 to a Social Equity Applicant. The sponsor shall not take an ownership stake in any cannabis business establishment receiving sponsorship services to comply with this subsection.
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(b-5) Beginning 90 days after the effective date of this amendatory Act of the 102nd General Assembly, an Early Approval Adult Use Dispensing Organization licensee whose license was issued pursuant to this Section may apply to relocate within the same geographic district where its existing associated medical cannabis dispensing organization dispensary licensed under the Compassionate Use of Medical Cannabis Act is authorized to operate. A request to relocate under this subsection is subject to approval by the Department. An Early Approval Adult Use Dispensing Organization's application to relocate its license under this subsection shall be deemed approved 30 days following the submission of a complete application to relocate, unless sooner approved or denied in writing by the Department. If an application to relocate is denied, the Department shall provide, in writing, the specific reason for denial.
An Early Approval Adult Use Dispensing Organization may request to relocate under this subsection if:
(1) its existing location is within the boundaries of
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| a unit of local government that prohibits the sale of adult use cannabis; or
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(2) the Early Approval Adult Use Dispensing
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| Organization has obtained the approval of the municipality or, if outside the boundaries of a municipality in an unincorporated area of the county, the approval of the county where the existing license is located to move to another location within that unit of local government.
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At no time may an Early Approval Adult Use Dispensing Organization dispensary licensed under this Section operate in a separate facility from its associated medical cannabis dispensing organization dispensary licensed under the Compassionate Use of Medical Cannabis Act. The relocation of an Early Approval Adult Use Dispensing Organization License under this subsection shall be subject to Sections 55-25 and 55-28 of this Act.
(c) The license fee required by paragraph (1) of subsection (b) of this Section shall be in addition to any license fee required for the renewal of a registered medical cannabis dispensing organization license.
(d) Applicants must submit all required information, including the requirements in subsection (b) of this Section, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified.
(e) If the Department receives an application that fails to provide the required elements contained in subsection (b), the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified.
(f) If an applicant meets all the requirements of subsection (b) of this Section, the Department shall issue the Early Approval Adult Use Dispensing Organization License within 14 days of receiving a completed application unless:
(1) The licensee or a principal officer is delinquent
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| in filing any required tax returns or paying any amounts owed to the State of Illinois;
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(2) The Secretary of Financial and Professional
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| Regulation determines there is reason, based on documented compliance violations, the licensee is not entitled to an Early Approval Adult Use Dispensing Organization License; or
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(3) Any principal officer fails to register and
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| remain in compliance with this Act or the Compassionate Use of Medical Cannabis Program Act.
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(g) A registered medical cannabis dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License may begin selling cannabis, cannabis-infused products, paraphernalia, and related items to purchasers under the rules of this Act no sooner than January 1, 2020.
(h) A dispensing organization holding a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act must maintain an adequate supply of cannabis and cannabis-infused products for purchase by qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants. For the purposes of this subsection, "adequate supply" means a monthly inventory level that is comparable in type and quantity to those medical cannabis products provided to patients and caregivers on an average monthly basis for the 6 months before the effective date of this Act.
(i) If there is a shortage of cannabis or cannabis-infused products, a dispensing organization holding both a dispensing organization license under the Compassionate Use of Medical Cannabis Program Act and this Act shall prioritize serving qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants before serving purchasers.
(j) Notwithstanding any law or rule to the contrary, a person that holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act and an Early Approval Adult Use Dispensing Organization License may permit purchasers into a limited access area as that term is defined in administrative rules made under the authority in the Compassionate Use of Medical Cannabis Program Act.
(k) An Early Approval Adult Use Dispensing Organization License is valid until March 31, 2021. A dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply to renew its Early Approval Adult Use Dispensing Organization License on forms provided by the Department. The Department shall renew the Early Approval Adult Use Dispensing Organization License within 60 days of the renewal application being deemed complete if:
(1) the dispensing organization submits an
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| application and the required nonrefundable renewal fee of $30,000, to be deposited into the Cannabis Regulation Fund;
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(2) the Department has not suspended or permanently
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| revoked the Early Approval Adult Use Dispensing Organization License or a medical cannabis dispensing organization license on the same premises for violations of this Act, the Compassionate Use of Medical Cannabis Program Act, or rules adopted pursuant to those Acts;
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(3) the dispensing organization has completed a
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| Social Equity Inclusion Plan as provided by parts (A), (B), and (C) of paragraph (8) of subsection (b) of this Section or has made substantial progress toward completing a Social Equity Inclusion Plan as provided by parts (D) and (E) of paragraph (8) of subsection (b) of this Section; and
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(4) the dispensing organization is in compliance with
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(l) The Early Approval Adult Use Dispensing Organization License renewed pursuant to subsection (k) of this Section shall expire March 31, 2022. The Early Approval Adult Use Dispensing Organization Licensee shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply for an Adult Use Dispensing Organization License on forms provided by the Department. The Department shall grant an Adult Use Dispensing Organization License within 60 days of an application being deemed complete if the applicant has met all of the criteria in Section 15-36.
(m) If a dispensing organization fails to submit an application for renewal of an Early Approval Adult Use Dispensing Organization License or for an Adult Use Dispensing Organization License before the expiration dates provided in subsections (k) and (l) of this Section, the dispensing organization shall cease serving purchasers and cease all operations until it receives a renewal or an Adult Use Dispensing Organization License, as the case may be.
(n) A dispensing organization agent who holds a valid dispensing organization agent identification card issued under the Compassionate Use of Medical Cannabis Program Act and is an officer, director, manager, or employee of the dispensing organization licensed under this Section may engage in all activities authorized by this Article to be performed by a dispensing organization agent.
(o) If the Department suspends, permanently revokes, or otherwise disciplines the Early Approval Adult Use Dispensing Organization License of a dispensing organization that also holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, the Department may consider the suspension, permanent revocation, or other discipline of the medical cannabis dispensing organization license.
(p) All fees collected pursuant to this Section shall be deposited into the Cannabis Regulation Fund, unless otherwise specified.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)
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(410 ILCS 705/15-20)
Sec. 15-20. Early Approval Adult Use Dispensing Organization License; secondary site. (a) Any medical cannabis dispensing organization holding a valid registration under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act may, within 60 days of the effective date of this Act, apply to the Department for an Early Approval Adult Use Dispensing Organization License to operate a dispensing organization to serve purchasers at a secondary site not within 1,500 feet of another medical cannabis dispensing organization or adult use dispensing organization. The Early Approval Adult Use Dispensing Organization secondary site shall be within any BLS Region that shares territory with the dispensing organization district to which the medical cannabis dispensing organization is assigned under the administrative rules for dispensing organizations under the Compassionate Use of Medical Cannabis Program Act. (a-5) If, within 360 days of the effective date of this Act, a dispensing organization is unable to find a location within the BLS Regions prescribed in subsection (a) of this Section in which to operate an Early Approval Adult Use Dispensing Organization at a secondary site because no jurisdiction within the prescribed area allows the operation of an Adult Use Cannabis Dispensing Organization, the Department of Financial and Professional Regulation may waive the geographic restrictions of subsection (a) of this Section and specify another BLS Region into which the dispensary may be placed. (b) (Blank). (c) A medical cannabis dispensing organization seeking issuance of an Early Approval Adult Use Dispensing Organization License at a secondary site to serve purchasers at a secondary site as prescribed in subsection (a) of this Section shall submit an application on forms provided by the Department. The application must meet or include the following qualifications: (1) a payment of a nonrefundable application fee of |
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(2) proof of registration as a medical cannabis
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| dispensing organization that is in good standing;
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(3) submission of the application by the same person
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| or entity that holds the medical cannabis dispensing organization registration;
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(4) the legal name of the medical cannabis dispensing
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(5) the physical address of the medical cannabis
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| dispensing organization and the proposed physical address of the secondary site;
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(6) a copy of the current local zoning ordinance
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| Sections relevant to dispensary operations and documentation of the approval, the conditional approval or the status of a request for zoning approval from the local zoning office that the proposed dispensary location is in compliance with the local zoning rules;
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(7) a plot plan of the dispensary drawn to scale. The
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| applicant shall submit general specifications of the building exterior and interior layout;
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(8) a statement that the dispensing organization
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| agrees to respond to the Department's supplemental requests for information;
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(9) for the building or land to be used as the
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(A) if the property is not owned by the
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| applicant, a written statement from the property owner and landlord, if any, certifying consent that the applicant may operate a dispensary on the premises; or
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(B) if the property is owned by the applicant,
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| confirmation of ownership;
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(10) a copy of the proposed operating bylaws;
(11) a copy of the proposed business plan that
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| complies with the requirements in this Act, including, at a minimum, the following:
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(A) a description of services to be offered; and
(B) a description of the process of dispensing
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(12) a copy of the proposed security plan that
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| complies with the requirements in this Article, including:
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(A) a description of the delivery process by
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| which cannabis will be received from a transporting organization, including receipt of manifests and protocols that will be used to avoid diversion, theft, or loss at the dispensary acceptance point; and
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(B) the process or controls that will be
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| implemented to monitor the dispensary, secure the premises, agents, patients, and currency, and prevent the diversion, theft, or loss of cannabis; and
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(C) the process to ensure that access to the
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| restricted access areas is restricted to, registered agents, service professionals, transporting organization agents, Department inspectors, and security personnel;
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(13) a proposed inventory control plan that complies
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(14) the name, address, social security number, and
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| date of birth of each principal officer and board member of the dispensing organization; each of those individuals shall be at least 21 years of age;
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(15) a nonrefundable Cannabis Business Development
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| Fee equal to $200,000, to be deposited into the Cannabis Business Development Fund; and
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(16) a commitment to completing one of the following
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| Social Equity Inclusion Plans in subsection (d).
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(d) Before receiving an Early Approval Adult Use Dispensing Organization License at a secondary site, a dispensing organization shall indicate the Social Equity Inclusion Plan that the applicant plans to achieve before the expiration of the Early Approval Adult Use Dispensing Organization License from the list below:
(1) make a contribution of 3% of total sales from
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| June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to the Cannabis Business Development Fund. This is in addition to the fee required by paragraph (16) of subsection (c) of this Section;
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(2) make a grant of 3% of total sales from June 1,
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| 2018 to June 1, 2019, or $100,000, whichever is less, to a cannabis industry training or education program at an Illinois community college as defined in the Public Community College Act;
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(3) make a donation of $100,000 or more to a program
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| that provides job training services to persons recently incarcerated or that operates in a Disproportionately Impacted Area;
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(4) participate as a host in a cannabis business
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| establishment incubator program approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval Adult Use Dispensing Organization License at a secondary site holder agrees to provide a loan of at least $100,000 and mentorship to incubate, for at least a year, a Social Equity Applicant intending to seek a license or a licensee that qualifies as a Social Equity Applicant. In this paragraph (4), "incubate" means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. The Early Approval Adult Use Dispensing Organization License holder or the same entity holding any other licenses issued under this Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection. If an Early Approval Adult Use Dispensing Organization License at a secondary site holder fails to find a business to incubate in order to comply with this subsection before its Early Approval Adult Use Dispensing Organization License at a secondary site expires, it may opt to meet the requirement of this subsection by completing another item from this subsection before the expiration of its Early Approval Adult Use Dispensing Organization License at a secondary site to avoid a penalty; or
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(5) participate in a sponsorship program for at least
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| 2 years approved by the Department of Commerce and Economic Opportunity in which an Early Approval Adult Use Dispensing Organization License at a secondary site holder agrees to provide an interest-free loan of at least $200,000 to a Social Equity Applicant. The sponsor shall not take an ownership stake of greater than 10% in any business receiving sponsorship services to comply with this subsection.
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(e) The license fee required by paragraph (1) of subsection (c) of this Section is in addition to any license fee required for the renewal of a registered medical cannabis dispensing organization license.
(f) Applicants must submit all required information, including the requirements in subsection (c) of this Section, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified. Principal officers shall not be required to submit to the fingerprint and background check requirements of Section 5-20.
(g) If the Department receives an application that fails to provide the required elements contained in subsection (c), the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified.
(h) Once all required information and documents have been submitted, the Department will review the application. The Department may request revisions and retains final approval over dispensary features. Once the application is complete and meets the Department's approval, the Department shall conditionally approve the license. Final approval is contingent on the build-out and Department inspection.
(i) Upon submission of the Early Approval Adult Use Dispensing Organization at a secondary site application, the applicant shall request an inspection and the Department may inspect the Early Approval Adult Use Dispensing Organization's secondary site to confirm compliance with the application and this Act.
(j) The Department shall only issue an Early Approval Adult Use Dispensing Organization License at a secondary site after the completion of a successful inspection.
(k) If an applicant passes the inspection under this Section, the Department shall issue the Early Approval Adult Use Dispensing Organization License at a secondary site within 10 business days unless:
(1) The licensee, any principal officer or board
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| member of the licensee, or any person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois; or
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(2) The Secretary of Financial and Professional
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| Regulation determines there is reason, based on documented compliance violations, the licensee is not entitled to an Early Approval Adult Use Dispensing Organization License at its secondary site.
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(l) Once the Department has issued a license, the dispensing organization shall notify the Department of the proposed opening date.
(m) A registered medical cannabis dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License at a secondary site may begin selling cannabis, cannabis-infused products, paraphernalia, and related items to purchasers under the rules of this Act no sooner than January 1, 2020.
(n) If there is a shortage of cannabis or cannabis-infused products, a dispensing organization holding both a dispensing organization license under the Compassionate Use of Medical Cannabis Program Act and this Article shall prioritize serving qualifying patients and caregivers before serving purchasers.
(o) An Early Approval Adult Use Dispensing Organization License at a secondary site is valid until March 31, 2021. A dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License at a secondary site shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and inform the license holder that it may renew its Early Approval Adult Use Dispensing Organization License at a secondary site. The Department shall renew an Early Approval Adult Use Dispensing Organization License at a secondary site within 60 days of submission of the renewal application being deemed complete if:
(1) the dispensing organization submits an
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| application and the required nonrefundable renewal fee of $30,000, to be deposited into the Cannabis Regulation Fund;
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(2) the Department has not suspended or permanently
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| revoked the Early Approval Adult Use Dispensing Organization License or a medical cannabis dispensing organization license held by the same person or entity for violating this Act or rules adopted under this Act or the Compassionate Use of Medical Cannabis Program Act or rules adopted under that Act; and
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(3) the dispensing organization has completed a
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| Social Equity Inclusion Plan provided by paragraph (1), (2), or (3) of subsection (d) of this Section or has made substantial progress toward completing a Social Equity Inclusion Plan provided by paragraph (4) or (5) of subsection (d) of this Section.
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(p) The Early Approval Adult Use Dispensing Organization Licensee at a secondary site renewed pursuant to subsection (o) shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply for an Adult Use Dispensing Organization License on forms provided by the Department. The Department shall grant an Adult Use Dispensing Organization License within 60 days of an application being deemed complete if the applicant has meet all of the criteria in Section 15-36.
(q) If a dispensing organization fails to submit an application for renewal of an Early Approval Adult Use Dispensing Organization License or for an Adult Use Dispensing Organization License before the expiration dates provided in subsections (o) and (p) of this Section, the dispensing organization shall cease serving purchasers until it receives a renewal or an Adult Use Dispensing Organization License.
(r) A dispensing organization agent who holds a valid dispensing organization agent identification card issued under the Compassionate Use of Medical Cannabis Program Act and is an officer, director, manager, or employee of the dispensing organization licensed under this Section may engage in all activities authorized by this Article to be performed by a dispensing organization agent.
(s) If the Department suspends, permanently revokes, or otherwise disciplines the Early Approval Adult Use Dispensing Organization License of a dispensing organization that also holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, the Department may consider the suspension, permanent revocation, or other discipline as grounds to take disciplinary action against the medical cannabis dispensing organization.
(t) All fees collected pursuant to this Section shall be deposited into the Cannabis Regulation Fund, unless otherwise specified.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19 .)
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(410 ILCS 705/15-25)
Sec. 15-25. Awarding of Conditional Adult Use Dispensing Organization Licenses prior to January 1, 2021. (a) The Department shall issue up to 75 Conditional Adult Use Dispensing Organization Licenses before May 1, 2020. (b) The Department shall make the application for a Conditional Adult Use Dispensing Organization License available no later than October 1, 2019 and shall accept applications no later than January 1, 2020. (c) To ensure the geographic dispersion of Conditional Adult Use Dispensing Organization License holders, the following number of licenses shall be awarded in each BLS Region as determined by each region's percentage of the State's population: (1) Bloomington: 1 (2) Cape Girardeau: 1 (3) Carbondale-Marion: 1 (4) Champaign-Urbana: 1 (5) Chicago-Naperville-Elgin: 47 (6) Danville: 1 (7) Davenport-Moline-Rock Island: 1 (8) Decatur: 1 (9) Kankakee: 1 (10) Peoria: 3 (11) Rockford: 2 (12) St. Louis: 4 (13) Springfield: 1 (14) Northwest Illinois nonmetropolitan: 3 (15) West Central Illinois nonmetropolitan: 3 (16) East Central Illinois nonmetropolitan: 2 (17) South Illinois nonmetropolitan: 2 (d) An applicant seeking issuance of a Conditional Adult Use Dispensing Organization License shall submit an application on forms provided by the Department. An applicant must meet the following requirements: (1) Payment of a nonrefundable application fee of |
| $5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;
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(2) Certification that the applicant will comply with
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| the requirements contained in this Act;
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(3) The legal name of the proposed dispensing
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(4) A statement that the dispensing organization
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| agrees to respond to the Department's supplemental requests for information;
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(5) From each principal officer, a statement
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| indicating whether that person:
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(A) has previously held or currently holds an
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| ownership interest in a cannabis business establishment in Illinois; or
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(B) has held an ownership interest in a
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| dispensing organization or its equivalent in another state or territory of the United States that had the dispensing organization registration or license suspended, revoked, placed on probationary status, or subjected to other disciplinary action;
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(6) Disclosure of whether any principal officer has
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| ever filed for bankruptcy or defaulted on spousal support or child support obligation;
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(7) A resume for each principal officer, including
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| whether that person has an academic degree, certification, or relevant experience with a cannabis business establishment or in a related industry;
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(8) A description of the training and education that
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| will be provided to dispensing organization agents;
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(9) A copy of the proposed operating bylaws;
(10) A copy of the proposed business plan that
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| complies with the requirements in this Act, including, at a minimum, the following:
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(A) A description of services to be offered; and
(B) A description of the process of dispensing
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(11) A copy of the proposed security plan that
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| complies with the requirements in this Article, including:
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(A) The process or controls that will be
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| implemented to monitor the dispensary, secure the premises, agents, and currency, and prevent the diversion, theft, or loss of cannabis; and
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(B) The process to ensure that access to the
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| restricted access areas is restricted to, registered agents, service professionals, transporting organization agents, Department inspectors, and security personnel;
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(12) A proposed inventory control plan that complies
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(13) A proposed floor plan, a square footage
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| estimate, and a description of proposed security devices, including, without limitation, cameras, motion detectors, servers, video storage capabilities, and alarm service providers;
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(14) The name, address, social security number, and
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| date of birth of each principal officer and board member of the dispensing organization; each of those individuals shall be at least 21 years of age;
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(15) Evidence of the applicant's status as a Social
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| Equity Applicant, if applicable, and whether a Social Equity Applicant plans to apply for a loan or grant issued by the Department of Commerce and Economic Opportunity;
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(16) The address, telephone number, and email address
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| of the applicant's principal place of business, if applicable. A post office box is not permitted;
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(17) Written summaries of any information regarding
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| instances in which a business or not-for-profit that a prospective board member previously managed or served on were fined or censured, or any instances in which a business or not-for-profit that a prospective board member previously managed or served on had its registration suspended or revoked in any administrative or judicial proceeding;
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(18) A plan for community engagement;
(19) Procedures to ensure accurate recordkeeping and
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| security measures that are in accordance with this Article and Department rules;
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(20) The estimated volume of cannabis it plans to
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(21) A description of the features that will provide
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| accessibility to purchasers as required by the Americans with Disabilities Act;
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(22) A detailed description of air treatment systems
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| that will be installed to reduce odors;
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(23) A reasonable assurance that the issuance of a
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| license will not have a detrimental impact on the community in which the applicant wishes to locate;
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(24) The dated signature of each principal officer;
(25) A description of the enclosed, locked facility
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| where cannabis will be stored by the dispensing organization;
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(26) Signed statements from each dispensing
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| organization agent stating that he or she will not divert cannabis;
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(27) The number of licenses it is applying for in
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(28) A diversity plan that includes a narrative of at
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| least 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity;
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(29) A contract with a private security contractor
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| agency that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 in order for the dispensary to have adequate security at its facility; and
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(30) Other information deemed necessary by the
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| Illinois Cannabis Regulation Oversight Officer to conduct the disparity and availability study referenced in subsection (e) of Section 5-45.
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(e) An applicant who receives a Conditional Adult Use Dispensing Organization License under this Section has 180 days from the date of award to identify a physical location for the dispensing organization retail storefront. The applicant shall provide evidence that the location is not within 1,500 feet of an existing dispensing organization, unless the applicant is a Social Equity Applicant or Social Equity Justice Involved Applicant located or seeking to locate within 1,500 feet of a dispensing organization licensed under Section 15-15 or Section 15-20. If an applicant is unable to find a suitable physical address in the opinion of the Department within 180 days of the issuance of the Conditional Adult Use Dispensing Organization License, the Department may extend the period for finding a physical address an additional 540 days if the Conditional Adult Use Dispensing Organization License holder demonstrates concrete attempts to secure a location and a hardship. If the Department denies the extension or the Conditional Adult Use Dispensing Organization License holder is unable to find a location or become operational within 720 days of being awarded a conditional license, the Department shall rescind the conditional license and award it to the next highest scoring applicant in the BLS Region for which the license was assigned, provided the applicant receiving the license: (i) confirms a continued interest in operating a dispensing organization; (ii) can provide evidence that the applicant continues to meet all requirements for holding a Conditional Adult Use Dispensing Organization License set forth in this Act; and (iii) has not otherwise become ineligible to be awarded a dispensing organization license. If the new awardee is unable to accept the Conditional Adult Use Dispensing Organization License, the Department shall award the Conditional Adult Use Dispensing Organization License to the next highest scoring applicant in the same manner. The new awardee shall be subject to the same required deadlines as provided in this subsection.
(e-5) If, within 720 days of being awarded a Conditional Adult Use Dispensing Organization License, a dispensing organization is unable to find a location within the BLS Region in which it was awarded a Conditional Adult Use Dispensing Organization License because no jurisdiction within the BLS Region allows for the operation of an Adult Use Dispensing Organization, the Department of Financial and Professional Regulation may authorize the Conditional Adult Use Dispensing Organization License holder to transfer its license to a BLS Region specified by the Department.
(f) A dispensing organization that is awarded a Conditional Adult Use Dispensing Organization License pursuant to the criteria in Section 15-30 shall not purchase, possess, sell, or dispense cannabis or cannabis-infused products until the person has received an Adult Use Dispensing Organization License issued by the Department pursuant to Section 15-36 of this Act.
(g) The Department shall conduct a background check of the prospective organization agents in order to carry out this Article. The Illinois State Police shall charge the applicant a fee for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each person applying as a dispensing organization agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed in the Illinois State Police and Federal Bureau of Identification criminal history records databases. The Illinois State Police shall furnish, following positive identification, all Illinois conviction information to the Department.
(Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)
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(410 ILCS 705/15-30)
Sec. 15-30. Selection criteria for conditional licenses awarded under Section 15-25. (a) Applicants for a Conditional Adult Use Dispensing Organization License must submit all required information, including the information required in Section 15-25, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified. (b) If the Department receives an application that fails to provide the required elements contained in this Section, the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to resubmit the incomplete information. Applications that are still incomplete after this opportunity to cure will not be scored and will be disqualified. (c) The Department will award up to 250 points to complete applications based on the sufficiency of the applicant's responses to required information. Applicants will be awarded points based on a determination that the application satisfactorily includes the following elements: (1) Suitability of Employee Training Plan (15 |
| points). The plan includes an employee training plan that demonstrates that employees will understand the rules and laws to be followed by dispensary employees, have knowledge of any security measures and operating procedures of the dispensary, and are able to advise purchasers on how to safely consume cannabis and use individual products offered by the dispensary.
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(2) Security and Recordkeeping (65 points).
(A) The security plan accounts for the prevention
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| of the theft or diversion of cannabis. The security plan demonstrates safety procedures for dispensing organization agents and purchasers, and safe delivery and storage of cannabis and currency. It demonstrates compliance with all security requirements in this Act and rules.
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(B) A plan for recordkeeping, tracking, and
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| monitoring inventory, quality control, and other policies and procedures that will promote standard recordkeeping and discourage unlawful activity. This plan includes the applicant's strategy to communicate with the Department and the Illinois State Police on the destruction and disposal of cannabis. The plan must also demonstrate compliance with this Act and rules.
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(C) The security plan shall also detail which
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| private security contractor licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 the dispensary will contract with in order to provide adequate security at its facility.
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(3) Applicant's Business Plan, Financials, Operating
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| and Floor Plan (65 points).
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(A) The business plan shall describe, at a
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| minimum, how the dispensing organization will be managed on a long-term basis. This shall include a description of the dispensing organization's point-of-sale system, purchases and denials of sale, confidentiality, and products and services to be offered. It will demonstrate compliance with this Act and rules.
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(B) The operating plan shall include, at a
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| minimum, best practices for day-to-day dispensary operation and staffing. The operating plan may also include information about employment practices, including information about the percentage of full-time employees who will be provided a living wage.
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(C) The proposed floor plan is suitable for
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| public access, the layout promotes safe dispensing of cannabis, is compliant with the Americans with Disabilities Act and the Environmental Barriers Act, and facilitates safe product handling and storage.
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(4) Knowledge and Experience (30 points).
(A) The applicant's principal officers must
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| demonstrate experience and qualifications in business management or experience with the cannabis industry. This includes ensuring optimal safety and accuracy in the dispensing and sale of cannabis.
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(B) The applicant's principal officers must
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| demonstrate knowledge of various cannabis product strains or varieties and describe the types and quantities of products planned to be sold. This includes confirmation of whether the dispensing organization plans to sell cannabis paraphernalia or edibles.
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(C) Knowledge and experience may be demonstrated
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| through experience in other comparable industries that reflect on the applicant's ability to operate a cannabis business establishment.
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(5) Status as a Social Equity Applicant (50 points).
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| The applicant meets the qualifications for a Social Equity Applicant as set forth in this Act.
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(6) Labor and employment practices (5 points). The
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| applicant may describe plans to provide a safe, healthy, and economically beneficial working environment for its agents, including, but not limited to, codes of conduct, health care benefits, educational benefits, retirement benefits, living wage standards, and entering a labor peace agreement with employees.
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(7) Environmental Plan (5 points). The applicant may
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| demonstrate an environmental plan of action to minimize the carbon footprint, environmental impact, and resource needs for the dispensary, which may include, without limitation, recycling cannabis product packaging.
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(8) Illinois owner (5 points). The applicant is 51%
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| or more owned and controlled by an Illinois resident, who can prove residency in each of the past 5 years with tax records or 2 of the following:
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(A) a signed lease agreement that includes the
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(B) a property deed that includes the applicant's
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(C) school records;
(D) a voter registration card;
(E) an Illinois driver's license, an Illinois
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| Identification Card, or an Illinois Person with a Disability Identification Card;
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(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other
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| information necessary to establish residence as provided by rule.
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(9) Status as veteran (5 points). The applicant is
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| 51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran as defined by Section 45-57 of the Illinois Procurement Code.
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(10) A diversity plan (5 points). The plan includes a
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| narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity.
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(d) The Department may also award up to 2 bonus points for a plan to engage with the community. The applicant may demonstrate a desire to engage with its community by participating in one or more of, but not limited to, the following actions: (i) establishment of an incubator program designed to increase participation in the cannabis industry by persons who would qualify as Social Equity Applicants; (ii) providing financial assistance to substance abuse treatment centers; (iii) educating children and teens about the potential harms of cannabis use; or (iv) other measures demonstrating a commitment to the applicant's community. Bonus points will only be awarded if the Department receives applications that receive an equal score for a particular region.
(e) The Department may verify information contained in each application and accompanying documentation to assess the applicant's veracity and fitness to operate a dispensing organization.
(f) The Department may, in its discretion, refuse to issue an authorization to any applicant:
(1) Who is unqualified to perform the duties required
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(2) Who fails to disclose or states falsely any
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| information called for in the application;
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(3) Who has been found guilty of a violation of this
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| Act, who has had any disciplinary order entered against it by the Department, who has entered into a disciplinary or nondisciplinary agreement with the Department, or whose medical cannabis dispensing organization, medical cannabis cultivation organization, or Early Approval Adult Use Dispensing Organization License, or Early Approval Adult Use Dispensing Organization License at a secondary site, or Early Approval Cultivation Center License was suspended, restricted, revoked, or denied for just cause, or the applicant's cannabis business establishment license was suspended, restricted, revoked, or denied in any other state; or
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(4) Who has engaged in a pattern or practice of
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| unfair or illegal practices, methods, or activities in the conduct of owning a cannabis business establishment or other business.
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(g) The Department shall deny the license if any principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(h) The Department shall verify an applicant's compliance with the requirements of this Article and rules before issuing a dispensing organization license.
(i) Should the applicant be awarded a license, the information and plans provided in the application, including any plans submitted for bonus points, shall become a condition of the Conditional Adult Use Dispensing Organization Licenses and any Adult Use Dispensing Organization License issued to the holder of the Conditional Adult Use Dispensing Organization License, except as otherwise provided by this Act or rule. Dispensing organizations have a duty to disclose any material changes to the application. The Department shall review all material changes disclosed by the dispensing organization, and may re-evaluate its prior decision regarding the awarding of a license, including, but not limited to, suspending or permanently revoking a license. Failure to comply with the conditions or requirements in the application may subject the dispensing organization to discipline, up to and including suspension or permanent revocation of its authorization or license by the Department.
(j) If an applicant has not begun operating as a dispensing organization within one year of the issuance of the Conditional Adult Use Dispensing Organization License, the Department may permanently revoke the Conditional Adult Use Dispensing Organization License and award it to the next highest scoring applicant in the BLS Region if a suitable applicant indicates a continued interest in the license or begin a new selection process to award a Conditional Adult Use Dispensing Organization License.
(k) The Department shall deny an application if granting that application would result in a single person or entity having a direct or indirect financial interest in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, or Adult Use Dispensing Organization Licenses. Any entity that is awarded a license that results in a single person or entity having a direct or indirect financial interest in more than 10 licenses shall forfeit the most recently issued license and suffer a penalty to be determined by the Department, unless the entity declines the license at the time it is awarded.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
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(410 ILCS 705/15-35)
Sec. 15-35. Qualifying Applicant Lottery for Conditional Adult Use Dispensing Organization Licenses. (a) In addition to any of the licenses issued under Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, or Section 15-35.10 of this Act, within 10 business days after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released, the Department shall issue up to 55 Conditional Adult Use Dispensing Organization Licenses by lot, pursuant to the application process adopted under this Section. In order to be eligible to be awarded a Conditional Adult Use Dispensing Organization License by lot under this Section, a Dispensary Applicant must be a Qualifying Applicant. The licenses issued under this Section shall be awarded in each BLS Region in the following amounts: (1) Bloomington: 1. (2) Cape Girardeau: 1. (3) Carbondale-Marion: 1. (4) Champaign-Urbana: 1. (5) Chicago-Naperville-Elgin: 36. (6) Danville: 1. (7) Davenport-Moline-Rock Island: 1. (8) Decatur: 1. (9) Kankakee: 1. (10) Peoria: 2. (11) Rockford: 1. (12) St. Louis: 3. (13) Springfield: 1. (14) Northwest Illinois nonmetropolitan: 1. (15) West Central Illinois nonmetropolitan: 1. (16) East Central Illinois nonmetropolitan: 1. (17) South Illinois nonmetropolitan: 1. (a-5) Prior to issuing licenses under subsection (a), the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) of Section 5-45 of the Illinois Administrative Procedure Act. The General Assembly finds that the adoption of rules to regulate cannabis use is deemed an emergency and necessary for the public interest, safety, and welfare. (b) The Department shall distribute the available licenses established under this Section subject to the following: (1) The drawing by lot for all available licenses |
| issued under this Section shall occur on the same day when practicable.
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(2) Within each BLS Region, the first Qualifying
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| Applicant drawn will have the first right to an available license. The second Qualifying Applicant drawn will have the second right to an available license. The same pattern will continue for each subsequent Qualifying Applicant drawn.
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(3) The process for distributing available licenses
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| under this Section shall be recorded by the Department in a format selected by the Department.
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(4) A Dispensary Applicant is prohibited from
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| becoming a Qualifying Applicant if a principal officer resigns after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released.
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(5) No Qualifying Applicant may be awarded more
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| than 2 Conditional Adult Use Dispensing Organization Licenses at the conclusion of a lottery conducted under this Section.
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(6) No individual may be listed as a principal
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| officer of more than 2 Conditional Adult Use Dispensing Organization Licenses awarded under this Section.
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(7) If, upon being selected for an available
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| license established under this Section, a Qualifying Applicant exceeds the limits under paragraph (5) or (6), the Qualifying Applicant must choose which license to abandon and notify the Department in writing within 5 business days. If the Qualifying Applicant does not notify the Department as required, the Department shall refuse to issue the Qualifying Applicant all available licenses established under this Section obtained by lot in all BLS Regions.
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(8) If, upon being selected for an available
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| license established under this Section, a Qualifying Applicant has a principal officer who is a principal officer in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses, or any combination thereof, the licensees and the Qualifying Applicant listing that principal officer must choose which license to abandon pursuant to subsection (d) of Section 15-36 and notify the Department in writing within 5 business days. If the Qualifying Applicant or licensees do not notify the Department as required, the Department shall refuse to issue the Qualifying Applicant all available licenses established under this Section obtained by lot in all BLS Regions.
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(9) All available licenses that have been abandoned
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| under paragraph (7) or (8) shall be distributed to the next Qualifying Applicant drawn by lot.
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Any and all rights conferred or obtained under this Section shall be limited to the provisions of this Section.
(c) An applicant who receives a Conditional Adult Use Dispensing Organization License under this Section has 180 days from the date it is awarded to identify a physical location for the dispensing organization's retail storefront. The applicant shall provide evidence that the location is not within 1,500 feet of an existing dispensing organization, unless the applicant is a Social Equity Applicant or Social Equity Justice Involved Applicant located or seeking to locate within 1,500 feet of a dispensing organization licensed under Section 15-15 or Section 15-20. If an applicant is unable to find a suitable physical address in the opinion of the Department within 180 days from the issuance of the Conditional Adult Use Dispensing Organization License, the Department may extend the period for finding a physical address an additional 540 days if the Conditional Adult Use Dispensing Organization License holder demonstrates a concrete attempt to secure a location and a hardship. If the Department denies the extension or the Conditional Adult Use Dispensing Organization License holder is unable to find a location or become operational within 720 days of being awarded a Conditional Adult Use Dispensing Organization License under this Section, the Department shall rescind the Conditional Adult Use Dispensing Organization License and award it pursuant to subsection (b), provided the applicant receiving the Conditional Adult Use Dispensing Organization License: (i) confirms a continued interest in operating a dispensing organization; (ii) can provide evidence that the applicant continues to meet all requirements for holding a Conditional Adult Use Dispensing Organization License set forth in this Act; and (iii) has not otherwise become ineligible to be awarded a Conditional Adult Use Dispensing Organization License. If the new awardee is unable to accept the Conditional Adult Use Dispensing Organization License, the Department shall award the Conditional Adult Use Dispensing Organization License pursuant to subsection (b). The new awardee shall be subject to the same required deadlines as provided in this subsection.
(d) If, within 720 days of being awarded a Conditional Adult Use Dispensing Organization License, a dispensing organization is unable to find a location within the BLS Region in which it was awarded a Conditional Adult Use Dispensing Organization License because no jurisdiction within the BLS Region allows for the operation of an Adult Use Dispensing Organization, the Department may authorize the Conditional Adult Use Dispensing Organization License holder to transfer its Conditional Adult Use Dispensing Organization License to a BLS Region specified by the Department.
(e) A dispensing organization that is awarded a Conditional Adult Use Dispensing Organization License under this Section shall not purchase, possess, sell, or dispense cannabis or cannabis-infused products until the dispensing organization has received an Adult Use Dispensing Organization License issued by the Department pursuant to Section 15-36.
(f) The Department shall conduct a background check of the prospective dispensing organization agents in order to carry out this Article. The Illinois State Police shall charge the applicant a fee for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each person applying as a dispensing organization agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed with the Illinois State Police and the Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall furnish, following positive identification, all Illinois conviction information to the Department.
(g) The Department may verify information contained in each application and accompanying documentation to assess the applicant's veracity and fitness to operate a dispensing organization.
(h) The Department may, in its discretion, refuse to issue authorization to an applicant who meets any of the following criteria:
(1) An applicant who is unqualified to perform
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| the duties required of the applicant.
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(2) An applicant who fails to disclose or states
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| falsely any information called for in the application.
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(3) An applicant who has been found guilty of a
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| violation of this Act, who has had any disciplinary order entered against the applicant by the Department, who has entered into a disciplinary or nondisciplinary agreement with the Department, whose medical cannabis dispensing organization, medical cannabis cultivation organization, Early Approval Adult Use Dispensing Organization License, Early Approval Adult Use Dispensing Organization License at a secondary site, Early Approval Cultivation Center License, Conditional Adult Use Dispensing Organization License, or Adult Use Dispensing Organization License was suspended, restricted, revoked, or denied for just cause, or whose cannabis business establishment license was suspended, restricted, revoked, or denied in any other state.
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(4) An applicant who has engaged in a pattern or
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| practice of unfair or illegal practices, methods, or activities in the conduct of owning a cannabis business establishment or other business.
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(i) The Department shall deny issuance of a license under this Section if any principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax return or paying any amount owed to the State of Illinois.
(j) The Department shall verify an applicant's compliance with the requirements of this Article and rules adopted under this Article before issuing a Conditional Adult Use Dispensing Organization License under this Section.
(k) If an applicant is awarded a Conditional Adult Use Dispensing Organization License under this Section, the information and plans provided in the application, including any plans submitted for bonus points, shall become a condition of the Conditional Adult Use Dispensing Organization License and any Adult Use Dispensing Organization License issued to the holder of the Conditional Adult Use Dispensing Organization License, except as otherwise provided by this Act or by rule. A dispensing organization has a duty to disclose any material changes to the application. The Department shall review all material changes disclosed by the dispensing organization and may reevaluate its prior decision regarding the awarding of a Conditional Adult Use Dispensing Organization License, including, but not limited to, suspending or permanently revoking a Conditional Adult Use Dispensing Organization License. Failure to comply with the conditions or requirements in the application may subject the dispensing organization to discipline up to and including suspension or permanent revocation of its authorization or Conditional Adult Use Dispensing Organization License by the Department.
(l) If an applicant has not begun operating as a dispensing organization within one year after the issuance of the Conditional Adult Use Dispensing Organization License under this Section, the Department may permanently revoke the Conditional Adult Use Dispensing Organization License and award it to the next highest scoring applicant in the BLS Region if a suitable applicant indicates a continued interest in the Conditional Adult Use Dispensing Organization License or may begin a new selection process to award a Conditional Adult Use Dispensing Organization License.
(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
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(410 ILCS 705/15-35.10) Sec. 15-35.10. Social Equity Justice Involved Lottery for Conditional Adult Use Dispensing Organization Licenses. (a) In addition to any of the licenses issued under Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, or Section 15-35, within 10 business days after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released, the Department shall issue up to 55 Conditional Adult Use Dispensing Organization Licenses by lot, pursuant to the application process adopted under this Section. In order to be eligible to be awarded a Conditional Adult Use Dispensing Organization License by lot, a Dispensary Applicant must be a Qualifying Social Equity Justice Involved Applicant. The licenses issued under this Section shall be awarded in each BLS Region in the following amounts: (1) Bloomington: 1. (2) Cape Girardeau: 1. (3) Carbondale-Marion: 1. (4) Champaign-Urbana: 1. (5) Chicago-Naperville-Elgin: 36. (6) Danville: 1. (7) Davenport-Moline-Rock Island: 1. (8) Decatur: 1. (9) Kankakee: 1. (10) Peoria: 2. (11) Rockford: 1. (12) St. Louis: 3. (13) Springfield: 1. (14) Northwest Illinois nonmetropolitan: 1. (15) West Central Illinois nonmetropolitan: 1. (16) East Central Illinois nonmetropolitan: 1. (17) South Illinois nonmetropolitan: 1. (a-5) Prior to issuing licenses under subsection (a), the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) of Section 5-45 of the Illinois Administrative Procedure Act. The General Assembly finds that the adoption of rules to regulate cannabis use is deemed an emergency and necessary for the public interest, safety, and welfare. (b) The Department shall distribute the available licenses established under this Section subject to the following: (1) The drawing by lot for all available licenses |
| established under this Section shall occur on the same day when practicable.
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(2) Within each BLS Region, the first Qualifying
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| Social Equity Justice Involved Applicant drawn will have the first right to an available license. The second Qualifying Social Equity Justice Involved Applicant drawn will have the second right to an available license. The same pattern will continue for each subsequent applicant drawn.
|
|
(3) The process for distributing available licenses
|
| under this Section shall be recorded by the Department in a format selected by the Department.
|
|
(4) A Dispensary Applicant is prohibited from
|
| becoming a Qualifying Social Equity Justice Involved Applicant if a principal officer resigns after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released.
|
|
(5) No Qualifying Social Equity Justice Involved
|
| Applicant may be awarded more than 2 Conditional Adult Use Dispensing Organization Licenses at the conclusion of a lottery conducted under this Section.
|
|
(6) No individual may be listed as a principal
|
| officer of more than 2 Conditional Adult Use Dispensing Organization Licenses awarded under this Section.
|
|
(7) If, upon being selected for an available
|
| license established under this Section, a Qualifying Social Equity Justice Involved Applicant exceeds the limits under paragraph (5) or (6), the Qualifying Social Equity Justice Involved Applicant must choose which license to abandon and notify the Department in writing within 5 business days on forms prescribed by the Department. If the Qualifying Social Equity Justice Involved Applicant does not notify the Department as required, the Department shall refuse to issue the Qualifying Social Equity Justice Involved Applicant all available licenses established under this Section obtained by lot in all BLS Regions.
|
|
(8) If, upon being selected for an available
|
| license established under this Section, a Qualifying Social Equity Justice Involved Applicant has a principal officer who is a principal officer in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses, or any combination thereof, the licensees and the Qualifying Social Equity Justice Involved Applicant listing that principal officer must choose which license to abandon pursuant to subsection (d) of Section 15-36 and notify the Department in writing within 5 business days on forms prescribed by the Department. If the Dispensary Applicant or licensees do not notify the Department as required, the Department shall refuse to issue the Qualifying Social Equity Justice Involved Applicant all available licenses established under this Section obtained by lot in all BLS Regions.
|
|
(9) All available licenses that have been abandoned
|
| under paragraph (7) or (8) shall be distributed to the next Qualifying Social Equity Justice Involved Applicant drawn by lot.
|
|
Any and all rights conferred or obtained under this subsection shall be limited to the provisions of this subsection.
(c) An applicant who receives a Conditional Adult Use Dispensing Organization License under this Section has 180 days from the date of the award to identify a physical location for the dispensing organization's retail storefront. The applicant shall provide evidence that the location is not within 1,500 feet of an existing dispensing organization, unless the applicant is a Social Equity Applicant or Social Equity Justice Involved Applicant located or seeking to locate within 1,500 feet of a dispensing organization licensed under Section 15-15 or Section 15-20. If an applicant is unable to find a suitable physical address in the opinion of the Department within 180 days from the issuance of the Conditional Adult Use Dispensing Organization License, the Department may extend the period for finding a physical address an additional 540 days if the Conditional Adult Use Dispensing Organization License holder demonstrates a concrete attempt to secure a location and a hardship. If the Department denies the extension or the Conditional Adult Use Dispensing Organization License holder is unable to find a location or become operational within 720 days of being awarded a Conditional Adult Use Dispensing Organization License under this Section, the Department shall rescind the Conditional Adult Use Dispensing Organization License and award it pursuant to subsection (b) and notify the new awardee at the email address provided in the awardee's application, provided the applicant receiving the Conditional Adult Use Dispensing Organization License: (i) confirms a continued interest in operating a dispensing organization; (ii) can provide evidence that the applicant continues to meet all requirements for holding a Conditional Adult Use Dispensing Organization License set forth in this Act; and (iii) has not otherwise become ineligible to be awarded a Conditional Adult Use Dispensing Organization License. If the new awardee is unable to accept the Conditional Adult Use Dispensing Organization License, the Department shall award the Conditional Adult Use Dispensing Organization License pursuant to subsection (b). The new awardee shall be subject to the same required deadlines as provided in this subsection.
(d) If, within 180 days of being awarded a Conditional Adult Use Dispensing Organization License, a dispensing organization is unable to find a location within the BLS Region in which it was awarded a Conditional Adult Use Dispensing Organization License under this Section because no jurisdiction within the BLS Region allows for the operation of an Adult Use Dispensing Organization, the Department may authorize the Conditional Adult Use Dispensing Organization License holder to transfer its Conditional Adult Use Dispensing Organization License to a BLS Region specified by the Department.
(e) A dispensing organization that is awarded a Conditional Adult Use Dispensing Organization License under this Section shall not purchase, possess, sell, or dispense cannabis or cannabis-infused products until the dispensing organization has received an Adult Use Dispensing Organization License issued by the Department pursuant to Section 15-36.
(f) The Department shall conduct a background check of the prospective dispensing organization agents in order to carry out this Article. The Illinois State Police shall charge the applicant a fee for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the record check. Each person applying as a dispensing organization agent shall submit a full set of fingerprints to the Illinois State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed with the Illinois State Police and the Federal Bureau of Investigation criminal history records databases. The Illinois State Police shall furnish, following positive identification, all Illinois conviction information to the Department.
(g) The Department may verify information contained in each application and accompanying documentation to assess the applicant's veracity and fitness to operate a dispensing organization.
(h) The Department may, in its discretion, refuse to issue an authorization to an applicant who meets any of the following criteria:
(1) An applicant who is unqualified to perform the
|
| duties required of the applicant.
|
|
(2) An applicant who fails to disclose or states
|
| falsely any information called for in the application.
|
|
(3) An applicant who has been found guilty of a
|
| violation of this Act, who has had any disciplinary order entered against the applicant by the Department, who has entered into a disciplinary or nondisciplinary agreement with the Department, whose medical cannabis dispensing organization, medical cannabis cultivation organization, Early Approval Adult Use Dispensing Organization License, Early Approval Adult Use Dispensing Organization License at a secondary site, Early Approval Cultivation Center License, Conditional Adult Use Dispensing Organization License, or Adult Use Dispensing Organization License was suspended, restricted, revoked, or denied for just cause, or whose cannabis business establishment license was suspended, restricted, revoked, or denied in any other state.
|
|
(4) An applicant who has engaged in a pattern or
|
| practice of unfair or illegal practices, methods, or activities in the conduct of owning a cannabis business establishment or other business.
|
|
(i) The Department shall deny the license if any principal officer, board member, or person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax return or paying any amount owed to the State of Illinois.
(j) The Department shall verify an applicant's compliance with the requirements of this Article and rules adopted under this Article before issuing a Conditional Adult Use Dispensing Organization License.
(k) If an applicant is awarded a Conditional Adult Use Dispensing Organization License under this Section, the information and plans provided in the application, including any plans submitted for bonus points, shall become a condition of the Conditional Adult Use Dispensing Organization License and any Adult Use Dispensing Organization License issued to the holder of the Conditional Adult Use Dispensing Organization License, except as otherwise provided by this Act or by rule. Dispensing organizations have a duty to disclose any material changes to the application. The Department shall review all material changes disclosed by the dispensing organization and may reevaluate its prior decision regarding the awarding of a Conditional Adult Use Dispensing Organization License, including, but not limited to, suspending or permanently revoking a Conditional Adult Use Dispensing Organization License. Failure to comply with the conditions or requirements in the application may subject the dispensing organization to discipline up to and including suspension or permanent revocation of its authorization or Conditional Adult Use Dispensing Organization License by the Department.
(l) If an applicant has not begun operating as a dispensing organization within one year after the issuance of the Conditional Adult Use Dispensing Organization License under this Section, the Department may permanently revoke the Conditional Adult Use Dispensing Organization License and award it to the next highest scoring applicant in the BLS Region if a suitable applicant indicates a continued interest in the Conditional Adult Use Dispensing Organization License or may begin a new selection process to award a Conditional Adult Use Dispensing Organization License.
(Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
|
(410 ILCS 705/15-36)
Sec. 15-36. Adult Use Dispensing Organization License. (a) A person is only eligible to receive an Adult Use Dispensing Organization if the person has been awarded a Conditional Adult Use Dispensing Organization License pursuant to this Act or has renewed its license pursuant to subsection (k) of Section 15-15 or subsection (p) of Section 15-20. (b) The Department shall not issue an Adult Use Dispensing Organization License until: (1) the Department has inspected the dispensary site |
| and proposed operations and verified that they are in compliance with this Act and local zoning laws;
|
|
(2) the Conditional Adult Use Dispensing Organization
|
| License holder has paid a license fee of $60,000 or a prorated amount accounting for the difference of time between when the Adult Use Dispensing Organization License is issued and March 31 of the next even-numbered year; and
|
|
(3) the Conditional Adult Use Dispensing Organization
|
| License holder has met all the requirements in this Act and rules.
|
|
(c) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 10 dispensing organizations licensed under this Article. Further, no person or entity that is:
(1) employed by, is an agent of, or participates in
|
| the management of a dispensing organization or registered medical cannabis dispensing organization;
|
|
(2) a principal officer of a dispensing organization
|
| or registered medical cannabis dispensing organization; or
|
|
(3) an entity controlled by or affiliated with a
|
| principal officer of a dispensing organization or registered medical cannabis dispensing organization;
|
|
shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a dispensing organization that would result in such person or entity owning or participating in the management of more than 10 Early Approval Adult Use Dispensing Organization Licenses, Early Approval Adult Use Dispensing Organization Licenses at a secondary site, Conditional Adult Use Dispensing Organization Licenses, or Adult Use Dispensing Organization Licenses. For the purpose of this subsection, participating in management may include, without limitation, controlling decisions regarding staffing, pricing, purchasing, marketing, store design, hiring, and website design.
(d) The Department shall deny an application if granting that application would result in a person or entity obtaining direct or indirect financial interest in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses, or any combination thereof. If a person or entity is awarded a Conditional Adult Use Dispensing Organization License that would cause the person or entity to be in violation of this subsection, he, she, or it shall choose which license application it wants to abandon and such licenses shall become available to the next qualified applicant in the region in which the abandoned license was awarded.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
|
(410 ILCS 705/15-40)
Sec. 15-40. Dispensing organization agent identification card; agent training. (a) The Department shall: (1) verify the information contained in an |
| application or renewal for a dispensing organization agent identification card submitted under this Article, and approve or deny an application or renewal, within 30 days of receiving a completed application or renewal application and all supporting documentation required by rule;
|
|
(2) issue a dispensing organization agent
|
| identification card to a qualifying agent within 15 business days of approving the application or renewal;
|
|
(3) enter the registry identification number of the
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| dispensing organization where the agent works;
|
|
(4) within one year from the effective date of this
|
| Act, allow for an electronic application process and provide a confirmation by electronic or other methods that an application has been submitted; and
|
|
(5) collect a $100 nonrefundable fee from the
|
| applicant to be deposited into the Cannabis Regulation Fund.
|
|
(b) A dispensing organization agent must keep his or her identification card visible at all times when in the dispensary.
(c) The dispensing organization agent identification cards shall contain the following:
(1) the name of the cardholder;
(2) the date of issuance and expiration date of the
|
| dispensing organization agent identification cards;
|
|
(3) a random 10-digit alphanumeric identification
|
| number containing at least 4 numbers and at least 4 letters that is unique to the cardholder; and
|
|
(4) a photograph of the cardholder.
(d) The dispensing organization agent identification cards shall be immediately returned to the dispensing organization upon termination of employment.
(e) The Department shall not issue an agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(f) Any card lost by a dispensing organization agent shall be reported to the Illinois State Police and the Department immediately upon discovery of the loss.
(g) An applicant shall be denied a dispensing organization agent identification card renewal if he or she fails to complete the training provided for in this Section.
(h) A dispensing organization agent shall only be required to hold one card for the same employer regardless of what type of dispensing organization license the employer holds.
(i) Cannabis retail sales training requirements.
(1) Within 90 days of September 1, 2019, or 90 days
|
| of employment, whichever is later, all owners, managers, employees, and agents involved in the handling or sale of cannabis or cannabis-infused product employed by an adult use dispensing organization or medical cannabis dispensing organization as defined in Section 10 of the Compassionate Use of Medical Cannabis Program Act shall attend and successfully complete a Responsible Vendor Program.
|
|
(2) Each owner, manager, employee, and agent of an
|
| adult use dispensing organization or medical cannabis dispensing organization shall successfully complete the program annually.
|
|
(3) Responsible Vendor Program Training modules shall
|
| include at least 2 hours of instruction time approved by the Department including:
|
|
(i) Health and safety concerns of cannabis use,
|
| including the responsible use of cannabis, its physical effects, onset of physiological effects, recognizing signs of impairment, and appropriate responses in the event of overconsumption.
|
|
(ii) Training on laws and regulations on driving
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| while under the influence and operating a watercraft or snowmobile while under the influence.
|
|
(iii) Sales to minors prohibition. Training shall
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| cover all relevant Illinois laws and rules.
|
|
(iv) Quantity limitations on sales to purchasers.
|
| Training shall cover all relevant Illinois laws and rules.
|
|
(v) Acceptable forms of identification. Training
|
|
(I) How to check identification; and
(II) Common mistakes made in verification;
(vi) Safe storage of cannabis;
(vii) Compliance with all inventory tracking
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|
(viii) Waste handling, management, and disposal;
(ix) Health and safety standards;
(x) Maintenance of records;
(xi) Security and surveillance requirements;
(xii) Permitting inspections by State and local
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| licensing and enforcement authorities;
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|
(xiii) Privacy issues;
(xiv) Packaging and labeling requirement for
|
|
(xv) Other areas as determined by rule.
(j) Blank.
(k) Upon the successful completion of the Responsible Vendor Program, the provider shall deliver proof of completion either through mail or electronic communication to the dispensing organization, which shall retain a copy of the certificate.
(l) The license of a dispensing organization or medical cannabis dispensing organization whose owners, managers, employees, or agents fail to comply with this Section may be suspended or permanently revoked under Section 15-145 or may face other disciplinary action.
(m) The regulation of dispensing organization and medical cannabis dispensing employer and employee training is an exclusive function of the State, and regulation by a unit of local government, including a home rule unit, is prohibited. This subsection (m) is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.
(n) Persons seeking Department approval to offer the training required by paragraph (3) of subsection (i) may apply for such approval between August 1 and August 15 of each odd-numbered year in a manner prescribed by the Department.
(o) Persons seeking Department approval to offer the training required by paragraph (3) of subsection (i) shall submit a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule. Any changes made to the training module shall be approved by the Department.
(p) The Department shall not unreasonably deny approval of a training module that meets all the requirements of paragraph (3) of subsection (i). A denial of approval shall include a detailed description of the reasons for the denial.
(q) Any person approved to provide the training required by paragraph (3) of subsection (i) shall submit an application for re-approval between August 1 and August 15 of each odd-numbered year and include a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule.
(r) All persons applying to become or renewing their registrations to be agents, including agents-in-charge and principal officers, shall disclose any disciplinary action taken against them that may have occurred in Illinois, another state, or another country in relation to their employment at a cannabis business establishment or at any cannabis cultivation center, processor, infuser, dispensary, or other cannabis business establishment.
(s) An agent applicant may begin employment at a dispensing organization while the agent applicant's identification card application is pending. Upon approval, the Department shall issue the agent's identification card to the agent. If denied, the dispensing organization and the agent applicant shall be notified and the agent applicant must cease all activity at the dispensing organization immediately.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
|
(410 ILCS 705/15-50)
Sec. 15-50. Disclosure of ownership and control. (a) Each dispensing organization applicant and licensee shall file and maintain a Table of Organization, Ownership and Control with the Department. The Table of Organization, Ownership and Control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee. (b) The Table of Organization, Ownership and Control shall identify the following information: (1) The management structure, ownership, and control |
| of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and his or her percentage ownership interest in the parent company and the dispensing organization.
|
|
(2) If the applicant or licensee is a business entity
|
| with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).
|
|
(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the Table of Organization, Ownership and Control:
(1) The name and percentage of ownership interest of
|
| each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.
|
|
(2) To the extent known, the names and percentage of
|
| interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.
|
|
(d) A dispensing organization with a parent company or companies, or partially owned or controlled by another entity must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A dispensing organization shall not shield its ownership or control from the Department.
(e) All principal officers must submit a complete online application with the Department within 14 days of the dispensing organization being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.
(f) A principal officer may not allow his or her registration to expire.
(g) A dispensing organization separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.
(h) A principal officer not in compliance with the requirements of this Act shall be removed from his or her position with the dispensing organization or shall otherwise terminate his or her affiliation. Failure to do so may subject the dispensing organization to discipline, suspension, or revocation of its license by the Department.
(i) It is the responsibility of the dispensing organization and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the dispensing organization's primary or secondary contact information. Any changes must be made to the Department in writing.
(Source: P.A. 101-27, eff. 6-25-19.)
|
(410 ILCS 705/15-55)
Sec. 15-55. Financial responsibility. Evidence of financial responsibility is a requirement for the issuance, maintenance, or reactivation of a license under this Article. Evidence of financial responsibility shall be used to guarantee that the dispensing organization timely and successfully completes dispensary construction, operates in a manner that provides an uninterrupted supply of cannabis, faithfully pays registration renewal fees, keeps accurate books and records, makes regularly required reports, complies with State tax requirements, and conducts the dispensing organization in conformity with this Act and rules. Evidence of financial responsibility shall be provided by one of the following: (1) Establishing and maintaining an escrow or surety |
| account in a financial institution in the amount of $50,000, with escrow terms, approved by the Department, that it shall be payable to the Department in the event of circumstances outlined in this Act and rules.
|
|
(A) A financial institution may not return money
|
| in an escrow or surety account to the dispensing organization that established the account or a representative of the organization unless the organization or representative presents a statement issued by the Department indicating that the account may be released.
|
|
(B) The escrow or surety account shall not be
|
| canceled on less than 30 days' notice in writing to the Department, unless otherwise approved by the Department. If an escrow or surety account is canceled and the registrant fails to secure a new account with the required amount on or before the effective date of cancellation, the registrant's registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the escrow or surety account.
|
|
(2) Providing a surety bond in the amount of $50,000,
|
| naming the dispensing organization as principal of the bond, with terms, approved by the Department, that the bond defaults to the Department in the event of circumstances outlined in this Act and rules. Bond terms shall include:
|
|
(A) The business name and registration number on
|
| the bond must correspond exactly with the business name and registration number in the Department's records.
|
|
(B) The bond must be written on a form approved
|
|
(C) A copy of the bond must be received by the
|
| Department within 90 days after the effective date.
|
|
(D) The bond shall not be canceled by a surety on
|
| less than 30 days' notice in writing to the Department. If a bond is canceled and the registrant fails to file a new bond with the Department in the required amount on or before the effective date of cancellation, the registrant's registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
|
|
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
|
(410 ILCS 705/15-65)
Sec. 15-65. Administration. (a) A dispensing organization shall establish, maintain, and comply with written policies and procedures as submitted in the Business, Financial and Operating plan as required in this Article or by rules established by the Department, and approved by the Department, for the security, storage, inventory, and distribution of cannabis. These policies and procedures shall include methods for identifying, recording, and reporting diversion, theft, or loss, and for correcting errors and inaccuracies in inventories. At a minimum, dispensing organizations shall ensure the written policies and procedures provide for the following: (1) Mandatory and voluntary recalls of cannabis |
| products. The policies shall be adequate to deal with recalls due to any action initiated at the request of the Department and any voluntary action by the dispensing organization to remove defective or potentially defective cannabis from the market or any action undertaken to promote public health and safety, including:
|
|
(i) A mechanism reasonably calculated to contact
|
| purchasers who have, or likely have, obtained the product from the dispensary, including information on the policy for return of the recalled product;
|
|
(ii) A mechanism to identify and contact the
|
| adult use cultivation center, craft grower, or infuser that manufactured the cannabis;
|
|
(iii) Policies for communicating with the
|
| Department, the Department of Agriculture, and the Department of Public Health within 24 hours of discovering defective or potentially defective cannabis; and
|
|
(iv) Policies for destruction of any recalled
|
|
(2) Responses to local, State, or national
|
| emergencies, including natural disasters, that affect the security or operation of a dispensary;
|
|
(3) Segregation and destruction of outdated, damaged,
|
| deteriorated, misbranded, or adulterated cannabis. This procedure shall provide for written documentation of the cannabis disposition;
|
|
(4) Ensure the oldest stock of a cannabis product is
|
| distributed first. The procedure may permit deviation from this requirement, if such deviation is temporary and appropriate;
|
|
(5) Training of dispensing organization agents in the
|
| provisions of this Act and rules, to effectively operate the point-of-sale system and the State's verification system, proper inventory handling and tracking, specific uses of cannabis or cannabis-infused products, instruction regarding regulatory inspection preparedness and law enforcement interaction, awareness of the legal requirements for maintaining status as an agent, and other topics as specified by the dispensing organization or the Department. The dispensing organization shall maintain evidence of all training provided to each agent in its files that is subject to inspection and audit by the Department. The dispensing organization shall ensure agents receive a minimum of 8 hours of training subject to the requirements in subsection (i) of Section 15-40 annually, unless otherwise approved by the Department;
|
|
(6) Maintenance of business records consistent with
|
| industry standards, including bylaws, consents, manual or computerized records of assets and liabilities, audits, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers. Records shall be maintained in a manner consistent with this Act and shall be retained for 5 years;
|
|
(7) Inventory control, including:
(i) Tracking purchases and denials of sale;
(ii) Disposal of unusable or damaged cannabis as
|
| required by this Act and rules; and
|
|
(8) Purchaser education and support, including:
(i) Whether possession of cannabis is illegal
|
|
(ii) Current educational information issued by
|
| the Department of Public Health about the health risks associated with the use or abuse of cannabis;
|
|
(iii) Information about possible side effects;
(iv) Prohibition on smoking cannabis in public
|
|
(v) Offering any other appropriate purchaser
|
| education or support materials.
|
|
(b) Blank.
(c) A dispensing organization shall maintain copies of the policies and procedures on the dispensary premises and provide copies to the Department upon request. The dispensing organization shall review the dispensing organization policies and procedures at least once every 12 months from the issue date of the license and update as needed due to changes in industry standards or as requested by the Department.
(d) A dispensing organization shall ensure that each principal officer and each dispensing organization agent has a current agent identification card in the agent's immediate possession when the agent is at the dispensary.
(e) A dispensing organization shall provide prompt written notice to the Department, including the date of the event, when a dispensing organization agent no longer is employed by the dispensing organization.
(f) A dispensing organization shall promptly document and report any loss or theft of cannabis from the dispensary to the Illinois State Police and the Department. It is the duty of any dispensing organization agent who becomes aware of the loss or theft to report it as provided in this Article.
(g) A dispensing organization shall post the following information in a conspicuous location in an area of the dispensary accessible to consumers:
(1) The dispensing organization's license;
(2) The hours of operation.
(h) Signage that shall be posted inside the premises.
(1) All dispensing organizations must display a
|
| placard that states the following: "Cannabis consumption can impair cognition and driving, is for adult use only, may be habit forming, and should not be used by pregnant or breastfeeding women.".
|
|
(2) Any dispensing organization that sells edible
|
| cannabis-infused products must display a placard that states the following:
|
|
(A) "Edible cannabis-infused products were
|
| produced in a kitchen that may also process common food allergens."; and
|
|
(B) "The effects of cannabis products can vary
|
| from person to person, and it can take as long as two hours to feel the effects of some cannabis-infused products. Carefully review the portion size information and warnings contained on the product packaging before consuming.".
|
|
(3) All of the required signage in this subsection
|
| (h) shall be no smaller than 24 inches tall by 36 inches wide, with typed letters no smaller than 2 inches. The signage shall be clearly visible and readable by customers. The signage shall be placed in the area where cannabis and cannabis-infused products are sold and may be translated into additional languages as needed. The Department may require a dispensary to display the required signage in a different language, other than English, if the Secretary deems it necessary.
|
|
(i) A dispensing organization shall prominently post notices inside the dispensing organization that state activities that are strictly prohibited and punishable by law, including, but not limited to:
(1) no minors permitted on the premises unless the
|
| minor is a minor qualifying patient under the Compassionate Use of Medical Cannabis Program Act;
|
|
(2) distribution to persons under the age of 21 is
|
|
(3) transportation of cannabis or cannabis products
|
| across state lines is prohibited.
|
|
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)
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(410 ILCS 705/15-70)
Sec. 15-70. Operational requirements; prohibitions. (a) A dispensing organization shall operate in accordance with the representations made in its application and license materials. It shall be in compliance with this Act and rules. (b) A dispensing organization must include the legal name of the dispensary on the packaging of any cannabis product it sells. (c) All cannabis, cannabis-infused products, and cannabis seeds must be obtained from an Illinois registered adult use cultivation center, craft grower, infuser, or another dispensary. (d) Dispensing organizations are prohibited from selling any product containing alcohol except tinctures, which must be limited to containers that are no larger than 100 milliliters. (e) A dispensing organization shall inspect and count product received from a transporting organization, adult use cultivation center, craft grower, infuser organization, or other dispensing organization before dispensing it. (f) A dispensing organization may only accept cannabis deliveries into a restricted access area. Deliveries may not be accepted through the public or limited access areas unless otherwise approved by the Department. (g) A dispensing organization shall maintain compliance with State and local building, fire, and zoning requirements or regulations. (h) A dispensing organization shall submit a list to the Department of the names of all service professionals that will work at the dispensary. The list shall include a description of the type of business or service provided. Changes to the service professional list shall be promptly provided. No service professional shall work in the dispensary until the name is provided to the Department on the service professional list. (i) A dispensing organization's license allows for a dispensary to be operated only at a single location. (j) A dispensary may operate between 6 a.m. and 10 p.m. local time. (k) A dispensing organization must keep all lighting outside and inside the dispensary in good working order and wattage sufficient for security cameras. (l) A dispensing organization must keep all air treatment systems that will be installed to reduce odors in good working order. (m) A dispensing organization must contract with a private security contractor that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 to provide on-site security at all hours of the dispensary's operation. (n) A dispensing organization shall ensure that any building or equipment used by a dispensing organization for the storage or sale of cannabis is maintained in a clean and sanitary condition. (o) The dispensary shall be free from infestation by insects, rodents, or pests. (p) A dispensing organization shall not: (1) Produce or manufacture cannabis; (2) Accept a cannabis product from an adult use |
| cultivation center, craft grower, infuser, dispensing organization, or transporting organization unless it is pre-packaged and labeled in accordance with this Act and any rules that may be adopted pursuant to this Act;
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(3) Obtain cannabis or cannabis-infused products from
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| outside the State of Illinois;
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(4) Sell cannabis or cannabis-infused products to a
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| purchaser unless the dispensing organization is licensed under the Compassionate Use of Medical Cannabis Program Act, and the individual is registered under the Compassionate Use of Medical Cannabis Program or the purchaser has been verified to be 21 years of age or older;
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(5) Enter into an exclusive agreement with any adult
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| use cultivation center, craft grower, or infuser. Dispensaries shall provide consumers an assortment of products from various cannabis business establishment licensees such that the inventory available for sale at any dispensary from any single cultivation center, craft grower, processor, transporter, or infuser entity shall not be more than 40% of the total inventory available for sale. For the purpose of this subsection, a cultivation center, craft grower, processor, or infuser shall be considered part of the same entity if the licensees share at least one principal officer. The Department may request that a dispensary diversify its products as needed or otherwise discipline a dispensing organization for violating this requirement;
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(6) Refuse to conduct business with an adult use
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| cultivation center, craft grower, transporting organization, or infuser that has the ability to properly deliver the product and is permitted by the Department of Agriculture, on the same terms as other adult use cultivation centers, craft growers, infusers, or transporters with whom it is dealing;
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(7) Operate drive-through windows;
(8) Allow for the dispensing of cannabis or
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| cannabis-infused products in vending machines;
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(9) Transport cannabis to residences or other
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| locations where purchasers may be for delivery;
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(10) Enter into agreements to allow persons who are
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| not dispensing organization agents to deliver cannabis or to transport cannabis to purchasers;
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(11) Operate a dispensary if its video surveillance
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| equipment is inoperative;
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(12) Operate a dispensary if the point-of-sale
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| equipment is inoperative;
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(13) Operate a dispensary if the State's cannabis
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| electronic verification system is inoperative;
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(14) Have fewer than 2 people working at the
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| dispensary at any time while the dispensary is open;
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(15) Be located within 1,500 feet of the property
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| line of a pre-existing dispensing organization, unless the applicant is a Social Equity Applicant or Social Equity Justice Involved Applicant located or seeking to locate within 1,500 feet of a dispensing organization licensed under Section 15-15 or Section 15-20;
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(16) Sell clones or any other live plant material;
(17) Sell cannabis, cannabis concentrate, or
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| cannabis-infused products in combination or bundled with each other or any other items for one price, and each item of cannabis, concentrate, or cannabis-infused product must be separately identified by quantity and price on the receipt;
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(18) Violate any other requirements or prohibitions
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(q) It is unlawful for any person having an Early Approval Adult Use Cannabis Dispensing Organization License, a Conditional Adult Use Cannabis Dispensing Organization, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act or any officer, associate, member, representative, or agent of such
licensee to accept, receive, or borrow money or anything else
of value or accept or receive credit (other than merchandising
credit in the ordinary course of business for a period not to
exceed 30 days) directly or indirectly from any adult use
cultivation center, craft grower, infuser, or transporting
organization in exchange for preferential placement on the dispensing organization's shelves, display cases, or website. This includes anything received or borrowed or from any stockholders, officers, agents, or persons connected with an adult
use cultivation center, craft grower, infuser, or
transporting organization.
(r) It is unlawful for any person having an Early Approval Adult Use Cannabis Dispensing Organization License, a Conditional Adult Use Cannabis Dispensing Organization, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program to enter into any contract with any person licensed to cultivate, process, or transport cannabis whereby such dispensing organization agrees not to sell any cannabis cultivated, processed, transported, manufactured, or distributed by any other cultivator, transporter, or infuser, and any provision in any contract violative of this Section shall render the whole of such contract void and no action shall be brought thereon in any court.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)
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(410 ILCS 705/15-75)
Sec. 15-75. Inventory control system. (a) A dispensing organization agent-in-charge shall have primary oversight of the dispensing organization's cannabis inventory verification system, and its point-of-sale system. The inventory point-of-sale system shall be real-time, web-based, and accessible by the Department at any time. The point-of-sale system shall track, at a minimum the date of sale, amount, price, and currency. (b) A dispensing organization shall establish an account with the State's verification system that documents: (1) Each sales transaction at the time of sale and |
| each day's beginning inventory, acquisitions, sales, disposal, and ending inventory.
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(2) Acquisition of cannabis and cannabis-infused
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| products from a licensed adult use cultivation center, craft grower, infuser, or transporter, including:
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(i) A description of the products, including the
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| quantity, strain, variety, and batch number of each product received;
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(ii) The name and registry identification number
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| of the licensed adult use cultivation center, craft grower, or infuser providing the cannabis and cannabis-infused products;
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(iii) The name and registry identification number
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| of the licensed adult use cultivation center, craft grower, infuser, or transporting agent delivering the cannabis;
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(iv) The name and registry identification number
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| of the dispensing organization agent receiving the cannabis; and
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(v) The date of acquisition.
(3) The disposal of cannabis, including:
(i) A description of the products, including the
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| quantity, strain, variety, batch number, and reason for the cannabis being disposed;
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(ii) The method of disposal; and
(iii) The date and time of disposal.
(c) Upon cannabis delivery, a dispensing organization shall confirm the product's name, strain name, weight, and identification number on the manifest matches the information on the cannabis product label and package. The product name listed and the weight listed in the State's verification system shall match the product packaging.
(d) The agent-in-charge shall conduct daily inventory reconciliation documenting and balancing cannabis inventory by confirming the State's verification system matches the dispensing organization's point-of-sale system and the amount of physical product at the dispensary.
(1) A dispensing organization must receive Department
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| approval before completing an inventory adjustment. It shall provide a detailed reason for the adjustment. Inventory adjustment documentation shall be kept at the dispensary for 2 years from the date performed.
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(2) If the dispensing organization identifies an
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| imbalance in the amount of cannabis after the daily inventory reconciliation due to mistake, the dispensing organization shall determine how the imbalance occurred and immediately upon discovery take and document corrective action. If the dispensing organization cannot identify the reason for the mistake within 2 calendar days after first discovery, it shall inform the Department immediately in writing of the imbalance and the corrective action taken to date. The dispensing organization shall work diligently to determine the reason for the mistake.
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(3) If the dispensing organization identifies an
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| imbalance in the amount of cannabis after the daily inventory reconciliation or through other means due to theft, criminal activity, or suspected criminal activity, the dispensing organization shall immediately determine how the reduction occurred and take and document corrective action. Within 24 hours after the first discovery of the reduction due to theft, criminal activity, or suspected criminal activity, the dispensing organization shall inform the Department and the Illinois State Police in writing.
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(4) The dispensing organization shall file an annual
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| compilation report with the Department, including a financial statement that shall include, but not be limited to, an income statement, balance sheet, profit and loss statement, statement of cash flow, wholesale cost and sales, and any other documentation requested by the Department in writing. The financial statement shall include any other information the Department deems necessary in order to effectively administer this Act and all rules, orders, and final decisions promulgated under this Act. Statements required by this Section shall be filed with the Department within 60 days after the end of the calendar year. The compilation report shall include a letter authored by a licensed certified public accountant that it has been reviewed and is accurate based on the information provided. The dispensing organization, financial statement, and accompanying documents are not required to be audited unless specifically requested by the Department.
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(e) A dispensing organization shall:
(1) Maintain the documentation required in this
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| Section in a secure locked location at the dispensing organization for 5 years from the date on the document;
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(2) Provide any documentation required to be
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| maintained in this Section to the Department for review upon request; and
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(3) If maintaining a bank account, retain for a
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| period of 5 years a record of each deposit or withdrawal from the account.
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(f) If a dispensing organization chooses to have a return policy for cannabis and cannabis products, the dispensing organization shall seek prior approval from the Department.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)
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(410 ILCS 705/15-95)
Sec. 15-95. Agent-in-charge. (a) Every dispensing organization shall designate, at a minimum, one agent-in-charge for each licensed dispensary. The designated agent-in-charge must hold a dispensing organization agent identification card. Maintaining an agent-in-charge is a continuing requirement for the license, except as provided in subsection (f). (b) The agent-in-charge shall be a principal officer or a full-time agent of the dispensing organization and shall manage the dispensary. Managing the dispensary includes, but is not limited to, responsibility for opening and closing the dispensary, delivery acceptance, oversight of sales and dispensing organization agents, recordkeeping, inventory, dispensing organization agent training, and compliance with this Act and rules. Participation in affairs also includes the responsibility for maintaining all files subject to audit or inspection by the Department at the dispensary. (c) The agent-in-charge is responsible for promptly notifying the Department of any change of information required to be reported to the Department. (d) In determining whether an agent-in-charge manages the dispensary, the Department may consider the responsibilities identified in this Section, the number of dispensing organization agents under the supervision of the agent-in-charge, and the employment relationship between the agent-in-charge and the dispensing organization, including the existence of a contract for employment and any other relevant fact or circumstance. (e) The agent-in-charge is responsible for notifying the Department of a change in the employment status of all dispensing organization agents within 5 business days after the change, including notice to the Department if the termination of an agent was for diversion of product or theft of currency. (f) In the event of the separation of an agent-in-charge due to death, incapacity, termination, or any other reason and if the dispensary does not have an active agent-in-charge, the dispensing organization shall immediately contact the Department and request a temporary certificate of authority allowing the continuing operation. The request shall include the name of an interim agent-in-charge until a replacement is identified, or shall include the name of the replacement. The Department shall issue the temporary certificate of authority promptly after it approves the request. If a dispensing organization fails to promptly request a temporary certificate of authority after the separation of the agent-in-charge, its registration shall cease until the Department approves the temporary certificate of authority or registers a new agent-in-charge. No temporary certificate of authority shall be valid for more than 90 days. The succeeding agent-in-charge shall register with the Department in compliance with this Article. Once the permanent succeeding agent-in-charge is registered with the Department, the temporary certificate of authority is void. No temporary certificate of authority shall be issued for the separation of an agent-in-charge due to disciplinary action by the Department related to his or her conduct on behalf of the dispensing organization. (g) The dispensing organization agent-in-charge registration shall expire one year from the date it is issued. The agent-in-charge's registration shall be renewed annually. The Department shall review the dispensing organization's compliance history when determining whether to grant the request to renew. (h) Upon termination of an agent-in-charge's employment, the dispensing organization shall immediately reclaim the dispensing agent identification card. The dispensing organization shall promptly return the identification card to the Department. (i) The Department may deny an application or renewal or discipline or revoke an agent-in-charge identification card for any of the following reasons: (1) Submission of misleading, incorrect, false, or |
| fraudulent information in the application or renewal application;
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(2) Violation of the requirements of this Act or
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(3) Fraudulent use of the agent-in-charge
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(4) Selling, distributing, transferring in any
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| manner, or giving cannabis to any unauthorized person;
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(5) Theft of cannabis, currency, or any other items
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(6) Tampering with, falsifying, altering, modifying,
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| or duplicating an agent-in-charge identification card;
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(7) Tampering with, falsifying, altering, or
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| modifying the surveillance video footage, point-of-sale system, or the State's verification system;
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(8) Failure to notify the Department immediately upon
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| discovery that the agent-in-charge identification card has been lost, stolen, or destroyed;
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(9) Failure to notify the Department within 5
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| business days after a change in the information provided in the application for an agent-in-charge identification card;
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(10) Conviction of a felony offense in accordance
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| with Sections 2105-131, 2105-135, and 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois or any incident listed in this Act or rules following the issuance of an agent-in-charge identification card;
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(11) Dispensing to purchasers in amounts above the
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| limits provided in this Act; or
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(12) Delinquency in filing any required tax returns
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| or paying any amounts owed to the State of Illinois.
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(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
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(410 ILCS 705/15-100)
Sec. 15-100. Security. (a) A dispensing organization shall implement security measures to deter and prevent entry into and theft of cannabis or currency. (b) A dispensing organization shall submit any changes to the floor plan or security plan to the Department for pre-approval. All cannabis shall be maintained and stored in a restricted access area during construction. (c) The dispensing organization shall implement security measures to protect the premises, purchasers, and dispensing organization agents including, but not limited to the following: (1) Establish a locked door or barrier between the |
| facility's entrance and the limited access area;
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(2) Prevent individuals from remaining on the
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| premises if they are not engaging in activity permitted by this Act or rules;
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(3) Develop a policy that addresses the maximum
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| capacity and purchaser flow in the waiting rooms and limited access areas;
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(4) Dispose of cannabis in accordance with this Act
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(5) During hours of operation, store and dispense all
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| cannabis from the restricted access area. During operational hours, cannabis shall be stored in an enclosed locked room or cabinet and accessible only to specifically authorized dispensing organization agents;
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(6) When the dispensary is closed, store all cannabis
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| and currency in a reinforced vault room in the restricted access area and in a manner as to prevent diversion, theft, or loss;
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(7) Keep the reinforced vault room and any other
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| equipment or cannabis storage areas securely locked and protected from unauthorized entry;
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(8) Keep an electronic daily log of dispensing
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| organization agents with access to the reinforced vault room and knowledge of the access code or combination;
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(9) Keep all locks and security equipment in good
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(10) Maintain an operational security and alarm
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(11) Prohibit keys, if applicable, from being left in
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| the locks, or stored or placed in a location accessible to persons other than specifically authorized personnel;
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(12) Prohibit accessibility of security measures,
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| including combination numbers, passwords, or electronic or biometric security systems to persons other than specifically authorized dispensing organization agents;
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(13) Ensure that the dispensary interior and exterior
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| premises are sufficiently lit to facilitate surveillance;
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(14) Ensure that trees, bushes, and other foliage
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| outside of the dispensary premises do not allow for a person or persons to conceal themselves from sight;
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(15) Develop emergency policies and procedures for
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| securing all product and currency following any instance of diversion, theft, or loss of cannabis, and conduct an assessment to determine whether additional safeguards are necessary; and
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(16) Develop sufficient additional safeguards in
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| response to any special security concerns, or as required by the Department.
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(d) The Department may request or approve alternative security provisions that it determines are an adequate substitute for a security requirement specified in this Article. Any additional protections may be considered by the Department in evaluating overall security measures.
(e) A dispensing organization may share premises with a craft grower or an infuser organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership.
(f) A dispensing organization shall provide additional security as needed and in a manner appropriate for the community where it operates.
(g) Restricted access areas.
(1) All restricted access areas must be identified by
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| the posting of a sign that is a minimum of 12 inches by 12 inches and that states "Do Not Enter - Restricted Access Area - Authorized Personnel Only" in lettering no smaller than one inch in height.
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(2) All restricted access areas shall be clearly
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| described in the floor plan of the premises, in the form and manner determined by the Department, reflecting walls, partitions, counters, and all areas of entry and exit. The floor plan shall show all storage, disposal, and retail sales areas.
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(3) All restricted access areas must be secure, with
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| locking devices that prevent access from the limited access areas.
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(h) Security and alarm.
(1) A dispensing organization shall have an adequate
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| security plan and security system to prevent and detect diversion, theft, or loss of cannabis, currency, or unauthorized intrusion using commercial grade equipment installed by an Illinois licensed private alarm contractor or private alarm contractor agency that shall, at a minimum, include:
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(i) A perimeter alarm on all entry points and
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| glass break protection on perimeter windows;
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(ii) Security shatterproof tinted film on
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(iii) A failure notification system that provides
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| an audible, text, or visual notification of any failure in the surveillance system, including, but not limited to, panic buttons, alarms, and video monitoring system. The failure notification system shall provide an alert to designated dispensing organization agents within 5 minutes after the failure, either by telephone or text message;
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(iv) A duress alarm, panic button, and alarm, or
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| holdup alarm and after-hours intrusion detection alarm that by design and purpose will directly or indirectly notify, by the most efficient means, the Public Safety Answering Point for the law enforcement agency having primary jurisdiction;
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(v) Security equipment to deter and prevent
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| unauthorized entrance into the dispensary, including electronic door locks on the limited and restricted access areas that include devices or a series of devices to detect unauthorized intrusion that may include a signal system interconnected with a radio frequency method, cellular, private radio signals or other mechanical or electronic device.
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(2) All security system equipment and recordings
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| shall be maintained in good working order, in a secure location so as to prevent theft, loss, destruction, or alterations.
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(3) Access to surveillance monitoring recording
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| equipment shall be limited to persons who are essential to surveillance operations, law enforcement authorities acting within their jurisdiction, security system service personnel, and the Department. A current list of authorized dispensing organization agents and service personnel that have access to the surveillance equipment must be available to the Department upon request.
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(4) All security equipment shall be inspected and
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| tested at regular intervals, not to exceed one month from the previous inspection, and tested to ensure the systems remain functional.
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(5) The security system shall provide protection
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| against theft and diversion that is facilitated or hidden by tampering with computers or electronic records.
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(6) The dispensary shall ensure all access doors are
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| not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
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(i) To monitor the dispensary, the dispensing organization shall incorporate continuous electronic video monitoring including the following:
(1) All monitors must be 19 inches or greater;
(2) Unobstructed video surveillance of all enclosed
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| dispensary areas, unless prohibited by law, including all points of entry and exit that shall be appropriate for the normal lighting conditions of the area under surveillance. The cameras shall be directed so all areas are captured, including, but not limited to, safes, vaults, sales areas, and areas where cannabis is stored, handled, dispensed, or destroyed. Cameras shall be angled to allow for facial recognition, the capture of clear and certain identification of any person entering or exiting the dispensary area and in lighting sufficient during all times of night or day;
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(3) Unobstructed video surveillance of outside areas,
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| the storefront, and the parking lot, that shall be appropriate for the normal lighting conditions of the area under surveillance. Cameras shall be angled so as to allow for the capture of facial recognition, clear and certain identification of any person entering or exiting the dispensary and the immediate surrounding area, and license plates of vehicles in the parking lot;
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(4) 24-hour recordings from all video cameras
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| available for immediate viewing by the Department upon request. Recordings shall not be destroyed or altered and shall be retained for at least 90 days. Recordings shall be retained as long as necessary if the dispensing organization is aware of the loss or theft of cannabis or a pending criminal, civil, or administrative investigation or legal proceeding for which the recording may contain relevant information;
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(5) The ability to immediately produce a clear, color
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| still photo from the surveillance video, either live or recorded;
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(6) A date and time stamp embedded on all video
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| surveillance recordings. The date and time shall be synchronized and set correctly and shall not significantly obscure the picture;
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(7) The ability to remain operational during a power
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| outage and ensure all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage;
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(8) All video surveillance equipment shall allow for
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| the exporting of still images in an industry standard image format, including .jpg, .bmp, and .gif. Exported video shall have the ability to be archived in a proprietary format that ensures authentication of the video and guarantees that no alteration of the recorded image has taken place. Exported video shall also have the ability to be saved in an industry standard file format that can be played on a standard computer operating system. All recordings shall be erased or destroyed before disposal;
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(9) The video surveillance system shall be
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| operational during a power outage with a 4-hour minimum battery backup;
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(10) A video camera or cameras recording at each
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| point-of-sale location allowing for the identification of the dispensing organization agent distributing the cannabis and any purchaser. The camera or cameras shall capture the sale, the individuals and the computer monitors used for the sale;
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(11) A failure notification system that provides an
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| audible and visual notification of any failure in the electronic video monitoring system; and
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(12) All electronic video surveillance monitoring
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| must record at least the equivalent of 8 frames per second and be available as recordings to the Department and the Illinois State Police 24 hours a day via a secure web-based portal with reverse functionality.
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(j) The requirements contained in this Act are minimum requirements for operating a dispensing organization. The Department may establish additional requirements by rule.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)
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(410 ILCS 705/15-145)
Sec. 15-145. Grounds for discipline. (a) The Department may deny issuance, refuse to renew or restore, or may reprimand, place on probation, suspend, revoke, or take other disciplinary or nondisciplinary action against any license or agent identification card or may impose a fine for any of the following: (1) Material misstatement in furnishing information |
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(2) Violations of this Act or rules;
(3) Obtaining an authorization or license by fraud or
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(4) A pattern of conduct that demonstrates
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| incompetence or that the applicant has engaged in conduct or actions that would constitute grounds for discipline under this Act;
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(5) Aiding or assisting another person in violating
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| any provision of this Act or rules;
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(6) Failing to respond to a written request for
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| information by the Department within 30 days;
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(7) Engaging in unprofessional, dishonorable, or
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| unethical conduct of a character likely to deceive, defraud, or harm the public;
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(8) Adverse action by another United States
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| jurisdiction or foreign nation;
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(9) A finding by the Department that the licensee,
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| after having his or her license placed on suspended or probationary status, has violated the terms of the suspension or probation;
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(10) Conviction, entry of a plea of guilty, nolo
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| contendere, or the equivalent in a State or federal court of a principal officer or agent-in-charge of a felony offense in accordance with Sections 2105-131, 2105-135, and 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois;
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(11) Excessive use of or addiction to alcohol,
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| narcotics, stimulants, or any other chemical agent or drug;
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(12) A finding by the Department of a discrepancy in
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| a Department audit of cannabis;
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(13) A finding by the Department of a discrepancy in
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| a Department audit of capital or funds;
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(14) A finding by the Department of acceptance of
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| cannabis from a source other than an Adult Use Cultivation Center, craft grower, infuser, or transporting organization licensed by the Department of Agriculture, or a dispensing organization licensed by the Department;
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(15) An inability to operate using reasonable
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| judgment, skill, or safety due to physical or mental illness or other impairment or disability, including, without limitation, deterioration through the aging process or loss of motor skills or mental incompetence;
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(16) Failing to report to the Department within the
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| time frames established, or if not identified, 14 days, of any adverse action taken against the dispensing organization or an agent by a licensing jurisdiction in any state or any territory of the United States or any foreign jurisdiction, any governmental agency, any law enforcement agency or any court defined in this Section;
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(17) Any violation of the dispensing organization's
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| policies and procedures submitted to the Department annually as a condition for licensure;
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(18) Failure to inform the Department of any change
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| of address within 10 business days;
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(19) Disclosing customer names, personal information,
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| or protected health information in violation of any State or federal law;
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(20) Operating a dispensary before obtaining a
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| license from the Department;
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(21) Performing duties authorized by this Act prior
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| to receiving a license to perform such duties;
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(22) Dispensing cannabis when prohibited by this Act
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(23) Any fact or condition that, if it had existed at
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| the time of the original application for the license, would have warranted the denial of the license;
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(24) Permitting a person without a valid agent
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| identification card to perform licensed activities under this Act;
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(25) Failure to assign an agent-in-charge as required
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(26) Failure to provide the training required by
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| paragraph (3) of subsection (i) of Section 15-40 within the provided timeframe;
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(27) Personnel insufficient in number or unqualified
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| in training or experience to properly operate the dispensary business;
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(28) Any pattern of activity that causes a harmful
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| impact on the community; and
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(29) Failing to prevent diversion, theft, or loss of
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(b) All fines and fees imposed under this Section shall be paid within 60 days after the effective date of the order imposing the fine or as otherwise specified in the order.
(c) A circuit court order establishing that an agent-in-charge or principal officer holding an agent identification card is subject to involuntary admission as that term is defined in Section 1-119 or 1-119.1 of the Mental Health and Developmental Disabilities Code shall operate as a suspension of that card.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
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