Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
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PUBLIC HEALTH410 ILCS 705/30-25
(410 ILCS 705/) Cannabis Regulation and Tax Act.
(410 ILCS 705/30-25)
Denial of application.
An application for a craft grower license must be denied if any of the following conditions are met:
(1) the applicant failed to submit the materials
required by this Article;
(2) the applicant would not be in compliance with
(3) one or more of the prospective principal officers
or board members causes a violation of Section 30-20 of this Article;
(4) one or more of the principal officers or board
members is under 21 years of age;
(5) the person has submitted an application for a
license under this Act that contains false information; or
(6) the licensee; principal officer, board member, or
person having a financial or voting interest of 5% or greater in the licensee; or agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/30-30
(410 ILCS 705/30-30)
Craft grower requirements; prohibitions.
(a) The operating documents of a craft grower shall include procedures for the oversight of the craft grower, a cannabis plant monitoring system including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.
(b) A craft grower shall implement a security plan reviewed by the Department of State Police that includes, but is not limited to: facility access controls, perimeter intrusion detection systems, personnel identification systems, and a 24-hour surveillance system to monitor the interior and exterior of the craft grower facility and that is accessible to authorized law enforcement and the Department of Agriculture in real time.
(c) All cultivation of cannabis by a craft grower must take place in an enclosed, locked facility at the physical address provided to the Department of Agriculture during the licensing process. The craft grower location shall only be accessed by the agents working for the craft grower, the Department of Agriculture staff performing inspections, the Department of Public Health staff performing inspections, State and local law enforcement or other emergency personnel, contractors working on jobs unrelated to cannabis, such as installing or maintaining security devices or performing electrical wiring, transporting organization agents as provided in this Act, or participants in the incubator program, individuals in a mentoring or educational program approved by the State, or other individuals as provided by rule. However, if a craft grower shares a premises with an infuser or dispensing organization, agents from those other licensees may access the craft grower portion of the premises if that is the location of common bathrooms, lunchrooms, locker rooms, or other areas of the building where work or cultivation of cannabis is not performed. At no time may an infuser or dispensing organization agent perform work at a craft grower without being a registered agent of the craft grower.
(d) A craft grower may not sell or distribute any cannabis to any person other than a cultivation center, a craft grower, an infuser organization, a dispensing organization, or as otherwise authorized by rule.
(e) A craft grower may not be located in an area zoned for residential use.
(f) A craft grower may not either directly or indirectly discriminate in price between different cannabis business establishments that are purchasing a like grade, strain, brand, and quality of cannabis or cannabis-infused product. Nothing in this subsection (f) prevents a craft grower from pricing cannabis differently based on differences in the cost of manufacturing or processing, the quantities sold, such as volume discounts, or the way the products are delivered.
(g) All cannabis harvested by a craft grower and intended for distribution to a dispensing organization must be entered into a data collection system, packaged and labeled under Section 55-21, and, if distribution is to a dispensing organization that does not share a premises with the dispensing organization receiving the cannabis, placed into a cannabis container for transport. All cannabis harvested by a craft grower and intended for distribution to a cultivation center, to an infuser organization, or to a craft grower with which it does not share a premises, must be packaged in a labeled cannabis container and entered into a data collection system before transport.
(h) Craft growers are subject to random inspections by the Department of Agriculture, local safety or health inspectors, and the Department of State Police.
(i) A craft grower agent shall notify local law enforcement, the Department of State Police, and the Department of Agriculture within 24 hours of the discovery of any loss or theft. Notification shall be made by phone, in person, or written or electronic communication.
(j) A craft grower shall comply with all State and any applicable federal rules and regulations regarding the use of pesticides.
(k) A craft grower or craft grower agent shall not transport cannabis or cannabis-infused products to any other cannabis business establishment without a transport organization license unless:
(i) If the craft grower is located in a county with a
population of 3,000,000 or more, the cannabis business establishment receiving the cannabis is within 2,000 feet of the property line of the craft grower;
(ii) If the craft grower is located in a county with
a population of more than 700,000 but fewer than 3,000,000, the cannabis business establishment receiving the cannabis is within 2 miles of the craft grower; or
(iii) If the craft grower is located in a county with
a population of fewer than 700,000, the cannabis business establishment receiving the cannabis is within 15 miles of the craft grower.
(l) A craft grower may enter into a contract with a transporting organization to transport cannabis to a cultivation center, a craft grower, an infuser organization, a dispensing organization, or a laboratory.
(m) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 3 craft grower licenses. Further, no person or entity that is employed by, an agent of, or has a contract to receive payment from or participate in the management of a craft grower, is a principal officer of a craft grower, or entity controlled by or affiliated with a principal officer of a craft grower shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a craft grower license that would result in the person or entity owning or controlling in combination with any craft grower, principal officer of a craft grower, or entity controlled or affiliated with a principal officer of a craft grower by which he, she, or it is employed, is an agent of, or participates in the management of more than 3 craft grower licenses.
(n) It is unlawful for any person having a craft grower license or any officer, associate, member, representative, or agent of the licensee to offer or deliver money, or anything else of value, directly or indirectly, to any person having an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any person connected with or in any way representing, or to any member of the family of, the person holding an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any stockholders in any corporation engaged in the retail sale of cannabis, or to any officer, manager, agent, or representative of the Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act to obtain preferential placement within the dispensing organization, including, without limitation, on shelves and in display cases where purchasers can view products, or on the dispensing organization's website.
(o) A craft grower shall not be located within 1,500 feet of another craft grower or a cultivation center.
(p) A craft grower may process cannabis, cannabis concentrates, and cannabis-infused products.
(q) A craft grower must comply with any other requirements or prohibitions set by administrative rule of the Department of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
410 ILCS 705/30-35
(410 ILCS 705/30-35)
Craft grower agent identification card.
(a) The Department of Agriculture shall:
(1) establish by rule the information required in an
initial application or renewal application for an agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;
(2) verify the information contained in an initial
application or renewal application for an agent identification card submitted under this Act and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;
(3) issue an agent identification card to a
qualifying agent within 15 business days of approving the initial application or renewal application;
(4) enter the license number of the craft grower
where the agent works; and
(5) allow for an electronic initial application and
renewal application process, and provide a confirmation by electronic or other methods that an application has been submitted. The Department of Agriculture may by rule require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.
(b) An agent must keep his or her identification card visible at all times when on the property of a cannabis business establishment, including the craft grower organization for which he or she is an agent.
(c) The agent identification cards shall contain the following:
(1) the name of the cardholder;
(2) the date of issuance and expiration date of the
(3) a random 10-digit alphanumeric identification
number containing at least 4 numbers and at least 4 letters that is unique to the holder;
(4) a photograph of the cardholder; and
(5) the legal name of the craft grower organization
(d) An agent identification card shall be immediately returned to the cannabis business establishment of the agent upon termination of his or her employment.
(e) Any agent identification card lost by a craft grower agent shall be reported to the Department of State Police and the Department of Agriculture immediately upon discovery of the loss.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/30-40
(410 ILCS 705/30-40)
Craft grower background checks.
(a) Through the Department of State Police, the Department of Agriculture shall conduct a background check of the prospective principal officers, board members, and agents of a craft grower applying for a license or identification card under this Act. The Department of State Police shall charge a fee set by rule 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. In order to carry out this Section, each craft grower organization's prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Department of 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 Department of State Police and Federal Bureau of Investigation criminal history records databases. The Department of State Police shall furnish, following positive identification, all conviction information to the Department of Agriculture.
(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/30-45
(410 ILCS 705/30-45)
Renewal of craft grower licenses and agent identification cards.
(a) Licenses and identification cards issued under this Act shall be renewed annually. A craft grower shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department of Agriculture shall grant a renewal within 45 days of submission of a renewal application if:
(1) the craft grower submits a renewal application
and the required nonrefundable renewal fee of $40,000, or another amount as the Department of Agriculture may set by rule after January 1, 2021;
(2) the Department of Agriculture has not suspended
the license of the craft grower or suspended or revoked the license for violating this Act or rules adopted under this Act;
(3) the craft grower has continued to operate in
accordance with all plans submitted as part of its application and approved by the Department of Agriculture or any amendments thereto that have been approved by the Department of Agriculture;
(4) the craft grower has submitted an agent,
employee, contracting, and subcontracting diversity report as required by the Department; and
(5) the craft grower has submitted an environmental
(b) If a craft grower fails to renew its license before expiration, it shall cease operations until its license is renewed.
(c) If a craft grower agent fails to renew his or her identification card before its expiration, he or she shall cease to work as an agent of the craft grower organization until his or her identification card is renewed.
(d) Any craft grower that continues to operate, or any craft grower agent who continues to work as an agent, after the applicable license or identification card has expired without renewal is subject to the penalties provided under Section 45-5.
(e) All fees or fines collected from the renewal of a craft grower license shall be deposited into the Cannabis Regulation Fund.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/30-50
(410 ILCS 705/30-50)
Craft grower taxes; returns.
(a) A tax is imposed upon the privilege of cultivating and processing adult use cannabis at the rate of 7% of the gross receipts from the sale of cannabis by a craft grower to a dispensing organization. The sale of any adult use product that contains any amount of cannabis or any derivative thereof is subject to the tax under this Section on the full selling price of the product. The proceeds from this tax shall be deposited into the Cannabis Regulation Fund. This tax shall be paid by the craft grower who makes the first sale and is not the responsibility of a dispensing organization, qualifying patient, or purchaser.
(b) In the administration of and compliance with this Section, the Department of Revenue and persons who are subject to this Section: (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in the Cannabis Cultivation Privilege Tax Law and the Uniform Penalty and Interest Act as if those provisions were set forth in this Section.
(c) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/30-55
(410 ILCS 705/30-55)
Disclosure of ownership and control.
(a) Each craft grower 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 craft grower.
(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 craft grower 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 craft grower 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 craft grower 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 craft grower 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 craft grower or shall otherwise terminate his or her affiliation. Failure to do so may subject the craft grower to discipline, suspension, or revocation of its license by the Department.
(i) It is the responsibility of the craft grower 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 craft grower's primary or secondary contact information. Any changes must be made to the Department in writing.
(Source: P.A. 102-98, eff. 7-15-21.)
410 ILCS 705/Art. 35
(410 ILCS 705/Art. 35 heading)
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/35-3
(410 ILCS 705/35-3)
In this Article:
"Department" means the Department of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19.)
410 ILCS 705/35-5
(410 ILCS 705/35-5)
Issuance of licenses.
(a) The Department of Agriculture shall issue up to 40 infuser licenses through a process provided for in this Article no later than July 1, 2020.
(b) The Department of Agriculture shall make the application for infuser licenses available on January 7, 2020, or if that date falls on a weekend or holiday, the business day immediately succeeding the weekend or holiday and every January 7 or succeeding business day thereafter, and shall receive such applications no later than March 15, 2020, or, if that date falls on a weekend or holiday, the business day immediately succeeding the weekend or holiday and every March 15 or succeeding business day thereafter.
(c) By December 21, 2021, the Department of Agriculture may issue up to 60 additional infuser licenses. Prior to issuing such licenses, the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) of Section 5-45 of the Illinois Administrative Procedure Act, to modify or raise the number of infuser licenses and modify or change the licensing application process to reduce or eliminate barriers. 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.
In determining whether to exercise the authority granted by this subsection, the Department of Agriculture must consider the following factors:
(1) the percentage of cannabis sales occurring in
Illinois not in the regulated market using data from the Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, Illinois Behavioral Risk Factor Surveillance System, and tourism data from the Illinois Office of Tourism to ascertain total cannabis consumption in Illinois compared to the amount of sales in licensed dispensing organizations;
(2) whether there is an adequate supply of cannabis
and cannabis-infused products to serve registered medical cannabis patients;
(3) whether there is an adequate supply of cannabis
and cannabis-infused products to serve purchasers;
(4) whether there is an oversupply of cannabis in
Illinois leading to trafficking of cannabis to any other state;
(5) population increases or shifts;
(6) changes to federal law;
(7) perceived security risks of increasing the number
or location of infuser organizations;
(8) the past security records of infuser
(9) the Department of Agriculture's capacity to
appropriately regulate additional licenses;
(10) (blank); and
(11) any other criteria the Department of Agriculture
(d) After January 1, 2022, the Department of Agriculture may by rule modify or raise the number of infuser licenses, and modify or change the licensing application process to reduce or eliminate barriers based on the criteria in subsection (c).
(e) Upon the completion of the disparity and availability
study pertaining to infusers by the Cannabis Regulation Oversight Officer pursuant to subsection (e) of Section 5-45, the Department of Agriculture may modify or change the licensing application process to reduce or eliminate barriers and remedy evidence of discrimination identified in the study.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)
410 ILCS 705/35-10
(410 ILCS 705/35-10)
(a) When applying for a license, the applicant shall electronically submit the following in such form as the Department of Agriculture may direct:
(1) the nonrefundable application fee of $5,000 or,
after January 1, 2021, another amount as set by rule by the Department of Agriculture, to be deposited into the Cannabis Regulation Fund;
(2) the legal name of the infuser;
(3) the proposed physical address of the infuser;
(4) the name, address, social security number, and
date of birth of each principal officer and board member of the infuser; each principal officer and board member shall be at least 21 years of age;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board members of the infuser (i) pled guilty, were convicted, fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or non-profit organization that pled guilty, was convicted, fined, or had a registration or license suspended or revoked;
(6) proposed operating bylaws that include procedures
for the oversight of the infuser, including the development and implementation of a plant monitoring system, accurate recordkeeping, staffing plan, and security plan approved by the Department of State Police that are in accordance with the rules issued by the Department of Agriculture under this Act; a physical inventory of all cannabis shall be performed on a weekly basis by the infuser;
(7) verification from the Department of State Police
that all background checks of the prospective principal officers, board members, and agents of the infuser organization have been conducted;
(8) a copy of the current local zoning ordinance and
verification that the proposed infuser is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;
(9) proposed employment practices, in which the
applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;
(10) whether an applicant can demonstrate experience
in or business practices that promote economic empowerment in Disproportionately Impacted Areas;
(11) experience with infusing products with cannabis
(12) a description of the enclosed, locked facility
where cannabis will be infused, packaged, or otherwise prepared for distribution to a dispensing organization or other infuser;
(13) processing, inventory, and packaging plans;
(14) a description of the applicant's experience with
operating a commercial kitchen or laboratory preparing products for human consumption;
(15) a list of any academic degrees, certifications,
or relevant experience of all prospective principal officers, board members, and agents of the related business;
(16) the identity of every person having a financial
or voting interest of 5% or greater in the infuser operation with respect to which the license is sought, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person;
(17) a plan describing how the infuser will address
(i) energy needs, including estimates of monthly
electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation, and if it has or will adopt a sustainable energy use and energy conservation policy;
(ii) water needs, including estimated water draw,
and if it has or will adopt a sustainable water use and water conservation policy; and
(iii) waste management, including if it has or
will adopt a waste reduction policy;
(18) a recycling plan:
(A) a commitment that any recyclable waste
generated by the infuser shall be recycled per applicable State and local laws, ordinances, and rules; and
(B) a commitment to comply with local waste
provisions. An infuser commits to remain in compliance with applicable State and federal environmental requirements, including, but not limited to, storing, securing, and managing all recyclables and waste, including organic waste composed of or containing finished cannabis and cannabis products, in accordance with applicable State and local laws, ordinances, and rules; and
(19) any other information required by rule.
(b) Applicants must submit all required information, including the information required in Section 35-15, to the Department of Agriculture. Failure by an applicant to submit all required information may result in the application being disqualified.
(c) If the Department of Agriculture receives an application with missing information, the Department of Agriculture may 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.
(Source: P.A. 101-27, eff. 6-25-19.)