*LRB10112329RLC60273b* 101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 INTRODUCED ________________, BY SYNOPSIS AS INTRODUCED: See Index Creates the Cannabis Regulation and Tax Act. Provides that it is lawful for persons 21 years of age or older to: (1) possess, consume, use, purchase, obtain, or transport an amount of cannabis for personal use that does not exceed the possession limit in accordance with the requirements of the Act; (2) cultivate cannabis for personal use in accordance with the requirements of the Act; and (3) control property if actions that are authorized by this provision occur on the property. Provides that an Illinois resident age 21 or older may cultivate up to 5 cannabis plants per household without a cultivation center or craft grower license. Provides penalties for violations of the Act. Provides for expungement of minor cannabis violations. Provides preference in the issuance of licenses to: (1) individuals who have resided for at least 5 of the preceding 10 years in a disproportionately impacted area; (2) individuals who have been arrested for, convicted of, or adjudged to be a ward of the juvenile court for any offense that is eligible for expungement under the Act or member of an impacted family; (3) individuals who are Black or Hispanic; or (4) for employers with a minimum of 10 full-time employees who meet any of these criteria. Provides that a tax is imposed upon the privilege of cultivating cannabis at the rate of 7% of the gross receipts from the sale of cannabis by a cultivator. Provides that a tax is imposed upon purchases for the privilege of using cannabis. Prescribes the rates. Repeals the Cannabis and Controlled Substances Tax Act. Amends various Acts to make conforming changes. Effective immediately. LRB101 12329 RLC 60273 b A BILL FOR LRB101 12329 RLC 60273 b 1 AN ACT concerning cannabis. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 ARTICLE 1. 5 SHORT TITLE; FINDINGS; DEFINITIONS 6 7 Section 1-1. Short title. This Act may be cited as the Cannabis Regulation and Tax Act. 8 Section 1-5. Findings. 9 (a) In the interest of allowing law enforcement to focus on 10 violent and property crimes, generating revenue for education, 11 substance 12 resources to invest in communities and other public purposes, 13 and individual freedom, the General Assembly finds and declares 14 that the use of cannabis should be legal for persons 21 years 15 of age or older and should be taxed in a manner similar to 16 alcohol. abuse prevention and treatment, freeing public 17 (b) In the interest of the health and public safety of the 18 residents of Illinois, the General Assembly further finds and 19 declares that cannabis should be regulated in a manner similar 20 to alcohol so that: 21 22 (1) persons will have to show proof of age before purchasing cannabis; - 2 - LRB101 12329 RLC 60273 b 1 (2) selling, distributing, or transferring cannabis to 2 minors and other persons under 21 years of age shall remain 3 illegal; 4 (3) driving under the influence of cannabis shall 5 remain illegal; 6 (4) legitimate, taxpaying business people, and not 7 criminal actors, will conduct sales of cannabis; 8 (5) 9 cannabis sold in this State will be tested, labeled, and subject to additional regulation to ensure 10 that purchasers are informed and protected; and 11 (6) purchasers will be informed of any known health 12 risks associated with the use of cannabis, as concluded by 13 evidence-based, peer reviewed research. 14 (c) The General Assembly further finds and declares that it 15 is necessary to 16 application 17 therefore, the matters addressed by this Act are, except as 18 specified in this Act, matters of statewide concern. of ensure this consistency and fairness throughout the State Act in and the that, 19 (d) The General Assembly further finds and declares that 20 this Act shall not diminish the State's duties and commitment 21 to seriously ill patients registered under the Compassionate 22 Use of Medical Cannabis Pilot Program Act, nor alter the 23 protections granted to them. 24 (e) The General Assembly further finds and declares that 25 employee workplace safety shall not be diminished and employer 26 workplace policies shall be interpreted broadly to protect - 3 1 LRB101 12329 RLC 60273 b employee safety. 2 Section 1-10. Definitions. In this Act: 3 "Adult Use Cultivation Center License" means a license 4 issued by the Department of Agriculture that permits a person 5 to 6 administrative rule made in furtherance of this Act. 7 act as "Adult a cultivation Use center Dispensing under Organization this Act License" and means any a 8 license issued by the Department of Financial and Professional 9 Regulation that permits a person to act as a dispensing 10 organization under this Act and any administrative rule made in 11 furtherance of this Act. 12 "Advertise" means to engage in promotional activities 13 including, but not limited to: newspaper, radio, Internet and 14 electronic media, and television advertising; the distribution 15 of fliers and circulars; and the display of window and interior 16 signs. 17 "BLS Region" means a region in Illinois used by the United 18 States Bureau of Labor Statistics to gather and categorize 19 certain employment and wage data. The 12 such regions in 20 Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, 21 Champaign-Urbana, 22 Davenport-Moline-Rock 23 Rockford, 24 nonmetropolitan area, West Central Illinois nonmetropolitan 25 area, East Central Illinois nonmetropolitan area, and South St. Chicago-Naperville-Elgin, Island, Louis, Decatur, Springfield, Kankakee, Northwest Danville, Peoria, Illinois - 4 1 2 LRB101 12329 RLC 60273 b Illinois nonmetropolitan area. "Cannabis" means marijuana, hashish, and other substances 3 that 4 Cannabis sativa or Cannabis indica, whether growing or not; the 5 seeds thereof, the resin extracted from any part of the plant; 6 and any compound, manufacture, salt, derivative, mixture, or 7 preparation of 8 tetrahydrocannabinol (THC) and all other naturally produced 9 cannabinol derivatives, 10 indirectly by 11 synthesis or 12 synthesis; however, "cannabis" does not include the mature 13 stalks of the plant, fiber produced from the stalks, oil or 14 cake made from the seeds of the plant, any other compound, 15 manufacture, salt, derivative, mixture, or preparation of the 16 mature stalks (except the resin extracted from it), fiber, oil 17 or cake, or the sterilized seed of the plant that is incapable 18 of germination. "Cannabis" does not include industrial hemp as 19 defined 20 "Cannabis" 21 products. 22 are identified as and the plant, its by a also means business the concentrate establishment" Industrial and organization, or transporting organization. concentrate" means a organization, a plant or chemical chemical Hemp Act. cannabis-infused means 24 26 processing by extraction and center, "Cannabis grower, the directly independently combination of under of resin, including produced 23 25 craft or parts seeds, or whether extraction authorized "Cannabis including any product cultivation dispensing derived from medical cannabis that is produced by extracting cannabinoids - 5 - LRB101 12329 RLC 60273 b 1 from the plant through the use of propylene glycol, glycerin, 2 butter, olive oil or other typical cooking fats; water, ice, or 3 dry ice; or butane, propane, CO2, ethanol, or isopropanol. The 4 use of any other solvent is expressly prohibited unless and 5 until it is approved by the Department of Agriculture. 6 "Cannabis container" 9 transportation. marijuana, for the food containment of cannabis or cannabis-infused product during means used traceable, 8 flower" package sealed, compliant "Cannabis or a 7 10 container, means hashish, purpose and of other 11 substances that are identified as including any parts of the 12 plant Cannabis sativa and including derivatives or subspecies, 13 such as indica, of all strains of cannabis; including raw kief, 14 leaves, and buds, but not resin that has been extracted from 15 any part of such plant; nor any compound, manufacture, salt, 16 derivative, mixture, or preparation of such plant, its seeds, 17 or resin. 18 "Cannabis-infused product" means a beverage, food, oil, 19 ointment, tincture, topical formulation, or another product 20 containing cannabis that is not intended to be smoked. 21 "Cannabis plant monitoring system" or "plant monitoring 22 system" means a system that includes, but is not limited to, 23 testing and data collection established and maintained by the 24 cultivation center, craft grower, or processing organization 25 and 26 Department of Agriculture, the Department of Financial and that is available to the Department of Revenue, the - 6 - LRB101 12329 RLC 60273 b 1 Professional Regulation, and the Department of State Police for 2 the purposes of documenting each cannabis plant and monitoring 3 plant development throughout the life cycle of a cannabis plant 4 cultivated for 5 planting to final packaging. the intended use by a customer from seed 6 "Cannabis testing facility" means an entity registered by 7 the Department of Agriculture to test cannabis for potency and 8 contaminants. 9 "Clone" means a plant section from a female cannabis plant 10 not yet rootbound, growing in a water solution or other 11 propagation matrix, that is capable of developing into a new 12 plant. 13 "Conditional Adult Use Dispensing Organization License" 14 means a license awarded to top-scoring applicants for an Adult 15 Use Dispensing Organization License that reserves the right to 16 a 17 certain conditions described in this Article, but does not 18 entitle the recipient to begin purchasing or selling cannabis 19 or cannabis-infused products. dispensing organization license if the applicant meets 20 "Craft grower" means a facility operated by an organization 21 or business that is licensed by the Department of Agriculture 22 to cultivate, dry, cure, and package cannabis and perform other 23 necessary activities to make cannabis available for sale at a 24 dispensing organization or use at a processing organization. A 25 craft grower may contain up to 5,000 square feet of canopy 26 space on its premises for cultivating plants in the flowering - 7 - LRB101 12329 RLC 60273 b 1 stage. The Department of Agriculture may authorize an increase 2 or decrease of flowering stage cultivation space in increments 3 of 3,000 square feet by rule based on market need, craft grower 4 capacity, 5 noncompliance, with a maximum space of 14,000 square feet for 6 cultivating plants in 7 cultivated in all stages of growth in an enclosed and secure 8 area. A craft grower may share premises with a processing 9 organization or a dispensing organization, or both, provided 10 each licensee stores currency and cannabis or cannabis-infused 11 products in 12 licensee does not have access or all licensees sharing a vault 13 share more than 50% of the same ownership. 14 and a the licensee's the history of compliance flowering stage, which must separate secured vault "Craft grower agent" means a to which the or be other principal officer, board 15 member, employee, or other agent of a craft grower who is 21 16 years of age or older and has not been convicted of an excluded 17 offense. 18 "Craft Grower Agent Identification Card" means a document 19 issued by the Department of Agriculture that identifies a 20 person as a craft grower agent. 21 "Cultivation center" means a facility operated by an 22 organization or business that is licensed by the Department of 23 Agriculture to cultivate, process, transport (unless otherwise 24 limited by this Act), and perform other necessary activities to 25 provide cannabis and cannabis-infused products to cannabis 26 business establishments. - 8 1 "Cultivation center agent" LRB101 12329 RLC 60273 b means a principal officer, 2 board member, employee, or other agent of a cultivation center 3 who is 21 years of age or older and has not been convicted of an 4 excluded offense. 5 "Cultivation Center Agent Identification Card" means a 6 document issued by the Department of Agriculture 7 identifies a person as a cultivation center agent. that 8 "Currency" means currency and coin of the United States. 9 "Dispensing organization" or "dispensary" means a facility 10 operated by an organization or business that is licensed by the 11 Department of Financial and Professional Regulation to acquire 12 cannabis from a cultivation center, craft grower, processing 13 organization, or another dispensary for the purpose of selling 14 or dispensing cannabis, cannabis-infused products, cannabis 15 seeds, paraphernalia, or related supplies under this Act to 16 purchasers 17 patients and caregivers. As 18 organization shall 19 organization as defined in the Compassionate Use of Medical 20 Cannabis Pilot Program Act or its successor Act that has 21 obtained an Early Approval Adult Use Dispensing Organization 22 License. or to qualified include registered used a in this registered medical Act, cannabis dispensary medical cannabis 23 "Dispensing organization agent" means a principal officer, 24 board member, employee, or agent of a dispensing organization 25 who is 21 years of age or older and has not been convicted of an 26 excluded offense. - 9 1 "Dispensing organization agent identification card" means 2 a 3 Professional 4 dispensing organization agent. 5 document issued by the Regulation of identifies Financial a person and as a "Disproportionately Impacted Area" means a census tract or comparable 7 criteria as 8 Economic Opportunity, that: geographic area determined by that the satisfies the Department of following Commerce and (1) meets at least one of the following criteria: 10 11 Department that 6 9 LRB101 12329 RLC 60273 b (A) the area has a poverty rate of at least 20% according to the latest federal decennial census; or 12 (B) 75% or more in the of the 13 participate 14 according to reported statistics from the State Board 15 of Education; or federal children in free the lunch area program 16 (C) at least 20% of the households in the area 17 receive assistance under the Supplemental Nutrition 18 Assistance Program; or 19 (D) the area has an average unemployment rate, as 20 determined by the Illinois Department of Employment 21 Security, that 22 unemployment 23 States Department of Labor, for a period of at least 2 24 consecutive calendar years preceding the date of the 25 application; and 26 (2) has is more average, high rates than as of 120% of determined arrest, the by national the United conviction, and - 10 related LRB101 12329 RLC 60273 b 1 incarceration 2 cultivation, manufacture, or transport of cannabis. 3 "Early Approval Adult to sale, Use possession, Cultivation Center use, License" 4 means a license that permits a medical cannabis cultivation 5 center licensed under the Compassionate Use of Medical Cannabis 6 Pilot Program Act on the effective date of this Act to begin 7 cultivating, 8 provided 9 business establishments for resale to purchasers as permitted 10 in packaging, this Act), transporting and selling (unless cannabis otherwise to cannabis by this Act as of January 1, 2020. 11 "Early Approval Adult Use Dispensing Organization License" 12 means a license that permits a medical cannabis dispensing 13 organization licensed under the Compassionate Use of Medical 14 Cannabis Pilot Program Act on the effective date of this Act to 15 begin selling cannabis to purchasers as permitted by this Act 16 as of January 1, 2020. 17 "Enclosed, locked facility" means a room, greenhouse, 18 building, or other enclosed area equipped with locks or other 19 security devices that permit access only by cannabis business 20 establishment 21 business establishment or 22 cultivate, process, store, or distribute cannabis. 23 "Enclosed, agents working locked for the registered acting pursuant to space" means a this room, cannabis Act to greenhouse, 24 building or other enclosed area equipped with locks or other 25 security 26 individuals under this Act. "Enclosed, locked facility" may devices that permit access only by authorized - 11 1 LRB101 12329 RLC 60273 b include: 2 (1) a room within a residential building that (i) is 3 the primary residence of the individual registered to home 4 grow 5 or fewer cannabis plants in the flowering stage, and 5 (ii) includes sleeping quarters and indoor plumbing. The 6 room must only be accessible by a key or code that is 7 different from any key or code that can be used to access 8 the residential building from the exterior; or 9 (2) a structure, such as a shed or greenhouse, that 10 lies on the same plot of land as a residential building 11 that (i) includes sleeping quarters and indoor plumbing, 12 and (ii) is used as a primary residence by the person 13 registered to home grow 5 or fewer cannabis plants in the 14 flowering stage, 15 greenhouse. The structure must remain locked when it is 16 unoccupied by people. 17 "Excluded offense" means a conviction or admission of guilt 18 19 20 21 such as, but limited to, a shed or for: (1) a violent crime as defined in Section 3 of the Rights of Crime Victims and Witnesses Act; or (2) a felony violation of State or federal controlled 22 substance law, the Cannabis Control Act, or the 23 Methamphetamine Control and Community Protection Act, if 24 the conviction either occurred less than 10 years before 25 the person applied for a license or the sentence has not 26 yet been discharged. - 12 1 2 "Excluded offense" does LRB101 12329 RLC 60273 b not include minor violations eligible for expungement under this Act. 3 "Financial institution" has the same meaning as "financial 4 organization" as defined in Section 1501 of the Illinois Income 5 Tax Act, and also includes the holding companies, subsidiaries, 6 and affiliates of such financial organizations. 7 "Flowering stage" means the stage of cultivation where and 8 when a cannabis plant is cultivated to produce plant material 9 for cannabis products. This includes mature plants as follows: 10 (1) if greater than 2 stigmas are visible at each 11 internode of the plant; or 12 (2) if the cannabis plant is in an area that has been 13 intentionally deprived of 14 intended to produce flower buds and induce maturation, from 15 the 16 remainder of the marijuana plant growth cycle. 17 "Individual" means a natural person. 18 "Kief" means the resinous crystal-like trichomes that are 19 found on cannabis and that are accumulated, resulting in a 20 higher concentration of cannabinoids, untreated by heat or 21 pressure, or extracted using a solvent. 22 moment "Labor the peace and agreement" deprivation means an organization a period of began through agreement the between National Labor Relations Act, referred to in this Act as a bona 25 fide labor organization, that prohibits labor organizations 26 and in picketing, work under a 24 engaging recognized time licensee from labor for 23 members any light light the stoppages, and other LRB101 12329 RLC 60273 b economic interference 1 boycotts, 2 applicant's business. This agreement means that the licensee or 3 applicant has agreed not to disrupt efforts by the bona fide 4 labor organization to communicate with, and attempt to organize 5 and represent, the licensee or applicant's employees. The 6 agreement shall provide a bona fide labor organization access 7 at 8 applicant's employees work, for the purpose of meeting with 9 employees to discuss their right to representation, employment 10 rights under State law, and terms and conditions of employment. 11 This type of agreement shall not mandate a particular method of 12 election or certification of the bona fide labor organization. reasonable any - 13 - times to areas in which the with licensee the or 13 "Limited access area" means a building, room, or other area 14 under the control of a medical cannabis dispensing organization 15 licensed under the Compassionate Use of Medical Cannabis Pilot 16 Program Act 17 limited 18 dispensary 19 professionals 20 organization. and to upon the qualifying owners and registered premises with patients, other conducting designated dispensary business agents with the access caregivers, or service dispensing 21 "Member of an impacted family" means an individual who has 22 a parent, legal guardian, child, spouse, or dependent, or was a 23 dependent of an individual who, prior to the effective date of 24 this Act, was arrested for, convicted of, or adjudged to be a 25 ward of the juvenile court for any offense that is eligible for 26 expungement under this Act. - 14 - LRB101 12329 RLC 60273 b 1 "Mother plant" means a cannabis plant that is cultivated or 2 maintained for the purpose of generating clones, and that will 3 not be used to produce plant material for sale to a processor 4 or dispensary. 5 "Ordinary public view" means within the sight line with 6 normal visual range of a person, unassisted by visual aids, 7 from a public street or sidewalk adjacent to real property, or 8 from within an adjacent property. 9 "Ownership and control" means ownership of at least 51% of 10 the business, including corporate stock if a corporation, and 11 control over the management and day-to-day operations of the 12 business and an interest in the capital, assets, and profits 13 and losses of the business proportionate to percentage of 14 ownership. 15 "Person" means a natural individual, firm, partnership, 16 association, joint stock company, joint venture, public or 17 private corporation, limited liability company, or a receiver, 18 executor, trustee, guardian, or other representative appointed 19 by order of any court. 20 "Possession limit" means the amount of cannabis under 21 Section 10-10 that may be possessed at any one time by a person 22 21 years of age or older or who is a registered qualifying 23 medical cannabis patient or caregiver under the Compassionate 24 Use of Medical Cannabis Pilot Program Act. 25 26 "Principal establishment officer" applicant includes or a registered cannabis cannabis business business - 15 - LRB101 12329 RLC 60273 b 1 establishment's board member, owner with more than one percent 2 interest of the total cannabis business establishment or more 3 than 5% interest of the total cannabis business establishment 4 of 5 secretary, 6 member, or person with a profit sharing, financial interest, or 7 revenue sharing arrangement. The definition includes a person 8 with authority to control the cannabis business establishment, 9 a person who assumes responsibility for the debts of the 10 cannabis business establishment and who is further defined in 11 this Article. a publicly traded company, president, treasurer, partner, officer, vice president, member, manager 12 "Primary residence" means a dwelling where a person usually 13 stays or stays more often than other locations. It may be 14 determined 15 address on driver's license or State ID, or voter registration. 16 No person may have more than one primary residence. by, without limitation, presence, tax filings, 17 "Process" or "processing" means the act of converting 18 harvested cannabis plant material into a cannabis concentrate 19 by physical or chemical means for use as a cannabis concentrate 20 or as an ingredient in a cannabis-infused product. Processing 21 also includes the act of infusing cannabis oil or concentrate 22 into 23 approved for sale under this Act. food, oils, ointments, tinctures, or other products 24 "Processing organization" or "processor" means a facility 25 operated by an organization or business that is licensed by the 26 Department of Agriculture to process cannabis and perform other - 16 - LRB101 12329 RLC 60273 b 1 necessary activities to make cannabis available for sale at a 2 dispensing 3 organization. 4 5 organization or use at another processing "Processing organization agent" means a principal officer, board member, employee, or agent of a processing organization. 6 "Processing organization agent identification card" means 7 a document issued by the Department of Agriculture 8 identifies a person as a processing organization agent. that 9 "Purchaser" means a person 21 years of age or older who 10 acquires cannabis for a valuable consideration. "Purchaser" 11 does not include a cardholder under the Compassionate Use of 12 Medical Cannabis Pilot Program Act. 13 "Qualified Social Equity Applicant" means a Social Equity 14 Applicant who has been awarded a conditional license under this 15 Act to operate a cannabis business establishment. 16 "Resided" means an individual's primary residence was 17 located within the relevant geographic area as established by 2 18 of the following: 19 20 (1) a signed lease agreement that includes the applicant's name; 21 (2) a property deed that includes the applicant's name; 22 (3) school records; 23 (4) a voter registration card; 24 (5) an Illinois Card, driver's 25 Identification or an 26 Disability Identification Card; license, Illinois an Person Illinois with a - 17 1 (6) a paycheck stub; or 2 (7) a utility bill. 3 4 5 6 7 LRB101 12329 RLC 60273 b "Smoking" means the inhalation of smoke caused by the combustion of cannabis. "Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria: (1) an applicant with at least 51% ownership and 8 control by one or more individuals who have resided for at 9 least 5 of the preceding 10 years in a Disproportionately 10 Impacted Area; 11 (2) an applicant with at least 51% of ownership and 12 control by one or more individuals who have been arrested 13 for, convicted of, or adjudged to be a ward of the juvenile 14 court for any offense that is eligible for expungement 15 under this Act or member of an impacted family; 16 (3) for applicants with a minimum of 10 full-time 17 employees, an 18 employees who: 19 20 (i) applicant with currently reside at in least a 51% of current Disproportionately Impacted Area; or 21 (ii) have been arrested for, convicted of, or 22 adjudged to be a ward of the juvenile court for any 23 offense that is eligible for expungement under this Act 24 or member of an impacted family. 25 "Tincture" 26 means cannabis in alcohol. a solution made by dissolving - 18 1 "Transporting organization" LRB101 12329 RLC 60273 b or "transporter" means an 2 organization or business that is licensed by the Department of 3 Agriculture to transport cannabis on behalf of a cannabis 4 business establishment. 5 "Transporting organization agent" means a principal 6 officer, board member, employee, or agent of a transporting 7 organization. 8 9 10 11 12 "Transporting organization agent identification card" means a document issued by the Department of Agriculture that identifies a person as a transporting organization agent. "Unit of local government" means any county, township, city, village, or incorporated town. 13 "Vegetative stage" means the stage of cultivation in which 14 a cannabis plant is propagated to produce additional cannabis 15 plants or reach a sufficient size for production. This includes 16 seedlings, clones, mothers, and other immature cannabis plants 17 as follows: 18 (1) if the cannabis plant is in an area that has not 19 been intentionally deprived of light for a period of time 20 intended to produce flower buds and induce maturation, it 21 has no more than 2 stigmas visible at each internode of the 22 cannabis plant; or 23 (2) any cannabis plant that is cultivated solely for 24 the purpose of propagating clones and is never used to 25 produce cannabis. - 19 - LRB101 12329 RLC 60273 b 1 ARTICLE 5. 2 AUTHORITY 3 Section 5-5. Sharing of authority. Notwithstanding any 4 provision or law to the contrary, any authority granted to any 5 State 6 Compassionate Use of Medical Cannabis Pilot Program Act shall 7 be shared by any State agency or State employees or appointees 8 given authority to license, discipline, revoke, regulate, or 9 make rules under this Act. agency or State employees or appointees under the 10 Section 5-10. Department of Agriculture. The Department of 11 Agriculture shall administer and enforce provisions of this Act 12 relating to the oversight and registration of cultivation 13 centers, 14 transporting organizations and agents, including the issuance 15 of identification cards and establishing limits on potency or 16 serving size for cannabis or cannabis products. The Department 17 of Agriculture may suspend or revoke the license of, or impose 18 other 19 processing organizations, and transporting organizations for 20 violations of this Act and any rules adopted under this Act. 21 craft penalties growers, upon processing cultivation organizations, centers, craft and growers, Section 5-15. Department of Financial and Professional 22 Regulation. The Department of Financial and Professional 23 Regulation shall enforce the provisions of this Act relating to - 20 - LRB101 12329 RLC 60273 b 1 the oversight and registration of dispensing organizations and 2 agents, including the issuance of identification cards for 3 dispensing organization agents. The Department of Financial 4 and Professional Regulation may suspend or revoke the license 5 of, or impose other penalties upon dispensing organizations for 6 violations of this Act and any rules adopted under this Act. 7 Section 5-20. Background checks. 8 (a) Through the Department of State Police, the licensing 9 or issuing Department shall conduct a criminal history record 10 check of the prospective principal officers, board members, and 11 agents of a cannabis establishment applying for a license or 12 identification card under this Act. 13 Each cannabis establishment prospective principal officer, 14 board member, or agent shall submit his or her fingerprints to 15 the 16 prescribed by the Department of State Police. Department of State Police in the form and manner 17 Such fingerprints shall be transmitted through a live scan 18 fingerprint vendor licensed by the Department of Financial and 19 Professional Regulation. These fingerprints shall be checked 20 against the fingerprint records now and hereafter filed in the 21 Department of State Police and Federal Bureau of Investigation 22 criminal history records databases. The Department of State 23 Police shall charge a fee for conducting the criminal history 24 record check, which shall be deposited into the State Police 25 Services Fund and shall not exceed the actual cost of the State - 21 - LRB101 12329 RLC 60273 b 1 and national criminal history record check. The Department of 2 State 3 identification, all Illinois conviction information and shall 4 forward the national criminal history record information to: Police shall furnish, pursuant to positive 5 (i) the Department of Agriculture, with respect to a 6 cultivation center, craft grower, processing organization, 7 or transporting organization; or 8 9 (ii) the Department of Financial and Professional Regulation, with respect to a dispensing organization. 10 (b) When applying for the initial license or identification 11 card, the background checks for all prospective principal 12 officers, board members, and agents shall be completed before 13 submitting the application to the licensing or issuing agency. 14 15 16 Section 5-25. Department of Public Health to make health warning recommendations. (a) The Department Public 18 Department Financial 19 appropriate health warnings for dispensaries and advertising, 20 which may apply to all cannabis products, including item-type 21 specific 22 facility where cannabis-infused products are made, regulate 23 cannabis-infused products as provided in subsection (h) of 24 Section 55-5, and facilitate the Adult Use Cannabis Health 25 Advisory Committee. or warning Agriculture Professional requirements, and make to and of shall recommendations labeling Department Health 17 of the of Regulation regulate the on the - 22 - LRB101 12329 RLC 60273 b 1 (b) An Adult Use Cannabis Health Advisory Committee is 2 hereby created and shall meet at least twice annually. The 3 Chairperson may schedule meetings more frequently upon his or 4 her initiative or upon the request of a Committee member. 5 Meetings may be held in person or by teleconference. The 6 Committee shall discuss and monitor changes in drug use data in 7 Illinois and the emerging science and medical information 8 relevant to the health effects associated with cannabis use and 9 may provide recommendations to the Department of Human Services 10 about public health awareness campaigns and messages. The 11 Committee shall include the following members appointed by the 12 Governor and shall represent the geographic, ethnic and racial 13 diversity of the State: 14 15 16 17 (1) The Director of Public Health, or his or her designee, who shall serve as the Chairperson. (2) The Secretary of Human Services, or his or her designee, who shall serve as the Co-Chairperson. 18 (3) A representative of the poison control center. 19 (4) A pharmacologist. 20 (5) A pulmonologist. 21 (6) An emergency room physician. 22 (7) An Emergency medical technician, paramedic, or 23 other first responder. 24 (8) A nurse practicing in a school-based setting. 25 (9) A psychologist. 26 (10) A neonatologist. - 23 - LRB101 12329 RLC 60273 b 1 (11) An obstetrician-gynecologist. 2 (12) A drug epidemiologist. 3 (13) A medical toxicologist. 4 (14) An addiction psychiatrist. 5 (15) A pediatrician. 6 (16) 7 Compassionate Use of Medical Cannabis Pilot Program. (19) An individual registered as a caregiver in the Compassionate Use of Medical Cannabis Pilot Program. (20) A representative of an organization focusing on cannabis-related policy. 16 17 (21) A representative of an organization focusing on the civil liberties of individuals who reside in Illinois. 18 (22) A representative of the criminal defense or civil 19 aid 20 Impacted Areas. 21 22 professional (18) An individual registered as a patient in the 14 15 statewide system association. 12 13 a (17) A representative of a statewide hospital/health 10 11 representative of public health organization. 8 9 A community of attorneys serving Disproportionately (23) A representative of licensed cannabis business establishments. 23 (24) A Social Equity Applicant. 24 (25) A naturopath. 25 (c) The Committee shall provide a report by September 30, 26 2021, and every year thereafter, to the General Assembly. The - 24 - LRB101 12329 RLC 60273 b 1 Department of Public Health shall make the report available on 2 its website. 3 Section 5-30. Department of Human Services. The Department 4 of Human Services shall identify evidence-based programs for 5 the prevention or treatment of alcohol abuse, tobacco use, 6 illegal drug use (including prescription drugs), and cannabis 7 use by pregnant women, and make policy recommendations, as 8 appropriate, 9 Committee. The Department of Human Services shall develop and to the Adult recommendations received from the Department of Public Health 12 and the Adult Use Cannabis Health Advisory Committee. 14 Illinois Cannabis consumers Advisory 11 5-45. for Health disseminate Section materials Cannabis 10 13 educational Use Regulation based on Oversight Officer. 15 (a) The position of Illinois Cannabis Regulation Oversight 16 Officer is created within the Department of Financial and 17 Professional Regulation under the Director of the Division of 18 Professional Regulation. The position of Illinois Cannabis 19 Regulation 20 Governor. 21 22 Oversight Officer shall be appointed by the (b) The Illinois Cannabis Regulation Oversight Officer may: 23 (1) maintain a staff of up to 5 persons; 24 (2) make recommendations for policy, statute, and rule - 25 1 changes; 2 3 (3) collect data both in Illinois and outside Illinois regarding the regulation of cannabis; 4 5 LRB101 12329 RLC 60273 b (4) compile or assist in the compilation of any reports required by this Act; 6 (5) ensure the coordination of efforts between various 7 State agencies involved in regulating and taxing the sale 8 of cannabis in Illinois; and 9 (6) encourage, promote, suggest, and report best 10 practices for ensuring diversity in the cannabis industry 11 in Illinois. 12 (c) The Illinois Cannabis Regulation Oversight Officer 13 shall not: 14 15 (1) participate in the issuance of any business licensing or the making of awards; or 16 (2) participate in any adjudicative decision-making 17 process involving licensing or licensee discipline. 18 (d) Any funding required for the Illinois Cannabis 19 Regulation Oversight Officer, its staff, or its activities 20 shall be drawn from the Cannabis Regulation Fund. 21 (e) The Illinois Cannabis Regulation Oversight Officer 22 shall commission and publish a disparity and availability study 23 by March 1, 2021 that: (1) evaluates whether there exists 24 discrimination in the State's cannabis industry; and (2) if so, 25 evaluates the impact of such discrimination on the State and 26 includes recommendations to the Department of Financial and - 26 Regulation 1 Professional 2 identified barriers to 3 Illinois Cannabis Regulation Oversight Officer shall forward a 4 copy of its findings and recommendations to the Department of 5 Financial 6 Agriculture, 7 Opportunity, and the Governor. and for LRB101 12329 RLC 60273 b entry in Professional the reducing the or of the Department Commerce and 8 ARTICLE 7. 9 SOCIAL EQUITY IN THE CANNABIS INDUSTRY 10 Section 7-1. Findings. 11 (a) In the that interest of equitable establishing a legal and to Economic cannabis industry 13 adversely impacted by the enforcement of drug-related laws in 14 this 15 Assembly finds and declares that a social equity program should 16 be established. including accessible of 12 State, is any cannabis market. The Regulation, Department eliminating cannabis-related laws, those the most General 17 (b) The General Assembly also finds and declares that 18 individuals who have been arrested or incarcerated due to drug 19 laws 20 impacts to employment, business ownership, housing, health, 21 and long-term financial well-being. suffer long-lasting negative consequences, including 22 (c) The General Assembly also finds and declares that 23 family members, especially children, and communities of those 24 who have been arrested or incarcerated due to drug laws, suffer - 27 - LRB101 12329 RLC 60273 b 1 from emotional, psychological, and financial harms as a result 2 of such arrests or incarcerations. 3 (d) Furthermore, the General Assembly finds and declares 4 that certain communities have disproportionately suffered the 5 harms 6 communities face greater difficulties accessing traditional 7 banking systems and capital for establishing businesses. 8 9 of enforcement of cannabis-related laws. Those (e) The General Assembly also finds that individuals who have resided in areas including of high barriers poverty to suffer entry in negative 10 consequences, employment, 11 business ownership, housing, health, and long-term financial 12 well-being. 13 (f) The General Assembly also finds and declares that 14 promotion of business ownership by individuals who have resided 15 in 16 cannabis-related laws furthers an equitable cannabis industry. 17 areas of high poverty and high enforcement of (g) Therefore, in the interest of remedying the harms 18 resulting 19 cannabis-related laws, the General Assembly finds and declares 20 that a social equity program should offer, among other things, 21 financial 22 individuals 23 enforcement of cannabis-related laws who are interested in 24 starting cannabis business establishments. 25 from the assistance most disproportionate and directly license and enforcement application adversely benefits impacted Section 7-10. Cannabis Business Development Fund. by of to the - 28 - LRB101 12329 RLC 60273 b 1 (a) There is created in the State treasury a special fund, 2 which shall be held separate and apart from all other State 3 moneys, to be known as the Cannabis Business Development Fund. 4 The Cannabis Business Development Fund shall be exclusively 5 used for the following purposes: 6 (1) to provide low-interest rate loans to Social Equity 7 Applicants to pay for ordinary and necessary expenses to 8 start 9 permitted by this Act; 10 (2) and to operate provide a cannabis grants to business Qualified establishment Social Equity 11 Applicants to pay for ordinary and necessary expenses to 12 start 13 permitted by this Act; 14 (3) and to operate a compensate cannabis the business Department of establishment Commerce and 15 Economic Opportunity for any staff costs related to the 16 provision of low-interest loans and grants to Qualified 17 Social Equity Applicants; 18 19 (4) to pay for outreach that may be provided or targeted to attract and support Social Equity Applicants; 20 (5) to compensate the Department of Financial and 21 Professional Regulation and the Department of Agriculture 22 for any licensing fees waived for Social Equity Applicants 23 under this Act; 24 (6) to conduct any study or research concerning the 25 participation of minorities, women, veterans, or people 26 with disabilities in the cannabis industry, including, - 29 - LRB101 12329 RLC 60273 b 1 without limitation, barriers to such individuals entering 2 the 3 establishments; 4 industry (7) as to equity assist owners individuals of cannabis with past business cannabis 5 convictions that are eligible for expungement under this 6 Act seek expungement; and 7 (8) to assist with job training and technical 8 assistance for residents in Disproportionately Impacted 9 Areas. 10 (b) All moneys collected under Sections 15-15 and 15-20 for 11 Early Approval 12 issued before January 1, 2021, and remunerations made as a 13 result of transfers of permits awarded to Qualified Social 14 Equity Applicants shall be deposited into the Cannabis Business 15 Development Fund. As Adult Use soon as shall order Dispensing practical Organization 16 (c) 17 Comptroller 18 $12,000,000 from the Compassionate Use of Medical Cannabis Fund 19 to the Cannabis Business Development Fund. and the after July Treasurer 1, Licenses 2019, shall the transfer 20 (d) Notwithstanding any other law to the contrary, the 21 Cannabis Business Development Fund is not subject to sweeps, 22 administrative charge-backs, or any other fiscal or budgetary 23 maneuver that would in any way transfer any amounts from the 24 Cannabis Business Development Fund into any other fund of the 25 State. - 30 - LRB101 12329 RLC 60273 b 1 Section 7-15. Loans and grants to Social Equity Applicants. 2 (a) The Department of Commerce and Economic Opportunity may 3 establish grant and loan programs, subject to appropriations 4 from the Cannabis Business Development Fund, for the purposes 5 of 6 technical assistance to Social Equity Applicants. 7 8 providing financial assistance, loans, grants, and (b) The Department of Commerce and Economic Opportunity has the power to: 9 (1) provide Cannabis Social Equity loans and grants 10 from appropriations from the Cannabis Business Development 11 Fund to assist Social Equity Applicants in gaining entry 12 to, and successfully operating in, the State's regulated 13 cannabis marketplace; 14 (2) enter into agreements that set forth terms and 15 conditions of the financial assistance, accept funds, or 16 grants, and engage in cooperation with private entities and 17 agencies of State or local government to carry out the 18 purposes of this Section; 19 (3) fix, determine, charge, and collect any premiums, 20 fees, charges, costs and expenses, including application 21 fees, commitment fees, program fees, financing charges, or 22 publication fees in connection with its activities under 23 this Section; 24 (4) coordinate assistance under this program with 25 activities of the Illinois Department of Financial and 26 Professional Regulation, the Illinois Department of - 31 - LRB101 12329 RLC 60273 b 1 Agriculture, and other agencies as needed to maximize the 2 effectiveness and efficiency of this Act; 3 4 (5) provide staff, administration, and related support required to administer this Section; 5 (6) take whatever actions are necessary or appropriate 6 to protect the State's interest if bankruptcy, default, 7 foreclosure, 8 conditions of financial assistance provided under this 9 Section, including the ability to recapture funds if the 10 recipient is found to be noncompliant with the terms and 11 conditions of the financial assistance agreement; or noncompliance with the terms and 12 (7) establish application, notification, contract, and 13 other forms, procedures, or rules deemed necessary and 14 appropriate; and 15 (8) utilize vendors or contract work to carry out the 16 purposes of this Act. 17 (c) Loans made under this Section: 18 (1) shall only be made if, in the Department's 19 judgment, the project furthers the goals set forth in this 20 Act; and 21 (2) shall be in such principal amount and form and 22 contain such terms and provisions with respect to security, 23 insurance, 24 remedies, 25 determine appropriate to protect the public interest and to 26 be consistent with the purposes of this Section. The terms reporting, and other delinquency matters as the charges, default Department shall - 32 - LRB101 12329 RLC 60273 b 1 and provisions may be less than required for similar loans 2 not covered by this Section. 3 (d) Grants made under this Section shall be awarded on a 4 competitive and annual basis under the Grant Accountability and 5 Transparency Act. Grants made under this Section shall further 6 and promote the goals of this Act, including promotion of 7 Social 8 development, 9 Applicants. 10 Equity Applicants, and technical job training assistance to and workforce Social Equity (e) Beginning January 1, 2021 and each year thereafter, the 11 Department shall annually report to 12 General Assembly on the outcomes and effectiveness of this 13 action that shall include the following: 14 15 the Governor and the (1) the number of persons or businesses receiving financial assistance under this Section; 16 (2) the amount in financial assistance awarded in the 17 aggregate, in addition to the amount in loans made that are 18 outstanding and the amount of grants awarded; 19 20 21 (3) the location of the project engaged in by the person or business; and (4) if applicable, the number of new jobs and other 22 forms of economic output created as a result of the 23 financial assistance. 24 (f) The Department of Commerce and Economic Opportunity 25 shall include engagement with individuals with limited English 26 proficiency as part of its outreach provided or targeted to - 33 1 LRB101 12329 RLC 60273 b attract and support Social Equity Applicants. 2 Section 7-20. Fee waivers. 3 (a) The Department of Financial and Professional 4 Regulation and the Department of Agriculture shall waive 50% of 5 any 6 applications) 7 purchasing 8 establishment (up to 2 licenses), provided a Social Equity 9 Applicant meets the following qualifications at the time the 10 nonrefundable and a license any application nonrefundable license to operate fees fees a (up to associated cannabis 2 with business payment is due: 11 (1) the applicant, including all individuals and 12 entities with 10% or greater ownership and all parent 13 companies, subsidiaries, and affiliates, has less than a 14 total of $750,000 of income in the previous calendar year; 15 and 16 (2) the applicant, including all individuals and 17 entities with 10% or greater ownership and all parent 18 companies, subsidiaries, and affiliates, has no more than 2 19 other licenses for cannabis business establishments in the 20 State of Illinois. 21 (b) The Department of Financial and Professional 22 Regulation and the Department of Agriculture may require Social 23 Equity Applicants to attest that they meet the requirements for 24 a fee waiver as provided in subsection (a) and to provide 25 evidence of annual total income in the previous calendar year. - 34 1 (c) 2 Regulation 3 compensated at 4 subsection (a) of this Section from moneys in the Cannabis 5 Business Development Fund. 6 (d) The If Department and the the an of LRB101 12329 RLC 60273 b Financial Department equal amount Department of of to and Professional Agriculture any fees Financial and shall waived be under Professional 7 Regulation or the Department of Agriculture determines that an 8 applicant who applied as a Social Equity Applicant is not 9 eligible for such status, the applicant shall be provided an 10 additional 10 days to provide alternative evidence that he or 11 she qualifies as a Social Equity Applicant. Alternatively, the 12 applicant may pay the remainder of the waived fee and be 13 considered as a non-Social Equity Applicant. If the applicant 14 cannot do either, then the Departments may keep the initial 15 application fee and the application shall not be graded and the 16 application shall not be graded. 17 Section 7-25. Transfer of license awarded to Social Equity 18 Applicant. 19 (a) In the event a Social Equity Applicant seeks to 20 transfer, sell, or grant a cannabis business establishment 21 license within 5 years after it was issued to a person or 22 entity that does not qualify as a Social Equity Applicant, the 23 transfer agreement shall require the new license holder to pay 24 the Cannabis Business Development Fund an amount equal to: 25 (1) any fees that were waived by any State agency based - 35 - LRB101 12329 RLC 60273 b 1 on the applicant's status as a Social Equity Applicant, if 2 applicable; 3 (2) any outstanding amount owed by the Qualified Social 4 Equity Applicant for a loan through the Cannabis Business 5 Development Fund, if applicable; and 6 (3) the full amount of any grants that the Qualified 7 Social Equity Applicant received from the Department of 8 Commerce and Economic Opportunity, if applicable. 9 (b) Transfers of cannabis establishment licenses awarded 10 to a Social Equity 11 provisions of 12 Cannabis Pilot Program Act, and rules regarding transfers. this Applicant Act, the are subject to Compassionate Use all of other Medical 13 Section 7-30. Reporting. By January 1, 2021, and on January 14 1 of every year thereafter, or upon request by the Illinois 15 Cannabis Regulation Oversight Officer, each cannabis business 16 establishment licensed under this Act shall report to the 17 Illinois Cannabis Regulation Oversight Officer, on a form to be 18 provided 19 Officer, information that will allow it to assess the extent of 20 diversity in the medical and adult use cannabis industry and 21 methods for reducing or eliminating any identified barriers to 22 entry, including access to capital. The information shall 23 include: by the Illinois Cannabis Regulation Oversight 24 (1) the number and percentage of licenses provided to 25 minority-owned, women-owned, and veteran-owned businesses; - 36 1 2 LRB101 12329 RLC 60273 b (2) the total number and percentage of minority, women, and veteran employees in the cannabis industry; and 3 (3) recommendations on reducing or eliminating any 4 identified barriers to entry, including access to capital, 5 in the cannabis industry. 6 ARTICLE 10. 7 PERSONAL USE OF CANNABIS 8 9 Section 10-5. Personal use of cannabis; restrictions on cultivation; penalties. 10 (a) Beginning January 1, 2020, notwithstanding any other 11 provision of law, and except as otherwise provided in this Act, 12 the following acts are not a violation of this Act and shall 13 not be a criminal or civil offense under State law or the 14 ordinances of any unit of local government of this State or be 15 a basis for seizure or forfeiture of assets under State law for 16 persons 21 years of age or older to: 17 (1) possess, consume, use, purchase, obtain, or 18 transport an amount of cannabis for personal use that does 19 not exceed the possession limit under Section 10-10 or 20 otherwise in accordance with the requirements of this Act; 21 22 23 24 (2) cultivate cannabis for personal use in accordance with the requirements of this Act; and (3) control property if actions that are authorized by this Section occur on the property. - 37 1 2 LRB101 12329 RLC 60273 b (b) Cultivating cannabis for personal use is subject to the following limitations: 3 (1) An Illinois resident age 21 years of age or older 4 may cultivate up to 5 cannabis plants per household without 5 a cultivation center or craft grower license. In this 6 Section, "resident" means a person who has been domiciled 7 in the State of Illinois for a period of 30 days before 8 cultivation. 9 (2) Cannabis cultivation must take place in an 10 enclosed, locked secure area to cultivate cannabis for 11 personal use, such as a room, greenhouse, building, or 12 other enclosed area equipped with locks or other security 13 devices that permit access only by authorized individuals 14 under this Act. Secure areas may include: 15 (A) a room within a residential building that (i) 16 is the primary residence of the individual registered 17 to 18 flowering stage and (ii) includes sleeping quarters 19 and indoor plumbing. The room must only be accessible 20 by a key or code that is different from any key or code 21 that can be used to access the residential building 22 from the exterior; or home grow 5 or fewer cannabis plants in the 23 (B) a structure, such as a shed or greenhouse, that 24 lies on the same plot of land as a residential building 25 that 26 plumbing and (ii) is used as a primary residence by the (i) includes sleeping quarters and indoor - 38 - LRB101 12329 RLC 60273 b 1 person registered to home grow 5 or fewer cannabis 2 plants in the flowering stage, such as, but not limited 3 to, a shed or greenhouse. The structure must remain 4 locked when it is unoccupied by people. 5 (3) Adult purchasers may purchase cannabis seeds from a 6 dispensary for the purpose of home cultivation. Seeds may 7 not be given or sold to any other person. 8 (4) Cannabis plants shall not be stored or placed in a 9 location where they are subject to ordinary public view, as 10 defined in this Act. A person who cultivates cannabis under 11 this Section shall take reasonable precautions to ensure 12 the plants are secure from unauthorized access and access 13 by a person under 21 years of age. 14 (5) Cannabis cultivation may occur only on residential 15 property lawfully in possession of the cultivator or with 16 the consent of the person in lawful possession of the 17 property. A lessor of residential property may prohibit the 18 cultivation of cannabis by a lessee. 19 20 21 (6) A person who is cultivating cannabis may not possess more than 5 rootbound plants at any one time. (7) A dwelling, residence, apartment, condominium, 22 enclosed, locked space, or piece of property not divided 23 into multiple dwelling units shall not contain more than 5 24 plants at any one time. 25 26 (8) Cannabis plants may only be tended by residents who reside at the residence, or their authorized agent - 39 - LRB101 12329 RLC 60273 b 1 attending to the residence for brief periods, such as when 2 the resident is temporarily away from the residence. 3 (9) A person who cultivates more than the allowable 4 number of cannabis plants, or who sells or gives away 5 cannabis plants, cannabis, or cannabis-infused products 6 produced under this Section, is liable for penalties as 7 provided by law, including the Cannabis Control Act, in 8 addition 9 established by rule. to loss of home cultivation privileges as 10 Section 10-10. Possession limit. 11 (a) Except if otherwise authorized by this Act, for a 12 person who is 21 years of age or older and a resident of this 13 State, the possession limit is as follows: 14 (1) 30 grams of cannabis flower; 15 (2) no more than 500 milligrams of THC contained in 16 cannabis-infused product; 17 (3) 5 grams of cannabis concentrate; and 18 (4) any cannabis produced by cannabis grown under 19 subsection (b) of Section 10-5, provided any amount of 20 cannabis produced in excess of 30 grams of raw cannabis or 21 its equivalent must remain secured within the residence or 22 residential property in which it was grown. 23 (b) For a person who is 21 years of age or older and who is 24 25 not a resident of this State, the possession limit is: (1) 15 grams of cannabis flower; - 40 - LRB101 12329 RLC 60273 b 1 (2) 2.5 grams of cannabis concentrate; and 2 (3) 250 milligrams of THC contained in a 3 cannabis-infused product. 4 (c) The possession limits found in subsections (a) and (b) 5 6 of this Section are to be considered cumulative. (d) For a patient or caregiver registered under the 7 Compassionate Use of Medical Cannabis Pilot Program Act, the 8 possession limit shall not exceed the amount the registered 9 patient or caregiver is authorized to purchase during any 10 2-week period. 11 (e) No person shall knowingly obtain, seek to obtain, or 12 possess an amount of cannabis from a dispensing organization or 13 craft 14 possession limit under this Section, including cannabis that is 15 cultivated by a person under this Act or obtained under the 16 Compassionate Use of Medical Cannabis Pilot Program Act. grower that would cause him or her to exceed the 17 Section 10-15. Persons under 21 years of age. 18 (a) Nothing in this Act is intended to permit the transfer 19 of cannabis, with or without remuneration, to a person under 21 20 years of age, or to allow a person under 21 years of age to 21 purchase, possess, use, process, transport, grow, or consume 22 cannabis except where authorized by the Compassionate Use of 23 Medical Cannabis Pilot Program Act. 24 25 (b) Notwithstanding any other provisions of law authorizing the possession of medical cannabis, nothing in this - 41 - LRB101 12329 RLC 60273 b 1 Act authorizes a person who is under 21 years of age to possess 2 cannabis. A person under 21 years of age with cannabis in his 3 or her possession equal to or under the possession limit in 4 subsection 5 misdemeanor. A person who is under 21 years of age with 6 cannabis in his or her possession over the possession limit set 7 forth in subsection (a) of Section 10-10 is subject to the 8 provisions of the Cannabis Control Act. (a) of Section 10-10 is guilty of a Class A 9 (c) The Secretary of State may suspend or revoke the 10 driving privileges of any person for a violation of this 11 Section under Section 6-206 of the Illinois Vehicle Code and 12 the rules adopted under it. 13 (d) It is unlawful for any parent or guardian to knowingly 14 permit his or her residence, any other private property under 15 his or her control, or any vehicle, conveyance, or watercraft 16 under his or her control to be used by an invitee of the 17 parent's child or the guardian's ward, if the invitee is under 18 the age of 21, in a manner that constitutes a violation of this 19 Section. A parent or guardian is deemed to have knowingly 20 permitted his or her residence, any other private property 21 under his or her control, or any vehicle, conveyance, or 22 watercraft under his or her control to be used in violation of 23 this Section if he or she knowingly authorizes or permits 24 consumption of cannabis by underage invitees. Any person who 25 violates this subsection (d) is guilty of a Class A misdemeanor 26 and the person's sentence shall include, but shall not be - 42 - LRB101 12329 RLC 60273 b 1 limited to, a fine of not less than $500. If a violation of 2 this subsection (d) directly or indirectly results in great 3 bodily harm or death to any person, the person violating this 4 subsection is guilty of a Class 4 felony. In this subsection 5 (d) where the residence or other property has an owner and a 6 tenant 7 residence or other property is occupied only by the tenant or 8 lessee. 9 10 11 or lessee, Section the trier of fact 10-20. Identification; protect personal may infer false that the identification; penalty. (a) To privacy, the Department of 12 Financial and Professional Regulation shall not require a 13 purchaser to provide a dispensing organization with personal 14 information other 15 determine the purchaser's age, and a dispensing organization 16 shall 17 purchasers 18 organization shall use an electronic reader or electronic 19 scanning 20 identification, if applicable, to determine the consumer's age 21 and the validity of the identification. not than obtain and without device to the government-issued identification to record personal purchaser's scan a information consent. consumer's A about dispensing government-issued 22 (b) A person who is under 21 years of age may not present 23 or offer to a cannabis business establishment or the cannabis 24 business establishment's principal or employee any written or 25 oral evidence of age that is false, fraudulent, or not actually - 43 1 LRB101 12329 RLC 60273 b the person's own, for the purpose of: 2 (1) purchasing, attempting to purchase, or otherwise 3 obtaining or attempting to obtain cannabis or any cannabis 4 product; or 5 (2) gaining access to a cannabis establishment. 6 (c) A violation of this Section is a Class A misdemeanor 7 consistent with Section 6-20 of the Liquor Control Act of 1934. 8 (d) The Secretary of State may suspend or revoke the 9 driving privileges of any person for a violation of this 10 Section under Section 6-206 of the Illinois Vehicle Code and 11 the rules adopted under it. 12 (e) No agent or employee of the licensee shall be 13 disciplined or discharged for selling or furnishing cannabis or 14 cannabis products to a person under 21 years of age if the 15 agent or employee demanded and was shown, before furnishing 16 cannabis or cannabis products to a person under 21 years of 17 age, adequate written evidence of age and identity of the 18 person. This subsection (e) does not apply if the agent or 19 employee accepted the written evidence knowing it to be false 20 or fraudulent. Adequate written evidence of age and identity of 21 the person is a document issued by a federal, State, county, or 22 municipal 23 including, but not limited to, a motor vehicle operator's 24 license, a registration certificate issued under the Military 25 Selective Service Act, or an identification card issued to a 26 member of the Armed Forces. Proof that the licensee, or his or government, or subdivision or agency thereof, - 44 - LRB101 12329 RLC 60273 b 1 her employee or agent was shown and reasonably relied upon such 2 written evidence in any transaction forbidden by this Section 3 is an affirmative defense in any criminal prosecution therefor 4 or to any proceedings for the suspension or revocation of any 5 license based thereon. 6 7 Section 10-25. Immunities and presumptions related to the use of cannabis by purchasers. 8 9 (a) A purchaser who is 21 years of age or older is not subject to arrest, prosecution, denial of any right or 10 privilege, or other punishment including, but not limited to, 11 any 12 occupational or professional licensing board, based solely on 13 the use of cannabis if (1) the purchaser possesses an amount of 14 cannabis that 15 Section 10-10 and, if the purchaser is licensed, certified, or 16 registered to practice any trade or profession under any Act 17 and (2) the use of cannabis does not impair that person when he 18 or she is engaged in the practice of the profession for which 19 he or she is licensed, certified, or registered. civil penalty does or not disciplinary exceed the action taken by an possession limit under 20 (b) A purchaser 21 years of age or older is not subject to 21 arrest, prosecution, denial of any right or privilege, or other 22 punishment including, but not limited to, any civil penalty or 23 disciplinary action taken by an occupational or professional 24 licensing 25 paraphernalia if employed and licensed as a dispensing agent by board, based solely for (i) selling cannabis - 45 - LRB101 12329 RLC 60273 b 1 a dispensing organization, or (ii) being in the presence or 2 vicinity of the use of cannabis as allowed under this Act. 3 (c) Mere possession of, or application for, an agent 4 identification card or license does not constitute probable 5 cause or reasonable suspicion to believe that a crime has been 6 committed, nor shall it be used as the sole basis to support 7 the search of the person, property, or home of the person 8 possessing or applying for the agent identification card. The 9 possession of, or application for, an agent identification card 10 does not preclude the existence of probable cause if probable 11 cause exists based on other grounds. 12 (d) No person employed by the State of Illinois shall be 13 subject to criminal or civil penalties for taking any action in 14 good faith in reliance on this Act when acting within the scope 15 of his or her employment. Representation and indemnification 16 shall be provided to State employees as set forth in Section 2 17 of the State Employee Indemnification Act. 18 (e) No law enforcement or correctional agency, nor any 19 person employed by a law enforcement or correctional agency, 20 shall be subject to criminal or civil liability, except for 21 willful and wanton misconduct, as a result of taking any action 22 within the scope of the official duties of the agency or person 23 to prohibit or prevent the possession or use of cannabis by a 24 person 25 municipal lockup facility, on parole or mandatory supervised 26 release, or otherwise under the lawful jurisdiction of the incarcerated at a correctional facility, jail, or - 46 1 LRB101 12329 RLC 60273 b agency or person. 2 (f) For purposes of receiving medical care, including organ 3 transplants, a person's use of cannabis under this Act does not 4 constitute 5 disqualify a person from medical care. the use of an illicit substance or otherwise 6 Section 10-30. Discrimination prohibited. 7 (a) Neither the presence of cannabinoid components or 8 metabolites in a person's bodily fluids nor possession of 9 cannabis-related paraphernalia, nor conduct related to the use 10 of cannabis 11 activities lawful under this Act by a custodial or noncustodial 12 parent, grandparent, legal guardian, foster parent, or other 13 person charged with the well-being of a child, shall form the 14 sole or primary basis or supporting basis for any action or 15 proceeding by a child welfare agency or in a family or juvenile 16 court, any adverse finding, adverse evidence, or restriction of 17 any right or privilege in a proceeding related to adoption of a 18 child, acting as a foster parent of a child, or a person's 19 fitness to adopt a child or act as a foster parent of a child, 20 or serve as the basis of any adverse finding, adverse evidence, 21 or restriction of any right of privilege in a proceeding 22 related 23 execution of a will, or the management of an estate, unless the 24 person's 25 unreasonable danger to the safety of the minor or otherwise to or the participation in cannabis-related guardianship, conservatorship, trusteeship, the actions in relation to cannabis created an - 47 - LRB101 12329 RLC 60273 b 1 show the person to not be competent as established by clear and 2 convincing evidence. This subsection applies only to conduct 3 protected under this Act. 4 (b) No landlord may be penalized or denied any benefit 5 under State law for leasing to a person who uses cannabis under 6 this Act. 7 (c) Nothing in this Act may be construed to require any 8 person or establishment in lawful possession of property to 9 allow a guest, client, lessee, customer, or visitor to use 10 cannabis on or in that property. 11 Section 10-35. Limitations and penalties. 12 (a) This Act does not permit any person to engage in, and 13 does not prevent the imposition of any civil, criminal, or 14 other penalties for engaging in, any of the following conduct: 15 (1) undertaking doing task so would under the constitute influence 16 cannabis 17 professional malpractice, or professional misconduct; 18 when any of negligence, (2) possessing cannabis: 19 (A) in a school 20 qualifying 21 Compassionate Use of Medical Cannabis Pilot Program 22 Act; patient or bus, unless caregiver permitted pursuant for to a the 23 (B) on the grounds of any preschool or primary or 24 secondary school, unless permitted for a qualifying 25 patient or caregiver pursuant to the Compassionate Use - 48 1 LRB101 12329 RLC 60273 b of Medical Cannabis Pilot Program Act; 2 (C) in any correctional facility; 3 (D) in a vehicle not open to the public unless the 4 cannabis is in a reasonably secured, sealed, container 5 and 6 moving; or reasonably inaccessible while the vehicle is 7 (E) in a private residence that is used at any time 8 to provide licensed child care or other similar social 9 service care on the premises; 10 (3) using cannabis: 11 (A) in a school 12 qualifying 13 Compassionate Use of Medical Cannabis Pilot Program 14 Act; patient or bus, unless caregiver permitted pursuant for to a the 15 (B) on the grounds of any preschool or primary or 16 secondary school, unless permitted for a qualifying 17 patient or caregiver pursuant to the Compassionate Use 18 of Medical Cannabis Pilot Program Act; 19 (C) in any correctional facility; 20 (D) in any motor vehicle; 21 (E) in a private residence that is used at any time 22 to provide licensed child care or other similar social 23 service care on the premises; 24 (F) in any public place; or 25 (G) 26 knowingly in close physical proximity to anyone under 21 years of age who is not a registered - 49 - LRB101 12329 RLC 60273 b 1 medical cannabis patient under the Compassionate Use 2 of Medical Cannabis Pilot Program Act; 3 (4) smoking cannabis in any place where smoking is 4 prohibited under the Smoke Free Illinois Act; 5 (5) operating, navigating, or being in actual physical 6 control of any motor vehicle, aircraft, or motorboat while 7 using or under the influence of cannabis in violation of 8 Section 11-501 or 11-502.1 of the Illinois Vehicle Code; 9 (6) facilitating the use of cannabis by any person who 10 is not allowed to use cannabis under this Act or the 11 Compassionate Use of Medical Cannabis Pilot Program Act to 12 use cannabis; 13 (7) transferring cannabis to any person contrary to 14 this Act or the Compassionate Use of Medical Cannabis Pilot 15 Program Act; 16 (8) the use of cannabis by a law enforcement officer, 17 corrections officer, 18 while on duty; or 19 probation officer, or firefighter (9) the use of cannabis by a person who has a school 20 bus permit or a Commercial Driver's License while on duty. 21 As used in this Section, "public place" means any place 22 where a person could reasonably be expected to be observed by 23 others. "Public place" includes all parts of buildings owned in 24 whole or in part, or leased, by the State or a unit of local 25 government. "Public place" does not include a private residence 26 unless the private residence is used to provide licensed child - 50 - LRB101 12329 RLC 60273 b 1 care, foster care, or other similar social service care on the 2 premises. 3 (b) Nothing in this Act shall be construed to prevent the 4 arrest or prosecution of a person for reckless driving or 5 driving under the influence of cannabis if probable cause 6 exists. 7 (c) Nothing in this Act shall prevent a private business 8 from restricting or prohibiting the use of cannabis on its 9 property, including areas where motor vehicles are parked. 10 (d) Nothing in this Act shall require an individual or 11 business entity to violate the provisions of federal law, 12 including colleges or universities that must abide by the 13 Drug-Free Schools and Communities Act Amendments of 1989, which 14 requires campuses to be drug free. 15 Section 10-40. Restoring Our Communities Program. 16 (a) The General Assembly finds that in order to address the 17 disparity 18 approaches and targeted resources to support local design and 19 control of community-based responses to these outcomes are 20 required, which 21 community assets 22 determinants of health. To carry out this intent, the Restoring 23 Our Communities (ROC) Program is created for the following 24 purposes: 25 (1) described to in (a) requires that directly of this Section, identification address address components the and of impact aggressive support the of of social economic - 51 1 disinvestment, violence 2 criminal justice responses to community and individual 3 needs by providing resources to support local design and 4 control of community-based responses to these impacts; 5 6 and LRB101 12329 RLC 60273 b the historical overuse of (2) to substantially reduce both the total amount of gun violence and concentrated poverty in this State; 7 (3) to protect communities from gun violence through 8 targeted investments and intervention programs, including 9 economic growth and improving family violence prevention, 10 community trauma treatment rates, gun injury 11 services, and public health prevention activities; victim 12 (4) to promote employment infrastructure and capacity 13 building related to the social determinants of health in 14 the eligible community areas. 15 (b) 16 In this Section, "Authority" means the Illinois Criminal Justice Information Authority. 17 (c) Eligibility of ROC Areas. Within 60 days after the 18 effective date of this Act, the Authority shall identify as 19 eligible, areas in this State by way of historically recognized 20 geographic boundaries, to be designated by the Restoring Our 21 Communities Program Board as ROC Areas and therefore eligible 22 to apply for ROC funding. Local groups within ROC Areas will be 23 eligible to apply for State funding through the Restoring Our 24 Communities Program Board. Qualifications for designation as a 25 ROC Area are as follows: 26 (1) Based on an analysis of data, communities in this - 52 - LRB101 12329 RLC 60273 b 1 State that are high need, underserved, disproportionately 2 impacted by historical economic disinvestment, and ravaged 3 by violence as indicated by the highest rates of gun 4 injury, unemployment, child poverty rates, and commitments 5 to and returns from the Illinois Department of Corrections. 6 (2) The Authority shall send to the Legislative Audit 7 Commission and make publicly available its analysis and 8 identification of eligible ROC Areas and shall recalculate 9 the eligibility data every 4 years. On an annual basis, the 10 Authority shall analyze data and indicate if data covering 11 any ROC Area or portion of an Area has, for 4 consecutive 12 years, 13 statewide data on which the original calculation was made 14 to determine the Areas, including disinvestment, violence, 15 gun 16 commitments to or returns from the Illinois Department of 17 Corrections. 18 (d) The Restoring Our Communities Program Board shall 19 encourage collaborative partnerships within each ROC Area to 20 minimize multiple partnerships per Area. substantially injury deviated unemployment, from child the poverty average rates, of or 21 (e) The Restoring Our Communities Program Board is created 22 and shall reflect the diversity of the State of Illinois, 23 including geographic, racial, and ethnic diversity. Using the 24 data provided by the Authority, the Restoring Our Communities 25 Program Board shall be responsible for designating the ROC Area 26 boundaries and for the selection and oversight of ROC Area - 53 1 grantees. 2 co-chairs and ex officio members shall, within 4 months after 3 the effective date of this Act, convene the Board to appoint a 4 full Restoring Our Communities Program Board and oversee, 5 provide guidance to, and develop an administrative structure 6 for the ROC Program. 7 8 9 10 11 12 13 14 15 16 17 18 The Restoring Our LRB101 12329 RLC 60273 b Communities Program Board (1) The ex officio members are: (A) The Governor, or his or her designee, who shall serve as co-chair. (B) The Attorney General, or his or her designee, who shall serve as co-chair. (C) The Director of Commerce and Economic Opportunity, or his or her designee. (D) The Director of Public Health, or his or her designee. (E) The Director of Corrections, or his or her designee. (F) The Executive Director of the Illinois 19 Criminal Justice Information Authority, or his or her 20 designee. 21 22 23 24 25 26 (G) The Director of Employment Security, or his or her designee. (H) The Secretary of Human Services, or his or her designee. (I) A member of the Senate, designated by the President of the Senate. - 54 1 (J) A member of the House of Representatives, 2 designated 3 Representatives. 4 5 LRB101 12329 RLC 60273 b by the Speaker of the House of (K) A member of the Senate, designated by the Minority Leader of the Senate. 6 (L) A member of the House of Representatives, 7 designated by the Minority Leader of the House of 8 Representatives. 9 (2) Within 60 days after the ROC Areas have been 10 designated by the Restoring Our Communities Program Board, 11 the following members shall be appointed to the Board by 12 the ex officio members: 13 (A) The highest elected public officials of 14 municipal geographic jurisdictions in the State that 15 include a ROC Area, or their designees; 16 (B) 4 community-based providers or community 17 development organization representatives who provide 18 services to treat violence and address the social 19 determinants 20 investment, including, but not limited to, services 21 such 22 services, 23 wealth 24 representatives shall work primarily in jurisdictions 25 that 26 representatives shall work primarily in Cook County. as job of health, placement workforce building. include a The ROC and or promote training, development and educational programming, community-based Area community no and organization more than 2 - 55 - LRB101 12329 RLC 60273 b 1 At least one of the community-based providers shall 2 have expertise in providing services to an immigrant 3 population; 4 (C) Two subject matter experts in the field of 5 violence reduction; 6 (D) One male who has previously been incarcerated 7 over the age of 24 at time of appointment; 8 (E) 9 One female who has previously been incarcerated over the age of 24 at time of appointment; 10 (F) Two individuals who have previously been 11 incarcerated between the ages of 17 and 24 at time of 12 appointment. 13 As used in this paragraph (2), "an individual who has been 14 previously incarcerated" means a person who has been convicted 15 of or pled guilty to one or more felonies, who was sentenced to 16 a term of imprisonment, and who has completed his or her 17 sentence. 18 The Board members will not 21 effective date of this Act. Once all its members have been 22 appointed 23 paragraph (2), the Board may exercise any power, perform any 24 function, take any action, or do anything in furtherance of its 25 purposes and goals upon the appointment of a quorum of its 26 members. The Board terms of the non-ex officio and General (A) compensation any determined by ex officio Board members within 4 months of the items for with 20 in eligible affiliated governmental outlined be are 19 as body who through (F) of as this - 56 - LRB101 12329 RLC 60273 b 1 Assembly Board members shall end 4 years from the date of 2 appointment. 3 4 5 6 (f) Within 12 months after the effective date of this Act, the Board shall: (1) develop a process to solicit applications from eligible ROC Areas; 7 (2) develop a standard template for both planning and 8 implementation activities to be submitted by ROC Areas to 9 the State; 10 (3) identify resources from Restoring Our Communities 11 sufficient 12 evaluation of the ROC Program, including building and 13 sustaining core program capacity at the community and State 14 levels; 15 16 to support the full administration and (4) review ROC Area grant applications and proposed agreements and approve the distribution of resources; 17 (5) identify and fund an organization or organizations 18 to provide training and technical assistance to ROC Area 19 applicants or grantees who may need capacity building 20 support, including data collection support. The identified 21 organization or organizations may serve as a fiscal agent 22 for the purpose of ensuring that potential applicants in 23 eligible ROC Areas are not deemed ineligible. 24 (6) develop a performance measurement system that 25 focuses on positive outcomes and includes, but is not 26 limited to: key performance indicators related to the - 57 - LRB101 12329 RLC 60273 b 1 social determinants of health; the root causes of violence; 2 outreach, intervention, and support for individuals at 3 highest risk of violence; and decreasing the use of and 4 impacts 5 responses, incarceration, and correctional control; 6 7 of a historical overuse of criminal justice (7) develop a process to support ongoing monitoring and evaluation of ROC programs; and 8 (8) deliver an annual report to the General Assembly 9 and to the Governor to be posted on the Governor's Office 10 and General Assembly websites and provide to the public an 11 annual report on its progress. 12 (g) ROC Area grants. 13 (1) Grant funds shall be awarded by the Restoring Our 14 Communities Program Board based on the likelihood that the 15 plan will achieve the outcomes outlined in subsection (b) 16 and 17 Accountability and Transparency Act. The ROC Program shall 18 also facilitate the provision of training and technical 19 assistance for capacity building within and among ROC 20 Areas. 21 22 23 consistent with the requirements of the Grant (2) ROC Program Board grants shall, within the first 3 to 6 months of operation: (A) use data analysis and community input to 24 assess: the needs and assets of the community and 25 identify the issue or problems to be addressed related 26 to the social determinants of health; the root causes - 58 - LRB101 12329 RLC 60273 b 1 of violence; and outreach, intervention, and support 2 for individuals at highest risk of violence; 3 (B) identify and use models, programs, and 4 interventions that have a basis in evidence or best 5 practice research for addressing needs and supporting 6 assets related to: the social determinants of health; 7 the 8 intervention, and support for individuals at highest 9 risk of violence; root causes of violence; and outreach, 10 (C) develop programming that will reduce the use of 11 the criminal justice system to reduce violence and 12 increase public safety; and 13 (D) develop performance measures that track the 14 outcomes to be achieved. 15 (3) The Restoring Our Communities Program Board and the 16 ROC Area grantees shall, within a period of no more than 2 17 months 18 described in this Section, finalize an agreement on the 19 plan for implementation. Implementation activities shall: 20 from the completion of planning activities (A) have a basis in evidence or best practice 21 research or have evaluations demonstrating the 22 capacity to address: needs and support assets related 23 to the social determinants of health; the root causes 24 of violence; and outreach, intervention, and support 25 for individuals at highest risk of violence; to produce 26 desired outcomes; - 59 1 LRB101 12329 RLC 60273 b (B) collect data from the inception of planning 2 activities 3 collection technical assistance when needed, including 4 cost data and data related to identified meaningful 5 short-term, mid-term, and long-term goals and metrics; 6 7 8 9 10 11 12 through implementation, with data (C) report data to the Restoring Our Communities Program Board bi-annually; and (D) set aside a percentage of the total grant for core program capacity to support effective implementation to include: (i) Dedicated staff at the community level to administer and coordinate the Program. 13 (ii) Data collection technology and staff to 14 facilitate feedback between the State and local 15 stakeholders. 16 (iii) Monitoring and evaluation. 17 (iv) Engagement in training and technical 18 assistance with other ROC Area grantees from the 19 State and other sources, including peer learning 20 and cross training from other ROC programs. 21 Section 10-50. Employment; employer liability. 22 (a) Nothing in this Act shall prohibit an employer from 23 adopting reasonable employment policies concerning smoking, 24 consumption, storage or 25 provided that the policy is applied in a nondiscriminatory use of cannabis in the workplace - 60 1 LRB101 12329 RLC 60273 b manner. 2 (b) Nothing in this Act shall require an employer to permit 3 an employee to be under the influence of or use cannabis in the 4 employer's workplace or while performing the employee's job 5 duties. 6 (c) Nothing in this Act shall limit an employer from 7 disciplining an employee or terminating employment of an 8 employee for violating an employer's employment policies or 9 workplace drug policy. 10 (d) An employer may consider an employee to be impaired by 11 cannabis if the employer has a good faith belief that an 12 employee was under the influence of cannabis and the employee 13 manifests specific, articulable symptoms while working that 14 decrease or lessen the employee's performance of the duties or 15 tasks of the employee's job position, including symptoms of the 16 employee's speech, physical dexterity, agility, coordination, 17 demeanor, irrational or unusual behavior, or negligence or 18 carelessness in operating equipment or machinery; disregard 19 for the safety of the employee or others, or involvement in an 20 accident 21 property, disruption of a production or manufacturing process, 22 or carelessness that results in any injury to the employee or 23 others. If an employer elects to discipline an employee on the 24 basis that the employee is impaired by cannabis, the employer 25 must afford the employee a reasonable opportunity to contest 26 the basis of the determination. that results in serious damage to equipment or - 61 1 2 LRB101 12329 RLC 60273 b (e) Nothing in this Act shall be construed to create or imply a cause of action for any person against an employer for: 3 (1) actions, including, but not limited to, discipline 4 or termination of employment, based on the employer's good 5 faith belief that an employee used or possessed cannabis in 6 the 7 employee's 8 employment policies; employer's job workplace duties in or while violation of performing the the employer's 9 (2) actions, including discipline or termination of 10 employment, based on the employer's good faith belief that 11 an employee was impaired as a result of the use of cannabis 12 on 13 employee's 14 workplace drug policy; or the employer's job workplace duties in or while violation of performing the the employer's 15 (3) injury, loss, or liability to a third party if the 16 employer neither knew nor had reason to know that the 17 employee was impaired. 18 (f) Nothing in this Act shall be construed to enhance or 19 diminish protections afforded by any other law, including, but 20 not limited to, the Compassionate Use of Medical Cannabis Pilot 21 Program Act or the Opioid Alternative Pilot Program. 22 (g) Nothing in this Act shall be construed to interfere 23 with any federal, State, or local restrictions on employment 24 including but not limited to the United States Department of 25 Transportation 26 employer's ability to comply with federal or State law or cause regulation 49 CFR 40.151(e) or impact an - 62 1 2 LRB101 12329 RLC 60273 b it to lose a federal or State contract or funding. (h) As used in this Section, "workplace" means the 3 employer's premises, including any building, real property, 4 and parking area under the control of the employer or area used 5 by an employee while in performance of the employee's job 6 duties, 7 Workplace may be further defined by the employer's written 8 employment policy. and vehicles, whether leased, rented, or 9 ARTICLE 15. 10 LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS owned. 11 Section 15-5. Authority. 12 (a) It is the duty of the Department of Financial and 13 Professional Regulation to administer and enforce the 14 provisions of this Act relating to the licensure and oversight 15 of dispensing organizations and dispensing organization agents 16 unless otherwise provided in this Act. 17 (b) No person shall operate a dispensing organization for 18 the purpose of serving purchasers of cannabis or cannabis 19 products without a license issued under this Article by the 20 Department of Financial and Professional Regulation. No person 21 shall be an officer, director, manager, or employee of a 22 dispensing 23 dispensing 24 Financial and Professional Regulation. organization organization without agent having card by been the issued a Department of - 63 - LRB101 12329 RLC 60273 b 1 (c) Subject to the provisions of this Act, the Department 2 of Financial and Professional Regulation may exercise the 3 following powers and duties: 4 5 (1) Prescribe forms to be issued for the administration and enforcement of this Article. 6 (2) Examine, inspect, and investigate the premises, 7 operations, 8 applicants and licensees. 9 and records of dispensing organization (3) Conduct investigations of possible violations of 10 this 11 dispensing organization agents. 12 Act pertaining to dispensing organizations and (4) Conduct hearings on proceeding to refuse to issue 13 or 14 probation, reprimand, or otherwise discipline a license 15 under this Article or take other nondisciplinary action. 16 renew licenses or to revoke, suspend, place on (5) Adopt rules required for the administration of this 17 Article. 18 Section 15-10. Medical cannabis dispensing organization 19 exemption. This Article does not apply to medical cannabis 20 dispensing organizations registered under the Compassionate 21 Use of Medical Cannabis Pilot Program Act, except for those 22 issued 23 Licenses under this Article. 24 Early Section Approval 15-15. Adult Early Use Approval Dispensing Adult Use Organization Dispensing - 64 1 LRB101 12329 RLC 60273 b Organization License. 2 (a) Any medical cannabis dispensing organization holding a 3 valid licenses and registered under the Compassionate Use of 4 Medical Cannabis Pilot Program Act on the effective date of 5 this Act may, within 60 days of the effective date of this Act, 6 apply 7 Regulation 8 Organization 9 cannabis dispensing location in operation on the effective date 10 to the Department for an of Early License to Financial Approval serve and Adult Use purchasers at Professional Dispensing any medical of this Act, pursuant to this Section. 11 (b) A medical cannabis dispensing organization seeking 12 issuance of an Early Approval Adult Use Dispensing Organization 13 License to serve purchasers at any medical cannabis dispensing 14 location in operation as of the effective date of this Act 15 shall submit an application on forms provided by the Department 16 of Financial and Professional Regulation. The application must 17 be submitted by the same person or entity that holds the 18 medical 19 include the following: 20 21 22 23 cannabis dispensing organization registration and (1) Payment of a nonrefundable fee of $30,000 to be deposited in the Cannabis Regulation Fund; (2) Proof of registration as a medical cannabis dispensing organization that is in good standing; 24 (3) Certification that the applicant will comply with 25 the requirements contained in the Compassionate Use of 26 Medical Cannabis Pilot Program Act except as provided in - 65 1 LRB101 12329 RLC 60273 b this Act; 2 (4) The legal name of the dispensing organization; 3 (5) 4 The physical address of the dispensing organization; 5 (6) The name, address, social security number, and date 6 of birth of each principal officer and board member of the 7 dispensing organization, each of whom must be at least 21 8 years of age; 9 (7) A nonrefundable Cannabis Business Development Fee 10 equal to 3% of the dispensing organization's total sales 11 between July 1, 2018 to July 1, 2019 or $100,000, whichever 12 is 13 Development Fund; and 14 15 less, to be deposited in the Cannabis Business (8) Identification of one of the following Social Equity Inclusion Plans to be completed by March 31, 2021: 16 (A) Make a contribution of 3% of total sales from 17 June 1, 2018, to June 1, 2019, or $100,000, whichever 18 is less, to the Cannabis Business Development Fund. 19 This is in addition to the fee required by item (7) of 20 subsection (b) of this Section; 21 (B) Make a grant of 3% of total sales from June 1, 22 2018, to June 1, 2019, or $100,000, whichever is less, 23 to a cannabis industry training or education program at 24 an Illinois community college as defined in the Public 25 Community College Act; 26 (C) Make a donation of $100,000 or more to a - 66 - LRB101 12329 RLC 60273 b 1 program that provides job training services to persons 2 recently 3 Disproportionately Impacted Area; or 4 incarcerated or that operate in a (D) Participate as a host in a cannabis business 5 incubator program 6 Commerce and Economic Development, and in which an 7 Early 8 License holder agrees to provide a loan of at least 9 $100,000 and mentorship to incubate a licensee that 10 qualifies as a Social Equity Applicant for at least a 11 year. 12 providing direct 13 necessary to 14 activity similar to that of the host licensee. The 15 Early 16 License holder or the same entity holding any other 17 licenses issued pursuant to this Act shall not take an 18 ownership stake of greater than 10% in any business 19 receiving 20 subsection. If an Early Approval Adult Use Dispensing 21 Organization License holder fails to find a business to 22 incubate to comply with this subsection before its 23 Early 24 License expires, it may opt to meet the requirement of 25 this subsection by completing another item from this 26 subsection. Approval As used approved Adult in this Adult incubation Approval Adult in the services Use "incubate" cannabis Dispensing to means training industry Organization comply Dispensing of Organization assistance and licensed Use Department Dispensing Section, financial engage Approval Use by with this Organization - 67 - LRB101 12329 RLC 60273 b 1 (c) The license fee required by paragraph (1) of subsection 2 (b) of this Section shall be in addition to any license fee 3 required for the renewal of a registered medical cannabis 4 dispensing organization license. 5 (d) Applicants must submit all required information, 6 including the requirements in subsection (b) of this Section to 7 the 8 Failure by an applicant to submit all required information may 9 result in the application being disqualified. 10 Department (e) If of the Financial Department and of Professional Financial and Regulation. Professional 11 Regulation receives an application that fails to provide the 12 required elements contained in subsection (b), the Department 13 shall issue a deficiency notice to the applicant. The applicant 14 shall have 10 calendar days from the date of the deficiency 15 notice to submit complete information. Applications that are 16 still 17 disqualified. 18 incomplete (f) If an after this applicant opportunity meets all the to cure may be requirements of 19 subsection (b) of this Section, the Department of Financial and 20 Professional Regulation shall issue the Early Approval Adult 21 Use Dispensing Organization License within 14 days of receiving 22 the application unless: 23 (1) The licensee; a principal officer, board member, or 24 person having a financial or voting interest of 5% or 25 greater in the licensee; or an agent is delinquent in 26 filing any required tax returns or paying any amounts owed - 68 1 LRB101 12329 RLC 60273 b to the State of Illinois; 2 (2) The Secretary of Financial and Professional 3 Regulation determines there is reason, based on documented 4 compliance violations, the licensee is not entitled to an 5 Early Approval Adult Use Dispensing Organization License; 6 or 7 (3) Any principal officer fails to register and remain 8 in compliance with this Act or the Compassionate Use of 9 Medical Cannabis Pilot Program Act. 10 (g) A registered medical cannabis dispensing organization 11 that obtains an Early 12 Organization 13 seeds, cannabis-infused products, paraphernalia, and related 14 items to purchasers under the rules of this Act no sooner than 15 January 1, 2020. License may Approval begin Adult selling Use Dispensing cannabis, cannabis 16 (h) A dispensing organization holding a medical cannabis 17 dispensing organization license issued under the Compassionate 18 Use of Medical Cannabis Pilot Program Act must maintain an 19 adequate supply of cannabis and cannabis-infused products for 20 purchase 21 purposes of this subsection, adequate supply means a monthly 22 inventory level that is comparable in type and quantity to 23 those 24 caregivers on an average monthly basis for the 6 months before 25 the effective date of this Act. 26 by medical qualifying cannabis patients products and caregivers. provided to For patients the and (i) If there is a shortage of cannabis or cannabis-infused - 69 - LRB101 12329 RLC 60273 b 1 products, a dispensing organization holding both a dispensing 2 organization license under the Compassionate Use of Medical 3 Cannabis Pilot 4 serving 5 purchasers. Program Act qualifying and patients and this Act shall prioritize caregivers before serving 6 (j) Notwithstanding any law or rule to the contrary, a 7 person that holds a medical cannabis dispensing organization 8 license issued under the Compassionate Use of Medical Cannabis 9 Pilot Program Act and an Early Approval Adult Use Dispensing 10 Organization License may permit purchasers into a 11 access area as that term is defined in administrative rules 12 made under the authority in the Compassionate Use of Medical 13 Cannabis Pilot Program Act. 14 limited (k) An Early Approval Adult Use Dispensing Organization 15 License is valid until March that obtains an 16 organization 17 Dispensing 18 electronic notice 90 days before the expiration of the license 19 that the license will expire, and inform the license holder 20 that it may apply for an Adult Use Dispensing Organization 21 License. 22 Regulation shall grant an Adult Use Dispensing Organization 23 License within 45 days of an application being deemed complete 24 if: Organization The Early License Department of 31, shall 2021. A dispensing Approval Adult Use receive written or Financial and Professional 25 (1) the dispensing organization submits an application 26 and the required nonrefundable renewal fee of $30,000, to - 70 1 LRB101 12329 RLC 60273 b be deposited in the Cannabis Regulation Fund; and 2 (2) the Department of Financial and Professional 3 Regulation has not suspended or revoked the Early Approval 4 Adult Use Dispensing Organization License or a medical 5 cannabis 6 premises the for violating this Act or rules adopted under 7 this Act or the Compassionate Use of Medical Cannabis Pilot 8 Program Act or rules adopted under that Act. 9 (l) The Early Approval Adult Use Dispensing Organization 10 License renewed pursuant to subsection (p) of this Section 11 shall expire March 31, 2022. The Early Approval Adult Use 12 Dispensing 13 electronic notice 90 days before the expiration of the license 14 that the license will expire, and inform the license holder 15 that it may apply for an Adult Use Dispensing Organization 16 License. 17 Regulation shall grant an Adult Use Dispensing Organization 18 License within 45 days of an application being deemed complete 19 if: 20 21 22 dispensing Organization The (1) organization Licensee Department the of dispensing license shall on receive Financial and the same written or Professional organization submits a nonrefundable registration fee of $60,000; and (2) the Department of Financial and Professional 23 Regulation has not suspended or revoked the Early Approval 24 Adult Use Dispensing Organization License or a medical 25 cannabis 26 premises the for violating this Act or rules adopted under dispensing organization license on the same - 71 - LRB101 12329 RLC 60273 b 1 this Act or the Compassionate Use of Medical Cannabis Pilot 2 Program Act or rules adopted under that Act. 3 (m) If a dispensary fails to submit an application for an 4 Adult Use Dispensing 5 expiration 6 Organization License, the dispensing organization shall cease 7 serving purchasers operations until it receives an Adult Use 8 Dispensing Organization License. of the Organization Early Approval License Adult Use before the Dispensing 9 (n) A dispensing organization agent who holds a valid 10 dispensing organization agent identification card issued under 11 the Compassionate Use of Medical Cannabis Pilot Program Act and 12 is an officer, director, manager, or employee of the dispensing 13 organization licensed under this Section may engage in all 14 activities authorized by this Article to be performed by a 15 dispensing organization agent. 16 (o) All fees collected pursuant to this Section shall be 17 deposited into the Cannabis Regulation Fund, unless otherwise 18 specified. 19 20 Section 15-20. Early Approval Adult Use Dispensing Organization License; secondary site. 21 (a) Any medical cannabis dispensing organization holding a 22 valid licenses and registered under the Compassionate Use of 23 Medical Cannabis Pilot Program Act on the effective date of 24 this Act may, within 60 days of the effective date of this Act, 25 apply to the Department of Financial and Professional - 72 for an Early LRB101 12329 RLC 60273 b 1 Regulation Approval Adult Use Dispensing 2 Organization License to operate a dispensing organization to 3 serve purchasers at a secondary site not within 1,500 feet of 4 another medical cannabis dispensing organization or adult use 5 dispensing organization and within any BLS Region that shares 6 territory with the dispensing organization district to which 7 the medical cannabis dispensing organization is assigned under 8 the administrative rules for dispensing organizations under 9 the Compassionate Use of Medical Cannabis Pilot Program Act. 10 (b) A medical cannabis dispensing organization seeking 11 issuance of an Early Approval Adult Use Dispensing Organization 12 License to serve purchasers at a secondary site as proscribed 13 in subsection (a) of this Section shall submit an application 14 on 15 Professional 16 following qualifications: 17 18 19 20 21 forms provided by the Regulation. The Department of application Financial must meet and the (1) include a payment of a nonrefundable permit fee of $30,000; (2) proof of registration as a medical cannabis dispensing organization that is in good standing; (3) submission of the application by the same person or 22 entity that holds the 23 organization registration; medical cannabis dispensing 24 (4) certification that the applicant will comply with 25 the requirements contained in the Compassionate Use of 26 Pilot Program Act except as provided in this Act; - 73 1 2 3 LRB101 12329 RLC 60273 b (5) include the legal name of the medical cannabis dispensing organization; (6) include the physical address of the medical 4 cannabis dispensing organization and the proposed physical 5 address of the secondary site; 6 (7) a copy of the current local zoning ordinance 7 Sections relevant to dispensary operations. Documentation 8 of the approval, the conditional approval or the status of 9 a request for zoning approval from the local zoning office 10 that the proposed dispensary location is in compliance with 11 the local zoning rules; 12 (8) a plot plan of the dispensary drawn to scale. The 13 applicant 14 building exterior and interior layout; 15 (9) a shall submit statement general that the specifications dispensing of the organization 16 agrees to respond to the Division's supplemental requests 17 for information; 18 19 (10) for the building or land to be used as the proposed dispensary: 20 (A) if the property is not owned by the applicant, 21 a 22 landlord, 23 applicant may operate a dispensary on the premises; or 24 written statement if any, from the certifying property owner and consent that the (B) if the property is owned by the applicant, 25 confirmation of ownership; 26 (11) a copy of the proposed operating bylaws; - 74 - LRB101 12329 RLC 60273 b 1 (12) a copy of the proposed business plan that complies 2 with the requirements in this Act, including, at a minimum, 3 the following: 4 (A) a description of services to be offered; and 5 (B) a description of the process of dispensing 6 cannabis; 7 (13) a copy of the proposed security plan that complies 8 9 with the requirements in this Article, including: (A) a description of the delivery process by which 10 cannabis will be received 11 organization, 12 protocols that will be used to avoid diversion, theft 13 or loss at the dispensary acceptance point; and including 16 premises, agents, patients and currency, and prevent 17 the diversion, theft or loss of cannabis; and the process to the that and implemented monitor controls manifests 15 to or of transporting (B) (C) process receipt a 14 18 the from dispensary, ensure that will be secure the access to the 19 restricted access areas is restricted to, registered 20 agents, 21 organization 22 security personnel; 23 (14) a proposed inventory control plan that complies 24 service agents, professionals, Department transporting inspectors, and with this Section; 25 (15) the name, address, social security number, and 26 date of birth of each principal officer and board member of - 75 - LRB101 12329 RLC 60273 b 1 the dispensing organization; each of those individuals 2 shall be at least 21 years of age; 3 (16) a nonrefundable Cannabis Business Development Fee 4 equal 5 Business Development Fund; and 6 to $200,000, to be deposited into the Cannabis (17) commit to completing one of the following Social 7 Equity Inclusion Plans in subsection (c). 8 (c) To receive an Early Approval Adult Use Dispensing 9 Organization License, a dispensing organization shall (among 10 other things) indicate the Social Equity Inclusion Plan that 11 the applicant plans to achieve before the expiration of the 12 Early Approval Adult Use Dispensing Organization License from 13 the list below: 14 (1) make a contribution of 3% of total sales from June 15 1, 2018, to June 1, 2019, or $100,000, whichever is less, 16 to the Cannabis Business Development Fund. This is in 17 addition 18 subsection (b) of this Section; to the fee required by paragraph (16) of 19 (2) make a grant of 3% of total sales from June 1, 20 2018, to June 1, 2019, or $100,000, whichever is less, to a 21 cannabis industry training or education program at an 22 Illinois 23 Community College Act; community college as defined in the Public 24 (3) make a donation of $100,000 or more to a program 25 that provides job training services to persons recently 26 incarcerated or that operate in a Disproportionately - 76 1 LRB101 12329 RLC 60273 b Impacted Area; or 2 (4) participate as a host in a cannabis business 3 incubator program approved by the Department of Commerce 4 and Economic Development, and in which an Early Approval 5 Adult Use Dispensing Organization License holder agrees to 6 provide a loan of at least $100,000 and mentorship to 7 incubate a licensee that qualifies as a Social Equity 8 Applicant for at least a year. In this paragraph (4), 9 "incubate" means providing direct financial assistance and 10 training necessary to engage in licensed cannabis industry 11 activity similar to that of the host licensee. The Early 12 Approval Adult Use Dispensing Organization License holder 13 or the same entity holding any other licenses issued under 14 this Act shall not take an ownership stake of greater than 15 10% in any business receiving incubation services to comply 16 with 17 Dispensing Organization License holder fails to find a 18 business to incubate to comply with this subsection before 19 its 20 License expires, it may opt to meet the requirement of this 21 subsection by completing another item from this subsection 22 before the expiration of its Early Approval Adult Use 23 Dispensing Organization License to avoid a penalty. 24 (d) An Early Approval Adult Use Dispensing Organization 25 License is valid until March 1, 2021. A dispensing organization 26 that this Early obtains subsection. If Approval an Early Adult an Early Use Approval Approval Adult Dispensing Adult Use Use Organization Dispensing - 77 License 1 Organization 2 notice 90 days before the expiration of the license that the 3 license will expire, and inform the license holder that it may 4 apply for an Adult Use Dispensing Organization License. The 5 Department 6 grant an Adult Use Dispensing Organization License within 45 7 days of submission of an application if: of shall LRB101 12329 RLC 60273 b Financial receive and written Professional or electronic Regulation shall 8 (1) the dispensing organization submits an application 9 and the required nonrefundable fee of $30,000 for an Adult 10 Use Dispensing Organization License; 11 (2) the Department of Financial and Professional 12 Regulation has not suspended the license of the dispensing 13 organization 14 violating this Act or rules adopted under this Act; and or suspended or revoked the license for 15 (3) the dispensing organization has completed a Social 16 Equity Inclusion Plan as required by paragraph (17) of 17 subsection (b) of this Section. 18 (e) The license fee required by paragraph (1) of subsection 19 (b) of this Section is in addition to any license fee required 20 for the renewal of a registered medical cannabis dispensing 21 organization license. 22 (f) Applicants must submit all required information, 23 including the requirements in subsection (b) of this Section to 24 the 25 Failure by an applicant to submit all required information may 26 result in the application being disqualified. Department of Financial and Professional Regulation. - 78 1 (g) If the Department of LRB101 12329 RLC 60273 b Financial and Professional 2 Regulation receives an application that fails to provide the 3 required elements contained in subsection (b), the Department 4 shall issue a deficiency notice to the applicant. The applicant 5 shall have 10 calendar days from the date of the deficiency 6 notice to submit complete information. Applications that are 7 still 8 disqualified. 9 incomplete after this opportunity to cure may be (h) Once all required information and documents have been 10 submitted, the Division will 11 Division may request revisions and retains final approval over 12 dispensary features. Once the application is complete and meets 13 the Department's approval, the Department shall conditionally 14 approve the 15 build-out and Department inspection. license. Final review the approval is application. contingent on The the 16 (i) Upon completion of the dispensary, the dispensing 17 organization shall request an inspection. The Department will 18 inspect 19 application, the Act and this Article. 20 21 22 the dispensary to confirm compliance with the (j) A license shall be issued only after the completion of a successful inspection. (k) If an Department of inspection under Financial and this 23 Section, 24 Regulation shall issue the Early Approval Adult Use Dispensing 25 Organization License within one business day unless: 26 the applicant passes the Professional (1) The licensee; principal officer, board member, or - 79 - LRB101 12329 RLC 60273 b 1 person having a financial or voting interest of 5% or 2 greater in the licensee; or agent is delinquent in filing 3 any required tax returns or paying any amounts owed to the 4 State of Illinois; or 5 (2) The Secretary of Financial and Professional 6 Regulation determines there is reason, based on documented 7 compliance violations, the licensee is not entitled to an 8 Early Approval Adult Use Dispensing Organization License 9 at its secondary site. 10 (l) Once the Department has issued a registration, the 11 dispensary organization shall notify the Department of the 12 proposed opening date. 13 (m) A registered medical cannabis dispensing organization 14 that obtains an Early 15 Organization 16 seeds, cannabis-infused products, paraphernalia, and related 17 items to purchasers under the rules of this Act no sooner than 18 January 1, 2020. License may Approval begin Adult selling Use Dispensing cannabis, cannabis 19 (n) A dispensing organization holding a medical cannabis 20 dispensing organization license issued under the Compassionate 21 Use of Medical Cannabis Pilot Program Act must maintain an 22 adequate supply of cannabis and cannabis-infused products for 23 purchase 24 purposes of this subsection, adequate supply means a monthly 25 inventory level that is comparable in type and quantity to 26 those by medical qualifying cannabis patients products and caregivers. provided to For patients the and - 80 - LRB101 12329 RLC 60273 b 1 caregivers on an average monthly basis for the 6 months before 2 the effective date of this Act. 3 (o) If there is a shortage of cannabis or cannabis-infused 4 products, a dispensing organization holding both a dispensing 5 organization license under the Compassionate Use of Medical 6 Cannabis Pilot 7 serving 8 purchasers. Program Act qualifying and patients and this Act shall prioritize caregivers before serving 9 (p) An Early Approval Adult Use Dispensing Organization 10 License at a secondary site is valid until March 31, 2021. A 11 dispensing organization that obtains an Early Approval Adult 12 Use Dispensing Organization License shall receive written or 13 electronic notice 90 days before the expiration of the license 14 that the license will expire, and inform the license holder 15 that it may apply for an Adult Use Dispensing Organization 16 License. 17 Regulation shall grant an Adult Use Dispensing Organization 18 License within 45 days of submission of an application being 19 deemed complete if: The Department of Financial and Professional 20 (1) the dispensing organization submits an application 21 and the required nonrefundable renewal fee of $30,000, to 22 be deposited into the Cannabis Regulation Fund; and 23 (2) the Department of Financial and Professional 24 Regulation has not suspended or revoked the Early Approval 25 Adult Use Dispensing Organization License or a medical 26 cannabis dispensing organization license on the same - 81 - LRB101 12329 RLC 60273 b 1 premises for violating this Act or rules adopted under this 2 Act or the Compassionate Use of Medical Cannabis Pilot 3 Program Act or rules adopted under that Act. 4 (q) The Early Approval Adult Use Dispensing Organization 5 License renewed pursuant to subsection (k) of this Section 6 shall expire March 31, 2022. The Early Approval Adult Use 7 Dispensing 8 electronic notice 90 days before the expiration of the license 9 that the license will expire, and inform the license holder 10 that it may apply for an Adult Use Dispensing Organization 11 License. 12 Regulation shall grant an Adult Use Dispensing Organization 13 License within 45 days of an application being deemed complete 14 if: 15 16 Organization The Licensee Department (1) the of dispensing shall receive Financial and written or Professional organization submits a nonrefundable registration fee of $60,000; and 17 (2) the Department of Financial and Professional 18 Regulation has not suspended or revoked the Early Approval 19 Adult Use Dispensing Organization License or a medical 20 cannabis 21 premises the for violating this Act or rules adopted under 22 this Act or the Compassionate Use of Medical Cannabis Pilot 23 Program Act or rules adopted under that Act. 24 (r) If a dispensary fails to submit an application for an 25 Adult Use 26 expiration dispensing Dispensing of the organization Organization Early Approval license on License Adult Use the before same the Dispensing - 82 - LRB101 12329 RLC 60273 b 1 Organization License, the dispensing organization shall cease 2 serving purchasers operations until it receives an Adult Use 3 Dispensing Organization License. 4 (s) A dispensing organization agent who holds a valid 5 dispensing organization agent identification card issued under 6 the Compassionate Use of Medical Cannabis Pilot Program Act and 7 is an officer, director, manager, or employee of the dispensing 8 organization licensed under this Section may engage in all 9 activities authorized by this Article to be performed by a 10 11 dispensing organization agent. (t) If the Department of Financial and Professional 12 Regulation suspends or revokes the Early Approval Adult Use 13 Dispensing Organization License of a dispensing organization 14 under 15 organization license issued under the Compassionate Use of 16 Medical 17 suspend or revoke the medical cannabis dispensing organization 18 license 19 Dispensing Organization License. Act that Cannabis also holds Pilot concurrently a Program with the medical Act, Early cannabis the dispensing Department Approval Adult shall Use 20 (u) All fees or fines collected from an Early Approval 21 Adult Use Dispensary Organization License holder as a result of 22 a disciplinary action in the enforcement of this Act shall be 23 deposited into the Cannabis Regulation Fund and be appropriated 24 to the Department of Financial and Professional Regulation for 25 the ordinary and contingent expenses of the Department in the 26 administration and enforcement of this Section. - 83 - 1 2 Section 15-25. Awarding LRB101 12329 RLC 60273 b of Conditional Adult Dispensing Organization Licenses. 3 (a) 4 Regulation 5 Dispensing Organization Licenses before May 1, 2020. 6 Use (b) The Department shall The issue of up Department Financial to of 75 and Professional Conditional Financial and Adult Use Professional 7 Regulation shall make the application for a Conditional Adult 8 Use Dispensing Organization License available no later than 9 October 1, 2019 and shall receive them back no later than 10 11 January 1, 2020. (c) To ensure the geographic dispersion of Conditional 12 Adult Use Dispensing Organization License 13 following number of licenses shall be awarded in each BLS 14 Region as determined by each region's percentage of the State's 15 population: 16 (1) Bloomington: 1 17 (2) Cape Girardeau: 1 18 (3) Carbondale-Marion: 1 19 (4) Champaign-Urbana: 1 20 (5) Chicago-Naperville-Elgin: 47 21 (6) Danville: 1 22 (7) Davenport-Moline-Rock Island: 1 23 (8) Decatur: 1 24 (9) Kankakee: 1 25 (10) Peoria: 3 holders, the - 84 - LRB101 12329 RLC 60273 b 1 (11) Rockford: 2 2 (12) St. Louis: 4 3 (13) Springfield: 1 4 (14) Northwest Illinois nonmetropolitan: 3 5 (15) West Central Illinois nonmetropolitan: 3 6 (16) East Central Illinois nonmetropolitan: 2 7 (17) South Illinois nonmetropolitan: 2 8 9 (d) An applicant seeking issuance of a Conditional Adult Use Dispensing Organization License shall submit an 10 application on forms provided by the Department of Financial 11 and 12 following requirements: 13 Professional Regulation. (1) Payment of a 14 $5,000 15 applying, 16 Regulation Fund; 17 18 19 20 21 for each which license shall must meet the which deposited the into applicant the is Cannabis (2) Certification that the applicant will comply with the requirements contained in this Act; (3) The legal name of the proposed dispensing organization; (4) A statement to respond that 23 requests for information; 26 for be agrees 25 applicant nonrefundable application fee of 22 24 An (5) From each to the the dispensing organization Department's supplemental principal officer, a statement indicating whether that person: (A) has previously held or currently holds an - 85 1 ownership interest in 2 establishment in Illinois; or LRB101 12329 RLC 60273 b a cannabis business 3 (B) has held an ownership interest in a dispensing 4 organization or its equivalent in another state or 5 territory of the United States that had the dispensary 6 registration or license suspended, revoked, placed on 7 probationary 8 disciplinary action; 9 (6) Disclosure of whether any principal officer has 10 ever filed for bankruptcy or defaulted on alimony or child 11 support obligation; status, or subjected to other 12 (7) A resume for each principal officer, including 13 whether that person has an academic degree, certification, 14 or relevant experience with a cannabis business or in a 15 related industry; 16 17 (8) A description of the training and education that will be provided to dispensary agents; 18 (9) A copy of the proposed operating bylaws; 19 (10) A copy of the proposed business plan that complies 20 with the requirements in this Act, including, at a minimum, 21 the following: 22 (A) A description of services to be offered; and 23 (B) A description of the process of dispensing 24 cannabis; 25 (11) A copy of the proposed security plan that complies 26 with the requirements in this Article, including: - 86 1 (A) 2 implemented 3 premises, agents, patients, and currency, and prevent 4 the diversion, theft. or loss of cannabis; and 5 (B) The process LRB101 12329 RLC 60273 b to The or monitor controls the process to that dispensary, ensure that will be secure the access to the 6 restricted access areas is restricted to, registered 7 agents, 8 organization 9 security personnel; 10 11 service agents, professionals, Department transporting inspectors, and (12) A proposed inventory control plan that complies with this Section; 12 (13) A proposed floor plan, square footage estimate, 13 and a description of proposed security devices, including 14 without 15 video storage capabilities, and alarm service providers; limitation cameras, motion detectors, servers, 16 (14) The name, address, social security number, and 17 date of birth of each principal officer and board member of 18 the dispensing organization; each of those individuals 19 shall be at least 21 years of age; 20 21 (15) Evidence of the applicant's status as a Social Equity Applicant, if applicable; 22 (16) The address, telephone number and e-mail address 23 of the applicant's principal place of business, 24 applicable. A post office box is not permitted; if 25 (17) Information, in writing, regarding any instances 26 in which a business or not-for-profit that any of the - 87 - LRB101 12329 RLC 60273 b 1 prospective board members managed or served on the board 2 was convicted, fined, or censured for any offense, or had a 3 registration suspended or revoked in any administrative or 4 judicial proceeding; 5 (18) A plan for community engagement; 6 (19) Procedures to ensure accurate recordkeeping and 7 security measures that are in accordance with this Article 8 and Department of Financial and Professional Regulation 9 rules; 10 11 (20) The estimated volume of cannabis it plans to store at the dispensary; 12 (21) A description of the features that will provide 13 accessibility to consumers as required by the Americans 14 with Disabilities Act; 15 16 (22) A detailed description of air treatment systems that will be installed to reduce odors; 17 (23) A reasonable assurance that the issuance of a 18 license will not have a detrimental impact on the community 19 in which the applicant wishes to locate; 20 21 (24) A proposed financial plan that demonstrates how the applicant: 22 (A) has access to $100,000 in liquid assets; 23 (B) has a loan, line of credit, or other form of 24 financing in an amount of $100,000 or greater that is 25 guaranteed or that is guaranteed contingent upon the 26 award of the license for which the application is being - 88 1 LRB101 12329 RLC 60273 b submitted; or 2 (C) if the applicant qualifies as a Social Equity 3 Applicant, has applied to the Department of Commerce 4 and Economic Opportunity for a loan or grant issued 5 from the Cannabis Business Development Fund; 6 (25) The dated signature of each principal officer; 7 (26) A description of the enclosed, locked facility 8 where 9 organization; 10 cannabis (27) will Signed be stored statements by from the each dispensing dispensing 11 organization agent stating that he or she will not divert 12 cannabis; 13 14 (28) How many licenses it is applying for in each BLS Region; 15 (29) A diversity plan which includes a narrative that 16 establishes a goal of diversity in ownership, management, 17 employment, 18 participants 19 opportunity; and 20 (30) and contracting and Other groups to are information ensure afforded deemed that diverse equality necessary by of the 21 Illinois Cannabis Regulation Oversight Officer to conduct 22 the 23 subsection (e) of Section 5-45. 24 (e) An applicant who receives a Conditional Adult Use 25 Dispensing Organization License under this Section has 180 days 26 from the date of award to identify a physical location for the disparity and availability study referenced in - 89 - LRB101 12329 RLC 60273 b 1 dispensing organization retail storefront. Before receiving an 2 authorization to build out the dispensing organization from the 3 Department of Financial and 4 Department of Financial and 5 inspect the physical space selected by a conditional licensee. 6 The Department of Financial and Professional Regulation shall 7 verify the site is suitable for public access, the layout 8 promotes the safe dispensing of cannabis, the location is 9 sufficient in size, power Professional Professional allocation, Regulation, Regulation lighting, the shall parking, 10 handicapped accessible parking spaces, accessible entry and 11 exits as required by the Americans with Disabilities Act, 12 product handling, and storage. The applicant shall also provide 13 a statement of reasonable assurance that the issuance of a 14 license will not have a detrimental impact on the community. 15 The applicant shall also provide evidence the location is not 16 within 1,500 feet of an existing dispensing organization. If an 17 applicant is unable to find a suitable physical address in the 18 opinion 19 Regulation within 180 days of the issuance of the Conditional 20 Adult Use Dispensing Organization License, the Department of 21 Financial and Professional Regulation may extend the period for 22 finding a 23 conditional 24 demonstrate concrete attempts to 25 hardship. If the Department of Financial and Professional 26 Regulation denies the extension or the conditional dispensing of the Department of Financial physical address another 180 dispensing organization and days license secure a Professional provided the holder can location and a - 90 - LRB101 12329 RLC 60273 b 1 organization license holder is unable to find a location or 2 become 3 conditional 4 Professional Regulation shall rescind the conditional license 5 and award it to the next highest scoring applicant in the BLS 6 Region 7 applicant receiving the license: (i) confirms a continued 8 interest in operating a dispensing organizations; (ii) can 9 provide evidence that the applicant continues to meet the 10 financial requirements provided in subsection (c) of this 11 Section; and (iii) has not otherwise become ineligible to be 12 awarded a dispensing organization license. If the new awardee 13 is 14 Organization 15 Professional Regulation shall award the Conditional Adult Use 16 Dispensing Organization License to the next highest scoring 17 applicant in the same manner. The new awardee shall be subject 18 to the same required deadlines as provided in this subsection. operational for within license, which unable to 360 the the Department license accept the License, days was of being of awarded Financial assigned, provided Conditional Adult Use the Department of a and the Dispensing Financial and 19 (f) A dispensing organization that is awarded a Conditional 20 Adult Use Dispensing Organization License pursuant to the 21 criteria in Section 15-30 shall not purchase, possess, sell, or 22 dispense 23 person 24 License Issued by the Department of Financial and Professional 25 Regulation. 26 Regulation shall not issue an Adult Use Dispensing Organization cannabis has or received The cannabis-infused an Adult Department of Use products Dispensing Financial and until the Organization Professional - 91 1 LRB101 12329 RLC 60273 b License until: 2 (1) the Department of Financial and Professional 3 Regulation has inspected the dispensary site and proposed 4 operations and verified that they are in compliance with 5 this Act and local zoning laws; and 6 (2) the Conditional Adult Use Dispensing Organization 7 License holder has paid a registration fee of $60,000, or a 8 pro-rated amount accounting for the difference of time 9 between when the Adult Use Dispensing Organization License 10 is issued and March 31 of the next even-numbered year. 11 (g) The Department of Financial and Professional 12 Regulation shall conduct a background check of the prospective 13 organization agents in order to carry out this Article. The 14 Department of State Police shall charge the applicant a fee for 15 conducting the criminal history record check, which shall be 16 deposited into the State Police Services Fund and shall not 17 exceed 18 applying as a dispensing organization agent shall submit a full 19 set of fingerprints to the Department of State Police for the 20 purpose of obtaining a State and federal criminal records 21 check. 22 fingerprint records now and hereafter, to the extent allowed by 23 law, filed in the Department of State Police and Federal Bureau 24 of 25 Department of State Police shall furnish, following positive 26 identification, all Illinois conviction information to the the actual These cost of fingerprints Identification criminal the shall record be history check. checked records Each person against databases. the The - 92 1 Department of Financial and Professional Regulation. 2 3 LRB101 12329 RLC 60273 b Section 15-30. Selection criteria for conditional licenses awarded under Section 15-25. 4 (a) Applicants must submit all required information, 5 including that required in Section 15-25 to the Department of 6 Financial and Professional Regulation. Failure by an applicant 7 to 8 application being disqualified. 9 submit (b) If all the required information Department of may Financial result and in the Professional 10 Regulation receives an application that fails to provide the 11 required elements contained in Section 15-30, the Department of 12 Financial and Professional Regulation shall issue a deficiency 13 notice to the applicant. The applicant shall have 10 calendar 14 days from the date of the deficiency notice to resubmit the 15 incomplete information. Applications that are still incomplete 16 after this opportunity to cure, will not be scored and will be 17 disqualified. 18 (c) Applications will not be scored if the applicant fails 19 to provide, or is unable to cure a deficiency in the time 20 provided in subsection (b), evidence that the applicant: 21 (1) has access to $100,000 in liquid assets; 22 (2) has a loan, line of credit, or other form of 23 financing in an amount of $100,000 or greater that is 24 guaranteed or that is guaranteed contingent upon the award 25 of the license for which the application is being - 93 1 LRB101 12329 RLC 60273 b submitted; or 2 (3) if the applicant qualifies as a Social Equity 3 Applicant, has applied to the Department of Commerce and 4 Economic Opportunity for a loan or grant issued from the 5 Cannabis Business Development Fund. 6 (d) The Department will award up to 200 points to complete 7 applications 8 responses to required information. Applicants will be awarded 9 points 10 11 12 13 based based on on a the sufficiency determination of that the the applicant's application satisfactorily includes the following elements: (1) Suitability of the Proposed Dispensary Floor Plan (10 points) The proposed floor plan is suitable for public 14 access, the 15 cannabis, 16 Disabilities 17 Barriers Act, and facilitates safe product handling 18 and storage. 19 (2) Suitability of Employee Training Plan (10 points) is layout promotes compliant Act and with the safe the dispensing Americans Illinois of with Environmental 20 The plan includes an employee training plan that 21 demonstrates that employees will understand the rules 22 and laws to be followed by dispensary employees, have 23 knowledge 24 procedures of the dispensary, and are able to advise 25 purchasers on how to safely consume cannabis and use 26 individual products offered by the dispensary. of any security measures and operating - 94 1 LRB101 12329 RLC 60273 b (3) Security and Recordkeeping (60 points) 2 (A) The security plan accounts for the prevention 3 of the theft or diversion of cannabis. The security 4 plan 5 agents and consumers, and safe delivery and storage of 6 cannabis and currency. It demonstrates compliance with 7 all security requirements in this Act and rules. demonstrates safety 8 (B) A 9 monitoring plan for procedures for recordkeeping, inventory, quality dispensary tracking control and and other 10 policies and procedures that will promote standard 11 recordkeeping and discourage unlawful activity. This 12 plan includes the applicant's strategy to communicate 13 with 14 Regulation and the Department of State Police on the 15 destruction and disposal of cannabis. The plan must 16 also demonstrate compliance with this Act and rules. 17 (4) 18 the Department Applicant's of Financial Business Plan, and Professional Financials, and Operating Plan (65 points) 19 (A) The business plan shall describe, at a minimum, 20 how the dispensing organization will be managed on a 21 long-term basis. This shall include a description of 22 the 23 purchases and denials of sale, confidentiality, and 24 products 25 demonstrate compliance with this Act and rules. 26 dispensing organization's point-of-sale system, and services to be offered. It will (B) The operating plan shall include, at a minimum, - 95 - LRB101 12329 RLC 60273 b 1 best practices for day-to-day dispensary operation and 2 staffing. 3 (5) Knowledge and Experience (30 points). 4 (A) The applicant's principal officers must 5 demonstrate experience and qualifications in business 6 management or experience with the cannabis industry. 7 This includes ensuring optimal safety and accuracy in 8 the dispensing and sale of cannabis. 9 (B) The 10 demonstrate knowledge of 11 strains varieties and 12 quantities 13 includes confirmation of whether the dispensary plans 14 to sell cannabis paraphernalia or edibles. or applicant's of products principal various cannabis describe planned officers to the be must product types sold. and This 15 (C) Knowledge and experience may be demonstrated 16 through experience in other comparable industries that 17 reflect on applicant's ability to operate a cannabis 18 business establishment. 19 (6) Status as a Social Equity Applicant (25 points). 20 21 22 The applicant meets the qualifications for a Social Equity Applicant as set forth in this Act. (d) The Department may also award up to 12 bonus points for 23 preferred, but not required, initiatives based on the 24 applicant's ability to meet requirements in the following 25 categories. Bonus points will only be awarded if the Department 26 receives a greater number of applications that meet the minimum - 96 - LRB101 12329 RLC 60273 b 1 number of points required in subsection (c) than are available 2 for a particular region. 3 (1) Labor and employment practices (2): The applicant 4 may 5 economically 6 agents, including, but not limited to, codes of conduct, 7 healthcare 8 benefits, living wage standards, and entering a labor peace 9 agreement with employees. 10 describe (2) plans to provide beneficial working benefits, Labor peace a safe, environment educational agreement healthy benefits, (2): The for and its retirement applicant may 11 provide information on the existence of a labor peace 12 agreement. 13 (3) Local received regarding the potential impact of the proposed 16 location on the local community and neighborhood in which 17 the applicant plans to locate. Plan concerns (2): The or The 15 Environmental comments, (2): applicant (4) provide report 14 18 may community/neighborhood support applicant may 19 demonstrate an environmental plan of action to minimize the 20 carbon footprint, environmental impact, and resource needs 21 for the dispensary, which may include, without imitation, 22 recycling cannabis product packaging. 23 (5) Illinois owner (2): The applicant is 51% or more 24 owned and controlled by an Illinois resident, who can prove 25 residency in each of the past 5 years with tax records. 26 (6) A plan to engage with the community (2): - 97 1 2 LRB101 12329 RLC 60273 b The applicant may demonstrate a desire to help its community by, among other actions, 3 (A) Establishment of an incubator program 4 designed 5 cannabis industry by persons who would qualify 6 as Social Equity Applicants; 7 (B) 8 increase providing participation financial in assistance potential harms of cannabis use; or 11 (D) 12 other measures demonstrating (e) The Department may verify information contained in each application 15 applicant's veracity and fitness to operate a dispensary. 18 19 20 21 a commitment to the applicant's community. 14 17 to (C) educating children and teens about the 10 16 the substance abuse treatment centers; 9 13 to and accompanying documentation to assess the (f) The Department may, in its discretion, refuse to issue an authorization to any applicant: (1) Who is unqualified to perform the duties required of the applicant; (2) Who fails to disclose or states falsely any information called for in the application; 22 (3) Who has been found guilty of a violation of the 23 Act, or whose medical cannabis dispensing organization, 24 cannabis dispensing organization, or Adult Use Cultivation 25 Center 26 denied for just cause in any other state; or License was suspended, restricted, revoked or - 98 - LRB101 12329 RLC 60273 b 1 (4) Who has engaged in a pattern or practice of unfair 2 or illegal practices, methods, or activities in the conduct 3 of 4 business. 5 (g) owning The a cannabis Department business of establishment Professional and or other Financial 6 Regulation shall deny the license if the licensee, principal 7 officer, board member, or person having a financial or voting 8 interest of 5% or greater in the licensee is delinquent in 9 filing any required tax returns or paying any amounts owed to 10 11 the state of Illinois. (h) The Department of Financial and Professional 12 Regulation shall verify an applicant's compliance with the 13 requirements of this Article and rules, and before the issuance 14 of a dispensing organization license. 15 (i) Should the applicant be awarded a license, the 16 information and plans provided in the application, including 17 any plans submitted for bonus points, shall become a condition 18 of the authorization. Dispensing organizations have a duty to 19 disclose 20 Department 21 review 22 organization, and may re-evaluate its prior decision regarding 23 the awarding of a license, including, but not limited to, 24 suspending or revoking a license. Failure to comply with the 25 conditions or requirements in the application may subject the 26 dispensing organization to discipline, up to and including any all of material Financial material changes and changes to the application. Professional disclosed by Regulation the The shall dispensing - 99 - LRB101 12329 RLC 60273 b 1 suspension or revocation of its authorization or license by the 2 Department of Financial and Professional Regulation. 3 (j) If an applicant has not begun operating as a dispensing 4 organization within one year of the issuance of the conditional 5 dispensing organization license, the Department of Financial 6 and 7 dispensing organization license and 8 highest scoring applicant in the BLS region if a suitable 9 applicant indicates a continued interest in the license or 10 begin a new selection process to award a conditional dispensing 11 organization license. Professional Regulation may revoke award the it conditional to the next 12 (k) The Department shall deny an application if granting 13 that application would result in a single person or entity 14 having a direct or indirect financial interest in more than 10 15 Early Approval Adult Use Dispensing Organization Licenses, 16 Conditional Adult Use Dispensing Organization Licenses, or 17 Adult Use Dispensing Organization Licenses. Any entity that is 18 awarded a license that results in a single person or entity 19 having a direct or indirect financial interest in more than 10 20 licenses shall forfeit the most recently issued license and 21 suffer a penalty to be determined by the Department, unless the 22 entity declines the license at the time it is awarded. 23 Section 15-35. Adult Use Dispensing Organization License. 24 (a) By December 21, 2021, the Department of Financial and 25 Professional Regulation may issue up to 110 additional Adult - 100 - LRB101 12329 RLC 60273 b 1 Use Dispensing Organization Licenses. Prior to issuing such 2 licenses, the Department may adopt rules through emergency 3 rulemaking in accordance with subsection (gg) of Section 5-45 4 of the Illinois Administrative Procedure Act. The General 5 Assembly finds that the adoption of rules to regulate cannabis 6 use 7 interest, safety and welfare. Such rules may: is deemed an emergency and necessary for the public 8 (1) Modify or change the BLS Regions as they apply to 9 this Article or modify or raise the number of Adult Use 10 Dispensing Organization Licenses assigned to each region 11 based on the following factors: 12 (A) Purchaser wait times; 13 (B) Travel time to the nearest dispensary for 14 potential purchasers; 15 (C) Percentage of cannabis sales occurring in 16 Illinois not in the regulated market using data from 17 the 18 Administration, 19 Health, Illinois Behavioral Risk Factor Surveillance 20 System, and tourism data from the Illinois Office of 21 Tourism to ascertain total cannabis consumption in 22 Illinois compared to the amount of sales in licensed 23 dispensing organizations; 24 Substance Abuse and National Mental Survey Health on Drug Services Use and (D) Whether there is an adequate supply of cannabis 25 and cannabis-infused products 26 medical cannabis patients; to serve registered - 101 - LRB101 12329 RLC 60273 b 1 (E) Population increases or shifts; 2 (F) 3 region; 4 (G) 5 Density The of dispensing organizations Department's capacity to in a appropriately regulate additional licenses; 6 (H) The findings and recommendations from the 7 disparity and availability study commissioned by the 8 Illinois 9 subsection (e) of Section 5-45 to reduce or eliminate Cannabis 10 any 11 industry; and 12 identified Regulation barriers to Oversight entry in Officer the in cannabis (I) Any other criteria the Department of Financial 13 and Professional Regulation deems relevant. 14 (2) Modify or change the licensing application process 15 to reduce or eliminate the barriers identified in the 16 disparity 17 Illinois Cannabis Regulation Oversight Officer and make 18 modifications to remedy evidence of discrimination. 19 (b) After January 1, 2022, the Department of Financial and 20 Professional Regulation may by modify or raise the number of 21 Adult Use Dispensing Organization Licenses assigned to each 22 region, and modify or change the licensing application process 23 to reduce or eliminate barriers based on the criteria in 24 subsection (a). At no time shall the Department of Financial 25 and Professional Regulation issue more than 500 Adult Use 26 Dispensary Organization Licenses. and availability study commission by the - 102 - LRB101 12329 RLC 60273 b 1 (c) No person or entity shall hold any legal, equitable, 2 ownership, or beneficial interest, directly or indirectly, of 3 more than 10 dispensing organizations licensed under this 4 Article. Further, no person or entity that is: 5 (1) employed by, an agent of, has a contract to receive 6 payment 7 registered medical cannabis dispensing organization; 8 9 10 in any form from a dispensing organization, (2) a principal officer of a dispensing organization or registered medical cannabis dispensing organization; or (3) an entity controlled by officer of a or dispensing affiliated with a organization or 11 principal 12 registered medical cannabis dispensing organization; 13 shall hold any legal, equitable, ownership, or beneficial 14 interest, directly or indirectly, in a dispensing organization 15 that would result in such person or entity owning, acting as an 16 agent of, or having a contract to receive payment from, more 17 than 10 dispensing organizations. 18 (d) The Department shall deny an application if granting 19 that application would result in a person or entity obtaining 20 direct or indirect financial interest in more than 10 Early 21 Approval 22 Conditional Adult Use Dispensing Organization Licenses, or 23 Adult Use Dispensing Organization Licenses. If a person or 24 entity does obtain such an interest, he, she, or it shall 25 choose which licenses from which to withdraw and such licenses 26 shall become available to the next qualified applicant. Adult Use Dispensing Organization Licenses, - 103 - LRB101 12329 RLC 60273 b 1 (e) Applicants for a dispensing organization license shall 2 meet the minimum qualifications as established by this Section 3 and be subject to the selection criteria as set forth in this 4 Article and rules before the Department issues a dispensing 5 organization license. 6 (f) A dispensing organization that is awarded a Conditional 7 Adult Use Dispensing Organization License pursuant to the 8 criteria established pursuant to rules made under Section 15-35 9 shall not purchase, possess, sell, or dispense cannabis or 10 cannabis-infused products until the person has received an 11 Adult 12 Department 13 Department of Financial and Professional Regulation shall not 14 issue an Adult Use Dispensing Organization License until: 15 Use (1) Dispensing of Organization Financial the and Department License Professional of Financial issued by the Regulation. The and Professional 16 Regulation has inspected the dispensary site and proposed 17 operations and verified that they are in compliance with 18 this Act and local zoning laws; and 19 (2) the Conditional Adult Use Dispensing Organization 20 License holder has paid a registration fee of $60,000, or a 21 pro-rated amount accounting for the difference of time 22 between when the Adult Use Dispensing Organization License 23 is issued and March 31 of the next even-numbered year. 24 25 - 104 1 2 3 4 Section 15-40. LRB101 12329 RLC 60273 b Dispensing organization agent identification card; agent training. (a) The Department of Financial and Professional Regulation shall: 5 (1) Verify the information contained in an application 6 or renewal for 7 identification card 8 approve or deny an application or renewal, within 30 days 9 of receiving a a dispensing submitted completed organization under this agent Article, application or and renewal 10 application and all supporting documentation required by 11 rule; 12 (2) Issue a a qualifying agent agent identification 14 business days of approving the application or renewal; 16 to organization 13 15 card dispensing within 15 (3) Enter the registry identification number of the dispensing organization where the agent works; 17 (4) Allow for an electronic application process and 18 provide a confirmation by electronic or other methods that 19 an application has been submitted; and 20 (5) Collect a $100 nonrefundable fee from the applicant 21 to be deposited in the Cannabis Regulation Fund. 22 (b) A dispensing agent must keep his or her identification 23 card 24 dispensing organization. 25 26 visible at all times when on the property of the (c) The dispensing organization agent identification cards shall contain the following: - 105 - LRB101 12329 RLC 60273 b 1 (1) The name of the cardholder; 2 (2) The date of issuance and expiration date of the 3 dispensing organization agent identification cards; 4 (3) A random 10 digit alphanumeric identification 5 number containing at least 4 numbers and at least 4 letters 6 that is unique to the cardholder; and 7 (4) A photograph of the cardholder. 8 (d) The dispensing organization agent identification cards 9 shall be immediately returned to the dispensing organization 10 upon termination of employment. 11 (e) The Department shall not issue an agent identification 12 card if the applicant is delinquent in filing any required tax 13 returns or paying any amounts owed to the State of Illinois. 14 (f) Any card lost by a dispensing organization agent shall 15 be reported to 16 Department 17 immediately upon discovery of the loss. of the Department Financial and of State Police Professional and the Regulation 18 (g) An applicant shall be denied a dispensing organization 19 agent identification card if he or she has been convicted of an 20 excluded offense or fails to complete the training provided for 21 in this Section. 22 (h) A dispensing organization agent shall only be required 23 to hold one card for the same employer regardless of what type 24 of dispensing organization license the employer holds. 25 26 (i) Cannabis retail sales training requirements. (1) Within 90 days of September 1, 2019, or 90 days of - 106 1 employment, 2 employees, and agents involved in the handling or sale of 3 cannabis, 4 dispensing organization or 5 organization 6 Compassionate Use of Medical Cannabis Pilot Program Act 7 shall 8 Vendor Program. 9 whichever or is LRB101 12329 RLC 60273 b later, cannabis-infused as attend defined and all product medical in owners, the successfully managers, employed cannabis Section complete a dispensing 10 a by of the Responsible (2) Each owner, manager, employee, and agent of a 10 dispensing organization or 11 organization 12 annually. shall medical successfully cannabis complete dispensing the program 13 (3) Training modules shall include at least 2 hours of 14 instruction time approved by the Department of Financial 15 and Professional Regulation including: 16 (i) Health and safety concerns of cannabis use, 17 including 18 physical 19 recognizing signs of impairment, appropriate responses 20 in the event of overconsumption. 21 22 23 24 the responsible effects, onset of use of cannabis, physiological its effects, (ii) Training on laws and regulations on driving while under the influence. (iii) Sales to minors prohibition. Training shall cover all relevant Illinois laws and rules. 25 (iv) Quantity limitations on sales to consumers. 26 Training shall cover all relevant Illinois laws and - 107 1 LRB101 12329 RLC 60273 b rules. 2 (v) Acceptable forms of identification. Training 3 shall include: 4 (I) How to check identification; and 5 (II) Common mistakes made in verification; 6 (vi) Safe storage of cannabis; 7 (vii) 8 Compliance with all inventory tracking system regulations; 9 (viii) Waste handling, management, and disposal; 10 (ix) Health and safety standards; 11 (x) Maintenance of records; 12 (xi) Security and surveillance requirements; 13 (xii) Permitting inspections by State and local 14 licensing and enforcement authorities; 15 (xiii) Privacy issues; 16 (xiv) Packaging and labeling requirement for sales 17 to consumers; and 18 (xv) Other areas as determined by rule. 19 (j) Any modules complying with paragraph (3) of subsection 20 (h) and not approved within 180 days after receipt by the 21 Department of Financial and Professional Regulation of the 22 business 23 approved. application shall automatically be considered 24 (k) Upon the successful completion of the Responsible 25 Vendor Program, the provider shall deliver proof of completion 26 either through mail or electronic communication to the - 108 - LRB101 12329 RLC 60273 b 1 dispensing organization, which shall retain a copy of the 2 certificate. 3 (l) The license of a dispensing organization or medical 4 cannabis 5 employees, or agents fail to comply with this Section may be 6 suspended or revoked under Section 15-145. 7 dispensing organization whose owners, managers, (m) The regulation of dispensing organization and medical 8 cannabis dispensing employer 9 exclusive function of the State, and regulation by a unit of 10 local government, including a home rule unit, is prohibited. 11 This subsection (m) is a denial and limitation of home rule 12 powers and functions under subsection (h) of Section 6 of 13 Article VII of the Illinois Constitution. 14 Section 15-45. Renewal. 15 (a) 16 17 18 Early Approval and Adult Use employee training Dispensing is an Organization Licenses, shall expire on March 31 of even-numbered years. (b) All other licenses and identification cards shall expire one year from the date they are issued. 19 (c) Licensees and dispensing agents shall submit a renewal 20 application as provided by the Department of Financial and 21 Professional Regulation and pay the required renewal fee. No 22 license or agent identification card shall be renewed if it is 23 currently under revocation or suspension for violation of this 24 Article 25 licensee, principal officer, board member, person having a or the rules adopted under this Article or the - 109 - LRB101 12329 RLC 60273 b 1 financial or voting interest of 5% or greater in the licensee, 2 or agent is delinquent in filing any required tax returns or 3 paying any amounts owed to the State of Illinois. 4 (d) Renewal fees are: 5 6 (1) For a dispensing organization, $60,000, to be deposited in the Cannabis Regulation Fund. 7 (2) For an agent identification card, $100, to be 8 deposited in the Cannabis Regulation Fund. 9 (e) If a dispensing organization fails to renew its license 10 before expiration, the dispensing organization shall cease 11 operations until the license is renewed. 12 (f) If a dispensing organization agent fails to renew his 13 or her registration before its expiration, he or she shall case 14 to work or volunteer at a dispensing organization until his or 15 her registration is renewed. 16 (g) Any dispensing organization that continues to operate 17 or dispensing agent that continues to work or volunteer at a 18 dispensing organization that fails to renew its license is 19 subject to penalty as provided in this Article. 20 (h) The Department of Financial and Professional 21 Regulation shall not renew a license or agent identification 22 card if the applicant is delinquent in filing any required tax 23 returns or paying any amounts owed to the State of Illinois. 24 Section 15-50. Disclosure of ownership and control. 25 (a) Each dispensing organization applicant and licensee - 110 - LRB101 12329 RLC 60273 b 1 shall file and maintain a Table of Organization, Ownership and 2 Control with the Department of Financial and Professional 3 Regulation. The Table of Organization, Ownership and Control 4 shall contain the information required by this Section in 5 sufficient 6 principal officers, and the title of each principal officer or 7 business entity that through direct or indirect means, manages, 8 owns or controls the applicant or licensee. 9 10 detail to identify all owners, directors, and (b) The Table of Organization, Ownership and Control shall identify the following information: 11 (1) The management structure, ownership and control of 12 the applicant or license holder including the name of each 13 principal 14 position held and the percentage ownership interest, if 15 any. If the business entity has a parent company, the name 16 of each owner, board member, and officer of the parent 17 company and their percentage ownership interest in the 18 parent company and the dispensing organization. 19 officer or business entity, the office or (2) If the applicant or licensee is a business entity 20 with publicly traded stock, the identification of 21 ownership shall be provided as required in subsection (c). 22 (c) If a business entity identified in subsection (b) is a 23 publicly traded company, the following information shall be 24 provided in the Table of Organization, Ownership and Control: 25 (1) The name and percentage of ownership interest of 26 each individual or business entity with ownership of more - 111 - LRB101 12329 RLC 60273 b 1 than 5 percent of the voting shares of the entity, to the 2 extent such information is known or contained in 13D or 13G 3 Securities and Exchange Commission filings. 4 (2) To the extent known, the names and percentage of 5 interest of ownership of persons who are relatives of one 6 another and who together exercise control over or own more 7 than 10 percent of the voting shares of the entity. 8 (d) A dispensing organization with a parent company or 9 companies, or partially owned or controlled by another entity 10 must disclose to the Department of Financial and Professional 11 Regulation the relationship and all owners, board members, 12 officers or individuals with control or management of those 13 entities. 14 ownership or control from the Department. 15 A dispensing organization shall not shield its (e) All principal officers must submit a complete online 16 application 17 dispensing organization being licensed by the Department or 18 within 14 days of Department notice of approval as a new 19 principal officer. 20 21 (f) A with the principal Department officer within may not 14 allow days of his or the her registration to expire. 22 (g) A dispensing organization separating with a principal 23 officer must do so under this Act and this Article. The 24 principal 25 Department within 5 business days. 26 (h) A officer must principal communicate officer not the in separation compliance to the with the - 112 - LRB101 12329 RLC 60273 b 1 requirements of this Act shall be removed from his or her 2 position with the dispensing organization or shall otherwise 3 terminate his or her affiliation. Failure to do so may subject 4 the 5 revocation of its license by the Department. dispensing organization to discipline, suspension or 6 (i) It is the responsibility of the dispensing organization 7 and its principal officers to promptly notify the Department of 8 any change of the principal place of business address, hours of 9 operation, change in ownership or control, or a change of the 10 dispensing 11 information. Any changes must be made to the Department in 12 writing. 13 organization's Section 15-55. primary Financial or secondary responsibility. contact Evidence of 14 financial responsibility is a requirement for the issuance, 15 maintenance or reactivation of a license. Evidence of financial 16 responsibility shall be used to guarantee that the dispensing 17 organization 18 construction, 19 uninterrupted supply of cannabis, faithfully pays registration 20 renewal fees, keeps accurate books and records, makes regularly 21 required reports, complies with State tax requirements, and 22 conducts the dispensary in conformity with this Act and rules. 23 Evidence of financial responsibility shall be provided by one 24 of the following: 25 timely and operates successfully in a manner completes that dispensary provides an (1) Establishing and maintaining an escrow or surety - 113 1 account 2 $50,000, with escrow terms, approved by the Department of 3 Financial and Professional Regulation, that it shall be 4 payable to the Department in the event of circumstances 5 outlined in this Act and rules. 6 in a financial LRB101 12329 RLC 60273 b institution in the amount of (A) A financial institution may not return money in 7 an escrow or 8 organization 9 representative surety that account established of the to the the dispensing account organization or unless a the 10 organization or representative presents a statement 11 issued by the Department indicating that the account 12 may be released. 13 (B) The escrow or surety account shall not be 14 canceled on less than 30 days' notice in writing to the 15 Department, 16 Department. If an escrow or surety account is canceled 17 and the registrant fails to secure a new account with 18 the required amount on or before the effective date of 19 cancellation, the 20 revoked. The total and aggregate liability of the 21 surety on the bond is limited to the amount specified 22 in the escrow or surety account. 23 (2) Providing a surety bond in the amount of $50,000, 24 naming the dispensing organization as principal of the 25 bond, with terms, approved by the Department, that the bond 26 defaults to the Department in the event of circumstances unless otherwise approved by registrant's registration may the be - 114 1 LRB101 12329 RLC 60273 b outlined in this Act and rules. Bond terms shall include: 2 (A) The business name and registration number on 3 the bond must correspond exactly with the business name 4 and registration number in the Department's records. 5 (B) The bond must be written on a form approved by 6 the Department. 7 (C) A copy of the bond must be received by the 8 Department within 90 days after the effective date. 9 (D) The bond shall not be canceled by a surety on 10 less than 30 days' notice in writing to the Department. 11 If a bond is canceled and the registrant fails to file 12 a new bond with the Department in the required amount 13 on or before the effective date of cancellation, the 14 registrant's registration may be revoked. The total 15 and aggregate liability of the surety on the bond is 16 limited to the amount specified in the bond. 17 Section 15-60. Changes to a dispensing organization. 18 (a) A license shall be issued to the specific dispensing 19 organization identified on the application and for the specific 20 location proposed. The license is valid only as designated on 21 the license and for the location for which it is issued. 22 (b) A dispensing organization may only add principal 23 officers after being approved by the Department of Financial 24 and Professional Regulation. 25 (c) A dispensing organization shall provide written notice - 115 - LRB101 12329 RLC 60273 b 1 of the removal of a principal officer within 5 business days 2 after removal. The notice shall include the written agreement 3 of 4 approved by the Department, and allocation of ownership shares 5 after removal in an updated ownership chart. 6 the principal (d) A request 8 officers. A 9 principal officer 11 12 being removed, unless otherwise dispensing organization shall provide a 7 10 officer to the Department dispensing for the organization applications on addition shall forms of written principal submit approved proposed by the Department of Financial and Professional Regulation. (e) All proposed new principal officers shall be subject to the requirements of this Act and this Article. 13 (f) The Department may prohibit the addition of a principal 14 officer to a dispensing organization for failure to comply with 15 this Act or this Article. 16 (g) A dispensing organization may not assign a license. 17 (h) A dispensing organization may not transfer a license 18 without prior Department approval. 19 (i) With the addition or removal of principal officers, the 20 Department will review the ownership structure to determine 21 whether the change in ownership has had the effect of a 22 transfer of the license. The dispensing organization shall 23 supply all ownership documents requested by the Department. 24 (j) A dispensing organization may apply to the Department 25 to approve a sale of the dispensary. A request to sell the 26 dispensary must be on application forms provided by the - 116 - LRB101 12329 RLC 60273 b 1 Department. A request for an approval to sell a dispensing 2 organization must comply with the following: 3 4 (1) New application materials shall comply with this Act; 5 6 (2) Application materials shall include a change of ownership fee; 7 (3) The application materials shall provide proof that 8 the transfer of ownership will not have the effect of 9 granting any of the owners, or principal officers direct or 10 indirect ownership or control of more than 10 adult use 11 dispensing organizations licenses; 12 13 (4) New principal officers shall each complete the proposed new principal officer application; 14 (5) If the Department approves the application 15 materials and proposed new principal officer applications, 16 it will perform an inspection before issuing a dispensary 17 license; 18 (6) If a new license is approved, the Department will 19 issue a new license number and certificate to the new 20 dispensing organization. 21 (k) The dispensing organization shall provide the 22 Department with the personal information for all new dispensing 23 organizations agents as required in this Article and all new 24 dispensing 25 requirements of this Article. A dispensing organization agent 26 must obtain an agent card from the Department before beginning organization agents shall be subject to the - 117 1 2 LRB101 12329 RLC 60273 b work at a dispensary. (l) Before remodeling, noncosmetic expansion, alteration reduction, of a or other 3 physical, dispensary, the 4 dispensing organization must notify the Department and confirm 5 the alterations are in compliance with this Act. 6 Section 15-65. Administration. 7 (a) A dispensing organization shall establish, maintain 8 and comply with written policies and procedures as submitted in 9 an Operations and Management Practices Plan, approved by the 10 Department of Financial and Professional Regulation, for the 11 security, storage, inventory and distribution of cannabis. 12 These 13 identifying, recording and reporting diversion, theft or loss, 14 and for correcting errors and inaccuracies in inventories. At a 15 minimum, dispensing organizations shall ensure the written 16 policies and procedures provide for the following: 17 policies (1) and procedures Mandatory and shall include voluntary recalls methods of for cannabis 18 products. The policies shall be adequate to deal with 19 recalls due to any action initiated at the request of the 20 Department and any voluntary action by the dispensing 21 organization to remove defective or potentially defective 22 cannabis from 23 promote public health and safety, including: 24 25 the market or any action undertaken to (i) A mechanism reasonably calculated to contact consumers who have, or likely have, obtained the - 118 - LRB101 12329 RLC 60273 b 1 product from the dispensary, including information on 2 the policy for return of the recalled product; 3 (ii) A mechanism to identify and contact the adult 4 use cultivation center, craft grower, or processor 5 that manufactured the cannabis; 6 (iii) Policies for communicating with the 7 Department of Financial and Professional Regulation, 8 the Department of Agriculture, and the Department of 9 Public Health within 24 hours of discovering defective 10 or potentially defective cannabis; and 11 (iv) Policies for destruction of any recalled 12 cannabis product; 13 (2) Responses to local, State or national emergencies, 14 including natural disasters, that affect the security or 15 operation of a dispensary; 16 (3) Segregation and destruction of outdated, damaged, 17 deteriorated, misbranded or adulterated cannabis. This 18 procedure shall provide for written documentation of the 19 cannabis disposition; 20 (4) Ensure the oldest stock of a cannabis product is 21 distributed first. The procedure may permit deviation from 22 this 23 appropriate; requirement, if such deviation is temporary and 24 (5) Training of dispensing organization agents in the 25 provisions of this Act and rules, to effectively operate 26 the point-of-sale system and the State's verification - 119 - LRB101 12329 RLC 60273 b 1 system, proper inventory handling and tracking, specific 2 uses of cannabis or cannabis-infused products, instruction 3 regarding 4 enforcement 5 requirements for maintaining status as an agent and other 6 topics as specified by the dispensing organization or the 7 Department. The 8 evidence of all training provided to each agent in its 9 files that is subject to inspection and audit by the 10 Department of Financial and Professional Regulation. The 11 dispensing 12 minimum of 8 hours of training annually, unless otherwise 13 approved by the Department of Financial and Professional 14 Regulation; regulatory inspection interaction; preparedness awareness of and the dispensing organization shall organization shall ensure agents law legal maintain receive a 15 (6) Maintenance of business records consistent with 16 industry standards, including bylaws, consents, manual or 17 computerized records of assets and liabilities, audits, 18 monetary transactions, journals, ledgers and supporting 19 documents, 20 receipts and vouchers. Records shall be maintained in a 21 manner consistent with this Act and retained for 5 years; 22 including agreements, checks, invoices, (7) Inventory control, including: 23 (i) Tracking purchases and denials of sale; 24 (ii) Disposal of unusable or damaged cannabis as 25 required by this Act and rules; and 26 (8) Consumer education and support, including: - 120 1 (i) 2 Whether possession LRB101 12329 RLC 60273 b of cannabis is illegal under federal law; 3 (ii) Current educational information issued by the 4 Department of Public Health about the health risks 5 associated with the use or abuse of cannabis; 6 (iii) Information about possible side effects; 7 (iv) Prohibition on smoking medical cannabis in 8 public places; and 9 (v) Offer any other appropriate consumer education 10 11 or support materials. (b) Security, including: 12 (1) Protocols 13 management; for consumer and agent safety and 14 (2) Security of cannabis and currency; 15 (3) Restricted access to the areas where cannabis is 16 stored to authorized agents; 17 (4) Identification of authorized agents; 18 (5) Controlled access and prevention of loitering both 19 inside and outside the dispensary; 20 21 (6) Electronic monitoring, including cameras and motion detector; and 22 (7) Use of a panic button. 23 (c) A dispensing organization shall maintain copies of the 24 policies and procedures on the dispensary premises and provide 25 copies 26 Regulation upon request. The dispensing organization shall to the Department of Financial and Professional - 121 - LRB101 12329 RLC 60273 b 1 review the dispensing organization policies and procedures at 2 least once every 12 months from the issue date of the license 3 and update as needed due to changes in industry standards or as 4 requested by the Department of Financial and Professional 5 Regulation; 6 (d) A dispensing organization shall ensure that each 7 principal officer and each dispensary organization agent has a 8 current agent identification card in the agent's immediate 9 possession when the agent is at the dispensary. 10 (e) A dispensing organization shall provide prompt written 11 notice to the Department, including the date of the event, when 12 a dispensing organization agent no longer is employed by the 13 dispensing organization; 14 (f) A dispensing organization shall promptly document and 15 report 16 dispensary 17 Department. It is the duty of any dispensing organization agent 18 who becomes aware of the loss or theft to report it as provided 19 in this Article. If the dispensing organization knows that a 20 principal officer or dispensing organization agent has been 21 arrested 22 dispensing organization shall promptly notify the Department. 23 any loss to for or the or theft of Department convicted of medical of an State from the and the Police excluded offense, the (g) A dispensing organization shall post the following 24 information in 25 dispensary accessible to consumers: 26 cannabis a conspicuous location in an area (1) The dispensing organization's registration; of the - 122 1 LRB101 12329 RLC 60273 b (2) The hours of operation. 2 (h) Signage. 3 (1) All dispensing organizations must display a 4 placard that states the following: "Cannabis consumption 5 can impair cognition and driving, is for adult use only, 6 may be habit forming, and should not be used by pregnant or 7 breastfeeding women.". 8 9 10 11 (2) Any dispensing organization cannabis-infused products must that display a sells edible placard that states the following: (A) "Edible cannabis-infused products were 12 produced in a kitchen not subject to public health 13 inspections 14 allergens."; and that may also process common food 15 (B) "The effects of cannabis products can vary from 16 person to person, and it can take as long as two hours 17 to feel the effects of some cannabis-infused products. 18 Carefully 19 warnings contained on the product packaging before 20 consuming.". 21 (3) The placards shall be no smaller than 24 inches 22 tall by 36 inches wide, with typed letters no smaller than 23 2 inches, containing no additional language. The placard 24 shall be clearly visible and readable by customers and 25 shall be written in English. The signage shall be placed in 26 the area where edible cannabis-infused products are sold review the portion size information and - 123 - LRB101 12329 RLC 60273 b 1 and may be translated into additional languages as needed. 2 (i) 3 notices 4 activities that are strictly prohibited and punishable by law, 5 including, but not limited to: A dispensing inside the organization dispensing shall prominently organization that post state 6 (1) No minors permitted on the premises unless the 7 minor is a minor qualifying patient under the Compassionate 8 Use of Medical Cannabis Pilot Program Act; 9 10 (2) No on-site consumption of any cannabis or cannabis products; 11 12 (3) Distribution to persons under the age of 21 is prohibited; 13 (4) Transportation of cannabis or cannabis products 14 across state lines is prohibited. 15 Section 15-70. Operational requirements; prohibitions. 16 (a) A dispensing organization shall operate in accordance 17 with the representations made in its application and license 18 materials. It shall be in compliance with this Act and rules. 19 (b) A dispensing organization must include the legal name 20 of the dispensary on the packaging of any cannabis product it 21 sells. 22 (c) All cannabis, cannabis-infused products, and cannabis 23 seeds must be obtained from an Illinois registered Adult use 24 cultivation 25 dispensary. center, craft grower, processor, or another - 124 - LRB101 12329 RLC 60273 b 1 (d) Dispensing organizations are prohibited from selling 2 any product containing alcohol except tinctures, which must be 3 limited to containers that are no larger than 30 milliliters. 4 (e) A dispensing organization shall inspect and count 5 product received by the adult use cultivation center before 6 dispensing it. 7 (f) A dispensing organization may only accept cannabis 8 deliveries into a restricted access area. Deliveries may not be 9 accepted through the public or limited access areas unless 10 otherwise approved by 11 Professional Regulation. the Department of Financial and 12 (g) A dispensing organization shall maintain compliance 13 with State and local building, fire, and zoning requirements or 14 regulations. 15 (h) A dispensing organization shall submit a list to the 16 Department of the name of all service professionals that will 17 work at the dispensary. The list shall include a description of 18 the type of business or service provided. Changes to the 19 service 20 service professional shall work in the dispensary until the 21 name is provided to the Department on the service professional 22 list. 23 24 25 26 (i) professional A dispensing list shall be organization's promptly license provided. allows for No a dispensary to be operated at a single location. (j) A dispensary may operate between 6 a.m. and 10 p.m. local time. - 125 1 (k) A dispensing LRB101 12329 RLC 60273 b organization must keep all lighting 2 outside and inside the dispensary in good working order and 3 wattage sufficient for security cameras. 4 (l) A dispensing organization shall ensure that any 5 building or equipment used by a dispensing organization for the 6 storage or sale of cannabis is maintained in a clean and 7 sanitary condition. 8 9 (m) The dispensary shall be free from infestation by insects, rodents, or pests. 10 (n) A dispensing organization shall not: 11 (1) Produce or manufacture cannabis; 12 (2) Allow consumption of cannabis at the dispensary; 13 (3) 14 cultivation 15 transporting organization unless it is pre-packaged and 16 labeled in accordance with this Act; 17 18 Accept a cannabis center, product craft from grower, an adult use processor, or (4) Obtain cannabis or cannabis-infused products from outside the State of Illinois. 19 (5) Sell cannabis or cannabis-infused products to a 20 consumer unless the individual is registered under the 21 Compassionate Use of Medical Cannabis Pilot Program or the 22 purchaser has been verified to be over the age of 21. 23 (6) Enter into an exclusive agreement with any adult 24 use cultivation 25 Dispensaries 26 products center, shall from craft provide various grower, consumers cannabis an business or processor. assortment of establishment - 126 - LRB101 12329 RLC 60273 b 1 licensees. The Department may request that a dispensary 2 diversify its products as needed; 3 (7) Refuse to conduct business with a adult use 4 cultivation center, craft grower, or processor that has the 5 ability to properly deliver the product and is permitted by 6 the Department of Agriculture, on the same terms as other 7 adult use cultivation centers with whom it is dealing; 8 (8) Operate drive through windows; 9 (9) 10 for the dispensing (10) Transport cannabis to dispensing 15 transport cannabis to purchasers. 16 or other organization agents to deliver cannabis to equipment is inoperative; (13) Operate a dispensary if the point-of-sale equipment is inoperative; 20 (14) Operate a dispensary if the State's cannabis electronic verification system is inoperative; 22 23 residences (12) Operate a dispensary if its video surveillance 18 21 or (11) Enter into agreements to allow persons who are not 14 19 cannabis locations where purchasers may be for delivery; 13 17 of cannabis-infused products in vending machines; 11 12 Allow (15) Have fewer than 2 people working at the dispensary at any time while the dispensary is open; 24 (16) Be located within 1,500 feet of the property line 25 of a pre-existing dispensing 26 cannabis dispensing organization; organization or medical - 127 - LRB101 12329 RLC 60273 b 1 (17) Conduct sales or accept payment over the Internet 2 or through electronic application accessed from outside 3 the 4 dispensing organization may allow purchasers to pre-order 5 items for pick up and payment inside the dispensary; dispensing organization location, however, 6 (18) Sell clones or any other live plant material; 7 (19) Sell cannabis, cannabis concentrate, the or 8 cannabis-infused products in combination or bundled with 9 each other or any other items for one price, and each item 10 of cannabis, concentrate or cannabis-infused product must 11 be separately identified by quantify and price on the 12 receipt. 13 (19) Violate any other requirements or prohibitions 14 set by Department of Financial and Professional Regulation 15 rules. 16 (o) It is unlawful for any person having an Early Applicant 17 Adult Use Dispensing Organization 18 Dispensing 19 dispensing organization license or any officer, associate, 20 member, representative, or agent of such licensee to accept, 21 receive, or borrow money or anything else of value or accept or 22 receive credit (other than merchandising credit in the ordinary 23 course of business for a period not to exceed 30 days) directly 24 or indirectly from any adult use cultivation center, craft 25 grower, processor, or transporting organization. This includes 26 anything Organization received or License, borrowed or License, or a from an medical any Adult Use cannabis stockholders, - 128 1 officers, 2 cultivation center, craft grower, processor, or transporting 3 organization. This also excludes any received or borrowed in 4 exchange 5 organization, 6 dispensing organization's shelves, display cases, or website. 7 agents, for or person LRB101 12329 RLC 60273 b preferential including connected placement with by preferential an the placement adult use dispensing on the (p) It is unlawful for any person having an Early Applicant 8 Adult Use 9 Dispensing Dispensing Organization Organization License, License, or a an medical Adult Use cannabis 10 dispensing organization license issued under the Compassionate 11 Use of Medical Cannabis Pilot Program Act to enter into any 12 contract with any person licensed to cultivate, process, or 13 transport cannabis whereby such licensee agrees not to sell any 14 cannabis cultivated, processed, or transported manufactured or 15 distributed 16 processor, and any provision in any contract violative of this 17 Section shall render the whole of such contract void and no 18 action shall be brought thereon in any court. by any other cultivator, transporter, or 19 Section 15-75. Inventory control system. 20 (a) A dispensing organization agent-in-charge shall have 21 primary oversight of the dispensing organization's cannabis 22 inventory verification system, and its point-of-sale system. 23 The 24 web-based and accessible by the Department of Financial and 25 Professional Regulation at any time. The point-of-sale system inventory point-of-sale system shall be real-time, - 129 - LRB101 12329 RLC 60273 b 1 shall track, at a minimum the date of sale, amount, price, and 2 currency. 3 4 (b) A dispensing organization shall establish an account with the State's verification system that documents: 5 (1) Each sales transaction at the time of sale and each 6 day's beginning inventory, acquisitions, sales, disposal, 7 and ending inventory. 8 9 10 (2) Acquisition of cannabis and cannabis-infused products from a permitted adult use cultivation center, including: 11 (i) A description of the products including the 12 quantity, strain, variety and batch number of each 13 product received; 14 (ii) The name and registry identification number 15 of the permitted adult use cultivation center, craft 16 grower, 17 cannabis products; or processor providing the cannabis and 18 (iii) The name and registry identification number 19 of the permitted adult use cultivation center, craft 20 grower, processor, or transportation agent delivering 21 the cannabis; 22 (iv) The name and registry identification number 23 of the dispensing organization agent receiving the 24 cannabis; and 25 26 (v) The date of acquisition. (3) The disposal of cannabis, including: - 130 - LRB101 12329 RLC 60273 b 1 (i) A description of the products, including the 2 quantity, strain, variety, batch number and reason for 3 the cannabis being disposed; 4 (ii) The method of disposal; and 5 (iii) The date and time of disposal. 6 (c) Upon cannabis delivery, a dispensing organization 7 shall confirm the product's name, strain name, weight and 8 identification number on the manifest matches the information 9 on the cannabis product label and package. The product name 10 listed and the weight listed in the State's verification system 11 shall match the product packaging. 12 (d) The agent-in-charge shall conduct daily inventory 13 reconciliation documenting and balancing cannabis inventory by 14 confirming 15 dispensing organization's point-of-sale system and the amount 16 of physical product at the dispensary. the State's verification system matches the 17 (1) A dispensing organization must receive Department 18 approval before completing an inventory adjustment. It 19 shall 20 Inventory adjustment documentation shall be kept at the 21 dispensary for 2 years from the date performed. 22 provide (2) If in a the the detailed reason dispensing organization cannabis adjustment. identifies 24 inventory reconciliation due to mistake, the dispensing 25 organization shall determine how the imbalance occurred 26 and discovery after take and the an imbalance upon of the 23 immediately amount for daily document - 131 - LRB101 12329 RLC 60273 b 1 corrective action. If the dispensing organization cannot 2 identify the reason for the mistake within 2 calendar days 3 after first discovery, it shall inform the Department 4 immediately in writing of the imbalance and the corrective 5 action taken to date. The dispensing organization shall 6 work diligently to determine the reason for the mistake. 7 (3) If the in dispensing the amount organization imbalance 9 inventory reconciliation or through other means due to 10 theft, criminal activity or suspected criminal activity, 11 the dispensing organization shall immediately determine 12 how the reduction occurred and take and document corrective 13 action. Within 24 hours after the first discovery of the 14 reduction due to theft, criminal activity or suspected 15 criminal 16 inform 17 Regulation and the Department of State Police in writing. the the Department cannabis dispensing of after the an 8 activity, of identifies organization Financial and daily shall Professional 18 (4) The dispensing organization shall file an annual 19 compilation report with the Department of Financial and 20 Professional Regulation, including a financial statement 21 that shall include, but not be limited to, an income 22 statement, 23 statement of cash flow, wholesale cost and sales and any 24 other 25 Financial 26 financial statement shall include any other information balance documentation and sheet, profit requested Professional by and loss the Regulation in statement, Department of writing. The - 132 - LRB101 12329 RLC 60273 b 1 the Department deems necessary in order to effectively 2 administer this 3 decisions promulgated under this Act. Statements required 4 by this Section shall be filed with the Department within 5 60 days after the end of the calendar year. The compilation 6 report shall include a 7 certified public accountant that it has been reviewed and 8 is 9 dispensing accurate Act based and on all rules, orders, and letter authored by the organization, information financial a final licensed provided. statement The and 10 accompanying documents are not required to be audited 11 unless specifically requested by the Department. 12 (e) A dispensing organization shall: 13 (1) Maintain the documentation required in this 14 Section in a secure locked location at the dispensing 15 organization for 5 years from the date on the document; 16 (2) Provide any documentation required to be 17 maintained in this Section to the Department of Financial 18 and Professional Regulation for review upon request; and 19 (3) If maintaining a bank account, retain for a period 20 of 5 years a record of each deposit or withdrawal from the 21 account. 22 (f) If a dispensing organization chooses to have a return 23 policy for cannabis and cannabis products, the dispensary shall 24 seek prior approval from the Department. 25 Section 15-80. Storage requirements. - 133 1 (a) Authorized 2 organization 3 inventory 4 restricted 5 inventory tracking rules. 6 7 8 9 must On-Premises stored access store on the area LRB101 12329 RLC 60273 b Storage. inventory on premises must and tracked A its dispensing premises. be secured consistently All in with a the (b) A dispensary shall be of suitable size and construction to facilitate cleaning, maintenance and proper operations. (c) A dispensary shall maintain adequate lighting, ventilation, temperature, humidity control and equipment. 10 (d) Containers storing cannabis that have been tampered 11 with or opened shall be labeled with the date opened and 12 quarantined from other cannabis products in the vault until 13 they are disposed. 14 15 16 17 (e) Cannabis that was tampered with or damaged shall not be stored at the premises for more than 7 calendar days. (f) Cannabis samples shall be in a sealed container. Samples shall be maintained in the restricted access area. 18 (g) The dispensary storage areas shall be maintained in 19 accordance with the security requirements in this Act and rules 20 (h) Cannabis must be stored at appropriate temperatures and 21 under appropriate conditions to help ensure that its packaging, 22 strength, quality and purity are not adversely affected. 23 Section 15-85. Dispensing cannabis. 24 (a) 25 Before a dispensing organization cannabis to a purchaser, the agent shall: agent dispenses - 134 1 (1) Verify the age of the purchaser by checking a 2 government-issued 3 photograph of the consumer; 4 5 (2) (3) the validity of card the containing a government-issued Offer any appropriate consumer education or support materials; 8 9 Verify identification identification card; 6 7 LRB101 12329 RLC 60273 b (4) Enter the following information into the State's cannabis electronic verification system: 10 (i) 11 The dispensing organization agent's identification number; 12 (ii) The dispensing organization's identification 13 number; 14 (iii) The amount, type (including strain, if 15 applicable) of cannabis or cannabis-infused product 16 dispensed; 17 (iv) The date and time the cannabis was dispensed. 18 (b) A dispensing organization shall refuse to sell cannabis 19 or cannabis products to any person unless the person produces a 20 valid identification showing that the person is 21 years of age 21 or older. A medical cannabis dispensing organization may sell 22 cannabis or cannabis products to a person who is less than 21 23 years of age if the sale complies with the provisions of the 24 Compassionate Use of Medical Cannabis Pilot Program Act and 25 rules. 26 (c) For the purposes of this Section, valid identification - 135 1 LRB101 12329 RLC 60273 b must: 2 (1) Be valid and unexpired; 3 (2) Contain a photograph and date of birth of the 4 person. 5 Section 15-90. Destruction and disposal of cannabis. 6 (a) Cannabis and cannabis-infused products must be 7 destroyed by rendering it unusable using methods approved by 8 the Department of Financial and Professional Regulation that 9 comply with this Act and rules. 10 (b) Cannabis waste rendered unusable must be promptly 11 disposed according to this Act and rules. Disposal of the 12 cannabis 13 permitted 14 Acceptable permitted solid waste facilities include, but are 15 not limited to: 16 waste rendered solid (1) waste Compostable or other unusable facility Mixed may be for final Waste: 17 digester facility with 18 jurisdictional health department. delivered to a disposition. Compost, anaerobic approval of the 19 (2) Noncompostable Mixed Waste: Landfill, incinerator 20 or other facility with approval of the jurisdictional 21 health department. 22 (c) All waste and and entered unusable product shall into the inventory be system weighed, 23 recorded, before 24 rendering it unusable. Verification of this event shall be 25 performed by an agent-in-charge and conducted in an area with - 136 1 2 3 LRB101 12329 RLC 60273 b video surveillance. (d) Electronic documentation of destruction and disposal shall be maintained for a period of at least 5 years. 4 Section 15-95. Agent-in-charge. 5 (a) Every dispensing organization shall designate, at a 6 minimum, one agent-in-charge for each licensed dispensary. The 7 designated agent-in-charge must hold a dispensing organization 8 agent identification card. Maintaining an agent-in-charge is a 9 continuing requirement for the license, except as provided in 10 subsection (g). 11 (b) The agent-in-charge shall be a principal officer or a 12 full-time agent of the dispensing organization and shall manage 13 the dispensary, Managing the dispensary includes, but is not 14 limited 15 dispensary, 16 dispensing 17 dispensing organization agent training, and compliance with 18 this Act and rules. Participation in affairs also includes the 19 responsibility for maintaining all files subject to audit or 20 inspection by the Department at the dispensary. 21 (c) to, The responsibility delivery for acceptance, organization agents, agent-in-charge is opening and oversight closing the sales and of recordkeeping, responsible for inventory, promptly 22 notifying the Department of any change of information required 23 to be reported to the Department. 24 (d) In determining whether an agent-in-charge manages the 25 dispensary, the Department may consider the responsibilities - 137 1 identified 2 organization 3 agent-in-charge, and the employment relationship between the 4 agent-in-charge and the dispensing organization, including the 5 existence of a contract for employment and any other relevant 6 fact or circumstance. 7 in this Section, agents under LRB101 12329 RLC 60273 b the the number of dispensing supervision of the (e) The agent-in-charge is responsible for notifying the 8 Department of a change in the employment status of all 9 dispensing organization agents within 5 business days after the 10 change, including notice to the Department if the termination 11 of an agent was for diversion of product or theft of currency. 12 (f) In the event of the separation of an agent-in-charge 13 due to death, incapacity, termination or any other reason and 14 if the dispensary does not have an active agent-in-charge, the 15 dispensing 16 Department and request a temporary certificate of authority 17 allowing the continuing operation. The request shall include 18 the name of an interim agent-in-charge until a replacement is 19 identified, or shall include the name of the replacement. The 20 Department shall issue the temporary certificate of authority 21 promptly 22 organization fails to promptly request a temporary certificate 23 of authority after the separation of the agent-in-charge, its 24 registration shall cease until the Department approves the 25 temporary 26 agent-in-charge. No temporary certificate of authority shall organization after it shall approves certificate of the immediately request. authority or If contact a the dispensing registers a new - 138 - LRB101 12329 RLC 60273 b 1 be valid for more than 90 days. The succeeding agent-in-charge 2 shall register with the Department in compliance with this 3 Article. 4 registered with the Department, the temporary certificate of 5 authority is void. No temporary certificate of authority shall 6 be issued for the separation of an agent-in-charge due to 7 disciplinary action by the Department related to his or her 8 conduct on behalf of the dispensing organization. 9 Once (g) the The permanent succeeding dispensing agent-in-charge is organization agent-in-charge 10 registration shall expire one year from the date it is issued. 11 The agent-in-charge's registration shall be renewed annually. 12 The 13 history when determining whether to grant the request to renew. 14 (h) Upon termination of an agent-in-charge's employment, Department shall dispensing review organization the the 16 dispensary 17 organization shall promptly return the identification card to 18 the Department. identification immediately compliance 15 agent shall dispensary's card. reclaim The the dispensing 19 (i) The Department may deny an application or renewal, 20 discipline or revoke an agent-in-charge identification card 21 for any of the following reasons: 22 (1) Submission 23 fraudulent 24 application; of information misleading, in the incorrect, application or false or renewal 25 (2) Violation of the requirements of this Act or rules; 26 (3) Fraudulent use of the agent-in-charge - 139 1 LRB101 12329 RLC 60273 b identification card; 2 (4) Selling, distributing, transferring in any manner, 3 or giving cannabis to any unauthorized person; 4 (5) Tampering with, falsifying, altering, modifying or 5 duplicating an agent-in-charge identification card; 6 (6) Tampering with, falsifying, altering, modifying 7 the surveillance video footage, point-of-sale system, or 8 the State's verification system; 9 (7) Failure to notify the Department immediately upon 10 discovery that the agent-in-charge identification card has 11 been lost, stolen or destroyed; 12 (8) Failure to notify the Department within 5 business 13 days after a change in the information provided in the 14 application for an agent-in-charge identification card; 15 (9) Conviction of an excluded offense or any incident 16 listed in this Act or rules following the issuance of an 17 agent-in-charge identification card; or 18 (10) Dispensing to purchasers in amounts above the 19 limits provided in this Act. 20 Section 15-100. Security. 21 (a) A dispensing organization shall implement security 22 measures to deter and prevent entry into and theft of cannabis 23 or currency. 24 25 (b) A dispensing organization shall submit any changes to the floor plan or security plan to the Department for - 140 - LRB101 12329 RLC 60273 b 1 pre-approval. All cannabis shall be maintained and stored in a 2 restricted access area during construction. 3 (c) The dispensing organization shall implement security 4 measures 5 organization 6 following: 7 8 to protect agents the premises, including, but consumers, not dispensing limited to the (1) Establish a locked door or barrier between the facility's entrance and the limited access area; 9 (2) Prevent individuals from remaining on the premises 10 if they are not engaging in activity permitted by this Act 11 or rules; 12 (3) Develop a policy that addresses the maximum 13 capacity and consumer flow in the waiting rooms and limited 14 access areas; 15 16 17 (4) Dispose of cannabis in accordance with this Act and rules; (5) During hours of operation, store and dispense all 18 cannabis from the restricted access area. During 19 operational hours, cannabis shall be stored in an enclosed 20 locked room or cabinet and accessible only to specifically 21 authorized dispensing organization agents; 22 (6) When the dispensary is closed, store all cannabis 23 and currency in a reinforced vault room in the restricted 24 access area and in a manner as to prevent diversion, theft 25 or loss; 26 (7) Keep the reinforced vault room and any other - 141 - LRB101 12329 RLC 60273 b 1 equipment or cannabis storage areas securely locked and 2 protected from unauthorized entry; 3 (8) Keep an electronic daily log of dispensing 4 organization agents with access to the reinforced vault 5 room and knowledge of the access code or combination; 6 7 8 9 (9) Keep all locks and security equipment in good working order; (10) The security and alarm system shall be operational at all times. 10 (11) Prohibit keys, if applicable, from being left in 11 the locks, or stored or placed in a location accessible to 12 persons other than specifically authorized personnel; 13 (12) Prohibit accessibility of security measures, 14 including combination numbers, passwords or electronic or 15 biometric 16 specifically authorized dispensing organization agents; 17 18 19 (13) security Ensure the systems to dispensary persons interior other and than exterior premises are sufficiently lit to facilitate surveillance; (14) Ensure that trees, bushes and other foliage 20 outside of the dispensary premises do not allow for a 21 person or persons to conceal themselves from sight; 22 (15) Develop emergency policies and procedures for 23 securing all product and currency following any instance of 24 diversion, theft 25 assessment to determine whether additional safeguards are 26 necessary; and or loss of cannabis, and conduct an - 142 1 (16) Develop sufficient LRB101 12329 RLC 60273 b additional safeguards in 2 response to any special security concerns, or as required 3 by the Department. 4 (d) The Department may request or approve alternative 5 security 6 substitute 7 Article. Any additional protections may be considered by the 8 Department in evaluating overall security measures. 9 provisions (e) A for a that it security determines requirement are an specified adequate in this dispensing organization may share premises with 10 another licensee as permitted in this Act other than a adult 11 use cultivation center, provided each licensee stores currency 12 and cannabis or cannabis-infused products in a separate secured 13 vault to which the other licensee does not have access, or to 14 which all licensees sharing the vault are owned by the same 15 entity. 16 (f) A dispensing organization shall provide additional 17 security 18 community where it operates. 19 as needed and in a manner appropriate for the (g) Restricted Access Areas. 20 (1) All restricted access areas must be identified by 21 the posting of a sign that is a minimum of 12 inches by 12 22 inches and that states "Do Not Enter - Restricted Access 23 Area - Authorized Personnel Only" in lettering no smaller 24 than one inch in height. 25 26 (2) All restricted access areas shall be clearly described in the floor plan of the premises, in the form - 143 - LRB101 12329 RLC 60273 b 1 and manner determined by the Department, reflecting walls, 2 partitions, counters and all areas of entry and exit. The 3 floor plan shall show all storage, disposal, and retail 4 sales areas. 5 (3) All restricted access areas must be secure, with 6 locking devices that prevent access from the limited access 7 areas. 8 (h) Security and Alarm. 9 (1) A dispensing organization shall have an adequate 10 security plan and security system to prevent and detect 11 diversion, 12 unauthorized intrusion using commercial grade equipment 13 installed by an Illinois licensed private alarm contractor 14 or 15 minimum, include: 16 17 private alarm or loss contractor of cannabis, agency that currency shall, at or a (i) A perimeter alarm on all entry points and glass break protection on perimeter windows; 18 19 theft (ii) Security shatterproof tinted film on exterior windows; 20 (iii) A failure notification system that provides 21 an audible, text or visual notification of any failure 22 in the surveillance system, including but not limited 23 to, 24 system. The failure notification system shall provide 25 an alert to designated dispensing organization agents 26 within 5 minutes after the failure, either by telephone panic buttons, alarms, and video monitoring - 144 1 LRB101 12329 RLC 60273 b or text message; 2 (iv) A duress alarm, panic button and alarm, or 3 holdup alarm and after-hours intrusion detection alarm 4 that by design and purpose will directly or indirectly 5 notify, by the most efficient means, the Public Safety 6 Answering Point for the law enforcement agency having 7 primary jurisdiction; 8 (v) Security equipment to deter and prevent 9 unauthorized entrance into the dispensary, including 10 electronic door locks on the limited and restricted 11 access areas 12 devices 13 include a signal system interconnected with a radio 14 frequency method, cellular, private radio signals or 15 other mechanical or electronic device; 16 (2) All security system equipment and recordings shall 17 be maintained in good working order, in a secure location 18 so as to prevent theft, loss, destruction or alterations. 19 (3) to Access that detect to include devices or unauthorized surveillance a series of intrusion monitoring that may recording 20 equipment shall be limited to persons that are essential to 21 surveillance 22 acting within their jurisdiction, security system service 23 personnel and the Department. A current list of authorized 24 dispensing organization agents and service personnel that 25 have access to the surveillance equipment must be available 26 to the Department upon request. operations, law enforcement authorities - 145 - LRB101 12329 RLC 60273 b 1 (4) All security equipment shall be inspected and 2 tested at regular intervals, not to exceed one month from 3 the previous inspection and test to ensure the systems 4 remain functional. 5 (5) The security system shall provide protection 6 against theft and diversion that is facilitated or hidden 7 by tampering with computers or electronic records. 8 (6) The dispensary shall ensure all access doors are 9 not solely controlled by an electronic access panel to 10 ensure that locks are not released during a power outage. 11 (i) To monitor the dispensary, the dispensing organization 12 shall incorporate continuous 13 including the following: electronic video monitoring 14 (1) All monitors must be 19-inches or greater; 15 (2) Unobstructed video surveillance of all enclosed 16 dispensary areas, unless prohibited by law, including all 17 points of entry and exit that shall be appropriate for the 18 normal lighting conditions of the area under surveillance. 19 The cameras shall be directed so all areas are captured, 20 including, but not limited to, safes, vaults, sales areas 21 and areas where cannabis is stored, handled, dispensed or 22 destroyed. Cameras shall be angled to allow for facial 23 recognition, 24 identification 25 dispensary area and in lighting sufficient during all times 26 of night or day; the of capture any person of clear entering and or certain exiting the - 146 1 LRB101 12329 RLC 60273 b (3) Unobstructed video surveillance of outside areas, 2 the 3 appropriate for the normal lighting conditions of the area 4 under surveillance. Cameras shall be angled so as to allow 5 for the capture of facial recognition, clear and certain 6 identification 7 dispensary, the immediate surrounding area and license 8 plates of vehicles in the parking lot; 9 storefront (4) and of 24-hour the any parking person recordings lot, entering from all that or shall exiting video be the cameras 10 available for immediate viewing by the Department upon 11 request. Recordings shall not be destroyed or altered and 12 retained for at least 90 days. Recordings shall be retained 13 as long as necessary if the dispensing organization is 14 aware of the loss or theft of cannabis or a pending 15 criminal, civil or administrative investigation, or legal 16 proceeding for which the recording may contain relevant 17 information; 18 (5) The ability to immediately produce a clear, color 19 still photo from the surveillance video, either live or 20 recorded; 21 (6) A date and time date and all time video surveillance 23 synchronized and set correctly and shall not significantly 24 obscure the picture; 26 The embedded on 22 25 recordings. stamp shall be (7) The ability to remain operational during a power outage and ensure all access doors are not solely - 147 - LRB101 12329 RLC 60273 b 1 controlled by an electronic access panel to ensure that 2 locks are not released during a power outage; 3 (8) All video surveillance equipment shall allow for 4 the exporting of still images in an industry standard image 5 format, including .jpg, .bmp, and .gif. Exported video 6 shall have the ability to be archived in a proprietary 7 format 8 guarantees that no alteration of the recorded image has 9 taken place. Exported video shall also have the ability to 10 be saved in an industry standard file format that can be 11 played 12 recordings shall be erased or destroyed before disposal; that on ensures a authentication standard computer of the operating video system. and All 13 (9) The video surveillance system shall be operational 14 during a power outage with a 4-hour minimum battery backup; 15 (10) A video camera or cameras recording at each 16 point-of-sale location allowing for the identification of 17 the 18 cannabis and any consumer. The camera or cameras shall 19 capture the sale, the individuals and the computer monitors 20 used for the sale; dispensing organization agent distributing the 21 (11) A failure notification system that provides an 22 audible and visual notification of any failure in the 23 electronic video monitoring system; and 24 (12) All electronic video surveillance monitoring must 25 record at least the equivalent of 8 frames per second and 26 be available to the Department and the Department of State - 148 - LRB101 12329 RLC 60273 b 1 Police 24 hours a day in real time via a secure web-based 2 portal with reverse functionality. 3 (j) The requirements contained in this Act are minimum 4 requirements for operating a dispensing organization. The 5 Department may establish additional requirements by rule. 6 Section 15-110. Recordkeeping. 7 (a) Dispensing organization records must be maintained 8 electronically and 9 Department Financial of be available and for inspection Professional by Regulation the upon 10 request. Required written records include, but are not limited 11 to, the following: 12 (1) Operating procedures; 13 (2) Inventory records, policies and procedures; 14 (3) Security records; 15 (4) Audit records; 16 (5) Staffing plan; and 17 (6) Business records, including but not limited to: 18 (i) Assets and liabilities; 19 (ii) Monetary transactions; 20 (iii) Written or electronic accounts that shall 21 include 22 supporting documents, agreements, checks, invoices, 23 receipts and vouchers; and 24 25 (iv) bank Any statements, other journals, financial ledgers accounts related to the dispensary operations. and reasonably - 149 - LRB101 12329 RLC 60273 b 1 (b) Storage and transfer of records. If a dispensary closes 2 due to insolvency, revocation, bankruptcy or for any other 3 reason, all records must be preserved at the expense of the 4 dispensing organization for at least 3 years in a form and 5 location 6 dispensing 7 requested by the Department. The dispensing organization shall 8 notify the Department of the location where the dispensary 9 records are stored or transferred. in Illinois acceptable organization shall to keep the the Department. records longer The if 10 Section 15-120. Closure of a dispensary. 11 (a) If a dispensing organization decides not to renew its 12 license or decides to close its business, it shall promptly 13 notify 14 Regulation, not less than 3 months before the effective date of 15 the closing date or as otherwise authorized by the Department. 16 (b) the The Department dispensing of Financial organization and shall Professional work with the 17 Department to develop a closure plan that addresses, at a 18 minimum, the transfer of business records, transfer of cannabis 19 products, and anything else the Department finds necessary. 20 Section 15-125. Fees. After January 1, 2022, the Department 21 of Financial and Professional Regulation may by rule modify any 22 application or renewal fee established under this Article. 23 Section 15-130. Confidentiality. - 150 - LRB101 12329 RLC 60273 b 1 (a) The following information received and records kept by 2 the Department of Financial and Professional Regulation for 3 purposes of administering this Article are subject to all 4 applicable federal privacy laws, confidential, and exempt from 5 the Freedom of Information Act, and not subject to disclosure 6 to any individual or public or private entity, except as 7 necessary for authorized 8 Financial and Professional 9 duties under kept Regulation Article by of and the the the to Department perform following Department of of official information 10 received 11 Professional Regulation, excluding any existing or nonexisting 12 Illinois or national criminal history record information, may 13 be disclosed to the Department of Public Health, the Department 14 of Agriculture, the Department of Revenue, or the Department of 15 State Police upon request: 16 and this employees Financial and (1) Applications and renewals, their contents, and 17 supporting 18 dispensing organizations in compliance with this Article, 19 including their physical addresses; 20 21 information submitted by or on behalf of (2) Any plans, procedures, policies, or other records relating to dispensing organization security; 22 (3) Information otherwise exempt from disclosure by 23 State or federal law. 24 (b) All information collected by the Department of 25 Financial and Professional Regulation in the course of an 26 examination, inspection, or investigation of a licensee or - 151 - LRB101 12329 RLC 60273 b 1 applicant, including, but not limited to, any complaint against 2 a 3 information collected to investigate any such complaint, shall 4 be maintained for the confidential use of the Department and 5 shall not be disclosed, except as otherwise provided in the 6 Act. 7 Department or any disciplinary order issued by the Department 8 against a licensee or applicant shall be a public record, 9 except as otherwise prohibited by law. licensee A or formal applicant filed complaint filed with the against a Department licensee by and the 10 Section 15-135. Investigations. 11 (a) Dispensing organizations are subject to random and 12 unannounced dispensary inspections and cannabis testing by the 13 Department of Financial and Professional Regulation and the 14 Department of State Police. 15 (b) The Department of Financial and Professional 16 Regulation and its authorized representatives may enter any 17 place, including a vehicle, in which cannabis is held, stored, 18 dispensed, 19 manufactured, or 20 manner, the place and all pertinent equipment, containers and 21 labeling, and all things including records, files, financial 22 data, sales data, shipping data, pricing data, personnel data, 23 research, 24 inventory any stock of cannabis and obtain samples of any 25 cannabis or cannabis product, any labels or containers for sold, papers, produced, disposed of processes, delivered, and inspect in controls and transported, a reasonable facility, and - 152 1 LRB101 12329 RLC 60273 b cannabis, or paraphernalia. 2 (c) 3 Regulation 4 application, 5 dispensary agent, 6 associated with 7 violation of this Act or rules or to determine qualifications 8 to be granted a registration by the Department. 9 (d) The Department may conduct of an dispensing The third a and investigation organization, party dispensing Department Financial vendor of an applicant, principal or any organization of Professional Financial officer, other for and an party alleged Professional 10 Regulation may require an applicant or dispensing organization 11 to produce documents, records or any other material pertinent 12 to the investigation of an application or alleged violations of 13 this Act or rules. Failure to provide the required material may 14 be grounds for denial or discipline. 15 (e) Every person charged with preparation, obtaining, or 16 keeping records, logs, 17 connection with this Act and rules and every person in charge, 18 or having custody, of those documents shall, upon request by 19 the Department, make the documents immediately available for 20 inspection and copying by the Department, the Department's 21 authorized representative, or others authorized by law to 22 review the documents. 15-140. reports, Citations. or documents Section 24 nondisciplinary 25 citation issued by the Department may be accompanied by a fee. for minor Department violations. may in 23 citations The other Any issue such - 153 - LRB101 12329 RLC 60273 b 1 The fee shall not exceed $20,000 per violation. The citation 2 shall 3 licensee's name and address, the licensee's license number, a 4 brief factual statement, the Sections of the law allegedly 5 violated, and the fee, if any, imposed. The citation must 6 clearly 7 accepting the citation, to request a hearing. If the licensee 8 does not dispute the matter in the citation with the Department 9 within 30 days after the citation is served, then the citation 10 shall become final and not subject to appeal. The penalty shall 11 be a fee or other conditions as established by rule. be issued state to that the the licensee licensee and may shall choose, 12 Section 15-145. Grounds for discipline. 13 (a) The Department of Financial and contain in lieu the of Professional 14 Regulation may deny issuance, refuse to renew, or restore or 15 may reprimand, place on probation, suspend, revoke, or take 16 other 17 license or agent identification card or may impose a fine for 18 any of the following: 19 20 disciplinary or nondisciplinary action against any (1) Material misstatement in furnishing information to the Department; 21 (2) Violations of this Act or rules; 22 (3) Obtaining an authorization or license by fraud or 23 24 25 misrepresentation; (4) A pattern of conduct incompetence or lack of fitness; that demonstrates - 154 1 2 (5) Aiding or assisting another person in violating any provision of this Act or rules; 3 4 (6) Failing to respond to a written request for information by the Department within 30 days; 5 (7) Engaging unprofessional, unethical 7 defraud, or harm the public; 8 conduct in 6 9 LRB101 12329 RLC 60273 b of a character dishonorable, likely to or deceive, (8) Discipline by another United States jurisdiction or foreign nation; 10 (9) A finding by the Department that the licensee, 11 after having his or her license placed on suspended or 12 probationary 13 suspension or probation; 14 (10) status, has violated Conviction, entry of a the plea of terms of the guilty, nolo 15 contendere or the equivalent in a State or federal court of 16 a 17 offense, a felony, or of 2 or more misdemeanors involving 18 moral turpitude during the previous 5 years as shown by a 19 certified copy of a court record; 20 21 22 23 24 25 26 principal officer or agent-in-charge to an excluded (11) Excessive use or addiction to alcohol, narcotics, stimulants, or any other chemical agent or drug; (12) A finding by the Department of a discrepancy in a Department audit of cannabis; (13) A finding by the Department of a discrepancy in a Department audit of capital or funds; (14) A finding by the Department of acceptance of - 155 - LRB101 12329 RLC 60273 b 1 cannabis from a source other than an Adult Use Cultivation 2 Center licensed by the Department of Agriculture; 3 (15) An inability to operate judgment, skill, or 5 illness or 6 without limitation, 7 process or loss of motor skills or mental incompetence; impairment to reasonable 4 other safety due using or deterioration physical or disability, through mental including the aging 8 (16) Failing to report to the Department within the 9 timeframes established, or if not identified, 14 days, of 10 any adverse final action taken against the dispensing 11 organization or an agent by a licensing jurisdiction in any 12 state or any territory of the United States or any foreign 13 jurisdiction, any governmental agency, any law enforcement 14 agency or any court defined in this Section; 15 16 17 18 (17) Failing to comply with a subpoena issued by the Department; (18) Failure to promptly inform the Department of any change of address; 19 (19) Disclosing customer names, personal information, 20 or protected health information in violation of any State 21 or federal law; 22 23 24 25 26 (20) Operating a dispensary before obtaining a license from the Department; (21) Dispensing cannabis when prohibited by this Act or rules; (22) Any fact or condition that, if it had existed at - 156 - LRB101 12329 RLC 60273 b 1 the time of the original application for the license, would 2 have warranted the denial of the license; 3 (23) Permitting 4 identification 5 organization; 6 7 10 be without employed by a valid the agent dispensing by this Article; (25) Personnel insufficient in number or unqualified in training or experience to properly operate the dispensary business; 11 12 to person (24) Failure to assign an agent-in-charge as required 8 9 card a (26) Any pattern of activity that causes a harmful impact on the community; and 13 (27) Failing to prevent diversion, theft, or loss of 14 cannabis. 15 (b) All fines and fees imposed under this Section shall be 16 paid within 60 days after the effective date of the order 17 imposing the fine or as otherwise specified in the order. 18 (c) A circuit or court order principal establishing officer holding that an an 19 agent-in-charge agent 20 identification card is subject to involuntary admission as that 21 term is defined in Sections 1-119 or 1-119.1 of the Mental 22 Health and Developmental Disabilities Code shall operate as a 23 suspension of that card. 24 Section 15-150. Temporary suspension. 25 (a) The Secretary of Financial and Professional Regulation - 157 - LRB101 12329 RLC 60273 b 1 may temporarily suspend a dispensing organization license or an 2 agent registration without a hearing if the Secretary finds 3 that public safety or welfare requires emergency action. The 4 Secretary shall cause the temporary suspension by issuing a 5 suspension 6 proceedings for a hearing. notice in connection with the institution of 7 (b) If the Secretary temporarily suspends a license or 8 agent registration without a hearing, the licensee or agent is 9 entitled to a hearing within 45 days after the suspension 10 notice has been issued. The hearing shall be limited to the 11 issues cited in the suspension notice, unless all parties agree 12 otherwise. 13 (c) If the Department does not hold a hearing with 45 days 14 after the date the suspension notice was issued, then the 15 suspended 16 reinstated and the suspension vacated. license or registration shall be automatically 17 (d) The suspended licensee or agent may seek a continuance 18 of the hearing date, during which time the suspension remains 19 in 20 automatically reinstated. 21 effect (e) and the Subsequently license or discovered registration causes of shall action not by be the 22 Department after the issuance of the suspension notice may be 23 filed as a separate notice of violation. The Department is not 24 precluded from filing a separate cause of action against the 25 suspended licensee or agent. - 158 1 Section 15-155. Consent to LRB101 12329 RLC 60273 b administrative supervision 2 order. In appropriate cases, the Department of Financial and 3 Professional Regulation may resolve a 4 licensee or agent through the issuance of a consent order for 5 administrative supervision. A license or agent subject to a 6 consent order shall be considered by the Department to hold a 7 license or registration in good standing. 8 Section 15-160. Notice; hearing. 9 (a) The Department shall, before disciplining an applicant 10 or licensee, at least 30 days before the date set for the 11 hearing: (i) notify the accused in writing of the charges made 12 and the time and place for the hearing on the charges, (ii) 13 direct him or her to file a written answer to the charges under 14 oath 15 applicant or licensee that failure to answer will result in a 16 default being entered against the applicant or licensee. within 20 days after complaint against a service, and (iii) inform the 17 (b) At the time and place fixed in the notice, the hearing 18 officer appointed by the Secretary shall proceed to hear the 19 charges, and the parties or their counsel shall be accorded 20 ample 21 testimony, evidence, and arguments. The hearing officer may 22 continue the hearing from time to time. In case the person, 23 after receiving the notice, fails to file an answer, his or her 24 license may, in the discretion of the Secretary, having first 25 received opportunity the to present recommendation of any the pertinent hearing statements, officer, be - 159 - LRB101 12329 RLC 60273 b 1 suspended, revoked, or placed on probationary status, or be 2 subject 3 considers proper, including a fine, without hearing, if that 4 act or acts charged constitute sufficient grounds for that 5 action under this Act. to whatever disciplinary action the Secretary 6 (c) The written notice and any notice in the subsequent 7 proceeding may be served by regular mail or email to the 8 licensee's or applicant's address of record. 9 Section 15-165. Subpoenas; oaths. The Department of 10 Financial and Professional Regulation shall have power to 11 subpoena and bring before it any person and to take testimony 12 either orally or by deposition, or both, with the same fees and 13 mileage and in the same manner as prescribed by law in judicial 14 proceedings in 15 Secretary or the hearing officer shall each have power to 16 administer 17 Department is authorized to conduct. civil oaths to cases in witnesses courts at any in this hearings State. that The the 18 Section 15-170. Hearing; motion for rehearing. 19 (a) The hearing officer shall hear evidence in support of 20 the formal charges and evidence produced by the licensee. At 21 the 22 present to the Secretary a written report of his or her 23 findings of fact, conclusions of law, and recommendations. 24 conclusion of the hearing, the hearing officer shall (b) At the conclusion of the hearing, a copy of the hearing - 160 - LRB101 12329 RLC 60273 b 1 officer's report shall be served upon the applicant or licensee 2 by the Department, either personally or as provided in this Act 3 for the service of a notice of hearing. Within 20 calendar days 4 after service, the applicant or licensee may present to the 5 Department a motion in writing for rehearing, which shall 6 specify the particular grounds for rehearing. The Department 7 may respond to the motion for rehearing within 20 calendar days 8 after its service on the Department. If no motion for rehearing 9 is filed, then upon the expiration of the time specified for 10 filing such motion, or upon denial of a motion for rehearing, 11 the 12 recommendation of the hearing officer. If the applicant or 13 licensee orders from the reporting service and pays for a 14 transcript of the record within the time for filing a motion 15 for rehearing, the 20-day period within which a motion may be 16 filed shall commence upon the delivery of the transcript to the 17 applicant or licensee. Secretary may enter an order in accordance with the 18 (c) If the Secretary disagrees in any regard with the 19 report of the hearing officer, the Secretary may issue an order 20 contrary to the report. 21 (d) Whenever the Secretary is not satisfied that 22 substantial justice has been done, the Secretary may order a 23 rehearing by the same or another hearing officer. 24 (e) At any point in any investigation or disciplinary 25 proceeding under in this Article, both parties may agree to a 26 negotiated consent order. The consent order shall be final upon - 161 1 2 3 4 LRB101 12329 RLC 60273 b signature of the Secretary. Section 15-175. Review under the Administrative Review Law. (a) All final administrative decisions of the Department 5 hereunder shall be subject to judicial review under the 6 provisions of the Administrative Review Law, and all amendment 7 and modifications thereof. The term "administrative decision" 8 is defined as in Section 3-101 of the Code of Civil Procedure. 9 (b) Proceedings for judicial review shall be commenced in 10 the circuit court of the county in which the party applying for 11 review resides, but if the party is not a resident of Illinois, 12 the venue shall be in Sangamon County. 13 (c) The Department shall not be required to certify any 14 record to the court, file any answer in court or otherwise 15 appear in any court in a judicial review proceeding, unless and 16 until the Department has received from the plaintiff payment of 17 the costs of furnishing and certifying the record, which costs 18 shall be determined by the Department. Failure on the part of 19 the plaintiff to file a receipt in court shall be grounds for 20 dismissal of the action. 21 ARTICLE 20. 22 ADULT USE CULTIVATION CENTERS 23 Section 20-5. Issuance of licenses. On or after January 1, - 162 1 2 LRB101 12329 RLC 60273 b 2021, the Department of Agriculture by rule may: (1) Modify or change the number of cultivation center 3 licenses available, which 4 cultivation center licenses. In determining whether to 5 exercise the authority granted by this subsection, the 6 Department 7 factors: of Agriculture shall must at no time consider the exceed 30 following 8 (A) The percentage of cannabis sales occurring in 9 Illinois not in the regulated market using data from 10 the 11 Administration, 12 Health, Illinois Behavioral Risk Factor Surveillance 13 System, and tourism data from the Illinois Office of 14 Tourism to ascertain total cannabis consumption in 15 Illinois compared to the amount of sales in licensed 16 dispensing organizations; 17 Substance abuse and National and 19 medical cannabis patients; 21 Survey Health on Drug Services Use and (B) Whether there is an adequate supply of cannabis 18 20 Mental cannabis-infused products to serve registered (C) Whether there is an adequate supply of cannabis and cannabis-infused products to serve purchasers; 22 (D) Whether there is an oversupply of cannabis in 23 Illinois leading to trafficking of cannabis to states 24 where the sale of cannabis is not permitted by law; 25 (E) Population increases or shifts; 26 (F) Changes to federal law; - 163 1 LRB101 12329 RLC 60273 b (G) Perceived security risks of increasing the 2 number or location of cultivation centers; 3 (H) 4 The past security records of cultivation centers; 5 (I) The Department of Agriculture's capacity to 6 appropriately regulate additional licensees; 7 (J) The findings and recommendations from the 8 disparity and availability study commissioned by the 9 Department of Commerce and Economic Opportunity 10 referenced in subsection (e) of Section 5-45 to reduce 11 or eliminate any identified barriers to entry in the 12 cannabis industry; and 13 (K) Any other criteria the Department of 14 Agriculture deems relevant. 15 (2) Modify or change the licensing application process 16 to reduce or eliminate the barriers identified in the 17 disparity 18 Illinois Cannabis Regulation Oversight Officer and shall 19 make modifications to remedy evidence of discrimination. 20 Section 20-10. Early Approval of Adult Use Cultivation 21 and availability study commission by the Center License. 22 (a) Any medical cannabis cultivation center registered and 23 in good standing under the Compassionate Use of Medical 24 Cannabis Pilot Program Act may, within 60 days of the effective 25 date of this Act, apply to the Department of Agriculture for an - 164 - LRB101 12329 RLC 60273 b 1 Early Approval Adult Use Cultivation Center License to produce 2 cannabis and cannabis products at its existing facilities as of 3 the effective date of this Act. 4 (b) A medical cannabis cultivation center seeking issuance 5 of an Early Approval Adult Use Cultivation Center License shall 6 submit an application on forms provided by the Department of 7 Agriculture. 8 qualifications: 9 10 11 12 The application must meet the following (1) Includes payment of a nonrefundable permit fee of $100,000 to be deposited in the Cannabis Regulation Fund; (2) Proof of registration as a medical cannabis cultivation center that is in good standing; 13 (3) Submission of the application by the same person or 14 entity that holds the medical cannabis cultivation center 15 registration; 16 17 (4) Certification that the applicant will comply with the requirements of Section 20-30; 18 (5) Include the legal name of the cultivation center; 19 (6) Include the physical address of the cultivation 20 center; 21 (7) The name, address, social security number, and date 22 of birth of each principal officer and board member of the 23 cultivation center; each of those individuals shall be at 24 least 21 years of age; 25 (8) A nonrefundable Cannabis Business Development fee 26 equal to 5% of the cultivation center's total sales between - 165 - LRB101 12329 RLC 60273 b 1 July 1, 2018 to July 1, 2019 or $500,000, whichever is 2 less, but at not less than $100,000, to be deposited in the 3 Cannabis Business Development Fund; and 4 (9) Commit to completing one of the following Social 5 Equity Inclusion Plans provided for in this subsection (b) 6 before the expiration of the Early Approval Adult Use 7 Dispensing Organization License: 8 (A) A contribution of 5% of the cultivation 9 center's total sales from June 1, 2018, to June 1, 10 2019, or $100,000, whichever is less, to one of the 11 following: 12 (i) the Cannabis Business Development Fund. 13 This is in addition to the fee required by item (8) 14 of subsection (b) of this Section; 15 (ii) a cannabis industry training or education 16 program at an Illinois community college 17 defined in the Public Community College Act; as 18 (iii) a program that provides job training 19 services to persons recently incarcerated or that 20 operate in a Disproportionately Impacted Area. 21 (B) Participate as a host in a cannabis business 22 incubator program approved by the Department of 23 Commerce and Economic Opportunity, and in which an 24 Early Approval Adult Use Cultivation Center License 25 holder agrees to provide a loan of at least $100,000 26 and mentorship to incubate a licensee that qualifies as - 166 - LRB101 12329 RLC 60273 b 1 a Social Equity Applicant for at least a year. As used 2 here, 3 assistance 4 licensed cannabis industry activity similar to that of 5 the 6 Cultivation Center License holder or the same entity 7 holding any other licenses issued pursuant to this Act 8 shall not take an ownership stake of greater than 10% 9 in incubate host any and means training licensee. business providing The direct necessary Early receiving to engage Approval incubation financial Adult services in Use to 10 comply with this subsection. If an Early Approval Adult 11 Use Cultivation Center License holder fails to find a 12 business to incubate to comply with this subsection 13 before its Early Approval Adult Use Cultivation Center 14 License expires, it may opt to meet the requirement of 15 this subsection by completing another item from this 16 subsection 17 Approval Adult Use Cultivation Center License to avoid 18 a penalty. prior to the expiration of its Early 19 (c) An Early Approval Adult Use Cultivation Center License 20 shall be valid until March 31, 2021. A cultivation center that 21 obtains an Early Approval Adult Use Cultivation Center License 22 shall receive written or electronic notice 90 days before the 23 expiration of the license that the license will expire, and 24 inform the license holder that it may apply for an Adult Use 25 Cultivation 26 shall grant an Adult Use Cultivation Center License within 45 Center License. The Department of Agriculture - 167 1 LRB101 12329 RLC 60273 b days of submission of an application if: 2 (1) the cultivation center submits an application and 3 the required nonrefundable fee of $30,000 for an Adult Use 4 Cultivation Center License; 5 (2) the Department of Agriculture has not suspended the 6 license of the cultivation center or suspended or revoked 7 the license for violating this Act or rules adopted under 8 this Act; and 9 (3) the dispensing organization has completed a Social 10 Equity Inclusion Plan as required by item (8) of subsection 11 (b) of this Section. 12 (d) The license fee required by paragraph (1) of subsection 13 (c) of this Section shall be in addition to any license fee 14 required for the renewal of a registered medical cannabis 15 cultivation center license that expires during the effective 16 period of the Early Approval Adult Use Cultivation Center 17 License. 18 (e) Applicants must submit all required information, 19 including the requirements in subsection (b) of this Section to 20 the Department of Agriculture. Failure by an applicant to 21 submit all required information may result in the application 22 being disqualified. 23 (f) If the Department of Agriculture receives an 24 application with missing information, the Department may issue 25 a deficiency notice to the applicant. The applicant shall have 26 10 calendar days from the date of the deficiency notice to - 168 1 submit 2 incomplete after this opportunity to cure may be disqualified. 3 complete (g) If an information. LRB101 12329 RLC 60273 b applicant Applications meets all the that are still requirements of 4 subsection (b) of this Section, the Department of Agriculture 5 shall issue the Early Approval Adult Use Cultivation Center 6 License within 14 days of receiving the application unless: 7 (1) The licensee; principal officer, board member, or 8 person having a financial or voting interest of 5% or 9 greater in the licensee; or agent is delinquent in filing 10 any required tax returns or paying any amounts owed to the 11 State of Illinois; or 12 (2) The Director of Agriculture determines there is 13 reason, 14 compliance violations, the licensee is not entitled to an 15 Early Approval Adult Use Cultivation Center License; or 16 based on an inordinate number of documented (3) The licensee fails to commit to the community 17 benefits program. 18 (h) A cultivation center that obtains an Early Approval 19 Adult Use Cultivation Center License may begin producing 20 cannabis and cannabis products once the dual use application is 21 approved. A cultivation center that obtains an Early Approval 22 Adult Use Cultivation Center License may begin selling cannabis 23 and cannabis products on September 1, 2019. 24 (i) An Early Approval Adult Use Cultivation Center License 25 holder must continue to produce and provide an adequate supply 26 of cannabis and cannabis-infused products for purchase by - 169 - LRB101 12329 RLC 60273 b 1 qualifying patients and caregivers. For the purposes of this 2 subsection, adequate supply means a monthly production level 3 that is comparable in type and quantity to those medical 4 cannabis products produced for patients and caregivers on an 5 average monthly basis for the 6 months before the effective 6 date of this Act. 7 (j) If there is a shortage of cannabis or cannabis-infused 8 products, 9 registered under the Compassionate Use of Medical Cannabis 10 a license holder shall prioritize patients Pilot Program Act over adult use purchasers. 11 (k) A cultivation center that obtains an Early Approval 12 Adult Use Cultivation Center License shall receive written or 13 electronic notice 90 days before the expiration of the license 14 that the license will expire, and inform the license holder 15 that it may apply for an Adult Use Cultivation Center License. 16 The 17 Cultivation Center License within 45 days of submission of an 18 application 19 recipient of an Early Approval Adult Use Cultivation License 20 Holder if: Department for of an Agriculture Adult Use shall grant Cultivation an Adult Center Use from a 21 (1) the cultivation center submits an application and 22 the required nonrefundable fee for an Adult Use Cultivation 23 Center License; 24 (2) the Department of Agriculture has not suspended the 25 license of the dispensing organization or suspended or 26 revoked the license for violating this Act or rules adopted - 170 1 LRB101 12329 RLC 60273 b under this Act; and 2 (3) the cultivation center has completed a Community 3 Benefits Plan as required by paragraph (9) of subsection 4 (b) of this Section. 5 (l) If a cultivation center fails to submit an application 6 for 7 expiration of the Early Approval Adult Use Cultivation Center 8 License, 9 purchasers 10 an Adult the Use Cultivation dispensing operations Center organization until it License shall before cease receives an the serving Adult Use Cultivation Center License. 11 (m) A cultivation center agent who holds a valid 12 cultivation center agent identification card issued under the 13 Compassionate Use of Medical Cannabis Pilot Program Act and is 14 an officer, director, manager, or employee of the cultivation 15 center licensed under this Section may engage in all activities 16 authorized by this Article to be performed by a cultivation 17 center agent. 18 (n) If the Department of Agriculture suspends or revokes 19 the Early Approval Adult Use Cultivation Center License of a 20 cultivation center under Act that also holds a medical cannabis 21 cultivation center license issued under the Compassionate Use 22 of 23 Agriculture shall 24 cultivation center 25 Approval Adult Use Cultivation Center License. 26 Medical Cannabis Pilot Program Act, suspend or license revoke the concurrently the Department of medical with cannabis the Early (o) All fees or fines collected from an Early Approval - 171 - LRB101 12329 RLC 60273 b 1 Adult Use Cultivation Center License holder as a result of a 2 disciplinary action in the enforcement of this Act shall be 3 deposited into the Cannabis Regulation Fund. 4 Section 20-15. Application. 5 (a) 6 additional 7 cultivation center license, the applicant shall electronically 8 submit 9 Agriculture may direct: If the the Department cultivation following of center in such Agriculture licenses, form as makes available applicants the for Department a of 10 (1) the nonrefundable application fee set by rule by 11 the Department of Agriculture, to be deposited into the 12 Cannabis Regulation Fund; 13 (2) the legal name of the cultivation center; 14 (3) the proposed physical address of the cultivation 15 center; 16 (4) the name, address, Social Security Number, and date 17 of birth of each principal officer and board member of the 18 cultivation 19 member shall be at least 21 years of age; center; each principal officer and board 20 (5) the details of any administrative or judicial 21 proceeding in which any of the principal officers or board 22 members of the cultivation center (i) pled guilty, were 23 convicted, 24 suspended or revoked, or (ii) managed or served on the 25 board of a business or non-profit organization that pled fined, or had a registration or license - 172 - LRB101 12329 RLC 60273 b 1 guilty, was convicted, fined, or had a registration or 2 license suspended or revoked; 3 (6) proposed operating bylaws that include procedures 4 for the oversight of the cultivation center, including the 5 development 6 system, 7 security plan approved by the Department of State Police 8 that 9 Department and accurate are in implementation recordkeeping, accordance with of of Agriculture the under a plant staffing rules this monitoring plan, issued Act. A and by the physical 10 inventory shall be performed of all plants and cannabis on 11 a weekly basis by the cultivation center; 12 (7) verification from the Department of State Police 13 that all background checks of the prospective principal 14 officers, 15 establishment have been conducted and those persons have 16 not been convicted of an excluded offense; 17 board members, and agents of the cannabis (8) a copy of the current local zoning ordinance or 18 permit 19 center is in compliance with the local zoning rules and 20 distance 21 jurisdiction; 22 (9) and verification limitations proposed that the proposed established employment by practices, cultivation the in which local the 23 applicant must demonstrate a plan of action to inform, 24 hire, and educate minorities, women, veterans, and persons 25 with disabilities and engage in fair labor practices and 26 provide worker protections; - 173 - LRB101 12329 RLC 60273 b 1 (10) whether an applicant can demonstrate experience 2 in or business practices that promote economic empowerment 3 in Disproportionately Impacted Areas; 4 (11) experience with the cultivation of agricultural 5 or horticultural products, operating an agriculturally 6 related business, or operating a horticultural business; 7 (12) whether the applicant consents to a labor peace 8 agreement. The applicant may attest that the applicant has 9 entered into a labor peace agreement and will abide by the 10 terms of the agreement. The applicant may submit a copy of 11 the page of the labor peace agreement that contains the 12 signatures of the union representative and the applicant; 13 (13) a description of the enclosed, locked facility 14 where cannabis will be grown, harvested, manufactured, 15 processed, 16 distribution to a dispensing organization; 17 18 19 20 21 (14) a packaged, survey of or the otherwise enclosed, prepared locked for facility, including the space used for cultivation; (15) cultivation, processing, inventory, and packaging plans; (16) a description of the applicant's experience with 22 agricultural 23 standards; cultivation techniques and industry 24 (17) a list of any academic degrees, certifications, or 25 relevant experience of all prospective principal officers, 26 board members, and agents with related businesses; - 174 - LRB101 12329 RLC 60273 b 1 (18) the identity of every person having a financial or 2 voting interest of 5% or greater in the cultivation center 3 operation with respect to which the license is sought, 4 whether 5 liability company, or sole proprietorship, including the 6 name and address of each person; 7 8 a trust, corporation, partnership, limited (19) a plan describing how the cultivation center will address each of the following: 9 (i) energy needs, including estimates of monthly 10 electricity and gas usage, to what extent it will 11 procure energy from a local utility or from on-site 12 generation, and if it has or will adopt a sustainable 13 energy use and energy conservation policy; 14 (ii) water needs, including estimated water draw 15 and if it has or will adopt a sustainable water use and 16 water conservation policy; and 17 (iii) waste management, including if it has or will 18 adopt a waste reduction policy; 19 (20) a diversity plan which includes a narrative of not 20 more than 2,500 words that establishes a goal of diversity 21 in ownership, management, employment, and contracting to 22 ensure that diverse participants and groups are afforded 23 equality of opportunity; and 24 25 26 (21) any other information required by rule. (b) Applicants must submit all required information, including that required in Section 20-10 to the Department of - 175 - LRB101 12329 RLC 60273 b 1 Agriculture. Failure by an applicant to submit all required 2 information may result in the application being disqualified. 3 (c) If the 4 application with 5 Agriculture may issue a deficiency notice to the applicant. The 6 applicant shall have 10 calendar days from the date of the 7 deficiency 8 Applications that are still incomplete after this opportunity 9 to cure, will not be scored and will be disqualified. 10 11 Department notice missing to of Agriculture information, resubmit the the receives an Department of incomplete information. (d) An applicant may submit for further consideration: (1) A recycling plan. 12 (A) Any recyclable waste generated by the cannabis 13 cultivation facility shall be recycled per applicable 14 State and local laws, ordinances, and rules. 15 (B) Any cannabis waste, liquid waste, or hazardous 16 waste shall be disposed of in accordance with 8 Ill. 17 Adm. Code 1000.460, except, to the greatest extent 18 feasible, all cannabis plant waste will be rendered 19 unusable by grinding and incorporating the cannabis 20 plant waste with compostable mixed waste to be disposed 21 of in accordance with 8 Ill Adm. Code 1000.460(g)(1). 22 (2) Commitment to comply with local waste provisions: a 23 cultivation 24 applicable State and federal environmental requirements, 25 including, but not limited to: 26 (A) facility storing, must remain securing, in and compliance managing with all - 176 1 recyclables 2 composed 3 cannabis products, in accordance with applicable State 4 and local laws, ordinances, and rules, and of and or waste, LRB101 12329 RLC 60273 b including containing organic finished cannabis waste and 5 (B) Disposing liquid waste containing cannabis or 6 byproducts of cannabis processing in compliance with 7 all 8 including, 9 cultivation facility's permits under Title X of the applicable State but not and federal limited to, requirements, the cannabis 10 Environmental Protection Act. 11 (3) A commitment to a technology standard for resource 12 efficiency 13 facility. of the cultivation center or craft grow 14 (A) A cannabis cultivation facility commits to use 15 resources efficiently, including energy and water. For 16 the following, a cannabis cultivation facility commits 17 to meet or exceed the technology standard identified in 18 paragraphs (ii), (iii), and (iv), which may be modified 19 by rule: 20 (i) lighting systems, including light bulbs, 21 (ii) HVAC system, 22 (iii) water application system to the crop, 23 24 and (iv) filtration system for removing 25 contaminants from wastewater. 26 (B) Lighting. The Lighting Power Densities (LPD) - 177 - LRB101 12329 RLC 60273 b 1 for cultivation space commits to not exceed an average 2 of 36 watts per gross square foot of active and growing 3 space canopy, or all installed lighting technology 4 shall meet a photosynthetic photon efficacy (PPE) of no 5 less than 2.2 micromoles per joule fixture and shall be 6 featured 7 Horticultural Specification Qualified Products List 8 (QPL). In the event that DLC requirement for minimum 9 efficacy exceeds 2.2 micromoles per joule fixture, 10 11 on the DesignLights Consortium (DLC) that PPE shall become the new standard. (C) HVAC. 12 (i) For cannabis grow operations with less 13 than 6,000 square feet of canopy, the licensee 14 commits 15 high-efficiency 16 other more energy efficient equipment. that all HVAC ductless units split HVAC will be units, or 17 (ii) For cannabis grow operations with 6,000 18 square feet of canopy or more, the licensee commits 19 that all HVAC units will be variable refrigerant 20 flow HVAC units, or other more energy efficient 21 equipment. 22 (D) Water application. 23 (i) The cannabis cultivation facility commits 24 to use automated watering systems, including, but 25 not limited to, drip irrigation and flood tables, 26 to irrigate cannabis crop. - 178 - LRB101 12329 RLC 60273 b 1 (ii) The cannabis cultivation facility commits 2 to measure runoff from watering events and report 3 this volume in its water usage plan, and that on 4 average, watering events shall have no more than 5 20% of runoff of water. 6 (E) Filtration. The cultivator commits that HVAC 7 condensate, dehumidification water, excess runoff, and 8 other wastewater produced by the cannabis cultivation 9 facility shall be captured and filtered to the best of 10 the facility's ability to achieve the quality needed to 11 be reused in subsequent watering rounds. 12 (4) The existence of a labor peace agreement. 13 (A) For an applicant with 20 or more employees, the 14 applicant may attest that the applicant has entered 15 into a labor peace agreement and will abide by the 16 terms of the agreement. The applicant shall submit a 17 copy of the page of the labor peace agreement that 18 contains the signatures of the union representative 19 and the applicant. Maintaining a labor peace agreement 20 shall be an ongoing material condition of a cannabis 21 business license. 22 (B) Applicants that are party to a labor peace 23 agreement with a bona fide labor organization that 24 currently 25 represent cannabis workers in Illinois. 26 (C) represents, Applicants or that is actively submit an seeking to attestation - 179 - LRB101 12329 RLC 60273 b 1 affirming that they will use best efforts to use union 2 labor in the construction or retrofit of the facilities 3 associated with their cannabis business. 4 Section 20-20. Scoring applications. 5 (a) The Department of Agriculture shall by rule develop a 6 system 7 administratively 8 organization 9 required 10 to score and cultivation rank applications quality information. center of the Applicants applications based on the applicant's shall be to clarity, responses awarded to points according based on the following categories: 11 (1) Suitability of the proposed facility; 12 (2) Proposed staffing and consent to enter a peace 13 labor agreement with employees; 14 (3) Security Plan; 15 (4) Cultivation Plan; 16 (5) Product Safety and Labeling Plan; 17 (6) Business Plan; 18 (7) The applicant's status as a Social Equity 19 Applicant, which shall constitute no less than 12.5% of 20 total available points; 21 (8) Bonus points based on the applicant's (i) plan to 22 perform research, (ii) use environmentally friendly 23 practices, (iii) engage in philanthropic efforts; (iv) the 24 existence of a labor peace agreement, and (v) the applicant 25 is 51% or more owned and controlled by an individual or - 180 - LRB101 12329 RLC 60273 b 1 individuals who have been an Illinois resident for the past 2 5 years as proved by tax records; and 3 (9) any other criteria the Department of Agriculture 4 may set by rule for points or bonus points. 5 (b) Should the applicant be awarded a cultivation center 6 license, the information and plans that an applicant provided 7 in its application, including any plans submitted for the 8 acquiring of bonus points, becomes a mandatory condition of the 9 permit. Any variation from or failure to perform such plans may 10 result in discipline, including the revocation or nonrenewal of 11 a license. 12 (c) Should the applicant be awarded a cultivation center 13 license, it shall pay a fee of $100,000 prior to receiving the 14 license, to be deposited into the Cannabis Regulation Fund. The 15 Department of Agriculture may by rule adjust the fee in this 16 Section after January 1, 2021. 17 Section 20-25. Denial of application. An application for a 18 cultivation center 19 following conditions are met: 20 21 22 23 (1) the license applicant must failed be to denied submit if any the of the materials required by this Article; (2) the applicant would not be in compliance with local zoning rules; 24 (3) one or more of the prospective principal officers 25 or board members has been convicted of an excluded offense; - 181 - LRB101 12329 RLC 60273 b 1 (4) one or more of the prospective principal officers, 2 or board members causes a violation of Section 20-30 of 3 this Article; 4 (5) one or more of the principal officers or board 5 members is under 21 years of age; 6 (6) a principal officer or board member of the 7 cultivation center has been convicted of a felony under the 8 laws of this State, any other State, or the United States; 9 (7) a principal officer or board member of the 10 cultivation center has been convicted of any violation of 11 Article 28 of the Criminal Code of 2012, or substantially 12 similar laws of any other jurisdiction; 13 (8) the person has submitted an application for a 14 permit under this Act that contains false information; or 15 (9) the licensee, principal officer, board member, or 16 person having a financial or voting interest of 5% or 17 greater in the licensee, or the agent is delinquent in 18 filing any required tax returns or paying any amounts owed 19 to the State of Illinois. 20 Section 21 20-30. Cultivation center requirements; prohibitions. 22 (a) The operating documents of a cultivation center shall 23 include procedures for the oversight of the cultivation center 24 a 25 inventory cannabis plant monitoring recorded weekly, system accurate including a physical recordkeeping, and a - 182 1 LRB101 12329 RLC 60273 b staffing plan. 2 (b) A cultivation center shall implement a security plan 3 reviewed by the Department of State Police that includes, but 4 is 5 intrusion detection systems, personnel identification systems, 6 24-hour 7 exterior of the cultivation center facility and accessible to 8 authorized law enforcement, the Department of Public Health 9 where processing takes place, and the Department of Agriculture 10 not limited to: surveillance facility system to access controls, monitor the perimeter interior and in real time. 11 (c) All cultivation of cannabis by a cultivation center 12 must take place in an enclosed, locked facility at the physical 13 address provided to the Department of Agriculture during the 14 licensing process. The cultivation center location shall only 15 be accessed by the agents working for the cultivation center 16 the Department of Agriculture staff performing inspections, 17 the Department of Public Health staff performing inspections, 18 law 19 working on jobs unrelated to cannabis, such as installing or 20 maintaining security devices or performing electrical wiring, 21 transporting organization agents as provided in this Act, 22 individuals in a mentoring or educational program approved by 23 the State, or other individuals as provided by rule. enforcement or other emergency personnel, contractors 24 (d) A cultivation center may not sell or distribute any 25 cannabis or cannabis-infused products to any person other than 26 a dispensing organization, processing organization, or as - 183 1 LRB101 12329 RLC 60273 b otherwise authorized by rule. 2 (e) A cultivation center may not either directly or 3 indirectly discriminate in price between different dispensing 4 organizations that are purchasing a like grade, strain, brand, 5 and quality of cannabis or cannabis-infused product. Nothing in 6 this subsection (e) prevents a cultivation centers from pricing 7 cannabis differently based 8 manufacturing or processing, the quantities sold, such as 9 volume discounts, or the way the products are delivered. on differences in the cost of 10 (f) All cannabis harvested by a cultivation center and 11 intended for distribution to a dispensing organization must be 12 entered into a data collection system, packaged and labeled 13 under section (section on package and label section number), 14 and 15 cannabis harvested by a cultivation center and intended for 16 distribution to a processing organization must be packaged in a 17 labeled cannabis container and entered into a data collection 18 system before transport. 19 20 placed into a cannabis container for transport. All (g) No person who has been convicted of or pled guilty to an excluded offense may be a cultivation center agent. 21 (h) Cultivation centers are subject to random inspections 22 by the Department of Agriculture, the Department of Public 23 Health, and the Department of State Police. 24 (i) A cultivation center agent shall notify local law 25 enforcement, the Department of State Police, and the Department 26 of Agriculture within 24 hours of the discovery of any loss or - 184 - LRB101 12329 RLC 60273 b 1 theft. Notification shall be made by phone or in person, or by 2 written or electronic communication. 3 (j) A cultivation center shall comply with all State and 4 any applicable federal rules and regulations regarding the use 5 of pesticides on cannabis plants. 6 (k) No person or entity shall hold any legal, equitable, 7 ownership, or beneficial interest, directly or indirectly, of 8 more than 3 cultivation centers licensed under this Article. 9 Further, no person or entity who is employed by, an agent of, 10 has 11 cultivation center, is a principal officer of a cultivation 12 center, or entity controlled by or affiliated with a principal 13 officer of a cultivation shall hold any legal, equitable, 14 ownership, or beneficial interest, directly or indirectly, in a 15 cultivation that would result in the person or entity owning or 16 controlling 17 principal officer of a cultivation center, or entity controlled 18 or affiliated with a principal officer of a cultivation center 19 by which he, she, or it is employed, is an agent of, or has a 20 contract to receive payment from, more than 3 cultivation 21 center licenses. 22 23 24 25 26 a contract in to receive combination payment with any in any form cultivation from a center, (l) A cultivation center may not contain more than 100,000 square feet of canopy space for cultivation of cannabis. (m) A cultivation center may process cannabis, cannabis concentrates, and cannabis-infused products. (n) Beginning July 1, 2020, a cultivation center shall not - 185 - LRB101 12329 RLC 60273 b 1 transport cannabis to a craft grower, dispensing organization, 2 processing organization, or laboratory licensed under this 3 Act, 4 license. 5 unless it has obtained a transporting organization (o) It is unlawful for any person having a cultivation 6 center license 7 representative or agent of such licensee to offer or deliver 8 money, or anything else of value, directly or indirectly to any 9 person having or an any Early officer, Applicant associate, Adult Use member, Dispensing 10 Organization License, an Adult Use Dispensing Organization 11 License, or a medical cannabis dispensing organization license 12 issued under the Compassionate Use of Medical Cannabis Pilot 13 Program Act, or to any person connected with or in any way 14 representing, or to any member of the family of, such person 15 holding an Early Applicant Adult Use Dispensing Organization 16 License, an Adult Use Dispensing Organization License, or a 17 medical cannabis dispensing organization license issued under 18 the Compassionate Use of Medical Cannabis Pilot Program Act, or 19 to any stockholders in any corporation engaged the retail sales 20 of 21 representative of said Early Applicant Adult Use Dispensing 22 Organization License, an Adult Use Dispensing Organization 23 License, or a medical cannabis dispensing organization license 24 issued under the Compassionate Use of Medical Cannabis Pilot 25 Program 26 dispensing cannabis, Act or to to obtain organization, any officer, preferential including manager, placement without agent within limitation or the on - 186 1 shelves 2 products, or on the dispensing organization's website. 3 4 5 6 7 (p) and Any in display other cases LRB101 12329 RLC 60273 b where requirements or purchasers can prohibitions view set by Department of Agriculture rules. Section 20-35. Cultivation center agent identification card. (a) The Department of Agriculture shall: 8 (1) establish by rule the information required in an 9 initial application or renewal application for an agent 10 identification 11 nonrefundable fee to accompany the initial application or 12 renewal application; 13 card submitted under this Act and the (2) verify the information contained in an initial 14 application or renewal application for an agent 15 identification card submitted under this Act, and approve 16 or deny an application within 30 days of receiving a 17 completed initial application or renewal application and 18 all supporting documentation required by rule; 19 (3) issue an agent identification card to a qualifying 20 agent within 15 business days of approving the initial 21 application or renewal application; 22 23 (4) enter the license number of the craft grower where the agent works; and 24 (5) allow for an electronic initial application and 25 renewal application process, and provide a confirmation by - 187 - LRB101 12329 RLC 60273 b 1 electronic or other methods that an application has been 2 submitted. Each Department may by rule require prospective 3 agents to file their applications by electronic means and 4 to provide notices to the agents by electronic means. 5 (b) An agent must keep his or her identification card 6 visible at all times when on the property of a cannabis 7 establishment including the cannabis establishment for which 8 he or she is an agent. 9 (c) The 10 following: agent identification cards shall contain the 11 (1) the name of the cardholder; 12 (2) the date of issuance and expiration date of the 13 14 identification card; (3) a random 10-digit alphanumeric identification 15 number containing at least 4 numbers and at least 4 letters 16 that is unique to the holder; 17 (4) a photograph of the cardholder; and 18 (5) the legal name of the cannabis establishment 19 employing the agent. 20 (d) An agent identification card shall be immediately 21 returned to the cannabis establishment of 22 termination of his or her employment. the agent upon 23 (e) Any agent identification card lost by a cultivation 24 center agent shall be reported the Department of State Police 25 and the Department of Agriculture immediately upon discovery of 26 the loss. - 188 - LRB101 12329 RLC 60273 b 1 (f) An applicant for an agent identification card shall be 2 denied if he or she has been convicted of or pled guilty to an 3 excluded offense. 4 (g) The Department of Agriculture shall not issue an agent 5 identification card if the applicant is delinquent in filing 6 any required tax returns or paying any amounts owed to the 7 State of Illinois. 8 Section 20-40. Cultivation center background checks. 9 (a) Through the Department of State Police, the licensing 10 or issuing Department shall conduct a background check of the 11 prospective principal officers, board members, and agents of a 12 cultivation center applying for a license or identification 13 card under this Act. The Department of State Police shall 14 charge a fee set by rule for conducting the criminal history 15 record check, which shall be deposited into the State Police 16 Services Fund and shall not exceed the actual cost of the 17 record check. In order to carry out this provision, each 18 cannabis establishment prospective principal officer, board 19 member, or agent shall submit a full set of fingerprints to the 20 Department of State Police for the purpose of obtaining a State 21 and federal criminal records check. These fingerprints shall be 22 checked against the fingerprint records now and hereafter, to 23 the extent allowed by law, filed in the Department of State 24 Police and Federal Bureau of Investigation criminal history 25 records databases. The Department of State Police shall - 189 following positive LRB101 12329 RLC 60273 b 1 furnish, identification, all 2 information to the Department of Agriculture. conviction 3 (b) When applying for the initial license or identification 4 card, the background checks for all prospective principal 5 officers, board members, and agents shall be completed before 6 submitting the application to the licensing or issuing agency. 7 8 Section 20-45. Renewal of cultivation center licenses and agent identification cards. 9 (a) Licenses and identification cards issued under this Act 10 shall be renewed annually. A cultivation center shall receive 11 written or electronic notice 90 days before the expiration of 12 its 13 Department of Agriculture shall grant a renewal within 45 days 14 of submission of a renewal application if: 15 current (1) license the that the cultivation license center will submits expire. a The renewal 16 application and the required nonrefundable renewal fee of 17 $100,000, 18 Agriculture may set by rule after January 1, 2021, to be 19 deposited into the Cannabis Regulation Fund. or another amount as the Department of 20 (2) the Department of Agriculture has not suspended the 21 license of the cultivation center or suspended or revoked 22 the license for violating this Act or rules adopted under 23 this Act; and 24 25 (3) the cultivation center has continued to operate in accordance with all plans submitted as part of its - 190 - LRB101 12329 RLC 60273 b 1 application and approved by the Department of Agriculture 2 or any amendments thereto that have been approved by the 3 Department of Agriculture. 4 (b) If a cultivation center fails to renew its license 5 before expiration, it shall cease operations until its license 6 is renewed. 7 (c) If a cultivation center agent fails to renew his or her 8 identification card before its expiration, he or she shall 9 cease 10 to work as an agent of the cannabis business establishment until his or her identification card is renewed. 11 (d) Any cultivation center that continues to operate, or 12 any cultivation center agent who continues to work as an agent, 13 after the applicable license or identification card has expired 14 without renewal are subject to the penalties provided under 15 Section 45-5. 16 ARTICLE 30. 17 CRAFT GROWERS 18 Section 30-5. Issuance of licenses. 19 (a) The Department of Agriculture shall issue up to 40 20 craft grower licenses by July 1, 2020. 21 (b) By December 21, 2021, the Department of Agriculture 22 shall issue up to 60 additional craft grower licenses. Prior to 23 issuing such licenses, the Department may adopt rules through 24 emergency rulemaking in accordance with subsection (gg) of - 191 - LRB101 12329 RLC 60273 b 1 Section 5-45 of the Illinois Administrative Procedure Act, to 2 modify or raise the number of craft grower licenses assigned to 3 each region and modify or change the licensing application 4 process to reduce or eliminate barriers. The General Assembly 5 finds that the adoption of rules to regulate cannabis use is 6 deemed an emergency and necessary for the public interest, 7 safety and welfare. In determining whether to exercise either 8 authority 9 Agriculture must consider the following factors: granted by this subsection, the Department of 10 (1) The percentage of cannabis sales occurring in 11 Illinois not in the regulated market using data from the 12 Substance abuse and Mental Health Services Administration, 13 National Survey on Drug Use and Health, Illinois Behavioral 14 Risk Factor Surveillance System, and tourism data from the 15 Illinois Office of Tourism to ascertain total cannabis 16 consumption in Illinois compared to the amount of sales in 17 licensed dispensing organizations; 18 (2) Whether there is an adequate supply of cannabis and 19 cannabis-infused 20 cannabis patients; 21 22 products to serve registered medical (3) Whether there is an adequate supply of cannabis and cannabis-infused products to serve purchasers; 23 (4) Whether there is an oversupply of cannabis in 24 Illinois leading to trafficking of cannabis to states where 25 the sale of cannabis is not permitted by law; 26 (5) Population increases or shifts; - 192 1 2 (6) The density of craft growers in any area of the State; 3 4 LRB101 12329 RLC 60273 b (7) Perceived security risks of adding increasing the number or location of craft growers; 5 (8) The past safety record of craft growers; 6 (9) 7 Department of Agriculture's capacity to appropriately regulate additional licensees; 8 9 The (10) disparity The and findings and availability recommendations study from commissioned by the the 10 Illinois Cannabis Regulation Oversight Officer to reduce 11 or 12 cannabis industry; and 13 eliminate any identified barriers to entry in the (11) Any other criteria the Department of Agriculture 14 deems relevant. 15 (c) After January 1, 2022, the Department of Financial and 16 Professional Regulation may by rules modify or raise the number 17 of craft grower licenses assigned to each region, and modify or 18 change the licensing application process to reduce or eliminate 19 barriers based on the criteria in subsection (b). At no time 20 may the number of craft grower licenses exceed 150. 21 Section 30-10. Application. 22 (a) When applying for the license, the 23 electronically 24 Department of Agriculture may direct: 25 submit a following in applicant shall such form as the (1) the nonrefundable application fee of $40,000 to be - 193 - LRB101 12329 RLC 60273 b 1 deposited into the Cannabis Regulation Fund, or another 2 amount as the Department of Agriculture may set by rule 3 after January 1, 2021; 4 (2) the legal name of the craft grower; 5 (3) the proposed physical address of the craft grower; 6 (4) the name, address, and date of birth of each 7 principal officer and board member of the craft grower; 8 each principal officer and board member shall be at least 9 21 years of age; 10 (5) the details of any administrative or judicial 11 proceeding in which any of the principal officers or board 12 members 13 convicted, 14 suspended or revoked, or (ii) managed or served on the 15 board of a business or non-profit organization that pled 16 guilty, was convicted, fined, or had a registration or 17 license suspended or revoked; 18 of the craft fined, or grower had (i) a pled guilty, registration or were license (6) proposed operating bylaws that include procedures 19 for the oversight of 20 development 21 system, 22 security plan approved by the Department of State Police 23 that 24 Department 25 inventory shall be performed of all plants and on a weekly 26 basis by the craft grower; and accurate are in of the craft grower, including the implementation of recordkeeping, accordance with Agriculture the under a plant staffing rules this monitoring plan, issued Act. A by and the physical - 194 - LRB101 12329 RLC 60273 b 1 (7) verification from the Department of State Police 2 that all background checks of the prospective principal 3 officers, 4 establishment have been conducted and those persons have 5 not been convicted of an excluded offense; board members, and agents of the cannabis 6 (8) a copy of the current local zoning ordinance or 7 permit and verification that the proposed craft grower is 8 in compliance with the local zoning rules and distance 9 limitations established by the local jurisdiction; 10 (9) proposed employment practices, in which the 11 applicant must demonstrate a plan of action to inform, 12 hire, and educate minorities, women, veterans, and persons 13 with disabilities and engage in fair labor practices and 14 provide worker protections; 15 (10) whether an applicant can demonstrate experience 16 in or business practices that promote economic empowerment 17 in Disproportionately Impacted Areas; 18 (11) experience with the cultivation of agricultural 19 or horticultural products, operating an agriculturally 20 related business, or operating a horticultural business; 21 (12) whether the applicant consents to a labor peace 22 agreement. The applicant may attest that the applicant has 23 entered into a labor peace agreement and will abide by the 24 terms of the agreement. The applicant may submit a copy of 25 the page of the labor peace agreement that contains the 26 signatures of the union representative and the applicant; - 195 - LRB101 12329 RLC 60273 b 1 (13) a description of the enclosed, locked facility 2 where cannabis will be grown, harvested, manufactured, 3 packaged, or otherwise prepared for distribution to a 4 dispensing 5 establishment; 6 7 (14) survey of or the other cannabis business locked facility, enclosed, including the space used for cultivation; 8 9 a organization (15) cultivation, processing, inventory, and packaging plans; 10 (16) a description of the applicant's experience with 11 agricultural 12 standards; cultivation techniques and industry 13 (17) a list of any academic degrees, certifications, or 14 relevant experience of all prospective principal officers, 15 board members, and agents with related businesses; 16 (18) the identity of every person having a financial or 17 voting interest of 5% or greater in the cultivation center 18 or craft grower operation with respect to which the license 19 is 20 limited 21 including the name and address of each person; 22 23 sought, whether liability (19) a plan a trust, company, corporation, or describing how sole the partnership, proprietorship, craft grower will address each of the following: 24 (i) energy needs, including estimates of monthly 25 electricity and gas usage, to what extent it will 26 procure energy from a local utility or from on-site - 196 - LRB101 12329 RLC 60273 b 1 generation, and if it has or will adopt a sustainable 2 energy use and energy conservation policy; 3 (ii) water needs, including estimated water draw 4 and if it has or will adopt a sustainable water use and 5 water conservation policy; and 6 (iii) waste management, including if it has or will 7 adopt a waste reduction policy; and 8 (20) any other information required by rule. 9 (b) Applicants must submit all required information, 10 including that required in Section 30-40 to the Department of 11 Agriculture. Failure by an applicant to submit all required 12 information may result in the application being disqualified. 13 (c) If the 14 application with 15 Agriculture may issue a deficiency notice to the applicant. The 16 applicant shall have 10 calendar days from the date of the 17 deficiency 18 Applications that are still incomplete after this opportunity 19 to cure, will not be scored and will be disqualified. 20 21 22 Department missing notice to of Agriculture information, resubmit the the receives an Department of incomplete information. (d) An applicant may submit for further consideration: (1) A recycling plan. (A) A commitment that any recyclable waste 23 generated by the craft grower shall be recycled per 24 applicable 25 rules. 26 State and local laws, ordinances, and (B) A commitment that any cannabis waste, liquid - 197 - LRB101 12329 RLC 60273 b 1 waste, or hazardous waste shall be disposed of in 2 accordance with 8 Ill. Adm. Code 1000.460, except, to 3 the greatest extent feasible, all cannabis plant waste 4 will 5 incorporating 6 compostable mixed waste to be disposed of in accordance 7 with 8 Ill. Adm. Code 1000.460(g)(1). 8 (2) A commitment to comply with local waste provisions. 9 The craft grower will remain in compliance with applicable 10 State and federal environmental requirements, including, 11 but not limited to: 12 (A) 13 recyclables 14 composed 15 cannabis products, in accordance with applicable State 16 and local laws, ordinances, and rules, and be rendered the storing, and of unusable or cannabis securing, waste, by grinding and plant waste with and managing including containing organic finished all waste cannabis and 17 (B) disposing liquid waste containing cannabis or 18 byproducts of cannabis processing in compliance with 19 all 20 including, 21 cultivation facility's permits under Title X of the 22 Environmental Protection Act. 23 (3) A commitment to a technology standard for resource 24 25 26 applicable but State not and federal limited to, requirements, the cannabis efficiency of the craft grower. (A) A craft efficiently, grower including commits energy to and use water. resources For the - 198 - LRB101 12329 RLC 60273 b 1 following, a craft grower commits to meet or exceed the 2 technology standard 3 (iii), and (iv), which may be modified by rule: identified in paragraphs (ii), 4 (i) lighting systems, including light bulbs, 5 (ii) HVAC system, 6 (iii) water application system to the crop, 7 8 9 and (iv) filtration system for removing contaminants from wastewater. 10 (B) Lighting. The Lighting Power Densities (LPD) 11 for cultivation space will to not exceed an average of 12 36 watts per gross square foot of active and growing 13 space canopy, or all installed lighting technology 14 shall meet a photosynthetic photon efficacy (PPE) of no 15 less than 2.2 micromoles per joule fixture and shall be 16 featured 17 Horticultural Specification Qualified Products List 18 (QPL). In the event that DLC requirement for minimum 19 efficacy exceeds 2.2 micromoles per joule fixture, 20 that PPE shall become the new standard. 21 on the DesignLights Consortium (DLC) (C) HVAC. 22 (i) For cannabis grow operations with less 23 than 6,000 square feet of canopy, the licensee 24 commits 25 high-efficiency 26 other more energy efficient equipment. that all HVAC ductless units split HVAC will be units, or - 199 - LRB101 12329 RLC 60273 b 1 (ii) For cannabis grow operations with 6,000 2 square feet of canopy or more, the licensee commits 3 that all HVAC units will be variable refrigerant 4 flow HVAC units, or other more energy efficient 5 equipment. 6 (D) Water application. 7 (i) The craft grower commits to use automated 8 watering systems, including, but not limited to, 9 drip 10 11 irrigation and flood tables, to irrigate cannabis crop. (ii) The craft grower commits to measure 12 runoff from watering events and report this volume 13 in its water usage plan, and that on average, 14 watering events shall have no more than 20% of 15 runoff of water. 16 (E) Filtration. The craft grower commits that HVAC 17 condensate, dehumidification water, excess runoff, and 18 other wastewater produced by the cannabis cultivation 19 facility shall be captured and filtered to the best of 20 the facility's ability to achieve the quality needed to 21 be reused in subsequent watering rounds. 22 (4) The existence of a labor peace agreement. 23 (A) For an applicant with 20 or more employees, the 24 applicant may attest that the applicant has entered 25 into a labor peace agreement and will abide by the 26 terms of the agreement. The applicant shall submit a - 200 - LRB101 12329 RLC 60273 b 1 copy of the page of the labor peace agreement that 2 contains the signatures of the union representative 3 and the applicant. Maintaining a labor peace agreement 4 shall be an ongoing material condition of a cannabis 5 business license. 6 (B) Applicants that are party to a labor peace 7 agreement with a bona fide labor organization that 8 currently 9 represent cannabis workers in Illinois. 10 (C) represents, Applicants or that is actively submit an seeking to attestation 11 affirming that they will use best efforts to use union 12 labor in the construction or retrofit of the facilities 13 associated with their cannabis business. 14 Section 30-15. Scoring applications. 15 (a) The Department of Agriculture shall by rule develop a 16 system to score craft grower applications to administratively 17 rank 18 quality of the applicant's responses to required information. 19 Applicants shall be awarded points according based on the 20 following categories: applications based on the clarity, organization and 21 (1) Suitability of the proposed facility; 22 (2) Proposed staffing and consent to enter a peace 23 labor agreement with employees; 24 (3) Security Plan; 25 (4) Cultivation Plan; - 201 - LRB101 12329 RLC 60273 b 1 (5) Product Safety and Labeling Plan; 2 (6) Business Plan; 3 (7) The applicant's status as a Social Equity 4 Applicant, which shall constitute no less than 12.5% of 5 total available points; 6 (8) Bonus points based on the applicant's (i) plan to 7 perform 8 practices, and (iii) engage in philanthropic efforts; (iv) 9 the existence of a labor peace agreement; (v) the applicant 10 is 51% or more owned and controlled by an individual or 11 individuals who have been an Illinois resident for the past 12 5 years as proved by tax records; and 13 research, (ii) use environmentally friendly (9) any other criteria the Department of Agriculture 14 may set by rule for points or bonus points. 15 (b) Should the applicant be awarded a craft grower license, 16 the information and plans that an applicant provided in its 17 application, including any plans submitted for the acquiring of 18 bonus points, shall be a mandatory condition of the permit. Any 19 variation from or failure to perform such plans may result in 20 discipline, 21 license. including the revocation or nonrenewal of a 22 (c) Should the applicant be awarded a craft grower license, 23 it shall pay a fee of $100,000 prior to receiving the license, 24 to 25 Department of Agriculture may by rule adjust the fee in this 26 Section after January 1, 2021. be deposited into the Cannabis Regulation Fund. The - 202 - 1 2 LRB101 12329 RLC 60273 b Section 30-20. Issuance of license to certain persons prohibited. 3 (a) No craft grower license issued by the Department of 4 Agriculture shall be issued to a person who is licensed by any 5 licensing 6 partnership, corporation, limited liability company, or trust 7 or any subsidiary, affiliate, or any other form of business 8 enterprise having more than 10% legal, equitable, or beneficial 9 interest, directly or indirectly, in a person licensed in this 10 State as a cultivation center, or to any principal officer, 11 agent, employee, human being, with any form of ownership or 12 control over a cultivation center except for a person who owns 13 no more than 5% of the outstanding shares of a cultivation 14 center whose shares are publicly traded on an exchange within 15 the meaning of the Securities Exchange Act of 1934. authority as a cultivation center, or to any 16 (b) A person who is licensed in this State as a craft 17 grower, or any partnership, corporation, limited liability 18 company, or 19 thereof, or any other form of business enterprise licensed in 20 this State as a craft grower shall not have more than 10% 21 legal, 22 indirectly, in a person licensed as a cultivation center, nor 23 shall any partnership, corporation, limited liability company, 24 or trust or any subsidiary, affiliate, or any other form of 25 business enterprise having any legal, equitable, or beneficial trust or equitable, or any subsidiary, affiliate, or beneficial interest, agent directly or - 203 - LRB101 12329 RLC 60273 b 1 interest, directly or indirectly, in a person licensed in this 2 State as a craft grower or a craft grower agent be a principal 3 officer, agent, employee, or human being, with any form of 4 ownership or control over a cultivation center except for a 5 person who owns no more than 5% of the outstanding shares of a 6 cultivation center whose shares are publicly traded on an 7 exchange within the meaning of the Securities Exchange Act of 8 1934. 9 Section 30-25. Denial of application. An application for a 10 craft grower license must be denied if any of the following 11 conditions are met: 12 (1) 13 14 15 the applicant failed to submit the materials required by this Article; (2) the applicant would not be in compliance with local zoning rules; 16 (3) one or more of the prospective principal officers 17 or board members has been convicted of an excluded offense; 18 (4) one or more of the prospective principal officers, 19 or board members causes a violation of Section 30-20 of 20 this Article; 21 22 23 (5) one or more of the principal officers or board members is under 21 years of age; (6) a principal officer or board member of the 24 cultivation center has been convicted of a felony under the 25 laws of this State, any other state, or the United States; - 204 1 (7) a principal officer LRB101 12329 RLC 60273 b or board member of the 2 cultivation center has been convicted of any violation of 3 Article 28 of the Criminal Code of 2012, or substantially 4 similar laws of any other jurisdiction; 5 (8) the person has submitted an application for a 6 permit under this Act or this Article that contains false 7 information; or 8 (9) if the licensee; principal officer, board member, 9 or person having a financial or voting interest of 5% or 10 greater in the licensee; or agent is delinquent in filing 11 any required tax returns or paying any amounts owed to the 12 State of Illinois. 13 Section 30-30. Craft grower requirements; prohibitions. 14 (a) The operating documents of a craft grower shall include 15 procedures for the oversight of the craft grower, a cannabis 16 plant 17 recorded weekly, accurate recordkeeping, and a staffing plan. monitoring system including a physical inventory 18 (b) A craft grower shall implement a security plan reviewed 19 by the Department of State Police that includes, but is not 20 limited 21 detection systems, personnel identification systems, 24-hour 22 surveillance system to monitor the interior and exterior of the 23 craft 24 enforcement and the Department of Agriculture in real time. 25 to: grower facility facility access and controls, accessible perimeter to intrusion authorized law (c) All cultivation of cannabis by a craft grower must take - 205 - LRB101 12329 RLC 60273 b 1 place in an enclosed, locked facility at the physical address 2 provided to the Department of Agriculture during the licensing 3 process. The craft grower location shall only be accessed by 4 the agents working for the craft grower, the Department of 5 Agriculture staff performing inspections, the Department of 6 Public Health staff performing inspections, law enforcement or 7 other 8 unrelated 9 security devices or performing electrical wiring, transporting 10 organization agents as provided in this Act, or participants in 11 the 12 educational program approved by the State, or other individuals 13 as provided by rule. However, if a craft grower shares a 14 premises with a processor or dispensing organization, agents 15 from those other licensees may access the craft grower portion 16 of the premises if that is location of common bathrooms, 17 lunchrooms, locker rooms, or other areas of the building where 18 work cultivation of cannabis is not performed. At no time may a 19 processor or dispensing organization agent perform work at a 20 craft grower without being a registered agent of the craft 21 grower. emergency to incubator personnel, cannabis, program, contractors such as working installing individuals in a or on jobs maintaining mentoring or 22 (d) A craft grower may not sell or distribute any cannabis 23 to any person other than a cultivation center, craft grower, 24 processing 25 otherwise authorized by rule. 26 organization, a dispensing organization, or as (e) A craft grower may not be located in an area zoned for - 206 1 2 LRB101 12329 RLC 60273 b residential use. (f) A craft grower may not either directly or indirectly 3 discriminate in price 4 establishments that are purchasing a like grade, strain, brand, 5 and quality of cannabis or cannabis-infused product. Nothing in 6 this 7 cannabis differently based 8 manufacturing or processing, the quantities sold, such s volume 9 discounts, or the way the products are delivered. subsection (f) between different prevents a on cannabis business craft grower from differences in the pricing cost of 10 (g) All cannabis harvested by a craft grower and intended 11 for distribution to a dispensing organization must be entered 12 into a data collection system, packaged and labeled under 13 section (section on package and label section number), and, if 14 distribution is to a dispensing organization that does not 15 share a premises with the dispensing organization receiving the 16 cannabis, placed into a cannabis container for transport. All 17 cannabis 18 distribution to 19 organization or craft grower with which it does not share a 20 premises, must be packaged in a labeled cannabis container and 21 entered into a data collection system before transport. 22 23 24 25 26 harvested a by a craft grower and cultivation center, or to intended a for processing (h) No person who has been convicted of or pled guilty to an excluded offense may be a craft grower agent. (i) Craft growers are subject to random inspections by the Department of Agriculture and the Department of State Police. (j) A craft grower agent shall notify local law - 207 - LRB101 12329 RLC 60273 b 1 enforcement, the Department of State Police, and the Department 2 of Agriculture within 24 hours of the discovery of any loss or 3 theft. Notification shall be made by phone or in person, or by 4 written or electronic communication. 5 (k) A craft grower shall comply with all State and any 6 applicable federal rules and regulations regarding the use of 7 pesticides on cannabis plants. 8 9 (l) A craft grower or craft grower agent shall not transport cannabis or cannabis-infused products to any other 10 cannabis business establishment 11 organization license unless: without a transport 12 (i) If the craft grower is located in a county with a 13 population of 3,000,000 or more, the cannabis business 14 establishment receiving the cannabis is within 2,000 ft of 15 the property line of the craft grower; 16 (ii) If the craft grower is located in a county with a 17 population of more than 700,000 but fewer than 3,000,000, 18 the cannabis business establishment receiving the cannabis 19 is within 2 miles of the craft grower; or 20 (iii) If the craft grower is located in a county with a 21 population of fewer the 700,000, the cannabis business 22 establishment receiving the cannabis is within 15 miles of 23 the craft grower. 24 (m) A craft grower may enter into a contract with a 25 transporting organization 26 cultivation center, craft to transport grower, cannabis to a processing organization, - 208 1 LRB101 12329 RLC 60273 b dispensing organization, or laboratory. 2 (n) No person or entity shall hold any legal, equitable, 3 ownership, or beneficial interest, directly or indirectly, of 4 more 5 Further, no person or entity who is employed by, an agent of, 6 has a contract to receive payment in any form from a craft 7 grower, is a principal officer of a craft grower, or entity 8 controlled by or affiliated with a principal officer of a craft 9 grower than one shall craft hold grower any licensed legal, under equitable, this Article. ownership, or 10 beneficial interest, directly or indirectly, in a craft grower 11 that would result in the person or entity owning or controlling 12 in combination with any craft grower, principal officer of a 13 craft 14 principal officer of a craft grower by which he, she, or it is 15 employed, is an agent of, or has a contract to receive payment 16 from, more than one craft grower license. grower, or entity controlled or affiliated with a 17 (o) It is unlawful for any person having a craft grower 18 license or any officer, associate, member, representative, or 19 agent of the licensee to offer or deliver money, or anything 20 else of value, directly or indirectly, to any person having an 21 Early Applicant Adult Use Dispensing Organization License, an 22 Adult 23 cannabis 24 Compassionate Use of Medical Cannabis Pilot Program Act, or to 25 any person connected with or in any way representing, or to any 26 member of the family of, the person holding an Early Applicant Use Dispensing dispensing Organization organization License, license or issued a medical under the - 209 1 Adult 2 Dispensing 3 dispensing organization license issued under the Compassionate 4 Use 5 stockholders in any corporation engaged the retail sales of 6 cannabis, or to any officer, manager, agent or representative 7 of 8 License, an Adult Use Dispensing Organization License, or a 9 medical cannabis dispensing organization license issued under 10 the Compassionate Use of Medical Cannabis Pilot Program Act to 11 obtain 12 organization, including without limitation on shelves and in 13 display cases where purchasers can view products, or on the 14 dispensing organization's website. 15 16 Use of the (p) Dispensing LRB101 12329 RLC 60273 b Organization Organization Medical Early preferential Any License, Cannabis Applicant other License, Pilot Adult or requirements Act, within Use cannabis or Dispensing or Adult medical Program Use placement a an to any Organization the dispensing prohibitions set by Department of Agriculture rules. 17 Section 30-35. Craft grower agent identification card. 18 (a) The Department of Agriculture shall: 19 (1) establish by rule the information required in an 20 initial application or renewal application for an agent 21 identification 22 nonrefundable fee to accompany the initial application or 23 renewal application; 24 25 card submitted under this Act and the (2) verify the information contained in an initial application or renewal application for an agent - 210 - LRB101 12329 RLC 60273 b 1 identification card submitted under this Act, and approve 2 or deny an application within 30 days of receiving a 3 completed initial application or renewal application and 4 all supporting documentation required by rule; 5 (3) issue an agent identification card to a qualifying 6 agent within 15 business days of approving the initial 7 application or renewal application; 8 9 (4) enter the license number of the craft grower where the agent works; and 10 (5) allow for an electronic initial application and 11 renewal application process, and provide a confirmation by 12 electronic or other methods that an application has been 13 submitted. Each Department may by rule require prospective 14 agents to file their applications by electronic means and 15 to provide notices to the agents by electronic means. 16 (b) An agent must keep his or her identification card 17 visible at all times when on the property of a cannabis 18 establishment including the cannabis establishment for which 19 he or she is an agent. 20 (c) The 21 following: agent identification cards shall contain the 22 (1) the name of the cardholder; 23 (2) the date of issuance and expiration date of the 24 25 26 identification card; (3) a random 10-digit alphanumeric identification number containing at least 4 numbers and at least 4 letters - 211 1 LRB101 12329 RLC 60273 b that is unique to the holder; 2 (4) a photograph of the cardholder; and 3 (5) the legal name of the cannabis establishment 4 employing the agent. 5 (d) An agent identification card shall be immediately 6 returned to the cannabis establishment of 7 termination of his or her employment. the agent upon 8 (e) Any agent identification card lost by a craft grower 9 agent shall be reported to the Department of State Police and 10 the Department of Agriculture immediately upon discovery of the 11 loss. 12 (f) An applicant for an agent identification card shall be 13 denied if he or she has been convicted of or pled guilty to an 14 excluded offense. 15 Section 30-40. Craft grower background checks. 16 (a) Through the Department of State Police, the licensing 17 or issuing Department shall conduct a background check of the 18 prospective principal officers, board members, and agents of a 19 craft grower applying for a license or identification card 20 under this Act. The Department of State Police shall charge a 21 fee set by rule for conducting the criminal history record 22 check, which shall be deposited into the State Police Services 23 Fund and shall not exceed the actual cost of the record check. 24 In 25 establishment prospective principal officer, board member, or order to carry out this provision, each cannabis - 212 - LRB101 12329 RLC 60273 b 1 agent shall submit a full set of fingerprints to the Department 2 of State Police for the purpose of obtaining a State and 3 federal criminal records check. These fingerprints shall be 4 checked against the fingerprint records now and hereafter, to 5 the extent allowed by law, filed in the Department of State 6 Police and Federal Bureau of Investigation criminal history 7 records 8 furnish, 9 information to the Department of Agriculture. databases. following The Department positive of State Police identification, all shall conviction 10 (b) When applying for the initial license or identification 11 card, the background checks for all prospective principal 12 officers, board members, and agents shall be completed before 13 submitting the application to the licensing or issuing agency. 14 15 Section 30-45. Renewal of craft grower licenses and agent identification cards. 16 (a) Licenses and identification cards issued under this Act 17 shall be renewed annually. A craft grower shall receive written 18 or electronic notice 90 days before the expiration of its 19 current license that the license will expire. The Department of 20 Agriculture shall grant a renewal within 45 days of submission 21 of a renewal application if: 22 (1) the craft grower submits a renewal application and 23 the required nonrefundable renewal fee of $40,000, or 24 another amount as the Department of Agriculture may set by 25 rule after January 1, 2021; - 213 - LRB101 12329 RLC 60273 b 1 (2) the Department of Agriculture has not suspended the 2 license of the craft grower or suspended or revoked the 3 license for violating this Act or rules adopted under this 4 Act; and 5 (3) the craft grower has 6 accordance 7 application and approved by the Department of Agriculture 8 or any amendments thereto that have been approved by the 9 Department of Agriculture. with all plans continued to submitted as operate in part of its 10 (b) If a craft grower fails to renew its license before 11 expiration, it shall cease operations until its license is 12 renewed. 13 (c) If a craft grower agent fails to renew his or her 14 identification card before its expiration, he or she shall 15 cease 16 establishment until his or her identification card is renewed. to work as an agent of the cannabis business 17 (d) Any craft grower that continues to operate, or any 18 craft grower agent who continues to work as an agent, after the 19 applicable license or identification card has expired without 20 renewal are subject to the penalties provided under Section 21 45-5. 22 (e) All fees or fines collected from the renewal of a craft 23 grower license shall be deposited into the Cannabis Regulation 24 Fund. 25 ARTICLE 35. - 214 1 LRB101 12329 RLC 60273 b PROCESSING ORGANIZATIONS 2 Section 35-5. Issuance of licenses. 3 (a) The Department of Agriculture shall issue up to 40 4 processor licenses through a process provided for in this 5 Article no later than July 1, 2020. 6 (b) The Department of Agriculture shall make the 7 application for processor licenses available on January 7, 8 2020, or if that date falls on a weekend or holiday, the 9 business day immediately succeeding the weekend or holiday and 10 every January 7 or succeeding business day thereafter, and 11 shall receive such applications no later than March 15, 2020, 12 or, if that falls on a weekend or holiday, every March 15 or 13 succeeding business day thereafter. 14 (c) By December 21, 2021, the Department of Agriculture may 15 issue up to 60 additional processor licenses. Prior to issuing 16 such licenses, the Department may adopt rules through emergency 17 rulemaking in accordance with subsection (gg) of Section 5-45 18 of the Illinois Administrative Procedure Act, to modify or 19 raise the number of processor licenses assigned to each region 20 and modify or change the licensing application process to 21 reduce or eliminate barriers. The General Assembly finds that 22 the adoption of rules to regulate cannabis use is deemed an 23 emergency and necessary for the public interest, safety and 24 welfare. 25 In determining whether to exercise either authority - 215 - LRB101 12329 RLC 60273 b 1 granted by this subsection, the Department of Agriculture must 2 consider the following factors: 3 (1) the percentage of cannabis sales occurring in 4 Illinois not in the regulated market using data from the 5 substance abuse and Mental Health Services Administration, 6 National Survey on Drug Use and Health, Illinois Behavioral 7 Risk Factor Surveillance System, and tourism data from the 8 Illinois Office of Tourism to ascertain total cannabis 9 consumption in Illinois compared to the amount of sales in 10 11 licensed dispensing organizations; (2) whether there is an adequate supply of cannabis and 12 cannabis-infused 13 cannabis patients; 14 15 products to serve registered medical (3) whether there is an adequate supply of cannabis and cannabis-infused products to sere purchasers: 16 (4) whether there is an oversupply of cannabis in 17 Illinois leading to trafficking of cannabis to states where 18 the sale of cannabis is not permitted by law; 19 (5) population increases or shifts; 20 (6) changes to federal law; 21 (7) perceived security risks of increasing the number 22 or location of cultivation centers; 23 (8) the past security records of cultivation centers; 24 (9) 25 26 the Department of Agriculture's capacity to appropriately regulate additional licenses; (10) the findings and recommendations from the - 216 1 disparity 2 Illinois Cannabis Regulation Oversight Officer to reduce 3 or 4 cannabis industry; and 5 and availability LRB101 12329 RLC 60273 b eliminate any study commissioned identified barriers to by entry in the the (11) any other criteria the Department of Agriculture 6 deems relevant. 7 (c) After January 1, 2022, the Department of Financial and 8 Professional Regulation may by rules modify or raise the number 9 of craft grower licenses assigned to each region, and modify or 10 change the licensing application process to reduce or eliminate 11 barriers based on the criteria in subsection (b). 12 Section 35-10. Application. 13 (a) When applying for submit the a license, the 14 electronically following 15 Department of Agriculture may direct: in applicant shall such form as the 16 (1) the nonrefundable application fee of $5,000 or, 17 after January 1, 2021, another amount as set by rule by the 18 Department 19 Cannabis Regulation Fund; of Agriculture, to be deposited into the 20 (2) the legal name of the processor; 21 (3) the proposed physical address of the processor; 22 (4) the name, address, social security number, and date 23 of birth of each principal officer and board member of the 24 processor; each principal officer and board member shall be 25 at least 21 years of age; - 217 - LRB101 12329 RLC 60273 b 1 (5) the details of any administrative or judicial 2 proceeding in which any of the principal officers or board 3 members of the processor (i) pled guilty, were convicted, 4 fined, or 5 revoked, or (ii) managed or served on the board of a 6 business or non-profit organization that pled guilty, was 7 convicted, 8 suspended or revoked; 9 had a registration or fined, or had a license suspended or registration or license (6) proposed operating bylaws that include procedures 10 for the oversight 11 development 12 system,accurate recordkeeping, staffing plan, and security 13 plan approved by the Department of State Police that are in 14 accordance with the rules issued by the Department of 15 Agriculture under this Act. A physical inventory shall be 16 performed 17 processor; of and of the processor, implementation all cannabis on of a a including plant weekly the monitoring basis by the 18 (7) verification from the Department of State Police 19 that all background checks of the prospective principal 20 officers, 21 business 22 persons have not been convicted of an excluded offense; board members, establishment and have agents been of the conducted cannabis and those 23 (8) a copy of the current local zoning ordinance and 24 verification that the proposed processor is in compliance 25 with 26 established by the local jurisdiction; the local zoning rules and distance limitations - 218 1 (9) proposed employment LRB101 12329 RLC 60273 b practices, in which the 2 applicant must demonstrate a plan of action to inform, 3 hire, and educate minorities, women, veterans, and persons 4 with disabilities and engage in fair labor practices and 5 provide worker protections; 6 (10) whether an applicant can demonstrate experience 7 in or business practices that promote economic empowerment 8 in Disproportionately Impacted Areas; 9 (11) experience with the extraction, processing, or 10 infusing, of oils similar to those derived from cannabis, 11 or 12 processor; other business practices to be performed by the 13 (12) whether the applicant consents to a labor peace 14 agreement. The applicant may attest that the applicant has 15 entered into a labor peace agreement and will abide by the 16 terms of the agreement. The applicant may submit a copy of 17 the page of the labor peace agreement that contains the 18 signatures of the union representative and the applicant; 19 (13) a description of the enclosed, locked facility 20 where cannabis will be processed, packaged, or otherwise 21 prepared for distribution to a dispensing organization or 22 other processor; 23 (14) processing, inventory, and packaging plans; 24 (15) a description of the applicant's experience with 25 manufacturing 26 processing; equipment and chemicals to be used in - 219 - LRB101 12329 RLC 60273 b 1 (16) a list of any academic degrees, certifications, or 2 relevant experience of all prospective principal officers, 3 board members, and agents with related businesses; 4 (17) the identity of every person having a financial or 5 voting interest of 5% or greater in the processor operation 6 with respect to which the license is sought, whether a 7 trust, 8 company, or sole proprietorship, including the name and 9 address of each person; 10 11 corporation, partnership, limited liability (18) a plan describing how the processor will address each of the following: 12 (i) energy needs, including estimates of monthly 13 electricity and gas usage, to what extent it will 14 procure energy from a local utility or from on-site 15 generation, and if it has or will adopt a sustainable 16 energy use and energy conservation policy; 17 (ii) water needs, including estimated water draw 18 and if it has or will adopt a sustainable water use and 19 water conservation policy; and 20 (iii) waste management, including if it has or will 21 adopt a waste reduction policy; and 22 (19) any other information required by rule. 23 (b) Applicants must submit all required information, 24 including that required in Section 35-20 to the Department of 25 Agriculture. Failure by an applicant to submit all required 26 information may result in the application being disqualified. - 220 1 (c) If the 2 application with 3 Agriculture may issue a deficiency notice to the applicant. The 4 applicant shall have 10 calendar days from the date of the 5 deficiency 6 Applications that are still incomplete after this opportunity 7 to cure, will not be scored and will be disqualified. notice Department LRB101 12329 RLC 60273 b missing to of Agriculture information, resubmit the the receives an Department of incomplete information. 8 Section 35-15. Issuing licenses. 9 (a) The Department of Agriculture shall by rule develop a 10 system to score processor applications to administratively 11 rank 12 quality of the applicant's responses to required information. 13 Applicants shall be awarded points according based on the 14 following categories: applications based on the clarity, organization 15 (1) Suitability of the proposed facility; 16 (2) Proposed staffing; 17 (3) Security plan; 18 (4) Processing plan; 19 (5) Expertise in relevant scientific fields; 20 (6) Product safety and labeling plan; 21 (7) Business plan; 22 (8) The applicant's status as a Social and Equity 23 Applicant, which shall constitute no less than 12.5% of 24 total available points; 25 (9) Bonus points based on the applicant's (i) plan to - 221 1 perform 2 practices, and (iii) engage in philanthropic efforts;(iv) 3 the existence of a labor peace agreement; (v) the applicant 4 is 51% or more owned and controlled by an individual or 5 individuals who have been an Illinois resident for the past 6 5 years as proved by tax records; 7 research, (ii) LRB101 12329 RLC 60273 b use environmentally friendly (10) Bonus points for a recycling and waste disposal 8 plan that includes: 9 (A) A 10 generated 11 applicable 12 rules. commitment by the State that processor and any recyclable shall local be laws, waste recycled per ordinances, and 13 (B) A commitment that any cannabis waste, liquid 14 waste, or hazardous waste shall be disposed of in 15 accordance with 8 Ill. Adm. Code 1000.460, except, to 16 the greatest extent feasible, all cannabis plant waste 17 will 18 incorporating 19 compostable mixed waste to be disposed of in accordance 20 with 8 Ill. Adm. Code 1000.460(g)(1). be the unusable cannabis and plant waste with 22 provisions. 23 compliance 24 environmental requirements, including, but not limited 25 to: A with to grinding (C) (i) commitment by 21 26 A rendered processor comply commits applicable storing, with securing, State and local to waste remain and in federal managing all - 222 - LRB101 12329 RLC 60273 b 1 recyclables and 2 composed of or containing finished cannabis and 3 cannabis products, in accordance with applicable 4 State and local laws, ordinances, and rules; and 5 (ii) waste, Disposing including liquid organic waste waste containing 6 cannabis or byproducts of cannabis processing in 7 compliance with all applicable State and federal 8 requirements, including, but not limited to, the 9 cannabis cultivation facility's permits under 10 Title X of the Environmental Protection Act; and 11 (11) any other criteria the Department of Agriculture 12 may set by rule for points or bonus points. 13 (b) The Department of Agriculture shall make the 14 application for processor licenses available on February 1, 15 2020, or, if that date falls on a weekend or holiday, the 16 business day immediately succeeding the weekend or holiday and 17 every February 1 or succeeding business day thereafter, and 18 shall receive such applications no later than March 31, 2020, 19 or, if that falls on a weekend or holiday, every March 31 or 20 succeeding business day thereafter. 21 (c) Applicants for processor licenses that score at least 22 85% of available points according to the system developed by 23 rule and who meet all other requirements for a processor 24 license, shall 25 Agriculture within 60 days of receiving the application. 26 be issued a license by the Department of (d) Should the applicant be awarded a processor license, - 223 - LRB101 12329 RLC 60273 b 1 the information and plans that an applicant provided in its 2 application, including any plans submitted for the acquiring of 3 bonus points, becomes a mandatory condition of the permit. Any 4 variation from or failure to perform such plans may result in 5 discipline, 6 license. 7 (e) including Should the the revocation applicant be or nonrenewal awarded a of a processor 8 organization license, it shall pay a fee of $20,000 prior to 9 receiving the license, to be deposited into the Cannabis 10 Regulation Fund. The Department of Agriculture may by rule 11 adjust the fee in this Section after January 1, 2021. 12 Section 35-20. Denial of application. An application for a 13 processor license must be denied if any of the following 14 conditions are met: 15 (1) 16 17 18 the applicant failed to submit the materials required by this Article; (2) the applicant would not be in compliance with local zoning rules or permit requirements; 19 (3) one or more of the prospective principal officers 20 or board members has been convicted of an excluded offense; 21 (4) one or more of the prospective principal officers, 22 23 24 25 or board members causes a violation of Section 35-25. (5) one or more of the principal officers or board members is under 21 years of age; (6) a principal officer or board member of the - 224 - LRB101 12329 RLC 60273 b 1 processor has been convicted of a felony under the laws of 2 this State, any other state, or the United States; 3 (7) a principal officer or board member of the 4 processor has been convicted of any violation of Article 28 5 of the Criminal Code of 2012, or substantially similar laws 6 of any other jurisdiction; 7 (8) the person has submitted an application for a 8 permit under this Act or this Article that contains false 9 information; or 10 (9) if the licensee; principal officer, board member, 11 or person having a financial or voting interest of 5% or 12 greater in the licensee; or agent is delinquent in filing 13 any required tax returns or paying any amounts owed to the 14 State of Illinois. 15 Section 16 35-25. Processing organization requirements; prohibitions. 17 (a) The operating documents of a processor shall include 18 procedures for the oversight of the processor, an inventory 19 monitoring 20 weekly, accurate recordkeeping, and a staffing plan. system including a physical inventory recorded 21 (b) A processor shall implement a security plan reviewed by 22 the Department of State Police that includes, but is not 23 limited 24 detection systems, personnel identification systems, 24-hour 25 surveillance system to monitor the interior and exterior of the to: facility access controls, perimeter intrusion - 225 facility and LRB101 12329 RLC 60273 b 1 processor accessible to authorized law 2 enforcement, the Department of Public Health where processing 3 takes place, and the Department of Agriculture in real time. 4 (c) All processing of cannabis by a processor must take 5 place in an enclosed, locked facility at the physical address 6 provided to the Department of Agriculture during the licensing 7 process. The processor location shall only be accessed by the 8 agents working for the processor, the Department of Agriculture 9 staff performing inspections, the Department of Public Health 10 staff performing inspections, law enforcement or other 11 emergency personnel, contractors working on jobs unrelated to 12 cannabis, such as installing or maintaining security devices or 13 performing electrical wiring, transporting organization agents 14 as provided in this Act, or participants in the incubator 15 program, individuals in a mentoring or educational program 16 approved by the State, or other individuals as provided by 17 rule. However, if a processor shares a premises with a craft 18 grower or dispensing organization, agents from these other 19 licensees may access the processor portion of the premises if 20 that is the location of common bathrooms, lunchrooms, locker 21 rooms, or other areas of the building where processing of 22 cannabis is not performed. At no time may a craft grower or 23 dispensing organization agent perform work at a processor 24 without a being a registered agent of the processor. 25 (d) A processor may not sell or distribute any cannabis to 26 any person other than a cultivation center, craft grower, - 226 1 processing 2 otherwise authorized by rule. 3 organization, a LRB101 12329 RLC 60273 b dispensing organization, or as (e) A processor may not either directly or indirectly 4 discriminate 5 establishments that are purchasing a like grade, strain, brand, 6 and quality of cannabis or cannabis-infused product. Nothing in 7 this subsection (e) prevents a processor from pricing cannabis 8 differently based on differences in the cost of manufacturing 9 or processing, the quantities sold, such volume discounts, or 10 in price between different cannabis business the way the products are delivered. 11 (f) All cannabis processed by a processor and intended for 12 distribution to a dispensing organization must be entered into 13 a data collection system, packaged and labeled under section 14 (section 15 distribution is to a dispensing organization that does not 16 share a premises with the processor, placed into a cannabis 17 container for transport. All cannabis produced by a processor 18 and 19 processing organization or craft grower with which it does not 20 share a premises, must be packaged in a labeled cannabis 21 container and entered into a data collection system before 22 transport. 23 24 on intended package for and label distribution section to a number), cultivation and, if center, (g) No person who has been convicted of or pled guilty to an excluded offense may be a processor agent. 25 (h) Processors are subject to random inspections by the 26 Department of Agriculture, the Department of Public Health, and - 227 1 LRB101 12329 RLC 60273 b the Department of State Police. 2 (i) A processor agent shall notify local law enforcement, 3 the 4 Agriculture within 24 hours of the discovery of any loss or 5 theft. Notification shall be made by phone or in person, or by 6 written or electronic communication. 7 8 Department of State Police, and the Department of (j) A processor organization may not be located in an area zoned for residential use. 9 (k) A processor or processor agent shall not transport 10 cannabis or cannabis-infused products to any other cannabis 11 business 12 license unless: establishment without a transport organization 13 (i) If the craft grower is located in a county with a 14 population of 3,000,000 or more, the cannabis business 15 establishment receiving the cannabis is within 2,000 ft of 16 the property line of the processor; 17 (ii) If the craft grower is located in a county with a 18 population of more than 700,000 but fewer than 3,000,000, 19 the cannabis business establishment receiving the cannabis 20 is within 2 miles of the processor; or 21 (iii) If the craft grower is located in a county with a 22 population of fewer the 700,000, the cannabis business 23 establishment receiving the cannabis is within 15 miles of 24 the processor. 25 (l) 26 A transporting processor may organization enter to into a transport contract cannabis with a to a - 228 craft LRB101 12329 RLC 60273 b 1 cultivation center, grower, processing organization, 2 dispensing organization, or laboratory. 3 (m) A processing organization may share premises with a 4 craft grower or a dispensing organization, or both, provided 5 each licensee stores currency and cannabis or cannabis-infused 6 products in 7 licensee does not have access or all licensees sharing a vault 8 share more than 50% of the same ownership. 9 a separate secured vault to which the other (n) It is unlawful for any person having a processing 10 organization license 11 representative or agent of such licensee to offer or deliver 12 money, or anything else of value, directly or indirectly to any 13 person 14 Organization License, an Adult Use Dispensing Organization 15 License, or a medical cannabis dispensing organization license 16 issued under the Compassionate Use of Medical Cannabis Pilot 17 Program Act, or to any person connected with or in any way 18 representing, or to any member of the family of, such person 19 holding an Early Applicant Adult Use Dispensing Organization 20 License, an Adult Use Dispensing Organization License, or a 21 medical cannabis dispensing organization license issued under 22 the Compassionate Use of Medical Cannabis Pilot Program Act, or 23 to any stockholders in any corporation engaged the retail sales 24 of 25 representative of said Early Applicant Adult Use Dispensing 26 Organization License, an Adult Use Dispensing Organization having cannabis, an or or any Early to officer, Applicant any officer, associate, Adult Use manager, member, Dispensing agent or - 229 - LRB101 12329 RLC 60273 b 1 License, or a medical cannabis dispensing organization license 2 issued under the Compassionate Use of Medical Cannabis Pilot 3 Program 4 dispensing 5 shelves 6 products, or on the dispensing organization's website. Act and to obtain organization, in display preferential including cases placement without where within limitation purchasers can 7 Section 35-30. Processor agent identification card. 8 (a) The Department of Agriculture shall: the on view 9 (1) establish by rule the information required in an 10 initial application or renewal application for an agent 11 identification 12 nonrefundable fee to accompany the initial application or 13 renewal application; 14 card submitted under this Act and the (2) verify the information contained in an initial 15 application or renewal application for an agent 16 identification card submitted under this Act, and approve 17 or deny an application within 30 days of receiving a 18 completed initial application or renewal application and 19 all supporting documentation required by rule; 20 (3) issue an agent identification card to a qualifying 21 agent within 15 business days of approving the initial 22 application or renewal application; 23 24 25 (4) enter the license number of the processor where the agent works; and (5) allow for an electronic initial application and - 230 - LRB101 12329 RLC 60273 b 1 renewal application process, and provide a confirmation by 2 electronic or other methods that an application has been 3 submitted. Each Department may by rule require prospective 4 agents to file their applications by electronic means and 5 to provide notices to the agents by electronic means. 6 (b) An agent must keep his or her identification card 7 visible at all times when on the property of a cannabis 8 establishment including the cannabis business establishment 9 for which he or she is an agent. 10 (c) The 11 following: agent identification cards shall contain the 12 (1) the name of the cardholder; 13 (2) the date of issuance and expiration date of the 14 15 identification card; (3) a random 10-digit alphanumeric identification 16 number containing at least 4 numbers and at least 4 letters 17 that is unique to the holder; 18 (4) a photograph of the cardholder; and 19 (5) the legal name of the cannabis business 20 establishment employing the agent. 21 (d) An agent identification card shall be immediately 22 returned to the cannabis business establishment of the agent 23 upon termination of his or her employment. 24 (e) Any agent identification card lost by processor agent 25 shall be reported to the Department of State Police and the 26 Department of Agriculture immediately upon discovery of the - 231 1 LRB101 12329 RLC 60273 b loss. 2 (f) An applicant for an agent identification card shall be 3 denied if he or she has been convicted of or pled guilty to an 4 excluded offense. 5 Section 35-35. Processing organization background checks. 6 (a) Through the Department of State Police, the licensing 7 or issuing Department shall conduct a background check of the 8 prospective principal officers, board members, and agents of a 9 processor applying for a license or identification card under 10 this Act. The Department of State Police shall charge a fee set 11 by rule for conducting the criminal history record check, which 12 shall be deposited into the State Police Services Fund and 13 shall not exceed the actual cost of the record check. In order 14 to 15 prospective principal officer, board member, or agent shall 16 submit a full set of fingerprints to the Department of State 17 Police 18 criminal records check. These fingerprints shall be checked 19 against the fingerprint records now and hereafter, to the 20 extent allowed by law, filed in the Department of State Police 21 and Federal Bureau of Investigation criminal history records 22 databases. 23 following positive identification, all conviction information 24 to the Department of Agriculture: 25 carry out for this the The provision, purpose of Department each cannabis obtaining a of State State Police establishment and shall federal furnish, (b) When applying for the initial license or identification - 232 - LRB101 12329 RLC 60273 b 1 card, the background checks for all prospective principal 2 officers, board members, and agents shall be completed before 3 submitting the application to the licensing or issuing agency. 4 5 Section 35-40. Renewal of processing organization licenses and agent identification cards. 6 (a) Licenses and identification cards issued under this Act 7 shall be renewed annually. A processing organization shall 8 receive 9 expiration of its current license that the license will expire. 10 The Department of Agriculture shall grant a renewal within 45 11 days of submission of a renewal application if: 12 written (1) the or electronic processing notice 90 organization days submits before a the renewal 13 application and the required nonrefundable renewal fee of 14 $20,000, or, after January 1, 2021, another amount set by 15 rule by the Department of Agriculture, to be deposited into 16 the Cannabis Regulation Fund; 17 (2) the Department of Agriculture has not suspended the 18 license of the processing organization or suspended or 19 revoked the license for violating this Act or rules adopted 20 under this Act; and 21 (3) the processing organization has continued to 22 operate in accordance with all plans submitted as part of 23 its 24 Agriculture 25 approved by the Department of Agriculture. application or and any approved amendments by the thereto Department that have of been - 233 - LRB101 12329 RLC 60273 b 1 (b) If a processing organization fails to renew its license 2 before expiration, it shall cease operations until its license 3 is renewed. 4 (c) If a processing organization agent fails to renew his 5 or her identification card before its expiration, he or she 6 shall cease to work as an agent of the cannabis business 7 establishment until his or her identification card is renewed. 8 (d) Any processing organization that continues to operate, 9 or any processing organization agent who continues to work as 10 an agent, after the applicable license or identification card 11 has 12 provided under Section 35-25. expired without renewal are subject to the penalties 13 (e) The Department shall not renew a license or an agent 14 identification card if the applicant is delinquent in filing 15 any required tax returns or paying any amounts owed to the 16 State of Illinois. 17 ARTICLE 40. 18 TRANSPORTING ORGANIZATIONS 19 Section 40-5. Issuance of licenses. 20 (a) The Department of Agriculture shall issue transporting 21 licenses through a process provided for in this Article no 22 later than July 1, 2020. 23 24 (b) The Department of Agriculture shall make the application for transporting organization licenses available - 234 - LRB101 12329 RLC 60273 b 1 on January 7, 2020, and shall receive such applications no 2 later than 3 Agriculture shall make available such applications on every 4 January 7 hereafter or if that date falls on a weekend or 5 holiday, the business day immediately succeeding the weekend or 6 holiday and shall receive such applications no later than March 7 31 or succeeding business day thereafter. March 15, 2010. Thereafter, the Department of 8 Section 40-10. Application. 9 (a) When applying for a transporting organization license, 10 the applicant shall electronically submit the following in such 11 form as the Department of Agriculture may direct: 12 (1) the nonrefundable application fee of $5,000 or, 13 after January 1, 2021, another amount as set by rule by the 14 Department 15 Cannabis Regulation Fund; of Agriculture, to be deposited into the 16 (2) the legal name of the transporting organization; 17 (3) the proposed physical address of the transporting 18 organization, if one is proposed; 19 (4) the name, address, social security number, and date 20 of birth of each principal officer and board member of the 21 transporting 22 board member shall be at least 21 years of age; organization; each principal officer and 23 (5) the details of any administrative or judicial 24 proceeding in which any of the principal officers or board 25 members of the transporting organization (i) pled guilty, - 235 - LRB101 12329 RLC 60273 b 1 were convicted, fined, or had a registration or license 2 suspended or revoked, or (ii) managed or served on the 3 board of a business or non-profit organization that pled 4 guilty, was convicted, fined, or had a registration or 5 license suspended or revoked; 6 (6) proposed operating bylaws that include procedures 7 for the oversight 8 including 9 accurate recordkeeping plan, staffing plan, and security 10 plan approved by the Department of State Police that are in 11 accordance with the rules issued by the Department of 12 Agriculture under this Act. A physical inventory shall be 13 performed 14 transporting organization; the of of the development all cannabis transporting and on organization, implementation a weekly basis of by an the 15 (7) verification from the Department of State Police 16 that all background checks of the prospective principal 17 officers, board members, and agents of the transporting 18 organization have been conducted and those persons have not 19 been convicted of an excluded offense; 20 (8) a copy of the current local zoning ordinance or 21 permit and verification that the proposed transporting 22 organization is in compliance with the local zoning rules 23 and 24 jurisdiction, 25 business address; 26 distance (9) limitations if proposed the established transporting employment by the organization practices, in local has which a the - 236 - LRB101 12329 RLC 60273 b 1 applicant must demonstrate a plan of action to inform, 2 hire, and educate minorities, women, veterans, and persons 3 with disabilities and engage in fair labor practices and 4 provide worker protections; 5 (10) whether an applicant can demonstrate experience 6 in or business practices that promote economic empowerment 7 in Disproportionately Impacted Areas; 8 9 10 (11) the number and type of equipment the transporting organization will use to transport cannabis and cannabis-infused products; 11 (12) whether the applicant consents to a labor peace 12 agreement. The applicant may attest that the applicant has 13 entered into a labor peace agreement and will abide by the 14 terms of the agreement. The applicant may submit a copy of 15 the page of the labor peace agreement that contains the 16 signatures of the union representative and the applicant; 17 (13) loading, transporting, and unloading plans; 18 (14) a description of the applicant's experience in the 19 20 distribution or security business; (15) the identity of every person having a financial or 21 voting interest of 22 organization with respect to which the license is sought, 23 whether 24 liability company, or sole proprietorship, including the 25 name and address of each person; and 26 a trust, 5% or greater in corporation, the transporting partnership, (20) any other information required by rule. limited - 237 1 (b) The Department of LRB101 12329 RLC 60273 b Agriculture shall make the 2 application for transporting organization licenses available 3 on February 1, 2020, or, if that date falls on a weekend or 4 holiday, the business day immediately succeeding the weekend or 5 holiday 6 thereafter, and shall receive such applications no later than 7 March 31, 2020, or, if that falls on a weekend or holiday, 8 every March 31 or succeeding business day thereafter. 9 (c) and every Applicants February must 1 or submit succeeding all business required day information, 10 including that required in Section 40-35 to the Department of 11 Agriculture. Failure by an applicant to submit all required 12 information may result in the application being disqualified. 13 (d) If the 14 application with 15 Agriculture may issue a deficiency notice to the applicant. The 16 applicant shall have 10 calendar days from the date of the 17 deficiency 18 Applications that are still incomplete after this opportunity 19 to cure, will not be scored and will be disqualified. notice Department missing to of Agriculture information, resubmit the the receives an Department of incomplete information. 20 Section 40-15. Issuing licenses. 21 (a) The Department of Agriculture shall by rule develop a 22 system to score processor applications to administratively 23 rank applications based on the clarity, organization, and 24 quality of the applicant's responses to required information. 25 Applicants shall be awarded points according based on the - 238 1 LRB101 12329 RLC 60273 b following categories: 2 (1) Suitability of the proposed facility; 3 (2) Proposed staffing; 4 (3) Security plan; 5 (4) Training plan; 6 (5) Business plan; 7 (6) The applicant's status as a Social Equity 8 Applicant, which shall constitute no less than 12.5% of 9 total available points; 10 (7) Bonus points based on the applicant's plan to (i) 11 perform 12 practices, and (iii) engage in philanthropic efforts; (iv) 13 the existence of a labor peace agreement; (v) the applicant 14 is 51% or more owned and controlled by an individual or 15 individuals who have been an Illinois resident for the past 16 5 years as proved by tax records; and 17 research, (ii) use environmentally friendly (8) Any other criteria the Department of Agriculture 18 may set by rule for points or bonus points. 19 (b) Applicants for transportation organization licenses 20 that score at least 85% of available points according to the 21 system developed by rule and who meet all other requirements 22 for a processor license, shall be issued a license by the 23 Department of Agriculture within 60 days of receiving the 24 application. 25 26 (c) Should organization the applicant license, the be awarded information and a transportation plans that an - 239 - LRB101 12329 RLC 60273 b 1 applicant provided in its application, including any plans 2 submitted for 3 mandatory condition of 4 failure 5 including the revocation or nonrenewal of a license. 6 (d) to the perform Should the acquiring of the such bonus points, permit. Any plans applicant may be shall be variation from result awarded in a a or discipline, transporting 7 organization license, it shall pay a fee of $10,000 prior to 8 receiving the 9 Regulation Fund. The Department of Agriculture may by rule 10 license, to be deposited into the Cannabis adjust the fee in this Section after January 1, 2021. 11 Section 40-20. Denial of application. An application for a 12 transportation organization license must be denied if any of 13 the following conditions are met: 14 15 16 17 (1) the applicant failed to submit the materials required by this Article; (2) the applicant would not be in compliance with local zoning rules or permit requirements; 18 (3) one or more of the prospective principal officers 19 or board members has been convicted of an excluded offense; 20 (4) one or more of the prospective principal officers, 21 22 23 24 25 or board members causes a violation of Section 40-25; (5) one or more of the principal officers or board members is under 21 years of age; (6) a principal officer or board member of the transportation organization has been convicted of a felony - 240 - LRB101 12329 RLC 60273 b 1 under the laws of this State, any other state, or the 2 United States; 3 (7) a principal officer or board member of the 4 processor has been convicted of any violation of Article 28 5 of the Criminal Code of 2012, or substantially similar laws 6 of any other jurisdiction; 7 8 (8) the person has submitted an application for a permit under this Act that contains false information; or 9 (9) the licensee; principal officer, board member, or 10 person having a financial or voting interest of 5% or 11 greater 12 required tax returns or paying any amounts owed to the 13 State of Illinois. 14 Section 15 in the 40-25. licensee is Transporting delinquent in organization filing any requirements; prohibitions. 16 (a) The operating documents of a transporting organization 17 shall include procedures for the oversight of the processor, an 18 inventory monitoring system including a physical inventory 19 recorded weekly, accurate recordkeeping, and a staffing plan. 20 (b) A transporting organization shall implement a security 21 plan reviewed by the Department of State Police that includes, 22 but is not limited to: route selection plan, stranded vehicle 23 situations, 24 recipient 25 concerns. of vehicular hijacking, deliveries, hiring, communication and any other with the security - 241 - LRB101 12329 RLC 60273 b 1 (c) A transporting organization may not transport cannabis 2 to any person other than a cultivation center, a craft grower, 3 a 4 testing facility, or as otherwise authorized by rule. 5 processing (d) All organization, cannabis a dispensing transported by organization, a a transporting 6 organization must be entered into a data collection system and 7 placed into a cannabis container for transport. 8 9 (e) No person who has been convicted of or pled guilty to an excluded offense may be a processor agent. 10 (f) Processors are subject to random inspections by the 11 Department of Agriculture, the Department of Public Health, and 12 the Department of State Police. 13 (g) A transporting organization agent shall notify local 14 law 15 Department of Agriculture within 24 hours of the discovery of 16 any loss or theft. Notification shall be made by phone or in 17 person, or by written or electronic communication. 18 19 enforcement, the Department of State Police, and the (h) No person under the age of 21 years old shall be in a commercial vehicle or trailer transporting cannabis goods. 20 (i) No person or individual who is not a transporting 21 organization agent shall be in a vehicle while transporting 22 cannabis goods. 23 24 (j) Transporters may not use commercial motor vehicles with a weight rating of over 10,000 pounds. 25 (k) It is unlawful for any person to offer or deliver 26 money, or anything else of value, directly or indirectly, to - 242 - LRB101 12329 RLC 60273 b 1 any of the following persons to obtain preferential placement 2 within 3 limitation on shelves and in display cases where purchasers can 4 view products, or on the dispensing organization's website: 5 the dispensing (1) a person organization, having a including transporting without organization 6 license or any officer, associate, member, representative, 7 or agent of the licensee; 8 (2) a person having an Early Applicant Adult Use 9 Dispensing Organization License, an Adult Use Dispensing 10 Organization License, or a medical cannabis dispensing 11 organization license issued under the Compassionate Use of 12 Medical Cannabis Pilot Program Act; 13 (3) a person connected with or in any way representing, 14 or a member of the family of, a person holding an Early 15 Applicant Adult Use Dispensing Organization License, an 16 Adult Use Dispensing Organization License, or a medical 17 cannabis dispensing organization license issued under the 18 Compassionate Use of Medical Cannabis Pilot Program Act; or 19 (4) a stockholder, officer, manager, agent, or 20 representative of a corporation engaged the retail sales of 21 cannabis, 22 Organization License, an Adult Use Dispensing Organization 23 License, or a medical cannabis dispensing organization 24 license issued under the Compassionate Use of Medical 25 Cannabis Pilot Program Act. 26 (l) A transportation organization agent must keep his or an Early Applicant Adult Use Dispensing - 243 - LRB101 12329 RLC 60273 b 1 her identification card visible at all times when on the 2 property of a cannabis business establishment and during the 3 transportation of cannabis when acting under his or her duties 4 as a transportation organization agent. During these times, the 5 cultivation center agent must also provide the identification 6 card upon request of any law enforcement officer engaged in his 7 or her official duties. 8 (k) A copy of the transporting organization's registration 9 and a manifest for the delivery shall be present in any vehicle 10 11 12 transporting cannabis. (l) Cannabis shall be transported so it is not visible or recognizable from outside the vehicle. 13 (m) A vehicle transporting cannabis must not bear any 14 markings to indicate the vehicle contains cannabis or bear the 15 name or logo of the cannabis business establishment. 16 17 (n) Cannabis must be transported in an enclosed, locked storage compartment that is secured or affixed to the vehicle. 18 (o) The Department of Agriculture may, by rule, impose any 19 other requirements or prohibitions on the transportation of 20 cannabis. 21 Section 40-30. Transporting agent identification card. 22 (a) The Department of Agriculture shall: 23 (1) establish by rule the information required in an 24 initial application or renewal application for an agent 25 identification card submitted under this Act and the - 244 - LRB101 12329 RLC 60273 b 1 nonrefundable fee to accompany the initial application or 2 renewal application; 3 (2) verify the information contained in an initial 4 application or renewal application for an agent 5 identification card submitted under this Act, and approve 6 or deny an application within 30 days of receiving a 7 completed initial application or renewal application and 8 all supporting documentation required by rule; 9 (3) issue an agent identification card to a qualifying 10 agent within 15 business days of approving the initial 11 application or renewal application; 12 13 (4) enter the license number of the transporting organization where the agent works; and 14 (5) allow for an electronic initial application and 15 renewal application process, and provide a confirmation by 16 electronic or other methods that an application has been 17 submitted. Each Department may by rule require prospective 18 agents to file their applications by electronic means and 19 to provide notices to the agents by electronic means. 20 (b) An agent must keep his or her identification card 21 visible at all times when on the property of a cannabis 22 business 23 establishment for which he or she is an agent. establishment 24 (c) 25 following: 26 The agent including identification the cards (1) the name of the cardholder; cannabis shall business contain the - 245 1 LRB101 12329 RLC 60273 b (2) the date of issuance and expiration date of the 2 identification card; 3 (3) a random 10-digit alphanumeric identification 4 number containing at least 4 numbers and at least 4 letters 5 that is unique to the holder; 6 (4) a photograph of the cardholder; and 7 (5) the legal name of the cannabis business 8 establishment employing the agent. 9 (d) An agent identification card shall be immediately 10 returned to the cannabis business establishment of the agent 11 upon termination of his or her employment. 12 (e) Any agent identification card lost by processor agent 13 shall be reported to the Department of State Police and the 14 Department of Agriculture immediately upon discovery of the 15 loss. 16 (f) An applicant for an agent identification card shall be 17 denied if he or she has been convicted of or pled guilty to an 18 excluded offense. 19 (g) An application for an agent identification card shall 20 be denied if the applicant is delinquent in filing any required 21 tax 22 Illinois. 23 24 25 returns Section or paying 40-35. any amounts Transporting owed to the organization State of background checks. (a) Through the Department of State Police, the licensing - 246 - LRB101 12329 RLC 60273 b 1 or issuing Department shall conduct a background check of the 2 prospective principal officers, board members, and agents of a 3 processor applying for a license or identification card under 4 this Act. The Department of State Police shall charge a fee set 5 by rule for conducting the criminal history record check, which 6 shall be deposited into the State Police Services Fund and 7 shall not exceed the actual cost of the record check. In order 8 to 9 prospective principal officer, board member, or agent shall 10 submit a full set of fingerprints to the Department of State 11 Police 12 criminal records check. These fingerprints shall be checked 13 against the fingerprint records now and hereafter, to the 14 extent allowed by law, filed in the Department of State Police 15 and Federal Bureau of Investigation criminal history records 16 databases. 17 following positive identification, all conviction information 18 to the Department of Agriculture: carry out for this the The provision, purpose of Department each cannabis obtaining a of State State Police establishment and shall federal furnish, 19 (b) When applying for the initial license or identification 20 card, the background checks for all prospective principal 21 officers, board members, and agents shall be completed before 22 submitting the application to the licensing or issuing agency. 23 24 25 Section 40-40. Renewal of transporting organization licenses and agent identification cards. (a) Licenses and identification cards issued under this Act - 247 - LRB101 12329 RLC 60273 b 1 shall be renewed annually. A transporting organization shall 2 receive 3 expiration of its current license that the license will expire. 4 The Department of Agriculture shall grant a renewal within 45 5 days of submission of a renewal application if: written or electronic notice 90 days before the 6 (1) the transporting organization submits a renewal 7 application and the required nonrefundable renewal fee of 8 $10,000, or after January 1, 2021, another amount set by 9 rule by the Department of Agriculture, to be deposited into 10 the Cannabis Regulation Fund; 11 (2) the Department of Agriculture has not suspended the 12 license of the transporting organization or suspended or 13 revoked the license for violating this Act or rules adopted 14 under this Act; and 15 (3) the transporting organization has continued to 16 operate in accordance with all plans submitted as part of 17 its 18 Agriculture 19 approved by the Department of Agriculture. 20 (b) If a transporting organization fails to renew its 21 license before expiration, it shall cease operations until its 22 license is renewed. application or and any approved amendments by the thereto Department that have of been 23 (c) If a transporting organization agent fails to renew his 24 or her identification card before its expiration, he or she 25 shall cease to work as an agent of the cannabis business 26 establishment until his or her identification card is renewed. - 248 1 (d) Any transporting LRB101 12329 RLC 60273 b organization that continues to 2 operate, or any transporting organization agent who continues 3 to 4 identification card has expired without renewal are subject to 5 the penalties provided under Section 45-5. work as an agent, after the applicable license or 6 (e) The Department shall not renew a license or an agent 7 identification card if the applicant is delinquent in filing 8 any required tax returns or paying any amounts owed to the 9 State of Illinois. 10 ARTICLE 45. 11 ENFORCEMENT AND IMMUNITIES 12 13 Section 45-5. License suspension; revocation; other penalties. 14 (a) Notwithstanding any other criminal penalties related 15 to the unlawful possession of cannabis, the Department of 16 Financial and Professional Regulation and the Department of 17 Agriculture 18 reprimand, issue cease and desist orders, refuse to issue or 19 renew 20 nondisciplinary action as each department may deem proper with 21 regard 22 business establishment agents, including fines not to exceed: 23 24 a may license, to a revoke, or cannabis suspend, take any business place other on probation, disciplinary establishment or or cannabis (1) $50,000 for each violation of this Act or rules adopted under this Act by a cultivation center or - 249 1 LRB101 12329 RLC 60273 b cultivation center agent; 2 (2) $10,000 for each violation of this Act or rules 3 adopted under this Act by a dispensing organization or 4 dispensing organization agent; 5 (3) $15,000 for each violation of this Act or rules 6 adopted under this Act by a craft grower or craft grower 7 agent; 8 (4) $10,000 for each violation of this Act or rules 9 adopted under this Act by a processing organization or 10 processing organization agent; and 11 (5) $10,000 for each violation of this Act or rules 12 adopted under this Act by a transporting organization or 13 transporting organization agent. 14 (b) The Department of Financial and Professional 15 Regulation and the Department of Agriculture, as the case may 16 be, shall consider licensee cooperation in any agency or other 17 investigation in its determination of penalties imposed under 18 this Section. 19 (c) The procedures for disciplining a cannabis business 20 establishment or cannabis business establishment agent and for 21 administrative hearings shall be determined by rule, and shall 22 provide 23 Administrative Review Law. for the review of final decisions under the 24 Section 45-10. Immunities and presumptions related to the 25 handling of cannabis by cannabis business establishments and - 250 1 LRB101 12329 RLC 60273 b their agents. 2 (a) A cultivation center, craft grower, processing 3 organization, or transporting organization is not subject to: 4 (i) prosecution; (ii) search or inspection, except by the 5 Department of Agriculture, the Department of Public Health, or 6 State or local law enforcement under this Act; (iii) seizure; 7 (iv) penalty in any manner, including, but not limited to, 8 civil penalty; (v) denial of any right or privilege; or (vi) 9 disciplinary action by a business licensing board or entity, 10 for acting under this Act and rules adopted under this Act to 11 acquire, possess, cultivate, manufacture, process, deliver, 12 transfer, transport, supply, or sell cannabis or cannabis 13 paraphernalia under this Act. 14 (b) A licensed cultivation center agent, licensed craft 15 grower 16 licensed transporting organization agent is not subject to: (i) 17 prosecution; 18 including, but not limited to, civil penalty; (iv) denial of 19 any 20 business 21 cannabis-related activity authorized under this Act and rules 22 adopted under this Act. 23 agent, right (c) or licensed (ii) search; (iii) privilege; or licensing A processing board (v) or organization penalty search or any entity, for not inspection, by engaging subject to: except or manner, disciplinary action dispensing organization is (ii) in agent, by a in (i) 24 prosecution; the 25 Department of Financial and Professional Regulation, or State 26 or local law enforcement under this Act; (iii) seizure; (iv) - 251 - LRB101 12329 RLC 60273 b 1 penalty in any manner, including, but not limited to, civil 2 penalty; 3 disciplinary action by a business licensing board or entity, 4 for acting under this Act and rules adopted under this Act to 5 acquire, 6 products, cannabis paraphernalia, or related supplies, and 7 educational materials under this Act. (v) denial possess, of or any right dispense or privilege; cannabis, or (vi) cannabis-infused 8 (d) A licensed dispensing organization agent is not subject 9 to: (i) prosecution; (ii) search; or (iii) penalty in any 10 manner, or be denied any right or privilege, including, but not 11 limited to, civil penalty or disciplinary action by a business 12 licensing 13 organization under this Act and rules adopted under this Act. 14 (e) board Any or entity, cannabis, for working cannabis-infused for a dispensing products, cannabis 15 paraphernalia, legal property, or interest in legal property 16 that is possessed, owned, or used in connection with the use of 17 cannabis as allowed under this Act, or acts incidental to that 18 use, may not be seized or forfeited. This Act does not prevent 19 the seizure or forfeiture of cannabis exceeding the amounts 20 allowed 21 forfeiture if the basis for the action is unrelated to the 22 cannabis that is possessed, manufactured, transferred, or used 23 under this Act. 24 under this Act, nor shall it prevent seizure or (f) Nothing in this Act shall preclude local or State law 25 enforcement 26 craft agencies grower, from searching processing a cultivation organization, center, transporting - 252 - LRB101 12329 RLC 60273 b 1 organization, or dispensing organization if there is probable 2 cause to believe that the criminal laws of this State have been 3 violated and the search is conducted in conformity with the 4 Illinois Constitution, the Constitution of the United States, 5 and applicable law. 6 Section 45-15. State standards and requirements. Any 7 standards, requirements, and rules regarding the health and 8 safety, 9 safety, and worker protections established by the State shall 10 be the minimum standards for all licensees under this Act 11 statewide, where applicable. Knowing violations of any State or 12 local law, ordinance, or rule conferring worker protections or 13 legal rights on the employees of a licensee may be grounds for 14 disciplinary action under this Act, in addition to penalties 15 established elsewhere. 16 17 environmental protection, testing, security, food Section 45-20. Violation of tax Acts; refusal, revocation, or suspension of license or agent identification card. 18 (a) In addition to other grounds specified in this Act, the 19 Department of Agriculture and Department of Financial and 20 Professional Regulation, upon notification by the Department 21 of Revenue, shall refuse the issuance or renewal of a license 22 or agent identification card, or suspend or revoke the license 23 or agent identification card, of any person, for any of the 24 following violations of any tax Act administered by the - 253 1 LRB101 12329 RLC 60273 b Department of Revenue: 2 (1) Failure to make a tax return. 3 (2) The filing of a fraudulent return. 4 (3) Failure to pay all or part of any tax or penalty 5 finally determined to be due. 6 (4) Failure to keep books and records. 7 (5) Failure to secure and display a certificate or 8 sub-certificates of registration, if required. 9 (6) Willful violation of any rule or regulation of the 10 Department relating to the administration and enforcement 11 of tax liability. 12 (b) After all violations of any of items (1) through (6) of 13 subsection (a) have been corrected or resolved, the Department 14 shall, upon request of the applicant or, if not requested, may 15 notify 16 violations have been corrected or resolved. Upon receiving 17 notice from the Department that a violation of any of items (1) 18 through (6) of subsection (a) have been corrected or otherwise 19 resolved to the Department of Revenue's satisfaction, the 20 Department of Agriculture and Department of Financial and 21 Professional Regulation, may issue or renew the license or 22 agent identification card, or vacate an order of suspension or 23 revocation. the entities listed in subsection 24 ARTICLE 50. 25 LABORATORY TESTING (a) that the - 254 - LRB101 12329 RLC 60273 b 1 Section 50-5. Laboratory testing. 2 (a) Notwithstanding any other provision of law, the 3 following acts, when performed by a cannabis testing facility 4 with a current, valid registration, or a person 21 years of age 5 or older who is acting in his or her capacity as an owner, 6 employee, or agent of a cannabis testing facility, are not 7 unlawful and shall not be an offense under Illinois law or be a 8 basis for seizure or forfeiture of assets under State law: 9 10 (1) possessing, repackaging, transporting, storing, or displaying cannabis or cannabis products; 11 (2) receiving or transporting cannabis or cannabis 12 products from a cannabis establishment or a person 21 years 13 of age or older; and 14 (3) returning or transporting cannabis or cannabis 15 products to a cannabis establishment, or a person 21 years 16 of age or older. 17 (b)(1) No laboratory shall handle, test, or analyze 18 cannabis unless approved by the Department of Agriculture in 19 accordance with this Section. 20 21 22 23 (2) No laboratory shall be approved to handle, test, or analyze cannabis unless the laboratory: (A) is accredited by a private laboratory accrediting organization; 24 (B) is independent from all other persons involved in 25 the cannabis industry in Illinois and that no person with a - 255 - LRB101 12329 RLC 60273 b 1 direct or indirect interest in the laboratory shall have a 2 direct 3 interest in an Illinois cultivation center, craft grower, 4 dispensary, processor, transporter, certifying physician, 5 or any other entity in the State that may benefit from the 6 production, 7 purchase, or use of cannabis; and or indirect and financial, the management, manufacture, or dispensing, other sale, 8 (C) has employed at least one person to oversee and be 9 responsible for the laboratory testing who has earned, from 10 a college or university accredited by 11 regional certifying authority, at least: 12 (i) a master's level 13 biological sciences and 14 post-degree laboratory experience; or 15 degree a a in minimum national or chemical or of 2 years (ii) a bachelor's degree in chemical or biological 16 sciences and a minimum 17 laboratory experience. of 4 years post-degree 18 (3) Each independent testing laboratory that claims to be 19 accredited must provide the Department of Agriculture with a 20 copy of the most recent annual inspection report granting 21 accreditation and every annual report thereafter. 22 (c) Immediately before manufacturing or natural processing 23 of any cannabis or cannabis-infused product or packaging 24 cannabis for sale to a dispensary, each batch shall be made 25 available at the cultivation center for an employee annual 26 report of an approved laboratory to select a random sample, - 256 1 LRB101 12329 RLC 60273 b which shall be tested by the approved laboratory for: 2 (1) microbiological contaminants; 3 (2) mycotoxins; 4 (3) pesticide active ingredients; 5 (4) residual solvent; and 6 (5) purposes of conducting an active ingredient 7 analysis. 8 (d) The Department of Agriculture may select a random 9 sample that shall, for the purposes of conducting an active 10 ingredient analysis, be tested by the Department of Agriculture 11 for verification of label information. 12 (e) A laboratory shall immediately return or dispose of any 13 cannabis upon the completion of any testing, use, or research. 14 If cannabis is disposed of, it shall be done in compliance with 15 Department of Agriculture rule. 16 (f) If a sample of cannabis does not chemical pass the residue, or 17 microbiological, mycotoxin, pesticide 18 solvent residue test, based on the standards established by the 19 Department of Agriculture, the following shall apply: 20 (1) If the sample failed the pesticide chemical residue 21 test, the entire batch from which the sample was taken 22 shall, if applicable, be recalled as provided by rule. 23 (2) If the sample failed any other test, the batch may 24 be used to make a CO2 or solvent based extract. After 25 processing, the CO2 or solvent based extract must still 26 pass all required tests. - 257 1 (3) The Department Agriculture may establish 2 standards 3 solvent residue, or other standards for the presence of 4 possible 5 requirements for contents and potency. 6 (g) The for of LRB101 12329 RLC 60273 b microbial, mycotoxin, pesticide contaminants, in addition laboratory shall file with to the residue, labeling Department of 7 Agriculture an electronic copy of each laboratory test result 8 for 9 mycotoxin, or pesticide chemical residue test, at the same time 10 that it transmits those results to the cultivation center. In 11 addition, the laboratory shall maintain the laboratory test 12 results for at least 5 years and make them available at the 13 Department of Agriculture's request. 14 any batch that does not pass the microbiological, (h) A cultivation center, craft grower, and processor shall 15 provide 16 results for each batch of cannabis product purchased by the 17 dispensing 18 organization must have those laboratory results available upon 19 request to purchasers. 20 21 to a dispensing organization, organization if the sampled. laboratory Each test dispensary (i) The Department of Agriculture may adopt rules related to testing in furtherance of this Act. 22 ARTICLE 55. 23 GENERAL PROVISIONS 24 Section 55-5. Preparation of cannabis-infused products. - 258 The 1 (a) 2 production 3 center, a craft grower, processing organization, or dispensing 4 organization and establish rules related to refrigeration, 5 hot-holding, and handling of cannabis-infused products. All 6 cannabis-infused 7 labeling requirements contained in Section 55-21. of Department of LRB101 12329 RLC 60273 b Agriculture cannabis-infused products products shall meet may by regulate a the the cultivation packaging and 8 (b) Cannabis-infused products for sale or distribution at a 9 dispensing organization must be prepared by an approved agent 10 of a cultivation center or processing organization. 11 (e) A cultivation center or processing organization that 12 prepares cannabis-infused products for sale or distribution by 13 a 14 supervision of a Department of Public Health certified food 15 service sanitation manager. 16 17 dispensing organization shall be under the operational (e) Dispensing organizations may not manufacture, process, or produce cannabis-infused products. 18 (f) The Department of Public Health shall adopt and enforce 19 rules for the manufacture and processing of cannabis-infused 20 products, and for that purpose it may at all times enter every 21 building, room, basement, enclosure, or premises occupied or 22 used, 23 production, preparation, manufacture for sale, storage, sale, 24 processing, 25 cannabis-infused 26 together with all utensils, fixtures, furniture, and machinery or suspected of being distribution, products, occupied or and to or used, for transportation inspect the the of premises - 259 1 LRB101 12329 RLC 60273 b used for the preparation of these products. 2 (g) The Department of Agriculture may by rule establish a 3 maximum level of THC that may be contained in each serving of 4 cannabis-infused product, and within the product package. 5 (h) If a local public health agency has a reasonable belief 6 that a cannabis-infused product poses a public health hazard, 7 it may refer the cultivation center, craft grower, or processor 8 that manufactured or process to the cannabis-infused product to 9 the Department of Public Health. If the Department of Public 10 Health finds that a cannabis-infused product poses a health 11 hazard, it may without administrative procedure to bond, bring 12 an action for immediate injunctive relief to require that 13 action be taken as the court may deem necessary to meet the 14 hazard of the cultivation facility or seek other relief as 15 provided by rule. 16 Section 55-10. Maintenance of inventory. All dispensing 17 organizations authorized to serve both registered qualifying 18 patients and caregivers and purchasers are required to report 19 which cannabis and cannabis-infused products are purchased for 20 sale under the Compassionate Use of Medical Cannabis Pilot 21 Program Act, and which cannabis and cannabis-infused products 22 are purchased under this Act. Nothing in this Section prohibits 23 a registered qualifying patient under the Compassionate Use of 24 Medical Cannabis Pilot Program Act from purchasing cannabis as 25 a purchaser under this Act. - 260 - LRB101 12329 RLC 60273 b 1 Section 55-15. Destruction of cannabis. 2 (a) All cannabis byproduct, scrap, and harvested cannabis 3 not intended for distribution to a dispensing organization must 4 be 5 Department of Agriculture under this Act. Documentation of 6 destruction and disposal shall be retained at the cultivation 7 center, craft grower, processing organization, transporter, or 8 testing facility as applicable for a period of not less than 5 9 years. 10 destroyed and (b) A disposed of under rules adopted by the cultivation center, craft grower, or processing 11 organization, shall, before destruction, notify the Department 12 of Agriculture and the Department of State Police. A dispensing 13 organization shall, before, destruction, notify the Department 14 of Financial and Professional Regulation and the Department of 15 State Police. The Department of Agriculture may by rule require 16 that an employee of the Department of Agriculture or the 17 Department of Financial and Professional Regulation be present 18 during the destruction of any cannabis byproduct, scrap, and 19 harvested cannabis, as applicable. 20 (c) The cultivation center, craft grower, processing 21 organization, or dispensing organization shall keep a record of 22 the date of destruction and how much was destroyed. 23 (d) A dispensing organization shall destroy all cannabis, 24 including cannabis-infused products, not sold to purchasers. 25 Documentation of destruction and disposal shall be retained at - 261 - LRB101 12329 RLC 60273 b 1 the dispensing organization for a period of not less than 5 2 years. 3 Section 55-20. Advertising. 4 (a) No cannabis business establishment nor any other person 5 or entity shall engage in advertising which 6 statement or illustration that: contains any 7 (1) Is false or misleading; 8 (2) Promotes overconsumption of cannabis or cannabis 9 10 11 12 13 14 15 products; (3) Depicts the actual consumption of cannabis or cannabis products; (4) Depicts a person under 21 years of age consuming cannabis (5) Makes any health, medicinal or therapeutic claims about cannabis or cannabis-infused products; 16 (6) Includes the image of a cannabis leaf or bud; or 17 (7) Includes any image designed or likely to appeal to 18 minors, including cartoons, toys, animals, or children, or 19 any other likeness to images, characters, or phrases which 20 is designed in any manner to be appealing to or encourage 21 consumption of persons less than 21 years of age. 22 (b) No cannabis business establishment nor any other person 23 or entity shall place or maintain, or cause to be placed or 24 maintained, an advertisement of cannabis or a cannabis-infused 25 product in any form or through any medium: - 262 1 LRB101 12329 RLC 60273 b (1) within 1,000 feet of the perimeter of a school 2 grounds, 3 recreation center or facility, child care center, public 4 park 5 admission is not restricted to person's age 21 years or 6 older; 7 8 public hospital, library, or healthcare any game facility, arcade to which (2) on or in a public transit vehicle or public transit shelter; 9 10 or playground, (3) on or in a publicly owned or publicly operated property; or 11 (4) which contains information that: 12 (A) is false or misleading; 13 (B) promotes excessive consumption; 14 (C) 15 depicts a person under 21 years of age consuming cannabis; 16 (D) includes the image of a cannabis leaf; or 17 (E) includes any image designed or likely to appeal 18 to minors, 19 children, or any other likeness to images, characters, 20 or phrases that are popularly used to advertise to 21 children, 22 labeling, or that promotes consumption of cannabis. or including any cartoons, imitation of toys, candy animals, packaging or or 23 (c) This Section does not apply to an educational message. 24 Section 55-21. Cannabis product packaging and labeling. 25 (a) Each cannabis product produced for sale shall be - 263 - LRB101 12329 RLC 60273 b 1 registered with the Department of Agriculture on forms provided 2 by the Department of Agriculture. Each product registration 3 shall include a label and the required registration fee at the 4 rate 5 comparable medical cannabis product, or as established by rule. 6 The registration fee is for the name of the product offered for 7 sale and one fee shall be sufficient for all package sizes. established by the Department of Agriculture for a 8 (b) All harvested cannabis intended for distribution to a 9 cannabis enterprise must be packaged in a sealed, labeled 10 container. 11 (c) Packaging of any product containing cannabis shall be 12 child-resistant and light-resistant consistent with current 13 standards, including the Consumer Product Safety Commission 14 standards referenced by the Poison Prevention Act. 15 (d) All cannabis-infused products shall be individually 16 wrapped or packaged at the original point of preparation. The 17 packaging of the cannabis-infused product shall conform to the 18 labeling requirements of the Illinois Food, Drug and Cosmetic 19 Act and, in addition to the other requirements set forth in 20 this Section. 21 (e) Each cannabis product shall be labeled before sale and 22 each label shall be securely affixed to the package and shall 23 state in legible English and any languages required by law: 24 25 26 (1) The name and P.O. Box of the registered cultivation center or craft grower where the item was manufactured; (2) The common or usual name of the item and the - 264 - LRB101 12329 RLC 60273 b 1 registered name of the cannabis product that was registered 2 with the Department of Agriculture under subsection (a); 3 (3) A unique serial number that will match the product 4 with a cultivation center or craft grower batch and lot 5 number to facilitate any warnings or recalls the Department 6 of Agriculture, cultivation center, or craft grower deems 7 appropriate; 8 9 10 (4) The date of final testing and packaging, if sampled, and the identification of the independent testing laboratory; 11 (5) The date of harvest and "use by" date; 12 (6) The quantity (in ounces or grams) of cannabis 13 14 contained in the product; (7) A pass/fail rating based 15 microbiological, mycotoxins, and 16 residue analyses, if sampled. 17 on the pesticide laboratory's and solvent (8) Content List. 18 (A) A list of the following, including the minimum 19 and maximum percentage content 20 subsections (d)(8)(A)(i) through (iv): by weight 21 (i) delta-9-tetrahydrocannabinol (THC); 22 (ii) tetrahydrocannabinolic acid (THCA); 23 (iii) cannabidiol (CBD); 24 (iv) cannabidiolic acid (CBDA); and 25 (v) 26 including all any other ingredients colors, of artificial the flavors for item, and - 265 1 preservatives, 2 predominance of weight shown with common or usual 3 names. 4 (B) The listed LRB101 12329 RLC 60273 b acceptable in descending tolerances for order the by minimum 5 percentage printed on the label for any of subsections 6 (d)(8)(A)(i) through (iv) shall not be below 85% or 7 above 115% of the labeled amount; 8 (f) Packaging must not contain information that: 9 (1) is false or misleading; 10 (2) promotes excessive consumption; 11 (3) depicts a person under 21 years of age consuming 12 cannabis; 13 (4) includes the image of a cannabis leaf; 14 (5) includes any image designed or likely to appeal to 15 minors, including cartoons, toys, animals, or children, or 16 any other likeness to images, characters, or phrases that 17 are 18 packaging or labeling that bears reasonable resemblance to 19 any product available for consumption as a commercially 20 available candy, or that promotes consumption of cannabis; popularly used to advertise to children, or any 21 (6) contains any seal, flag, crest, coat of arms or 22 other insignia likely to mislead the consumer to believe 23 that the product has been endorsed, made or used by the 24 State of Illinois or any of its representatives except 25 where authorized by this Act. 26 (g) Cannabis products produced by concentrating or - 266 - LRB101 12329 RLC 60273 b 1 extracting ingredients from the cannabis plant shall contain 2 the following information, where applicable: 3 (1) If solvents were used to create the concentrate or 4 extract, a statement that discloses the type of extraction 5 method, including any solvents or gases used to create the 6 concentrate or extract; and 7 (2) Any other chemicals or compounds used to produce or 8 were added to the concentrate or extract. 9 (h) All cannabis products must contain warning statements 10 established for consumers, of a size that is legible and 11 readily visible to a consumer inspecting a package, which may 12 not be covered or obscured in any way. The Department of Public 13 Health may define and update appropriate health warnings for 14 packages including specific labeling or warning requirements 15 for specific cannabis products. 16 (i) Unless modified by rule, the following warnings shall 17 apply to all cannabis products unless modified by rule: "This 18 product contains cannabis and is intended for use by adults 21 19 and over. Its use can impair cognition and may be habit 20 forming. This 21 breastfeeding women. It is unlawful to sell or provide this 22 item to any individual, and may not be transported outside the 23 state of Illinois. It is illegal to operate a motor vehicle 24 while under the influence of cannabis. Possession or use of 25 this product may carry significant legal penalties in some 26 jurisdictions and under federal law.". product should not be used by pregnant or - 267 1 2 3 4 5 LRB101 12329 RLC 60273 b (j) Warnings for each of the following product types must be present on labels when offered for sale to a consumer: (1) Cannabis which may be smoked must contain a statement that "Smoking is hazardous to your health.". (2) Cannabis-infused products (other than those 6 intended for topical application) must contain a statement 7 "CAUTION: This product contains cannabis, and intoxication 8 following use may be delayed 2 or more hours. This product 9 was produced in a facility that cultivates cannabis, and 10 11 which may also process common food allergens.". (3) Cannabis-infused products intended for topical 12 application must contain a statement "DO NOT EAT" in bold, 13 capital letters. 14 (k) Each cannabis-infused product intended for consumption 15 must be individually packaged, include the total milligram 16 content of THC and CBD, and may not include more than a total 17 of 100 milligrams of active per package. A package may contain 18 multiple servings of 10 milligrams of THC, and indicated by 19 scoring, 20 individual serving sizes. The Department of Public Health may 21 change the total about of THC allowed for each package, or the 22 total amount of THC allowed for each serving size, by rule. 23 wrapping, or by other designating (l) No individual other than the purchaser may alter or 24 destroy any 25 cannabis or cannabis-infused products. 26 indicators labeling affixed to the primary packaging of (m) For each commercial weighing and measuring equipment - 268 - LRB101 12329 RLC 60273 b 1 device used at a facility, the cultivation center or craft 2 grower must: 3 (1) Ensure that the commercial device is licensed under 4 the 5 administrative rules (8 Ill. Adm. Code 600); 6 7 Weights and Measures Act and the associated (2) Maintain documentation of the licensure of the commercial device; and 8 (3) Provide a copy of the license of the commercial 9 device to the Department of Agriculture for review upon 10 request. 11 (n) It is the responsibility of the Department to ensure 12 that packaging and labeling requirements, including product 13 warnings, are enforced at all times for products provided to 14 consumers. Product 15 requirements may be modified by rule by the Department of 16 Agriculture. 17 18 19 20 registration requirements and container (o) Labeling including warning labels may be modified by rule by the Department of Agriculture. Section 55-25. Local ordinances. Unless otherwise provided under this Act or in accordance with State law: 21 (1) A unit of local government, including a home rule 22 unit or any non-home rule county within the unincorporated 23 territory 24 ordinances or resolutions, not in conflict with this Act or 25 rules adopted pursuant to this Act regulating cannabis of the county, may enact reasonable zoning - 269 - LRB101 12329 RLC 60273 b 1 establishments. No unit of local government, including a 2 home 3 prohibit home cultivation and use of cannabis authorized by 4 this Act. rule unit, or school district may unreasonably 5 (2) A unit of local government, including a home rule 6 unit or any non-home rule county within the unincorporated 7 territory of the county, may enact ordinances or rules not 8 in conflict with this Act or with rules adopted pursuant to 9 this this Act governing the time, place, manner, and number 10 of cannabis establishment operations, including minimum 11 distance limitations between cannabis establishments and 12 locations 13 universities, through the use of conditional use permits. A 14 unit of local government, including a home rule unit, may 15 establish civil penalties for violation of an ordinance or 16 rules governing the time, place, and manner of operation of 17 a cannabis establishment or a conditional use permit in the 18 jurisdiction of the unit of local government. it deems sensitive, including colleges and 19 (3) A unit of local government, including a home rule 20 unit, or any non-home rule county within the unincorporated 21 territory of the county may regulate the consumption of 22 cannabis within its jurisdiction in a manner consistent 23 with this Act. 24 (4) A unit of local government, including a home rule 25 unit or any non-home rule county within the unincorporated 26 territory of the county, may not regulate the activities - 270 - LRB101 12329 RLC 60273 b 1 described in paragraph (1), (2), or (3) in a manner more 2 restrictive than the regulation of those activities by the 3 State under this Act. This Section is a limitation under 4 subsection (i) of Section 6 of Article VII of the Illinois 5 Constitution on the concurrent exercise by home rule units 6 of powers and functions exercised by the State. 7 (5) A unit of local government may regulate the ability 8 of a cannabis business establishment to operate, provided 9 that any measure prohibiting or significantly limiting a 10 cannabis business establishment's location more than one 11 year from the effective date of this Act must be submitted 12 to the voters of such unit of local government at a 13 referendum held in accordance with general election law and 14 has been approved by a majority of such voters voting on 15 the question. The corporate authorities of any unit of 16 local government may certify the question of whether to 17 enact a zoning ordinance, special use permit, conditions or 18 requirements 19 business establishments. Referenda provided for in this 20 Section may not be held more than once in any 23-month 21 period. 22 Section 55-30. Confidentiality. Information provided by 23 cannabis business establishment licensees or applicants to the 24 Department of Agriculture, the Department of Public Health, the 25 Department of Financial and Professional Regulation, or other that inhibits the location of cannabis - 271 limited to LRB101 12329 RLC 60273 b 1 agency shall be information necessary for the 2 purposes of administering this Act. The information is subject 3 to the provisions and limitations contained in the Freedom of 4 Information Act and may be disclosed in accordance with Section 5 55-65. 6 Section 55-35. Administrative rulemaking. 7 (a) No later than 180 days after the effective date of this 8 Act, the Department of Agriculture, the Department of State 9 Police, the Department Commerce and Economic Opportunity, and the Treasurer's Office 12 shall 13 responsibilities 14 Agriculture, the Department of State Police, the Department of 15 Financial 16 Revenue, 17 Opportunity may adopt rules necessary to regulate personal 18 cannabis 19 accordance with subsection (gg) of Section 5-45 of the Illinois 20 Administrative Procedure Act. The General Assembly finds that 21 the adoption of rules to regulate cannabis use is deemed an 22 emergency and necessary for the public interest, safety, and 23 welfare. 25 and and use rules under this Professional the the in Act. use of of the Department accordance The Regulation, Department through Revenue, Professional 11 permanent of and Regulation, adopt Department Financial 10 24 the of the Commerce emergency with their Department Department and of of of Economic rulemaking in (b) The Department of Agriculture rules may address, but are not limited to, the following matters related to - 272 - LRB101 12329 RLC 60273 b 1 cultivation centers, craft growers, processing organizations, 2 and transporting organizations with the goal of protecting 3 against diversion and theft, without imposing an undue burden 4 on 5 organizations, or transporting organizations: the cultivation centers, craft growers, processing 6 (1) oversight requirements for cultivation centers, 7 craft growers, processing organizations, and transporting 8 organizations; 9 (2) recordkeeping 10 centers, 11 transporting organizations; 12 (3) craft growers, requirements security processing requirements for for cultivation organizations, and cultivation centers, 13 craft growers, processing organizations, and transporting 14 organizations, which shall include that each cultivation 15 center, 16 transporting organization location must be protected by a 17 fully operational security alarm system; 18 19 20 craft grower, processing organization, and (4) standards for enclosed, locked facilities under this Act; (5) procedures for suspending or revoking the 21 identification cards of agents of cultivation centers, 22 craft growers, processing organizations, and transporting 23 organizations that commit violations of this Act or the 24 rules adopted under this Section; 25 26 (6) rules concerning the intrastate transportation of cannabis from a cultivation center, craft grower, - 273 - LRB101 12329 RLC 60273 b 1 processing organization, and transporting organization to 2 a dispensing organization; 3 4 (7) standards concerning the testing, quality, cultivation, and processing of cannabis; and 5 (8) any other matters under oversight by the Department 6 of Agriculture as are necessary for the fair, impartial, 7 stringent, and comprehensive administration of this Act. 8 (c) The Department of Financial and Professional 9 Regulation rules may address, but are not limited to, the 10 following matters related to dispensing organizations, with 11 the goal of protecting against diversion and theft, without 12 imposing an undue burden on the dispensing organizations: 13 14 (1) requirements for dispensing organizations; 15 16 oversight (2) recordkeeping requirements for dispensing organizations; 17 (3) security requirements for dispensing 18 organizations, which shall include that each dispensing 19 organization 20 operational security alarm system; location must be protected by a fully 21 (4) procedures for suspending or revoking the licenses 22 of dispensing organization agents that commit violations 23 of this Act or the rules adopted under this Act; 24 (5) any other matters under oversight by the Department 25 of Financial 26 necessary for and the Professional fair, Regulation impartial, that are stringent, and - 274 - LRB101 12329 RLC 60273 b 1 comprehensive administration of this Act. 2 (d) The Department of Revenue rules may address, but are 3 not limited to, the following matters related to the payment of 4 taxes by cannabis business establishments; 5 (1) Recording of sales; 6 (2) Documentation of taxable income and expenses; 7 (3) Transfer of funds for the payment of taxes; or 8 (4) 9 Any other matter under the oversight of the Department of Revenue. 10 (e) The Department of Commerce and Economic Opportunity 11 rules may address, but are not limited to, a loan program or 12 grant program to assist Social Equity Applicants access the 13 capital needed to start a cannabis business establishment. 14 15 16 17 18 19 20 (f) The Department of State Police rules may address any matters necessary in the enforcement of this Act. (g) The Department of Public Health shall develop and disseminate: (1) educational information about the health risks associated with the use of cannabis; and (2) one or more public education campaigns in 21 coordination with local health departments and community 22 organizations, including one or more prevention campaigns 23 directed 24 pregnant/breastfeeding 25 potential 26 unintentional cannabis use. at children, health risks adolescents, women, to associated inform with parents, them of intentional and the or - 275 - LRB101 12329 RLC 60273 b 1 Section 55-40. Enforcement. 2 (a) If the Department of Agriculture, Department of State 3 Police, Department of Financial and Professional Regulation, 4 Department of Commerce and Economic Opportunity, or Department 5 of Revenue fails to adopt rules to implement this Act within 6 the times provided in this Act, any citizen may commence a 7 mandamus action in the circuit court to compel the agencies to 8 perform the actions mandated under Section 60-5. 9 (b) If the Department of Agriculture or the Department of 10 Financial and Professional Regulation fails to issue a valid 11 agent identification card 12 application or renewal application submitted under this Act or 13 fails to issue a verbal or written notice of denial of the 14 application 15 identification card is deemed granted and a copy of the agent 16 identification 17 shall be deemed a valid agent identification card. 18 within 30 initial in days response to of its application a valid submission, or renewal initial the agent application (c) Authorized employees of State or local law enforcement 19 agencies 20 Agriculture and the Department of Financial and Professional 21 Regulation 22 identification card has been convicted of or pled guilty to 23 violating this Act. 24 shall when immediately any person notify in the possession Section 55-45. Administrative hearings. Department of an of agent - 276 - LRB101 12329 RLC 60273 b 1 (a) Administrative hearings related to the duties and 2 responsibilities assigned to the Department of Public Health 3 shall be conducted under the Department of Public Health's 4 rules governing administrative hearings. 5 (b) Administrative hearings related to the duties and 6 responsibilities assigned to the Department of Financial and 7 Professional Regulation and 8 shall be 9 Professional 10 dispensing organization agents conducted under the Regulation's Department of rules governing Financial and administrative hearings. 11 (c) Administrative hearings related to the duties and 12 responsibilities assigned to the Department of Agriculture, 13 cultivation centers, or cultivation center agents shall be 14 conducted 15 governing administrative hearings. under the Department of Agriculture's rules 16 Section 55-50. Petition for rehearing. Within 20 days after 17 the service of any order or decision of the Department of 18 Public Health, the Department of Agriculture, the Department of 19 Financial and Professional Regulation, or the Department of 20 State Police upon any party to the proceeding, the party may 21 apply for a rehearing in respect to any matters determined by 22 them under this Act, except for decisions made under the 23 Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser 24 Excise Tax Law, the County Cannabis Retailers' Occupation Tax, 25 and the Municipal Cannabis Purchaser Excise Tax Law, which - 277 - LRB101 12329 RLC 60273 b 1 shall be governed by the provisions of those Laws. If a 2 rehearing is granted, an agency shall hold the rehearing and 3 render a decision within 30 days from the filing of the 4 application for rehearing with the agency. The time for holding 5 such rehearing and rendering a decision may be extended for a 6 period not to exceed 30 days, for good cause shown, and by 7 notice in writing to all parties of interest. If an agency 8 fails to act on the application for rehearing within 30 days, 9 or the date the time for rendering a decision was extended for 10 good cause shown, the order or decision of the agency is final. 11 No action for the judicial review of any order or decision of 12 an agency shall be allowed unless the party commencing such 13 action has first filed an application for a rehearing and the 14 agency has acted or failed to act upon the application. Only 15 one rehearing may be granted by an agency on application of any 16 one party. 17 Section 55-55. Review of administrative decisions. All 18 final administrative decisions of the Department of Public 19 Health, 20 Financial and Professional Regulation, and the Department of 21 State Police are subject to direct judicial review under the 22 Administrative Review Law and the rules adopted under that Law. 23 The term "administrative decision" is defined as in Section 24 3-101 of the Code of Civil Procedure. the Department of Agriculture, the Department of - 278 - LRB101 12329 RLC 60273 b 1 Section 55-60. Suspension or revocation of a license. 2 (a) The Department of Financial and Professional 3 Regulation or the Department of Agriculture, as each applies, 4 may suspend or revoke a license for a violation of this Act or 5 a rule adopted in accordance with this Act by the Department of 6 Agriculture, and the Department of Financial and Professional 7 Regulation. 8 (b) The Department of Agriculture, and the Department of 9 Financial and Professional Regulation may suspend or revoke an 10 agent identification card for a violation of this Act or a rule 11 adopted in accordance with this Act. 12 Section 55-65. Financial institutions. 13 (a) A financial institution that provides financial 14 services customarily provided by financial institutions to a 15 cannabis business establishment authorized under this Act or 16 the Compassionate Use of Medical Cannabis Pilot Program Act is 17 exempt from any criminal law of this State as it relates to 18 cannabis-related conduct authorized under State law. 19 (b) Upon request of a financial institution, a cannabis 20 business establishment or proposed cannabis business 21 establishment may provide to the financial institution the 22 following information: 23 (1) Whether a cannabis establishment with which the 24 financial institution is doing or is considering doing 25 business holds a license under this Act or the - 279 1 Compassionate Use of Medical Cannabis Pilot Program Act; 2 3 LRB101 12329 RLC 60273 b (2) The name of any other business or individual affiliate with the cannabis establishment; 4 (3) A copy of the application, and any supporting 5 documentation 6 license or a permit submitted on behalf of the proposed 7 cannabis establishment; 8 9 submitted with the application, for a (4) If applicable, data relating to sales and the volume of product sold by the cannabis establishment; 10 (5) Any past or pending violation by the person of this 11 Act, the Compassionate Use of Medical Cannabis Pilot 12 Program Act, or the rules adopted under these Acts where 13 applicable; and 14 (6) Any penalty imposed upon the person for violating 15 this Act, the Compassionate Use of Medical Cannabis Pilot 16 Program Act, or the rules adopted under these Acts. 17 (c) Upon receiving a request under subsection (b) of this 18 Section, 19 Regulation or the Department of Agriculture, as each applies, 20 shall provide the requesting financial institution with the 21 requested information. 22 (d) the The Department Department of of Financial Financial and and Professional Professional 23 Regulation or the Department of Agriculture, as each applies, 24 may charge a financial institution a reasonable fee to cover 25 the administrative costs of providing information under this 26 Section. - 280 - LRB101 12329 RLC 60273 b 1 (e) Information received by a financial institution under 2 this Section is confidential. Except as otherwise required or 3 permitted by this Act, State law or rule, or federal law or 4 regulation, 5 information available to any person other than: a financial institution may not make 6 (1) the customer to whom the information applies; 7 (2) trustee, conservator, agent the representative, or 9 information applies; a federal or State regulator when 10 requested in 11 financial institution 12 complying with federal or State law; 13 with customer to personal 8 connection of guardian, the or if an examination otherwise whom the of the necessary for (3) a federal or State regulator when requested in 14 connection with an examination of the financial 15 institution or if otherwise necessary for complying with 16 federal or State law; and 17 (4) a third party performing services for the financial 18 institution, provided the third party is performing such 19 services under a written agreement that expressly or by 20 operation of law prohibits the third party's sharing and 21 use of such confidential information for any purpose other 22 than as provided in its agreement to provide services to 23 the financial institution. 24 (f) 25 Regulation 26 financial The Department shall evaluate institutions to of and Financial adopt provide and rules Professional that financial encourage services to - 281 - LRB101 12329 RLC 60273 b 1 cannabis business enterprises and encourage institutions to 2 offer benefits within Disproportionately Impacted Areas. 3 Section 55-75. Contracts enforceable. It is the public 4 policy of this State that contracts related to the operation of 5 a lawful cannabis establishment under this Act are enforceable. 6 It is the public policy of this State that no contract entered 7 into by a lawful cannabis business establishment or its agents 8 on behalf of a cannabis business establishment, or by those who 9 allow property to be used by a cannabis business establishment, 10 shall be unenforceable on the 11 obtaining, 12 dispensing, 13 cannabis or hemp is prohibited by federal law. manufacturing, transporting, selling, Section 55-80. Annual reports. 15 (a) Department that processing, 14 The basis of cultivating, distributing, possessing, Financial and or using Professional 16 Regulation shall submit to the General Assembly and Governor a 17 report, by September 30 of each year, that does not disclose 18 any 19 centers, craft growers, processing organizations, transporting 20 organizations, or dispensing organizations, but does contain 21 at a minimum, all of the following information for the previous 22 fiscal year: 23 24 information (1) The identifying number of information licenses about issued to cultivation dispensing organizations by county, or, in counties with greater than - 282 1 LRB101 12329 RLC 60273 b 3,000,000 residents, by zip code; 2 (2) The total number of dispensing organization owners 3 that are minority 4 disabilities as those terms are defined in the Business 5 Enterprise 6 Disabilities Act; 7 (3) 8 dispensing 9 received for The persons, women, Minorities, total Women, number of organizations, from or and revenues segregated dispensing persons with Persons with received from from organizations revenues under the 10 Compassionate Use if Medical Cannabis Pilot Program Act by 11 county, separated by source of revenue; 12 (4) The total amount of revenue received from 13 dispensing organizations that share a premises or majority 14 ownership with a craft grower; 15 (5) The total amount of revenue received from 16 dispensing organizations that share a premises or majority 17 ownership with a processor; and 18 (6) An analysis of revenue generate from taxation, 19 licensing, 20 recommendations to change the tax rate applied. 21 (b) The Department of Agriculture shall submit to the 22 General Assembly and Governor a report, by September 30 of each 23 year, 24 information 25 processing 26 dispensing organizations, but does contain at a minimum, all of that and does other not about fees disclose cultivation organizations, for any the State, information centers, transporting including identifying craft growers, organizations, or - 283 1 2 LRB101 12329 RLC 60273 b the following information for the previous fiscal year: (1) The number of licenses issued to cultivation 3 centers, craft growers, processors, and transporters by 4 license type, and, in counties with more than 3,000,000 5 residents, by zip code; 6 (2) The total number of cultivation centers, craft 7 growers, processors, and transporters by license type that 8 are minority persons, women, or persons with disabilities 9 as those terms are defined in the Business Enterprise for 10 Minorities, Women, and Persons with Disabilities Act; 11 (3) The total 12 cultivation 13 transporters, separated by license types and source of 14 revenue; centers, amount craft of revenue growers, received processors, from and 15 (4) The total amount of revenue received from craft 16 growers and processors that share a premises or majority 17 ownership with a dispensing organization; 18 (5) The total amount of revenue received from craft 19 growers that share a premises or majority ownership with a 20 processor, but do not share a premises or ownership with a 21 dispensary; 22 (6) The total amount of revenue received from 23 processors that share a premises or majority ownership with 24 a craft grower, but do not share a premises or ownership 25 with a dispensary; 26 (7) The total amount of revenue received from craft - 284 - LRB101 12329 RLC 60273 b 1 growers that share a premises or majority ownership with a 2 dispensing organization, but do not share a premises or 3 ownership with a processor; 4 (8) The total amount of revenue received from 5 processors that share a premises or majority ownership with 6 a dispensing organization, but do not share a premises or 7 ownership with a craft grower; 8 9 (9) The total amount of revenue received from transporters; and 10 (10) An analysis of revenue generated from taxation, 11 licensing, 12 recommendations to change the tax rate applied. 13 (c) The Department of State Police shall submit to the 14 General Assembly and Governor a report, by September 30 of each 15 year 16 information for the previous fiscal year: 17 18 that and contains other at a fees for minimum, the all State, of the including following (1) The effect of regulation and taxation of cannabis on law enforcement resources; 19 (2) The impact of regulation and taxation of cannabis 20 on highway safety and rates of impaired driving, where 21 impairment was determined based on failure of a Field 22 Sobriety Test; 23 (3) The available and emerging methods for detecting 24 the metabolites for delta-9-tetrahydrocannabinol in bodily 25 fluids, including without limitation blood and saliva; 26 (4) The effectiveness of current DUI laws and - 285 1 recommendations 2 ensure safe highways and fair laws. 3 (d) The Public Health Advisory Committee shall submit to 4 the General Assembly and Governor a report, by September 30 of 5 each year, that does not disclose any identifying information 6 about any individuals, but does contain at a minimum: 7 8 for LRB101 12329 RLC 60273 b improvements to policy to better (1) Self-reported youth cannabis use, as published in the most recent Illinois Youth Survey available; 9 (2) Self-reported adult cannabis use, as published in 10 the most recent Behavioral Risk Factor Surveillance Survey 11 available; 12 (3) Hospital room admissions and hospital utilization 13 rates 14 presence or detection of other drugs; 15 caused cannabis consumption, including the (4) Overdoses of cannabis and poison control data, 16 including 17 contributed; 18 by (5) the presence Incidents of of other impaired drugs driving that may caused by have the 19 consumption of cannabis or cannabis products, including 20 the presence of other drugs or alcohol which may have 21 contributed to the impaired driving; 22 (6) Prevalence of infants born testing positive for 23 cannabis 24 demographic and racial information on which infants are 25 tested; 26 or delta-9-tetrahydrocannabinol, including (7) Public perceptions of use and risk of harm; - 286 1 2 LRB101 12329 RLC 60273 b (8) Revenue collected from cannabis taxation and how that revenue was used; 3 (9) Cannabis retail licenses granted and locations 4 (10) Cannabis-related arrests; and 5 (11) Number of individuals completing required bud 6 tender training. 7 (e) Each agency or committee submitting reports under this 8 Section may consult with one another in the preparation of each 9 report. 10 Section 55-85. Medical cannabis. 11 (a) Nothing in this Act shall be construed to limit any 12 privileges or rights of a medical cannabis patient including 13 minor 14 cultivation 15 organization under the Compassionate Use of Medical Cannabis 16 Pilot Program Act, and where there is conflict between this Act 17 and the Compassionate Use of Medical Cannabis Pilot Program Act 18 as they relate to medical cannabis patients, the Compassionate 19 Use of Medical Cannabis Pilot Program Act shall prevail. patients, primary center, or caregiver, medical medical cannabis cannabis dispensing 20 (b) Dispensary locations that obtain an Early Approval 21 Adult Use Dispensary Organization License or an Adult Use 22 Dispensary Organization License in accordance with this Act at 23 the same location as a medical cannabis dispensing organization 24 registered under the Compassionate Use of Medical Cannabis 25 Pilot Program Act shall maintain an inventory of medical - 287 - LRB101 12329 RLC 60273 b 1 cannabis and medical cannabis products on a monthly basis that 2 is 3 products offered at the dispensary during the 6-month period 4 immediately before the effective date of this Act. 5 substantially similar in variety and quantity to the (c) Beginning June 30, 2020, the Department of Agriculture 6 shall make a quarterly 7 requirements 8 subsection (b) should be adjusted due to changing patient need. 9 Section 55-90. Home rule preemption. Except as otherwise 10 provided in this Act, the regulation and licensing of the 11 activities described in this Act are exclusive powers and 12 functions of the State. Except as otherwise provided in this 13 Act, a unit of local government, including a home rule unit, 14 may not regulate or license the activities described in this 15 Act. This Section is a denial and limitation of home rule 16 powers and functions under subsection (h) of Section 6 of 17 Article VII of the Illinois Constitution. established determination for dual whether use dispensaries 18 ARTICLE 60. 19 CANNABIS CULTIVATION PRIVILEGE TAX 20 21 22 inventory in Section 60-1. Short title. This Article may be referred to as the Cannabis Cultivation Privilege Tax Law. Section 60-5. Definitions. In this Article: - 288 - LRB101 12329 RLC 60273 b 1 "Cannabis" has the meaning given to that term in Article 1 2 of this Act, except that it does not include cannabis that is 3 subject to tax under the Compassionate Use of Medical Cannabis 4 Pilot Program Act. 5 6 7 8 9 "Craft grower" has the meaning given to that term in Article 1 of this Act. "Cultivation center" has the meaning given to that term in Article 1 of this Act. "Cultivator" or "taxpayer" means a cultivation center or 10 craft grower who is subject to tax under this Article. 11 "Department" means the Department of Revenue. 12 "Director" means the Director of Revenue. 13 "Dispensing organization" or "dispensary" has the meaning 14 given to that term in Article 1 of this Act. 15 "Gross receipts" from the sales of cannabis by a cultivator 16 means the total selling price or the amount of such sales, as 17 defined in this Article. The amount thereof shall be included 18 only when payments are received by the cultivator. 19 "Person" means a natural individual, firm, partnership, 20 association, joint stock company, joint adventure, public or 21 private corporation, limited liability company, or a receiver, 22 executor, trustee, guardian, or other representative appointed 23 by order of any court. 24 25 26 "Processor" means "processing organization" or "processor" as defined in Article 1 of this Act. "Selling price" or "amount of sale" means the consideration - 289 - LRB101 12329 RLC 60273 b 1 for a sale valued in money whether received in money or 2 otherwise, including cash, credits, property, and services, 3 and shall be determined without any deduction on account of the 4 cost of the property sold, the cost of materials used, labor or 5 service cost, or any other expense whatsoever, but does not 6 include separately stated charges identified on the invoice by 7 cultivators to reimburse themselves for their tax liability 8 under this Article. 9 Section 60-10. Tax imposed. 10 (a) Beginning on September 1, 2019, a tax is imposed upon 11 the privilege of cultivating cannabis at the rate of 7% of the 12 gross receipts from the first sale of cannabis by a cultivator. 13 The sale of any product that contains any amount of cannabis or 14 any derivative thereof is subject to the tax under this Section 15 on the full selling price of the product. The Department may 16 determine the selling price of the cannabis when the seller and 17 purchaser are affiliated persons, when the sale and purchase of 18 cannabis is not an arm's length transaction, or when cannabis 19 is 20 dispensing organization and a value is not established for the 21 cannabis. The value determined by the Department shall be 22 commensurate with the actual price received for products of 23 like quality, character, and use in the area. If there are no 24 sales of cannabis of like quality, character, and use in the 25 same area, then the Department shall establish a reasonable transferred by a craft grower to the craft grower's - 290 - LRB101 12329 RLC 60273 b 1 value based on sales of products of like quality, character, 2 and use in other areas of the State, taking into consideration 3 any other relevant factors. 4 (b) The Cannabis Cultivation Privilege Tax imposed under 5 this Article is solely the responsibility of the cultivator who 6 makes the first sale and is not the responsibility of a 7 subsequent 8 processor. Persons subject to 9 Article purchaser, may, a however, dispensing the reimburse organization, tax or imposed under themselves for a this their tax 10 liability hereunder by separately stating reimbursement for 11 their tax liability as an additional charge. (c) The tax 12 imposed under this Article shall be in addition to all other 13 occupation, privilege, or excise taxes imposed by the State of 14 Illinois or by any unit of local government. 15 Section 60-15. Registration of cultivators. Every 16 cultivator and craft grower subject to the tax under this 17 Article 18 certificate 19 applications for registration under this Article shall be made 20 by electronic means in the form and manner required by the 21 Department. For that purpose, the provisions of Section 2a of 22 the Retailers' Occupation Tax Act are incorporated into this 23 Article to the extent not inconsistent with this Article. In 24 addition, no certificate of registration shall be issued under 25 this Article unless the applicant is licensed under this Act. shall apply of to the registration Department under of this Revenue for Article. a All - 291 - LRB101 12329 RLC 60273 b 1 Section 60-20. Return and payment of cannabis cultivation 2 privilege tax. Each person who is required to pay the tax 3 imposed by this Article shall make a return to the Department 4 on or before the 20th day of each month for the preceding 5 calendar month stating the following: 6 (1) the taxpayer's name; 7 (2) the address of the taxpayer's principal place of 8 business 9 business(if that is a different address) from which the 10 taxpayer is engaged in the business of cultivating cannabis 11 subject to tax under this Article; 12 (3) and the the address of total amount of the principal place receipts received by of the 13 taxpayer during the preceding calendar month from sales of 14 cannabis subject to tax under this Article by the taxpayer 15 during the preceding calendar month; 16 (4) the total amount received by the taxpayer during 17 the preceding calendar month on charge and time sales of 18 cannabis subject to tax imposed under this Article by the 19 taxpayer before the month for which the return is filed; 20 (5) deductions allowed by law; 21 (6) gross receipts that were received by the taxpayer 22 during the preceding calendar month and upon the basis of 23 which the tax is imposed; 24 (7) the amount of tax due; 25 (8) the signature of the taxpayer; and - 292 1 (9) any other LRB101 12329 RLC 60273 b information as the Department may 2 reasonably require. 3 All returns required to be filed and payments required to 4 be made under this Article shall be by electronic means. 5 Taxpayers who demonstrate hardship in paying electronically 6 may petition the Department to waive the electronic payment 7 requirement. The Department may require a separate return for 8 the tax under this Article or combine the return for the tax 9 under this Article with the return for the tax under the 10 Compassionate Use of Medical Cannabis Pilot Program Act. If the 11 return for the tax under this Article is combined with the 12 return for tax under the Compassionate Use of Medical Cannabis 13 Pilot Program Act, then the vendor's discount allowed under 14 this Section and any cap on that discount shall apply to the 15 combined return. The taxpayer making the return provided for in 16 this Section shall also pay to the Department, in accordance 17 with this Section, the amount of tax imposed by this Article, 18 less a discount of 1.75%, but not to exceed $1,000 per return 19 period, which is allowed to reimburse the taxpayer for the 20 expenses 21 preparing and filing returns, remitting the tax, and supplying 22 data to the Department upon request. No discount may be claimed 23 by a taxpayer on returns not timely filed and for taxes not 24 timely remitted. No discount may be claimed by a taxpayer for 25 any payment that is not made electronically, unless a waiver 26 has been incurred granted in under keeping this records, Section. Any collecting amount tax, that is - 293 - LRB101 12329 RLC 60273 b 1 required to be shown or reported on any return or other 2 document under this Article shall, if the amount is not a 3 whole-dollar amount, be increased to the nearest whole-dollar 4 amount if the fractional part of a dollar is $0.50 or more and 5 decreased to the nearest whole-dollar amount if the fractional 6 part of a dollar is less than $0.50. If a total amount of less 7 than $1 is payable, refundable, or creditable, the amount shall 8 be disregarded if it is less than $0.50 and shall be increased 9 to $1 if it is $0.50 or more. Notwithstanding any other 10 provision in this Article concerning the time within which a 11 taxpayer may file a return, any such taxpayer who ceases to 12 engage 13 responsible for filing returns under this Article shall file a 14 final return under this Article with the Department within one 15 month after discontinuing such business. in the kind of business that makes the person 16 Each taxpayer under this Article shall make estimated 17 payments to the Department on or before the 7th, 15th, 22nd, 18 and last day of the month during which tax liability to the 19 Department is incurred. The payments shall be in an amount not 20 less than the lower of either 22.5% of the taxpayer's actual 21 tax liability for the month or 25% of the taxpayer's actual tax 22 liability for the same calendar month of the preceding year. 23 The amount of the quarter-monthly payments shall be credited 24 against the final tax liability of the taxpayer's return for 25 that month. Except as otherwise provided in this paragraph with 26 respect to the taxpayer's first year of paying tax under this - 294 - LRB101 12329 RLC 60273 b 1 Article, if any quarter-monthly payment is not paid at the time 2 or in the amount required by this Section, then the taxpayer 3 shall be liable for penalties and interest on the difference 4 between the minimum amount due as a payment and the amount of 5 the quarter-monthly payment actually and timely paid, except 6 insofar as the taxpayer has previously made payments for that 7 month to the Department in excess of the minimum payments 8 previously due as provided in this Section. 9 If any payment provided for in this Section exceeds the 10 taxpayer's liabilities under this Article, as shown on an 11 original monthly return, the Department shall, if requested by 12 the taxpayer, issue to the taxpayer a credit memorandum no 13 later than 30 days after the date of payment. The credit 14 evidenced by the credit memorandum may be assigned by the 15 taxpayer to a similar taxpayer under this Act, in accordance 16 with reasonable rules to be prescribed by the Department. If no 17 such request is made, the taxpayer may credit the excess 18 payment against tax liability subsequently to be remitted to 19 the Department under this Act, in accordance with reasonable 20 rules 21 subsequently determines that all or any part of the credit 22 taken was not actually due to the taxpayer, the taxpayer's 23 discount 24 difference between the credit taken and that actually due, and 25 that taxpayer shall be liable for penalties and interest on the 26 difference. prescribed shall be by the reduced, Department. if If necessary, the to Department reflect the - 295 - LRB101 12329 RLC 60273 b 1 If a taxpayer fails to sign a return within 30 days after 2 the proper notice and demand for signature by the Department is 3 received by the taxpayer, the return shall be considered valid 4 and any amount shown to be due on the return shall be deemed 5 assessed. 6 Section 60-25. Processor information returns. If it is 7 deemed necessary for the administration of this Article, the 8 Department may adopt rules that require processors to file 9 information 10 processors 11 processors to file all information returns by electronic means. 12 Section 60-30. Deposit of proceeds. All moneys received by 13 the Department under this Article shall be deposited into the 14 Cannabis Regulation Fund. returns to regarding dispensaries. the The sale of Department cannabis may by require 15 Section 60-35. Department administration and enforcement. 16 The Department shall have full power to administer and enforce 17 this Article, to collect all taxes, penalties, and interest due 18 hereunder, to dispose of taxes, penalties and interest so 19 collected in the manner hereinafter provided, and to determine 20 all rights to credit memoranda, arising on account of the 21 erroneous payment of tax, penalty, or interest hereunder. In 22 the administration of, and compliance with, this Article, the 23 Department and persons who are subject to this Article shall - 296 - LRB101 12329 RLC 60273 b 1 have the same rights, remedies, privileges, immunities, powers 2 and 3 restrictions, limitations, penalties and definitions of terms, 4 and employ the same modes of procedure, as are prescribed in 5 Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 6 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of 7 the Retailers' Occupation Tax Act and all of the provisions of 8 the 9 inconsistent with this Article, as fully as if those provisions 10 were set forth herein. For purposes of this Section, references 11 in the Retailers' Occupation Tax Act to a "sale of tangible 12 personal property at retail" shall mean the "sale of cannabis 13 by a cultivator". 14 duties, Uniform and be Penalty subject and to Interest the same Act, conditions, which are not Section 60-40. Invoices. Every sales invoice for cannabis 15 issued by 16 contain the cultivator's certificate of registration number 17 assigned under this Article, date, invoice number, purchaser's 18 name 19 concentrate, 20 reasonable information as the Department may provide by rule is 21 necessary for the administration of this Article. Cultivators 22 shall retain the invoices for inspection by the Department. 23 24 and Section a cultivator to address, or a selling cannabis establishment shall price, cannabis-infused 60-45. Rules. The amount product, Department related to the enforcement of this Article. of and may cannabis, any adopt other rules - 297 - LRB101 12329 RLC 60273 b 1 ARTICLE 65. 2 CANNABIS PURCHASER EXCISE TAX 3 4 Section 65-1. Short title. This Article may be referred to as the Cannabis Purchaser Excise Tax Law. 5 Section 65-5. Definitions. In this Article: 6 "Adjusted delta-9-tetrahydrocannabinol level" means, for a 7 delta-9-tetrahydrocannabinol dominant product, the sum of the 8 percentage 9 multiplied by the percentage of tetrahydrocannabinolic acid. of delta-9-tetrahydrocannabinol plus .877 10 "Cannabis" has the meaning given to that term in Article 1 11 of this Act, except that it does not include cannabis that is 12 subject to tax under the Compassionate Use of Medical Cannabis 13 Pilot Program Act. 14 "Cannabis-infused product" means beverage food, oils, 15 ointments, tincture, topical formulation, or another product 16 containing cannabis that is not intended to be smoked. 17 18 19 20 "Cannabis retailer" means a dispensing organization that sells cannabis for use and not for resale. "Craft grower" has the meaning given to that term in Article 1 of this Act. 21 "Department" means the Department of Revenue. 22 "Director" means the Director of Revenue. 23 "Dispensing organization" or "dispensary" has the meaning - 298 1 LRB101 12329 RLC 60273 b given to that term in Article 1 of this Act. 2 "Person" means a natural individual, firm, partnership, 3 association, joint stock company, joint adventure, public or 4 private corporation, limited liability company, or a receiver, 5 executor, trustee, guardian, or other representative appointed 6 by order of any court. 7 8 9 "Processor" means "processing organization" or "processor" as defined in Article 1 of this Act. "Purchase price" means the consideration paid for a 10 purchase of cannabis, valued in money, whether received in 11 money or otherwise, including cash, gift cards, credits, and 12 property and shall be determined without any deduction on 13 account of the cost of materials used, labor or service costs, 14 or any other expense whatsoever. However, "purchase price" does 15 not include consideration paid for: 16 17 18 19 (1) any charge for a payment that is not honored by a financial institution; (2) any finance or credit charge, penalty or charge for delayed payment, or discount for prompt payment; and 20 (3) any amounts added to a purchaser's bill because of 21 charges made under the tax imposed by this Article, the 22 Municipal 23 Retailers' Occupation Tax Act, the Use Tax Act, the Service 24 Occupation Tax Act, the Service Use Tax Act, or any locally 25 imposed occupation or use tax. 26 "Purchaser" means a person who acquires cannabis for a Cannabis Purchaser Excise Tax Law, the - 299 1 2 3 LRB101 12329 RLC 60273 b valuable consideration. "Taxpayer" means a cannabis retailer who is required to collect the tax imposed under this Article. 4 Section 65-10. Tax imposed. 5 (a) Beginning on January 1, 2020, a tax is imposed upon 6 purchases for the privilege of using cannabis at the following 7 rates: 8 9 (1) product, Any cannabis, with an other adjusted than a cannabis-infused delta-9-tetrahydrocannabinol 10 level at or below 35% shall be taxed at a rate of 10% of the 11 purchase price; 12 (2) Any an other adjusted than a cannabis-infused 13 product, 14 level above 35% shall be taxed at a rate of 25% of the 15 purchase price; and 16 with cannabis, delta-9-tetrahydrocannabinol (3) A cannabis-infused product, shall be taxed at a 17 rate of 20%. 18 (b) The purchase of any product that contains any amount of 19 cannabis or any derivative thereof is subject to the tax under 20 subsection (a) of this Section. 21 (c) The tax imposed under this Section is not imposed on 22 cannabis that is subject to tax under the Compassionate Use of 23 Medical Cannabis Pilot Program Act. The tax imposed by this 24 Section is not imposed with respect to any transaction in 25 interstate commerce, to the extent the transaction may not, - 300 - LRB101 12329 RLC 60273 b 1 under the Constitution and statutes of the United States, be 2 made the subject of taxation by this State. 3 (d) The tax imposed under this Article shall be in addition 4 to all other occupation, privilege, or excise taxes imposed by 5 the State of Illinois or by any municipal corporation or 6 political subdivision thereof. 7 (e) The tax imposed under this Article shall not be imposed 8 on any purchase by a purchaser if the cannabis retailer is 9 prohibited by federal or State Constitution, treaty, 10 convention, statute, or court decision from collecting the tax 11 from the purchaser. 12 Section 65-11. Bundling of taxable and nontaxable items; 13 prohibition; taxation. If a cannabis retailer sells cannabis, 14 concentrate, or cannabis-infused products in combination or 15 bundled with items that are not subject to tax under this Act 16 for one price in violation of the prohibition on this activity 17 under Section 15-70, then the tax under this Act is imposed on 18 the purchase price of the entire bundled product. 19 Section 65-15. Collection of tax. 20 (a) The tax imposed by this Article shall be collected from 21 the purchaser by the cannabis retailer at the rate stated in 22 Section 65-10 with respect to cannabis sold by the cannabis 23 retailer to 24 Department as the purchaser, and provided in shall Section be 65-30. remitted to All sales the to a - 301 - LRB101 12329 RLC 60273 b 1 purchaser who is not a cardholder under the Compassionate Use 2 of Medical Cannabis Pilot Program Act are presumed subject to 3 tax collection. Cannabis retailers shall collect the tax from 4 purchasers by adding the tax to the amount of the purchase 5 price received from the purchaser for selling cannabis to the 6 purchaser. 7 collected, be stated as a distinct item separate and apart from 8 the purchase price of the cannabis. The tax imposed by this Article shall, when 9 (b) If a cannabis retailer collects Cannabis Purchaser 10 Excise Tax measured by a purchase price that is not subject to 11 Cannabis Purchaser Excise Tax, or if a cannabis retailer, in 12 collecting Cannabis Purchaser Excise Tax measured by a purchase 13 price that is subject to tax under this Act, collects more from 14 the 15 Purchaser Excise Tax on the transaction, the purchaser shall 16 have a legal right to claim a refund of that amount from the 17 cannabis retailer. If, however, that amount is not refunded to 18 the purchaser for any reason, the cannabis retailer is liable 19 to pay that amount to the Department. purchaser than the required amount of the Cannabis 20 (c) Any person purchasing cannabis subject to tax under 21 this Article as to which there has been no charge made to him 22 or her of the tax imposed by Section 65-10 shall make payment 23 of the tax imposed by Section 65-10 in the form and manner 24 provided by the Department not later than the 20th day of the 25 month following the month of purchase of the cannabis. - 302 1 LRB101 12329 RLC 60273 b Section 65-20. Registration of cannabis retailers. Every 2 cannabis retailer required to 3 Article shall apply to the Department for a certificate of 4 registration 5 registration under this Article shall be made by electronic 6 means in the form and manner required by the Department. For 7 that purpose, the provisions of Section 2a of the Retailers' 8 Occupation Tax Act are incorporated into this Article to the 9 extent not inconsistent with this Article. In addition, no 10 certificate of registration shall be issued under this Article 11 unless the applicant is licensed under this Act. under this collect the Article. All tax under applications this for 12 Section 65-25. Tax collected as debt owed to State. Any 13 cannabis retailer required to collect the tax imposed by this 14 Article shall be liable to the Department for the tax, whether 15 or not the tax has been collected by the cannabis retailer, and 16 any such tax shall constitute a debt owed by the cannabis 17 retailer to this State. To the extent that a cannabis retailer 18 required to collect the tax imposed by this Act has actually 19 collected that tax, the tax is held in trust for the benefit of 20 the Department. 21 Section 65-30. Return and payment of tax by cannabis 22 retailer. Each cannabis retailer that is required or authorized 23 to collect the tax imposed by this Article shall make a return 24 to the Department, by electronic means, on or before the 20th - 303 - LRB101 12329 RLC 60273 b 1 day of each month for the preceding calendar month stating the 2 following: 3 (1) the cannabis retailer's name; 4 (2) the address of the cannabis retailer's principal 5 place of business and the address of the principal place of 6 business (if that is a different address) from which the 7 cannabis 8 cannabis subject to tax under this Article; 9 10 retailer engaged in the business of selling (3) the total purchase price received by the cannabis retailer for cannabis subject to tax under this Article; 11 (4) the amount of tax due at each rate; 12 (5) the signature of the cannabis retailer; and 13 (6) any other information as the Department may 14 reasonably require. 15 All returns required to be filed and payments required to 16 be made under this Article shall be by electronic means. 17 Cannabis 18 electronically 19 electronic payment requirement. retailers may who demonstrate petition the hardship Department to in paying waive the 20 Any amount that is required to be shown or reported on any 21 return or other document under this Article shall, if the 22 amount is not a whole-dollar amount, be increased to the 23 nearest whole-dollar amount if the fractional part of a dollar 24 is $0.50 or more and decreased to the nearest whole-dollar 25 amount if the fractional part of a dollar is less than $0.50. 26 If a total amount of less than $1 is payable, refundable, or - 304 - LRB101 12329 RLC 60273 b 1 creditable, the amount shall be disregarded if it is less than 2 $0.50 and shall be increased to $1 if it is $0.50 or more. The 3 cannabis retailer making the 4 Section shall also pay to the Department, in accordance with 5 this Section, the amount of tax imposed by this Article, less a 6 discount of 1.75%, but not to exceed $1,000 per return period, 7 which is allowed to reimburse the cannabis retailer for the 8 expenses 9 preparing and filing returns, remitting the tax, and supplying 10 data to the Department upon request. No discount may be claimed 11 by a cannabis retailer on returns not timely filed and for 12 taxes not timely remitted. No discount may be claimed by a 13 taxpayer or for any payment that is not made electronically, 14 unless a waiver has been granted under this Section. 15 incurred Notwithstanding in any return provided for keeping other records, provision in collecting in this this tax, Article 16 concerning the time within which a cannabis retailer may file a 17 return, any such cannabis retailer who ceases to engage in the 18 kind of business that makes the person responsible for filing 19 returns under this Article shall file a final return under this 20 Article 21 discontinuing the business. with the Department within one month after 22 Each cannabis retailer shall make estimated payments to the 23 Department on or before the 7th, 15th, 22nd, and last day of 24 the month during which tax liability to the Department is 25 incurred. The payments shall be in an amount not less than the 26 lower of either 22.5% of the cannabis retailer's actual tax - 305 - LRB101 12329 RLC 60273 b 1 liability for the month or 25% of the cannabis retailer's 2 actual 3 preceding year. The amount of the quarter-monthly payments 4 shall be credited against the final tax liability of the 5 cannabis retailer's return for that month. Except as otherwise 6 provided 7 retailer's first year of paying tax under this Article, if any 8 such quarter-monthly payment is not paid at the time or in the 9 amount required by this Section, then the cannabis retailer 10 shall be liable for penalties and interest on the difference 11 between the minimum amount due as a payment and the amount of 12 the quarter-monthly payment actually and timely paid, except 13 insofar as the cannabis retailer has previously made payments 14 for that month to the Department in excess of the minimum 15 payments previously due as provided in this Section. tax in liability for this the paragraph same with calendar month respect to the of the cannabis 16 If any payment provided for in this Section exceeds the 17 taxpayer's liabilities under this Article, as shown on an 18 original monthly return, the Department shall, if requested by 19 the taxpayer, issue to the taxpayer a credit memorandum no 20 later than 30 days after the date of payment. The credit 21 evidenced by the credit memorandum may be assigned by the 22 taxpayer 23 accordance with 24 Department. If no such request is made, the taxpayer may credit 25 the excess payment against tax liability subsequently to be 26 remitted to the Department under this Article, in accordance to a similar taxpayer under reasonable rules to be this Article, prescribed by in the - 306 - LRB101 12329 RLC 60273 b 1 with reasonable rules prescribed by the Department. If the 2 Department subsequently determines that all or any part of the 3 credit 4 taxpayer's discount shall be reduced, if necessary, to reflect 5 the difference between the credit taken and that actually due, 6 and that taxpayer shall be liable for penalties and interest on 7 the difference. If a cannabis retailer fails to sign a return 8 within 30 days after the proper notice and demand for signature 9 by the Department is received by the cannabis retailer, the 10 return shall be considered valid and any amount shown to be due 11 on the return shall be deemed assessed. taken was not actually due to the taxpayer, the 12 Section 65-35. Deposit of proceeds. All moneys received by 13 the Department under this Article shall be paid into the 14 Cannabis Regulation Fund. 15 Section 65-36. Recordkeeping; books and records. 16 (a) Every retailer of cannabis, whether or not the retailer 17 has obtained a certificate of registration under Section 65-20, 18 shall keep complete and accurate records of cannabis held, 19 purchased, sold, or otherwise disposed of, and shall preserve 20 and keep all invoices, bills of lading, sales records, and 21 copies of bills of sale, returns and other pertinent papers and 22 documents relating to the purchase, sale, or disposition of 23 cannabis. Such records need not be maintained on the licensed 24 premises but must be maintained in the State of Illinois. - 307 - LRB101 12329 RLC 60273 b 1 However, all original invoices or copies thereof covering 2 purchases of cannabis must be retained on the licensed premises 3 for a period of 90 days after such purchase, unless the 4 Department has granted a waiver in response to a written 5 request in cases where records are kept at a central business 6 location within the State of Illinois. The Department shall 7 adopt rules regarding the eligibility for a waiver, revocation 8 of a waiver, and requirements and standards for maintenance and 9 accessibility of records located at a central location under a 10 waiver provided under this Section. 11 (b) Books, records, papers, and documents that are required 12 by this Law to be kept shall, at all times during the usual 13 business hours of the day, be subject to inspection by the 14 Department or its duly authorized agents and employees. The 15 books, records, papers, and documents for any period with 16 respect to which the Department is authorized to issue a notice 17 of tax liability shall be preserved until the expiration of 18 that period. 19 Section 65-38. Violations and penalties. 20 (a) When the amount due is under $300, any retailer of 21 cannabis who fails to file a return, willfully fails or refuses 22 to make any payment to the Department of the tax imposed by 23 this Law, or files a fraudulent return, or any officer or agent 24 of a corporation engaged in the business of selling cannabis to 25 purchasers located in this State who signs a fraudulent return - 308 - LRB101 12329 RLC 60273 b 1 filed on behalf of the corporation, or any accountant or other 2 agent who knowingly enters false information on the return of 3 any taxpayer under this Law is guilty of a Class 4 felony. 4 (b) When the amount due is $300 or more, any retailer of 5 cannabis who files, or causes to be filed, a fraudulent return, 6 or any officer or agent of a corporation engaged in the 7 business of selling cannabis to purchasers located in this 8 State who files or causes to be filed or signs or causes to be 9 signed a fraudulent return filed on behalf of the corporation, 10 or any accountant or other agent who knowingly enters false 11 information on the return of any taxpayer under this Law is 12 guilty of a Class 3 felony. 13 (c) Any person who violates any provision of Section 65-20, 14 fails to keep books and records as required under this Law, or 15 willfully 16 administration and enforcement of this Law is guilty of a Class 17 4 felony. A person commits a separate offense on each day that 18 he or she engages in business in violation of Section 65-20 or 19 a rule of the Department for the administration and enforcement 20 of this Law. If a person fails to produce the books and records 21 for inspection by the Department upon request, a prima facie 22 presumption shall arise that the person has failed to keep 23 books and records as required under this Law. A person who is 24 unable to rebut this presumption is in violation of this Law 25 and is subject to the penalties provided in this Section. 26 violates a rule of the Department for the (d) Any person who violates any provision of Sections - 309 - LRB101 12329 RLC 60273 b 1 65-20, fails to keep books and records as required under this 2 Law, or willfully violates a rule of the Department for the 3 administration and enforcement of this Law, is guilty of a 4 business offense and may be fined up to $5,000. If a person 5 fails to produce books and records for inspection by the 6 Department upon request, a prima facie presumption shall arise 7 that the person has failed to keep books and records as 8 required under this Law. A person who is unable to rebut this 9 presumption is in violation of this Law and is subject to the 10 penalties provided in this Section. A person commits a separate 11 offense on each day that he or she engages in business in 12 violation of Section 65-20. 13 (e) Any taxpayer or agent of a taxpayer who with the intent 14 to defraud purports to make a payment due to the Department by 15 issuing or delivering a check or other order upon a real or 16 fictitious depository for the payment of money, knowing that it 17 will not be paid by the depository, is guilty of a deceptive 18 practice in violation of Section 17-1 of the Criminal Code of 19 2012. 20 (f) Any person who fails to keep books and records or fails 21 to produce books and records for inspection, as required by 22 Section 65-40, is liable to pay to the Department, for deposit 23 in the Tax Compliance and Administration Fund, a penalty of 24 $1,000 for the first failure to keep books and records or 25 failure 26 required by Section 65-40, and $3,000 for each subsequent to produce books and records for inspection, as - 310 - LRB101 12329 RLC 60273 b 1 failure to keep books and records or failure to produce books 2 and records for inspection, as required by Section 30-36. 3 (g) Any person who knowingly acts as a retailer of cannabis 4 in this State without first having obtained a certificate of 5 registration to do so in compliance with Section 65-20 of this 6 Law shall be guilty of a Class 4 felony. 7 (h) A person commits the offense of tax evasion under this 8 Law when he or she knowingly attempts in any manner to evade or 9 defeat the tax imposed on him or her or on any other person, or 10 the payment thereof, and he or she commits an affirmative act 11 in 12 "affirmative act in furtherance of the evasion" means an act 13 designed in whole or in part to (i) conceal, misrepresent, 14 falsify, or manipulate any material fact or (ii) tamper with or 15 destroy documents or 16 liability under this Law. Two or more acts of sales tax evasion 17 may 18 information, or complaint and the amount of tax deficiency may 19 be aggregated for purposes of determining the amount of tax 20 that is attempted to be or is evaded and the period between the 21 first and last acts may be alleged as the date of the offense. furtherance of be charged the as evasion. As used in materials related to a single count in this a any Section, person's tax indictment, 22 (1) When the amount of tax, the assessment or payment 23 of which is attempted to be or is evaded is less than $500 24 a person is guilty of a Class 4 felony. 25 (2) When the amount of tax, the assessment or payment 26 of which is attempted to be or is evaded is $500 or more - 311 - LRB101 12329 RLC 60273 b 1 but less than $10,000, a person is guilty of a Class 3 2 felony. 3 (3) When the amount of tax, the assessment or payment 4 of which is attempted to be or is evaded is $10,000 or more 5 but less than $100,000, a person is guilty of a Class 2 6 felony. 7 (4) When the amount of tax, the assessment or payment 8 of which is attempted to be or is evaded is $100,000 or 9 more, a person is guilty of a Class 1 felony. 10 Any person who knowingly sells, purchases, installs, 11 transfers, possesses, uses, or accesses any automated sales 12 suppression device, zapper, or phantom-ware in this State is 13 guilty of a Class 3 felony. 14 As used in this Section: 15 "Automated sales suppression device" or "zapper" means a 16 software program that falsifies the electronic records of an 17 electronic 18 including, but not limited to, transaction data and transaction 19 reports. The term includes the software program, any device 20 that carries the software program, or an Internet link to the 21 software program. cash register or other point-of-sale system, 22 "Phantom-ware" means a hidden programming option embedded 23 in the operating system of an electronic cash register or 24 hardwired into an electronic cash register that can be used to 25 create a second set of records or that can eliminate or 26 manipulate transaction records in an electronic cash register. - 312 1 LRB101 12329 RLC 60273 b "Electronic cash register" means a device that keeps a 2 register 3 electronic 4 transaction data for the purpose of computing, compiling, or 5 processing retail sales transaction data in any manner. 6 or supporting device "Transaction or documents computer data" through system includes: the designed items use to purchased of an record by a 7 purchaser; the price of each item; a taxability determination 8 for each item; a segregated tax amount for each taxed item; the 9 amount of cash or credit tendered; the net amount returned to 10 the customer in change; the date and time of the purchase; the 11 name, address, and identification number of the vendor; and the 12 receipt or invoice number of the transaction. 13 "Transaction report" means a report that documents, 14 without limitation, the sales, taxes, or fees collected, media 15 totals, and discount voids at an electronic cash register and 16 that is printed on a cash register tape at the end of a day or 17 shift, or a report that documents every action at an electronic 18 cash register and is stored electronically. 19 A prosecution for any act in violation of this Section may 20 be commenced at any time within 5 years of the commission of 21 that act. 22 23 (i) The Department may adopt rules to administer the penalties under this Section. 24 (j) Any person whose principal place of business is in this 25 State and who is charged with a violation under this Section 26 shall be tried in the county where his or her principal place - 313 - LRB101 12329 RLC 60273 b 1 of business is located unless he or she asserts a right to be 2 tried in another venue. 3 (k) Except as otherwise provided in subsection (h), a 4 prosecution for a violation described in this Section may be 5 commenced within 3 years after the commission of the act 6 constituting the violation. 7 Section 65-40. Department administration and enforcement. 8 The Department shall have full power to administer and enforce 9 this Article, to collect all taxes and penalties due hereunder, 10 to dispose of taxes and penalties so collected in the manner 11 hereinafter provided, and to determine all rights to credit 12 memoranda, arising on account of the erroneous payment of tax 13 or penalty hereunder. 14 In the administration of, and compliance with, this 15 Article, the Department and persons who are subject to this 16 Article shall have the same rights, remedies, privileges, 17 immunities, powers and duties, and be subject to the same 18 conditions, 19 definitions of terms, and employ the same modes of procedure, 20 as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 21 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and 22 Sections 1, 2-12, 2b, 4 (except that the time limitation 23 provisions shall run from the date when the tax is due rather 24 than from the date when gross receipts are received), 5 (except 25 that the time limitation provisions on the issuance of notices restrictions, limitations, penalties, and - 314 - LRB101 12329 RLC 60273 b 1 of tax liability shall run from the date when the tax is due 2 rather than from the date when gross receipts are received and 3 except that in the case of a failure to file a return required 4 by this Act, no notice of tax liability shall be issued on and 5 after each July 1 and January 1 covering tax due with that 6 return during any month or period more than 6 years before that 7 July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 8 5h, 5j, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers' Occupation 9 Tax Act and all of the provisions of the Uniform Penalty and 10 Interest Act, which are not inconsistent with this Article, as 11 fully as if those provisions were set forth herein. References 12 in the incorporated Sections of the Retailers' Occupation Tax 13 Act and the Use Tax Act to retailers, to sellers, or to persons 14 engaged in the business of selling tangible personal property 15 mean cannabis retailers when used in this Article. References 16 in the incorporated Sections to sales of tangible personal 17 property mean sales of cannabis subject to tax under this 18 Article when used in this Article. 19 Section 65-41. Arrest; search and seizure without warrant. 20 Any duly authorized employee of the Department (i) may arrest 21 without warrant any person committing in his or her presence a 22 violation of any of the provisions of this Law, (ii) may 23 without a search warrant inspect all cannabis located in any 24 place 25 possession of the retailer in violation of this Act, and (iv) of business, (iii) may seize any cannabis in the - 315 - LRB101 12329 RLC 60273 b 1 may seize any cannabis on which the tax imposed by Article 25 2 of this Act has not been paid. The cannabis so seized is 3 subject to confiscation and forfeiture as provided in Sections 4 65-42 and 65-43. 5 Section 65-42. Seizure and forfeiture. After seizing any 6 cannabis as provided in Section 65-41, the Department must hold 7 a hearing and determine whether the retailer was properly 8 registered to sell the cannabis at the time of its seizure by 9 the Department. The Department shall give not less than 20 10 days' notice of the time and place of the hearing to the owner 11 of the cannabis, if the owner is known, and also to the person 12 in whose possession the cannabis was found, if that person is 13 known and if the person in possession is not the owner of the 14 cannabis. If neither the owner nor the person in possession of 15 the cannabis is known, the Department must cause publication of 16 the time and place of the hearing to be made at least once in 17 each week for 3 weeks successively in a newspaper of general 18 circulation in the county where the hearing is to be held. 19 If, as the result of the hearing, the Department determines 20 that the retailer was not properly registered at the time the 21 cannabis 22 declaring the cannabis confiscated and forfeited to the State, 23 to be held by the Department for disposal by it as provided in 24 Section 65-43. The Department must give notice of the order to 25 the owner of the cannabis, if the owner is known, and also to was seized, the Department must enter an order - 316 - LRB101 12329 RLC 60273 b 1 the person in whose possession the cannabis was found, if that 2 person is known and if the person in possession is not the 3 owner of the cannabis. If neither the owner nor the person in 4 possession of the cannabis is known, the Department must cause 5 publication of the order to be made at least once in each week 6 for 3 weeks successively in a newspaper of general circulation 7 in the county where the hearing was held. 8 9 Section 65-43. Search warrant; issuance and return; process; confiscation of cannabis; forfeitures. 10 (a) If a peace officer of this State or any duly authorized 11 officer or employee of the Department has reason to believe 12 that any violation of this Law or a rule of the Department for 13 the administration and enforcement of this Law has occurred and 14 that the person violating this Law or rule has in that person's 15 possession any cannabis in violation of this Law or a rule of 16 the Department for the administration and enforcement of this 17 Law, 18 Department may file or cause to be filed his or her complaint 19 in writing, verified by affidavit, with any court within whose 20 jurisdiction the premises to be searched are situated, stating 21 the facts upon which the belief is founded, the premises to be 22 searched, and the property to be seized, and procure a search 23 warrant and execute that warrant. Upon the execution of the 24 search warrant, the peace officer, or officer or employee of 25 the Department, executing the search warrant shall make due that peace officer or officer or employee of the - 317 of the warrant to the LRB101 12329 RLC 60273 b 1 return court issuing the warrant, 2 together with an inventory of the property taken under the 3 warrant. The court must then issue process against the owner of 4 the property if the owner is known; otherwise, process must be 5 issued against the person in whose possession the property is 6 found, if that person is known. In case of inability to serve 7 process upon the owner or the person in possession of the 8 property at the time of its seizure, notice of the proceedings 9 before the court must be given in the same manner as required 10 by the law governing cases of attachment. Upon the return of 11 the process duly served or upon the posting or publishing of 12 notice made, as appropriate, the court or jury, if a jury is 13 demanded, shall proceed to determine whether the property so 14 seized was held or possessed in violation of this Law or a rule 15 of the Department for the administration and enforcement of 16 this Law. If a violation is found, judgment shall be entered 17 confiscating the property and forfeiting it to the State and 18 ordering its delivery to the Department. In addition, the court 19 may tax and assess the costs of the proceedings. 20 (b) When any cannabis has been declared forfeited to the 21 State by the Department, as provided in Sections 65-42 and this 22 Section, and when all proceedings for the judicial review of 23 the 24 shall, to the extent that its decision is sustained on review, 25 destroy or maintain and use such cannabis in an undercover 26 capacity. Department's decision have terminated, the Department - 318 - LRB101 12329 RLC 60273 b 1 (c) The Department may, before any destruction of cannabis, 2 permit the true holder of trademark rights in the cannabis to 3 inspect such cannabis in order to assist the Department in any 4 investigation regarding such cannabis. 5 Section 65-45. Cannabis retailers; purchase and possession 6 of cannabis. Cannabis retailers shall purchase cannabis for 7 resale only from cannabis establishments as authorized by this 8 Act. 9 Section 65-50. Rulemaking. The Department may adopt rules 10 in accordance with the Illinois Administrative Procedure Act 11 and 12 enforcement of this Article as it deems appropriate. prescribe forms relating to the 13 ARTICLE 900. 14 AMENDATORY PROVISIONS 15 16 administration and Section 900-5. The Illinois Administrative Procedure Act is amended by changing Section 5-45 as follows: 17 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45) 18 Sec. 5-45. Emergency rulemaking. 19 (a) "Emergency" means the existence of any situation that 20 any agency finds reasonably constitutes a threat to the public 21 interest, safety, or welfare. - 319 - LRB101 12329 RLC 60273 b 1 (b) If any agency finds that an emergency exists that 2 requires adoption of a rule upon fewer days than is required by 3 Section 4 finding, the agency may adopt an emergency rule without prior 5 notice or hearing upon filing a notice of emergency rulemaking 6 with the Secretary of State under Section 5-70. The notice 7 shall include the text of the emergency rule and shall be 8 published in the Illinois Register. Consent orders or other 9 court orders adopting settlements negotiated by an agency may 5-40 adopted and under states this in writing Section. its reasons be 11 constitutional or 12 becomes effective immediately upon filing under Section 5-65 or 13 at a stated date less than 10 days thereafter. The agency's 14 finding and a statement of the specific reasons for the finding 15 shall be filed with the rule. The agency shall take reasonable 16 and appropriate measures to make emergency rules known to the 17 persons who may be affected by them. provisions, an to that 10 statutory Subject for applicable emergency rule 18 (c) An emergency rule may be effective for a period of not 19 longer than 150 days, but the agency's authority to adopt an 20 identical 21 emergency rule may be adopted more than once in any 24-month 22 period, except that this limitation on the number of emergency 23 rules that may be adopted in a 24-month period does not apply 24 to (i) emergency rules that make additions to and deletions 25 from the Drug Manual under Section 5-5.16 of the Illinois 26 Public Aid Code or the generic drug formulary under Section rule under Section 5-40 is not precluded. No - 320 of the Illinois 1 3.14 2 emergency rules adopted by the Pollution Control Board before 3 July 1, 1997 to implement portions of the Livestock Management 4 Facilities Act, (iii) emergency rules adopted by the Illinois 5 Department of Public Health under subsections (a) through (i) 6 of Section 2 of the Department of Public Health Act when 7 necessary to protect the public's health, (iv) emergency rules 8 adopted 9 emergency rules adopted pursuant to subsection (o) of this 10 Section, or (vi) emergency rules adopted pursuant to subsection 11 (c-5) of this Section. Two or more emergency rules having 12 substantially the same purpose and effect shall be deemed to be 13 a single rule for purposes of this Section. pursuant to Food, LRB101 12329 RLC 60273 b Drug subsection and (n) of Cosmetic this Act, Section, (ii) (v) 14 (c-5) To facilitate the maintenance of the program of group 15 health benefits provided to annuitants, survivors, and retired 16 employees under the State Employees Group Insurance Act of 17 1971, rules to alter the contributions to be paid by the State, 18 annuitants, survivors, retired employees, or any combination 19 of those entities, for that program of group health benefits, 20 shall be adopted as emergency rules. The adoption of those 21 rules shall be considered an emergency and necessary for the 22 public interest, safety, and welfare. 23 (d) In order to provide for the expeditious and timely 24 implementation of the State's fiscal year 1999 budget, 25 emergency rules to implement any provision of Public Act 90-587 26 or 90-588 or any other budget initiative for fiscal year 1999 - 321 - LRB101 12329 RLC 60273 b 1 may be adopted in accordance with this Section by the agency 2 charged 3 except 4 emergency rules and the provisions of Sections 5-115 and 5-125 5 do not apply to rules adopted under this subsection (d). The 6 adoption of emergency rules authorized by this subsection (d) 7 shall be deemed to be necessary for the public interest, 8 safety, and welfare. 9 with that administering the 24-month that provision limitation on or the initiative, adoption of (e) In order to provide for the expeditious and timely 10 implementation 11 emergency rules to implement any provision of Public Act 91-24 12 or any other budget initiative for fiscal year 2000 may be 13 adopted in accordance with this Section by the agency charged 14 with administering that provision or initiative, except that 15 the 24-month limitation on the adoption of emergency rules and 16 the provisions of Sections 5-115 and 5-125 do not apply to 17 rules adopted under 18 emergency rules authorized by this subsection (e) shall be 19 deemed to be necessary for the public interest, safety, and 20 welfare. 21 of the State's this fiscal year subsection (e). The 2000 budget, adoption of (f) In order to provide for the expeditious and timely 22 implementation of the State's fiscal year 2001 budget, 23 emergency rules to implement any provision of Public Act 91-712 24 or any other budget initiative for fiscal year 2001 may be 25 adopted in accordance with this Section by the agency charged 26 with administering that provision or initiative, except that - 322 - LRB101 12329 RLC 60273 b 1 the 24-month limitation on the adoption of emergency rules and 2 the provisions of Sections 5-115 and 5-125 do not apply to 3 rules adopted under 4 emergency rules authorized by this subsection (f) shall be 5 deemed to be necessary for the public interest, safety, and 6 welfare. 7 this subsection (f). The adoption of (g) In order to provide for the expeditious and timely 8 implementation 9 emergency rules to implement any provision of Public Act 92-10 10 or any other budget initiative for fiscal year 2002 may be 11 adopted in accordance with this Section by the agency charged 12 with administering that provision or initiative, except that 13 the 24-month limitation on the adoption of emergency rules and 14 the provisions of Sections 5-115 and 5-125 do not apply to 15 rules adopted under 16 emergency rules authorized by this subsection (g) shall be 17 deemed to be necessary for the public interest, safety, and 18 welfare. 19 of the State's this fiscal year subsection (g). The 2002 budget, adoption of (h) In order to provide for the expeditious and timely 20 implementation of the State's fiscal year 2003 budget, 21 emergency rules to implement any provision of Public Act 92-597 22 or any other budget initiative for fiscal year 2003 may be 23 adopted in accordance with this Section by the agency charged 24 with administering that provision or initiative, except that 25 the 24-month limitation on the adoption of emergency rules and 26 the provisions of Sections 5-115 and 5-125 do not apply to - 323 1 rules adopted under 2 emergency rules authorized by this subsection (h) shall be 3 deemed to be necessary for the public interest, safety, and 4 welfare. 5 this LRB101 12329 RLC 60273 b subsection (h). The adoption of (i) In order to provide for the expeditious and timely 6 implementation of the State's 7 emergency rules to implement any provision of Public Act 93-20 8 or any other budget initiative for fiscal year 2004 may be 9 adopted in accordance with this Section by the agency charged 10 with administering that provision or initiative, except that 11 the 24-month limitation on the adoption of emergency rules and 12 the provisions of Sections 5-115 and 5-125 do not apply to 13 rules adopted under 14 emergency rules authorized by this subsection (i) shall be 15 deemed to be necessary for the public interest, safety, and 16 welfare. this fiscal year subsection (i). The 2004 budget, adoption of 17 (j) In order to provide for the expeditious and timely 18 implementation of the provisions of the State's fiscal year 19 2005 budget as provided under the Fiscal Year 2005 Budget 20 Implementation (Human 21 implement provision 22 Implementation 23 accordance 24 administering 25 limitation 26 provisions of Sections 5-115 and 5-125 do not apply to rules any (Human with on this that the Services) of Act, the Services) Section by provision, adoption of emergency Fiscal Year Act may the agency except that emergency be rules 2005 Budget adopted charged the rules to in with 24-month and the - 324 - LRB101 12329 RLC 60273 b 1 adopted under this subsection (j). The Department of Public Aid 2 may also adopt rules under this subsection (j) necessary to 3 administer the Illinois Public Aid Code and the Children's 4 Health Insurance Program Act. The adoption of emergency rules 5 authorized by 6 necessary for the public interest, safety, and welfare. this subsection (j) shall be deemed to be 7 (k) In order to provide for the expeditious and timely 8 implementation of the provisions of the State's fiscal year 9 2006 budget, emergency rules to implement any provision of 10 Public Act 94-48 or any other budget initiative for fiscal year 11 2006 may be adopted in accordance with this Section by the 12 agency 13 initiative, except that the 24-month limitation on the adoption 14 of emergency rules and the provisions of Sections 5-115 and 15 5-125 do not apply to rules adopted under this subsection (k). 16 The Department of Healthcare and Family Services may also adopt 17 rules under this subsection (k) necessary to administer the 18 Illinois Public Aid Code, the Senior Citizens and Persons with 19 Disabilities Property Tax Relief Act, the Senior Citizens and 20 Disabled Persons Prescription Drug Discount Program Act (now 21 the Illinois Prescription Drug Discount Program Act), and the 22 Children's 23 emergency rules authorized by this subsection (k) shall be 24 deemed to be necessary for the public interest, safety, and 25 welfare. 26 charged Health with administering Insurance Program that Act. provision The adoption or of (l) In order to provide for the expeditious and timely - 325 - LRB101 12329 RLC 60273 b 1 implementation of the provisions of the State's fiscal year 2 2007 budget, the Department of Healthcare and Family Services 3 may adopt emergency rules during fiscal year 2007, including 4 rules 5 subsection 6 Department's responsibilities with respect to amendments to 7 the State plans and Illinois waivers approved by the federal 8 Centers for Medicare and Medicaid Services necessitated by the 9 requirements of Title XIX and Title XXI of the federal Social 10 Security Act. The adoption of emergency rules authorized by 11 this subsection (l) shall be deemed to be necessary for the 12 public interest, safety, and welfare. effective to July the 1, extent 2007, in accordance necessary to with administer this the 13 (m) In order to provide for the expeditious and timely 14 implementation of the provisions of the State's fiscal year 15 2008 budget, the Department of Healthcare and Family Services 16 may adopt emergency rules during fiscal year 2008, including 17 rules 18 subsection 19 Department's responsibilities with respect to amendments to 20 the State plans and Illinois waivers approved by the federal 21 Centers for Medicare and Medicaid Services necessitated by the 22 requirements of Title XIX and Title XXI of the federal Social 23 Security Act. The adoption of emergency rules authorized by 24 this subsection (m) shall be deemed to be necessary for the 25 public interest, safety, and welfare. 26 effective to July the 1, extent 2008, in accordance necessary to with administer this the (n) In order to provide for the expeditious and timely - 326 - LRB101 12329 RLC 60273 b 1 implementation of the provisions of the State's fiscal year 2 2010 budget, emergency rules to implement any provision of 3 Public Act 96-45 or any other budget initiative authorized by 4 the 96th General Assembly for fiscal year 2010 may be adopted 5 in accordance with this Section by the agency charged with 6 administering that provision or initiative. The adoption of 7 emergency rules authorized by this subsection (n) shall be 8 deemed to be necessary for the public interest, safety, and 9 welfare. The rulemaking authority granted in this subsection 10 (n) shall apply only to rules promulgated during Fiscal Year 11 2010. 12 (o) In order to provide for the expeditious and timely 13 implementation of the provisions of the State's fiscal year 14 2011 budget, emergency rules to implement any provision of 15 Public Act 96-958 or any other budget initiative authorized by 16 the 96th General Assembly for fiscal year 2011 may be adopted 17 in accordance with this Section by the agency charged with 18 administering that provision or initiative. The adoption of 19 emergency rules authorized by this subsection (o) is deemed to 20 be necessary for the public interest, safety, and welfare. The 21 rulemaking authority granted in this subsection (o) applies 22 only to rules promulgated on or after July 1, 2010 (the 23 effective date of Public Act 96-958) through June 30, 2011. 24 (p) In order to provide for the expeditious and timely 25 implementation of the provisions of Public Act 97-689, 26 emergency rules to implement any provision of Public Act 97-689 - 327 - LRB101 12329 RLC 60273 b 1 may be adopted in accordance with this subsection (p) by the 2 agency 3 initiative. The 150-day limitation of the effective period of 4 emergency rules does not apply to rules adopted under this 5 subsection (p), and the effective period may continue through 6 June 30, 2013. The 24-month limitation on the adoption of 7 emergency rules does not apply to rules adopted under this 8 subsection (p). The adoption of emergency rules authorized by 9 this subsection (p) is deemed to be necessary for the public 10 charged with administering that provision or interest, safety, and welfare. 11 (q) In order to provide for the expeditious and timely 12 implementation of the provisions of Articles 7, 8, 9, 11, and 13 12 of Public Act 98-104, emergency rules to implement any 14 provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104 15 may be adopted in accordance with this subsection (q) by the 16 agency 17 initiative. 18 emergency rules does not apply to rules adopted under this 19 subsection (q). The adoption of emergency rules authorized by 20 this subsection (q) is deemed to be necessary for the public 21 interest, safety, and welfare. 22 charged with The administering 24-month limitation that on the provision adoption or of (r) In order to provide for the expeditious and timely 23 implementation of the provisions of Public Act 98-651, 24 emergency rules to implement Public Act 98-651 may be adopted 25 in accordance with this subsection (r) by the Department of 26 Healthcare and Family Services. The 24-month limitation on the - 328 - LRB101 12329 RLC 60273 b 1 adoption of emergency rules does not apply to rules adopted 2 under this subsection (r). The adoption of emergency rules 3 authorized by this subsection (r) is deemed to be necessary for 4 the public interest, safety, and welfare. 5 (s) In order to provide for the expeditious and timely 6 implementation of the provisions of Sections 5-5b.1 and 5A-2 of 7 the Illinois Public Aid Code, emergency rules to implement any 8 provision of Section 5-5b.1 or Section 5A-2 of the Illinois 9 Public Aid Code may be adopted in accordance with this 10 subsection (s) by the Department of Healthcare and Family 11 Services. The rulemaking authority granted in this subsection 12 (s) shall apply only to those rules adopted prior to July 1, 13 2015. Notwithstanding any other provision of this Section, any 14 emergency rule adopted under this subsection (s) shall only 15 apply to payments made for State fiscal year 2015. The adoption 16 of emergency rules authorized by this subsection (s) is deemed 17 to be necessary for the public interest, safety, and welfare. 18 (t) In order to provide for the expeditious and timely 19 implementation of the provisions of Article II of Public Act 20 99-6, emergency rules to implement the changes made by Article 21 II of Public Act 99-6 to the Emergency Telephone System Act may 22 be adopted in accordance with this subsection (t) by the 23 Department of State Police. The rulemaking authority granted in 24 this subsection (t) shall apply only to those rules adopted 25 prior to July 1, 2016. The 24-month limitation on the adoption 26 of emergency rules does not apply to rules adopted under this - 329 - LRB101 12329 RLC 60273 b 1 subsection (t). The adoption of emergency rules authorized by 2 this subsection (t) is deemed to be necessary for the public 3 interest, safety, and welfare. 4 (u) In order to provide for the expeditious and timely 5 implementation of the provisions of the Burn Victims Relief 6 Act, emergency rules to implement any provision of the Act may 7 be adopted in accordance with this subsection (u) by the 8 Department of Insurance. The rulemaking authority granted in 9 this subsection (u) shall apply only to those rules adopted 10 prior to December 31, 2015. The adoption of emergency rules 11 authorized by this subsection (u) is deemed to be necessary for 12 the public interest, safety, and welfare. 13 (v) In order to provide for the expeditious and timely 14 implementation 15 emergency rules to implement Public Act 99-516 may be adopted 16 in accordance with this subsection (v) by the Department of 17 Healthcare and Family Services. The 24-month limitation on the 18 adoption of emergency rules does not apply to rules adopted 19 under this subsection (v). The adoption of emergency rules 20 authorized by this subsection (v) is deemed to be necessary for 21 the public interest, safety, and welfare. 22 of the provisions of Public Act 99-516, (w) In order to provide for the expeditious and timely 23 implementation 24 emergency rules to implement the changes made by Public Act 25 99-796 may be adopted in accordance with this subsection (w) by 26 the Adjutant of the General. provisions The of adoption Public of Act emergency 99-796, rules - 330 - LRB101 12329 RLC 60273 b 1 authorized by this subsection (w) is deemed to be necessary for 2 the public interest, safety, and welfare. 3 (x) In order to provide for the expeditious and timely 4 implementation of the 5 emergency rules to implement subsection (i) of Section 16-115D, 6 subsection (g) 7 Section 16-128B of the Public Utilities Act may be adopted in 8 accordance with this subsection (x) by the Illinois Commerce 9 Commission. of The provisions of Public Section 16-128A, and rulemaking authority Act 99-906, subsection (a) granted in of this 10 subsection (x) shall apply only to those rules adopted within 11 180 days after June 1, 2017 (the effective date of Public Act 12 99-906). The adoption of emergency rules authorized by this 13 subsection (x) 14 interest, safety, and welfare. 15 is deemed to be necessary for the public (y) In order to provide for the expeditious and timely 16 implementation of 17 emergency rules to implement the changes made by Public Act 18 100-23 to Section 4.02 of the Illinois Act on the Aging, 19 Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 20 Section 55-30 of the Alcoholism and Other Drug Abuse and 21 Dependency Act, and Sections 74 and 75 of the Mental Health and 22 Developmental Disabilities Administrative Act may be adopted 23 in 24 Department. The adoption of emergency rules authorized by this 25 subsection (y) 26 interest, safety, and welfare. accordance with is the provisions this deemed of Public subsection (y) to be by Act the necessary for 100-23, respective the public - 331 1 LRB101 12329 RLC 60273 b (z) In order to provide for the expeditious and timely 2 implementation of 3 emergency rules to implement the changes made by Public Act 4 100-554 to Section 4.7 of the Lobbyist Registration Act may be 5 adopted in accordance with this subsection (z) by the Secretary 6 of State. The adoption of emergency rules authorized by this 7 subsection (z) 8 interest, safety, and welfare. is the provisions deemed to be of Public Act necessary for 100-554, the public 9 (aa) In order to provide for the expeditious and timely 10 initial implementation of the changes made to Articles 5, 5A, 11 12, and 14 of the Illinois Public Aid Code under the provisions 12 of Public Act 100-581, the Department of Healthcare and Family 13 Services may adopt emergency rules in accordance with this 14 subsection (aa). The 24-month limitation on the adoption of 15 emergency rules does not apply to rules to initially implement 16 the changes made to Articles 5, 5A, 12, and 14 of the Illinois 17 Public 18 adoption of emergency rules authorized by this subsection (aa) 19 is deemed to be necessary for the public interest, safety, and 20 welfare. 21 Aid Code adopted under this subsection (aa). The (bb) In order to provide for the expeditious and timely 22 implementation of the provisions of Public Act 100-587, 23 emergency rules to implement the changes made by Public Act 24 100-587 to Section 4.02 of the Illinois Act on the Aging, 25 Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code, 26 subsection (b) of Section 55-30 of the Alcoholism and Other - 332 - LRB101 12329 RLC 60273 b 1 Drug Abuse and Dependency Act, Section 5-104 of the Specialized 2 Mental Health Rehabilitation Act of 2013, and Section 75 and 3 subsection 4 Developmental Disabilities Administrative Act may be adopted 5 in accordance with this subsection (bb) by the respective 6 Department. The adoption of emergency rules authorized by this 7 subsection (bb) is deemed to be necessary for the public 8 interest, safety, and welfare. 9 (b) of Section 74 of the Mental Health and (cc) In order to provide for the expeditious and timely 10 implementation 11 emergency 12 subsection (cc) to implement the changes made by Public Act 13 100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois 14 Pension Code by the Board created under Article 14 of the Code; 15 Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by 16 the Board created under Article 15 of the Code; and Sections 17 16-190.5 and 16-190.6 of the Illinois Pension Code by the Board 18 created under Article 16 of the Code. The adoption of emergency 19 rules authorized by this subsection (cc) is deemed to be 20 necessary for the public interest, safety, and welfare. 21 of rules the may provisions be adopted of in Public Act accordance 100-587, with this (dd) In order to provide for the expeditious and timely 22 implementation of the provisions of Public Act 100-864, 23 emergency rules to implement the changes made by Public Act 24 100-864 to Section 3.35 of the Newborn Metabolic Screening Act 25 may be adopted in accordance with this subsection (dd) by the 26 Secretary of State. The adoption of emergency rules authorized - 333 - LRB101 12329 RLC 60273 b 1 by this subsection (dd) is deemed to be necessary for the 2 public interest, safety, and welfare. 3 (ee) In order to provide for the expeditious and timely 4 implementation of the provisions of this amendatory Act of the 5 100th 6 Illinois Underground Natural Gas Storage Safety Act may be 7 adopted in accordance with this subsection by the Department of 8 Natural Resources. The adoption of emergency rules authorized 9 by this subsection is deemed to be necessary for the public 10 General Assembly, emergency rules implementing the interest, safety, and welfare. 11 (ff) In order to provide for the expeditious and timely 12 implementation of the provisions of this amendatory Act of the 13 101st General Assembly, emergency rules may be adopted by the 14 Department of Labor in accordance with this subsection (ff) to 15 implement the changes made by this amendatory Act of the 101st 16 General Assembly to the Minimum Wage Law. The adoption of 17 emergency rules authorized by this subsection (ff) is deemed to 18 be necessary for the public interest, safety, and welfare. 19 (gg) In order to provide for the expeditious and timely 20 implementation of the Cannabis Regulation and Tax Act and this 21 amendatory Act of the 101st General Assembly, the Department of 22 Revenue, the Department of Public Health, the Department of 23 Agriculture, the Department of State Police, and the Department 24 of Financial and Professional Regulation may adopt emergency 25 rules in accordance with this subsection (gg). The rulemaking 26 authority granted in this subsection (gg) shall apply only to - 334 - LRB101 12329 RLC 60273 b 1 rules adopted before December 31, 2021. Notwithstanding the 2 provisions of subsection (c), emergency rules adopted under 3 this subsection (gg) shall be effective for 180 days. The 4 adoption of emergency rules authorized by this subsection (gg) 5 is deemed to be necessary for the public interest, safety, and 6 welfare. 7 (Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17; 8 100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff. 9 6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18; 10 100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff. 11 2-19-19.) 12 Section 900-10. The Department of Revenue Law of the Civil 13 Administrative Code of Illinois is amended by changing Section 14 2505-210 as follows: 15 (20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1) 16 Sec. 2505-210. Electronic funds transfer. 17 (a) The Department may provide means by which persons 18 having a tax liability under any Act administered by the 19 Department may use electronic funds transfer to pay the tax 20 liability. 21 (b) Mandatory payment by electronic funds transfer. Except 22 as otherwise provided in a tax Act administered by the 23 Department Beginning on October 1, 2002, and through September 24 30, 2010, a taxpayer who has an annual tax liability of - 335 - LRB101 12329 RLC 60273 b 1 $200,000 or more shall make all payments of that tax to the 2 Department by electronic funds transfer. Beginning October 1, 3 2010, a taxpayer (other than an individual taxpayer) who has an 4 annual tax liability of $20,000 or more and an individual 5 taxpayer who has an annual tax liability of $200,000 or more 6 shall make all payments of that tax to the Department by 7 electronic funds transfer. Before August 1 8 beginning in 2002, the Department shall notify all taxpayers 9 required to make payments by electronic funds transfer. All required to make payments by of each electronic year, 10 taxpayers funds 11 transfer shall make those payments for a minimum of one year 12 beginning on October 1. For purposes of this subsection (b), 13 the term "annual tax liability" means, except as provided in 14 subsections (c) and (d) of this Section, the sum of the 15 taxpayer's liabilities under a tax Act administered by the 16 Department for the immediately preceding calendar year. 17 (c) For purposes of subsection (b), the term "annual tax 18 liability" means, for a taxpayer that incurs a tax liability 19 under the Retailers' Occupation Tax Act, Service Occupation Tax 20 Act, Use Tax Act, Service Use Tax Act, or any other State or 21 local occupation or use tax law that is administered by the 22 Department, the sum of the taxpayer's liabilities under the 23 Retailers' Occupation Tax Act, Service Occupation Tax Act, Use 24 Tax Act, Service Use Tax Act, and all other State and local 25 occupation and use tax laws administered by the Department for 26 the immediately preceding calendar year. - 336 - LRB101 12329 RLC 60273 b 1 (d) For purposes of subsection (b), the term "annual tax 2 liability" means, for a taxpayer that incurs an Illinois income 3 tax liability, the greater of: 4 (1) the amount of the taxpayer's tax liability under 5 Article 7 of the Illinois Income 6 immediately preceding calendar year; or Tax Act for the 7 (2) the taxpayer's estimated tax payment obligation 8 under Article 8 of the Illinois Income Tax Act for the 9 immediately preceding calendar year. 10 (e) The Department shall adopt such rules as are necessary 11 to effectuate a program of electronic funds transfer and the 12 requirements of this Section. 13 (Source: P.A. 100-1171, eff. 1-4-19.) 14 15 Section 900-12. The Criminal Identification Act is amended by changing Section 5.2 as follows: 16 (20 ILCS 2630/5.2) 17 Sec. 5.2. Expungement, sealing, and immediate sealing. 18 (a) General Provisions. 19 (1) Definitions. In this Act, words and phrases have 20 the meanings set forth in this subsection, except when a 21 particular context clearly requires a different meaning. 22 (A) The following terms shall have the meanings 23 ascribed to them in the Unified Code of Corrections, 24 730 ILCS 5/5-1-2 through 5/5-1-22: - 337 - LRB101 12329 RLC 60273 b 1 (i) Business Offense (730 ILCS 5/5-1-2), 2 (ii) Charge (730 ILCS 5/5-1-3), 3 (iii) Court (730 ILCS 5/5-1-6), 4 (iv) Defendant (730 ILCS 5/5-1-7), 5 (v) Felony (730 ILCS 5/5-1-9), 6 (vi) Imprisonment (730 ILCS 5/5-1-10), 7 (vii) Judgment (730 ILCS 5/5-1-12), 8 (viii) Misdemeanor (730 ILCS 5/5-1-14), 9 (ix) Offense (730 ILCS 5/5-1-15), 10 (x) Parole (730 ILCS 5/5-1-16), 11 (xi) Petty Offense (730 ILCS 5/5-1-17), 12 (xii) Probation (730 ILCS 5/5-1-18), 13 (xiii) Sentence (730 ILCS 5/5-1-19), 14 (xiv) Supervision (730 ILCS 5/5-1-21), and 15 (xv) Victim (730 ILCS 5/5-1-22). 16 (B) As used in this Section, "charge not initiated 17 by arrest" means a charge (as defined by 730 ILCS 18 5/5-1-3) 19 defendant is not arrested prior to or as a direct 20 result of the charge. brought against a defendant where the 21 (C) "Conviction" means a judgment of conviction or 22 sentence entered upon a plea of guilty or upon a 23 verdict or finding of guilty of an offense, rendered by 24 a legally constituted jury or by a court of competent 25 jurisdiction authorized to try the case without a jury. 26 An order of supervision successfully completed by the - 338 - LRB101 12329 RLC 60273 b 1 petitioner is not a conviction. An order of qualified 2 probation 3 successfully completed by the petitioner is not a 4 conviction. An order of supervision or an order of 5 qualified 6 unsatisfactorily 7 unsatisfactory termination is reversed, vacated, or 8 modified and the judgment of conviction, if any, is 9 reversed or vacated. 10 (D) (as defined in probation "Criminal is subsection that a is terminated conviction, offense" means (a)(1)(J)) a unless petty the offense, 11 business offense, misdemeanor, felony, or municipal 12 ordinance 13 (a)(1)(H)). As used in this Section, a minor traffic 14 offense (as defined in subsection (a)(1)(G)) shall not 15 be considered a criminal offense. violation defined in (E) 17 records 18 obliterate the petitioner's name from any official 19 index or public record, or both. Nothing in this Act 20 shall require the physical destruction of the circuit 21 court file, but such records relating to arrests or 22 charges, or both, ordered expunged shall be impounded 23 as 24 (d)(9)(B)(ii). 26 or return required by means to physically them to the subsection 16 25 "Expunge" (as subsections destroy petitioner and (d)(9)(A)(ii) the to and (F) As used in this Section, "last sentence" means the sentence, order of supervision, or order of - 339 probation LRB101 12329 RLC 60273 b 1 qualified 2 (a)(1)(J)), for a 3 subsection (a)(1)(D)) that terminates last in time in 4 any jurisdiction, regardless of whether the petitioner 5 has 6 sentence 7 probation was 8 multiple sentences, orders of supervision, or orders 9 of qualified probation terminate on the same day and 10 are last in time, they shall be collectively considered 11 the "last sentence" regardless of whether they were 12 ordered to run concurrently. included the or (as defined by subsection criminal offense (as defined by criminal order of offense for supervision imposed in his or or her which the qualified petition. If 13 (G) "Minor traffic offense" means a petty offense, 14 business offense, or Class C misdemeanor under the 15 Illinois Vehicle Code or a similar provision of a 16 municipal or local ordinance. 17 (G-5) "Minor violation of the Cannabis Control 18 Act" means one or more arrest, charge not initiated by 19 arrest, conviction, order of supervision, or order of 20 qualified probation 21 (a)(1)(J)) for 22 violation of Section 4, 5, or 8 of the Cannabis Control 23 Act, provided that (i) the individual did not receive a 24 penalty enhancement under Section 7 of the Cannabis 25 Control 26 Cannabis Control Act was the only offense associated Act and a (as Class (ii) the 4 defined in subsection felony or misdemeanor minor violation of the - 340 1 with 2 conviction, 3 qualified probation to be expunged. 4 the (H) arrest, LRB101 12329 RLC 60273 b charge order of "Municipal not initiated supervision, ordinance by or arrest, order of means an violation" 5 offense defined by a municipal or local ordinance that 6 is criminal in nature and with which the petitioner was 7 charged or for which the petitioner was arrested and 8 released without charging. 9 (I) "Petitioner" means an adult or a minor 10 prosecuted as an adult who has applied for relief under 11 this Section. 12 (J) "Qualified probation" means an order of 13 probation under Section 10 of the Cannabis Control Act, 14 Section 410 of the Illinois Controlled Substances Act, 15 Section 16 Community Protection Act, Section 5-6-3.3 or 5-6-3.4 17 of 18 12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as 19 those 20 Public Act 89-313), Section 10-102 of the Illinois 21 Alcoholism 22 40-10 of the Substance Use Disorder Act, or Section 10 23 of the Steroid Control Act. For the purpose of this 24 Section, 25 qualified 26 Illinois Alcoholism and Other Drug Dependency Act and 70 the of the Unified provisions and Methamphetamine Code of existed Other "successful probation Corrections, before Drug their Dependency completion" under Control of Section and Section deletion Act, by Section an order of 10-102 of the - 341 - LRB101 12329 RLC 60273 b 1 Section 40-10 of the Substance Use Disorder Act means 2 that the probation was terminated satisfactorily and 3 the judgment of conviction was vacated. 4 (K) "Seal" means to physically and electronically 5 maintain the records, unless the records would 6 otherwise be destroyed due to age, but to make the 7 records unavailable without a court order, subject to 8 the exceptions in Sections 12 and 13 of this Act. The 9 petitioner's name shall also be obliterated from the 10 official index required to be kept by the circuit court 11 clerk under Section 16 of the Clerks of Courts Act, but 12 any index issued by the circuit court clerk before the 13 entry of the order to seal shall not be affected. 14 (L) "Sexual offense committed against a minor" 15 includes but is not limited to the offenses of indecent 16 solicitation of a child or criminal sexual abuse when 17 the victim of such offense is under 18 years of age. 18 (M) "Terminate" as it relates to a sentence or 19 order of supervision or qualified probation includes 20 either satisfactory or unsatisfactory termination of 21 the 22 Section. A sentence is terminated notwithstanding any 23 outstanding financial legal obligation. 24 (2) Minor Traffic Offenses. Orders of supervision or 25 convictions for minor traffic offenses shall not affect a 26 petitioner's sentence, unless eligibility otherwise to expunge specified or seal in this records - 342 1 LRB101 12329 RLC 60273 b pursuant to this Section. 2 (2.5) Commencing 180 days after July 29, 2016 (the 3 effective date of Public Act 99-697), the law enforcement 4 agency issuing the citation shall automatically expunge, 5 on or before January 1 and July 1 of each year, the law 6 enforcement records of a person found to have committed a 7 civil law violation of subsection (a) of Section 4 of the 8 Cannabis Control Act or subsection (c) of Section 3.5 of 9 the Drug Paraphernalia Control Act in the law enforcement 10 agency's possession or control and which contains the final 11 satisfactory 12 issued a citation for that offense. The law enforcement 13 agency shall provide by 14 review, and to confirm the automatic expungement by the law 15 enforcement agency issuing the citation. Commencing 180 16 days after July 29, 2016 (the effective date of Public Act 17 99-697), the clerk of the circuit court shall expunge, upon 18 order of the court, or in the absence of a court order on 19 or before January 1 and July 1 of each year, the court 20 records of a person found in the circuit court to have 21 committed a 22 Section 4 of the Cannabis Control Act or subsection (c) of 23 Section 3.5 of the Drug Paraphernalia Control Act in the 24 clerk's possession or control and which contains the final 25 satisfactory 26 issued a citation for any of those offenses. disposition civil law which rule pertain the which the process for violation of disposition to person access, subsection (a) pertain to the of person - 343 1 (3) Exclusions. Except LRB101 12329 RLC 60273 b as otherwise provided in 2 subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6) 3 of this Section, the court shall not order: 4 (A) the sealing or expungement of the records of 5 arrests or charges not initiated by arrest that result 6 in an order of supervision for or conviction of: (i) 7 any sexual offense committed against a minor; (ii) 8 Section 11-501 of 9 similar provision the of Illinois Vehicle Code a ordinance; or a (iii) 10 Section 11-503 of 11 similar provision of a local ordinance, unless the 12 arrest or charge is for a misdemeanor violation of 13 subsection (a) of Section 11-503 or a similar provision 14 of 15 offender reaching the age of 25 years and the offender 16 has no other conviction for violating Section 11-501 or 17 11-503 of 18 provision of a local ordinance. a local the local or Illinois Vehicle Code ordinance, that the occurred prior Illinois Vehicle Code or a or to a the similar 19 (B) the sealing or expungement of records of minor 20 traffic offenses (as defined in subsection (a)(1)(G)), 21 unless 22 without charging. 23 (C) the the petitioner sealing of was arrested and the records of released arrests or 24 charges not initiated by arrest which result in an 25 order of supervision or a conviction for the following 26 offenses: - 344 - LRB101 12329 RLC 60273 b 1 (i) offenses included in Article 11 of the 2 Criminal Code of 1961 or the Criminal Code of 2012 3 or a similar provision of a local ordinance, except 4 Section 5 Section 11-30 of the Criminal Code of 1961 or the 6 Criminal Code of 2012, or a similar provision of a 7 local ordinance; 11-14 and a misdemeanor violation of 8 (ii) Section 11-1.50, 12-3.4, 12-15, 12-30, 9 26-5, or 48-1 of the Criminal Code of 1961 or the 10 Criminal Code of 2012, or a similar provision of a 11 local ordinance; 12 (iii) Sections 12-3.1 or 12-3.2 of the 13 Criminal Code of 1961 or the Criminal Code of 2012, 14 or Section 125 of the Stalking No Contact Order 15 Act, or Section 219 of the Civil No Contact Order 16 Act, or a similar provision of a local ordinance; 17 18 (iv) Class A misdemeanors or felony offenses under the Humane Care for Animals Act; or 19 (v) any offense or attempted offense that 20 would subject a person to registration under the 21 Sex Offender Registration Act. 22 (D) (blank). 23 (b) Expungement. 24 (1) A petitioner may petition the circuit court to 25 expunge the records of his or her arrests and charges not 26 initiated by arrest when each arrest or charge not - 345 - LRB101 12329 RLC 60273 b 1 initiated by arrest sought to be expunged resulted in: (i) 2 acquittal, dismissal, or the petitioner's release without 3 charging, unless excluded by subsection (a)(3)(B); (ii) a 4 conviction which was vacated or reversed, unless excluded 5 by subsection (a)(3)(B); (iii) an order of supervision and 6 such 7 petitioner, unless excluded by subsection (a)(3)(A) or 8 (a)(3)(B); or (iv) an order of qualified probation (as 9 defined in subsection (a)(1)(J)) and such probation was 10 supervision was successfully completed by the successfully completed by the petitioner. 11 (1.5) When a petitioner seeks to have a record of 12 arrest expunged under this Section, and the offender has 13 been convicted of a criminal offense, the State's Attorney 14 may object to the expungement on the grounds that the 15 records contain specific relevant information aside from 16 the mere fact of the arrest. 17 (2) Time frame for filing a petition to expunge. 18 (A) When the arrest or charge not initiated by 19 arrest sought to be expunged resulted in an acquittal, 20 dismissal, the petitioner's release without charging, 21 or the reversal or vacation of a conviction, there is 22 no waiting period to petition for the expungement of 23 such records. 24 (B) When the arrest or charge not initiated by 25 arrest sought to be expunged resulted in an order of 26 supervision, successfully completed by the petitioner, - 346 1 LRB101 12329 RLC 60273 b the following time frames will apply: 2 (i) Those arrests or charges that resulted in 3 orders of supervision under Section 3-707, 3-708, 4 3-710, or 5-401.3 of the Illinois Vehicle Code or a 5 similar provision of a local ordinance, or under 6 Section 11-1.50, 12-3.2, or 12-15 of the Criminal 7 Code of 1961 or the Criminal Code of 2012, or a 8 similar provision of a local ordinance, shall not 9 be eligible for expungement until 5 years have 10 passed following the satisfactory termination of 11 the supervision. 12 (i-5) Those arrests or charges that resulted 13 in orders of supervision for a misdemeanor 14 violation of subsection (a) of Section 11-503 of 15 the Illinois Vehicle Code or a similar provision of 16 a 17 offender reaching the age of 25 years and the 18 offender has no other conviction for violating 19 Section 11-501 or 11-503 of the Illinois Vehicle 20 Code or a similar provision of a local ordinance 21 shall not be eligible for expungement until the 22 petitioner has reached the age of 25 years. local ordinance, that occurred prior to the 23 (ii) Those arrests or charges that resulted in 24 orders of supervision for any other offenses shall 25 not be eligible for expungement until 2 years have 26 passed following the satisfactory termination of - 347 - LRB101 12329 RLC 60273 b 1 the supervision. 2 (C) When the arrest or charge not initiated by 3 arrest sought to be expunged resulted in an order of 4 qualified 5 petitioner, such records shall not be eligible for 6 expungement until 5 years have passed following the 7 satisfactory termination of the probation. 8 (3) Those records maintained by the Department for 9 persons arrested prior to their 17th birthday shall be 10 expunged as provided in Section 5-915 of the Juvenile Court 11 Act of 1987. 12 (4) probation, successfully completed Whenever a person has been arrested by for the or 13 convicted of any offense, in the name of a person whose 14 identity he or she has stolen or otherwise come into 15 possession of, the aggrieved person from whom the identity 16 was stolen or otherwise obtained without authorization, 17 upon learning of the person having been arrested using his 18 or her identity, may, upon verified petition to the chief 19 judge of the circuit wherein the arrest was made, have a 20 court order entered nunc pro tunc by the Chief Judge to 21 correct the arrest record, conviction record, if any, and 22 all 23 Department, 24 prosecutor, and the trial court concerning such arrest, if 25 any, by removing his or her name from all such records in 26 connection with the arrest and conviction, if any, and by official records other of the criminal arresting justice authority, the agencies, the - 348 - LRB101 12329 RLC 60273 b 1 inserting in the records the name of the offender, if known 2 or ascertainable, in lieu of the aggrieved's name. The 3 records of the circuit court clerk shall be sealed until 4 further order of the court upon good cause shown and the 5 name of the aggrieved person obliterated on the official 6 index required to be kept by the circuit court clerk under 7 Section 16 of the Clerks of Courts Act, but the order shall 8 not affect any index issued by the circuit court clerk 9 before the entry of the order. Nothing in this Section 10 shall 11 criminal 12 under an offender's name the false names he or she has 13 used. 14 limit the justice Department agencies of or State Police prosecutors or from other listing (5) Whenever a person has been convicted of criminal 15 sexual assault, 16 predatory criminal sexual assault of a child, criminal 17 sexual abuse, or aggravated criminal sexual abuse, the 18 victim 19 Attorney of the county in which the conviction occurred 20 file a verified petition with the presiding trial judge at 21 the petitioner's trial to have a court order entered to 22 seal the records of the circuit court clerk in connection 23 with the proceedings of the trial court concerning that 24 offense. However, the records of the arresting authority 25 and the Department of State Police concerning the offense 26 shall not be sealed. The court, upon good cause shown, of that aggravated offense may criminal request sexual that the assault, State's - 349 - LRB101 12329 RLC 60273 b 1 shall make the records of the circuit court clerk in 2 connection 3 concerning the offense available for public inspection. with the proceedings of the trial court 4 (6) If a conviction has been set aside on direct review 5 or on collateral attack and the court determines by clear 6 and convincing evidence that the petitioner was factually 7 innocent of the charge, the court that finds the petitioner 8 factually innocent of the charge shall enter an expungement 9 order for the conviction for which the petitioner has been 10 determined to be innocent as provided in subsection (b) of 11 Section 5-5-4 of the Unified Code of Corrections. 12 (7) Nothing in this Section shall prevent the 13 Department of State Police from maintaining all records of 14 any person who is admitted to probation upon terms and 15 conditions and who fulfills those terms and conditions 16 pursuant to Section 10 of the Cannabis Control Act, Section 17 410 of the Illinois Controlled Substances Act, Section 70 18 of the Methamphetamine Control and Community Protection 19 Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of 20 Corrections, 21 Section 22 Criminal Code of 2012, Section 10-102 of the Illinois 23 Alcoholism and Other Drug Dependency Act, Section 40-10 of 24 the Substance Use Disorder Act, or Section 10 of the 25 Steroid Control Act. 26 Section 12-3.05 of 12-4.3 the or subdivision Criminal Code of (b)(1) 1961 or of the (8) If the petitioner has been granted a certificate of - 350 under 1 innocence 2 Procedure, 3 innocence 4 conviction for which the petitioner has been determined to 5 be innocent as provided in subsection (h) of Section 2-702 6 of the Code of Civil Procedure. 7 (c) Sealing. the shall Section LRB101 12329 RLC 60273 b court also 2-702 that of the Code grants the certificate of expunging the enter an order of Civil 8 (1) Applicability. Notwithstanding any other provision 9 of this Act to the contrary, and cumulative with any rights 10 to 11 authorizes the sealing of criminal records of adults and of 12 minors prosecuted as adults. Subsection (g) of this Section 13 provides for immediate sealing of certain records. 14 15 expungement criminal records, this subsection (2) Eligible Records. The following records may be sealed: 16 17 of (A) All arrests resulting in release without charging; 18 (B) Arrests or charges not initiated by arrest 19 resulting in acquittal, dismissal, or conviction when 20 the conviction was reversed or vacated, except as 21 excluded by subsection (a)(3)(B); 22 (C) Arrests or charges not initiated by arrest 23 resulting in orders of supervision, including orders 24 of 25 successfully 26 excluded by subsection (a)(3); supervision for municipal completed by ordinance the violations, petitioner, unless - 351 1 LRB101 12329 RLC 60273 b (D) Arrests or charges not initiated by arrest 2 resulting in convictions, including 3 municipal ordinance 4 subsection (a)(3); convictions on violations, unless excluded by 5 (E) Arrests or charges not initiated by arrest 6 resulting in orders of first offender probation under 7 Section 10 of the Cannabis Control Act, Section 410 of 8 the Illinois Controlled Substances Act, Section 70 of 9 the Methamphetamine Control and Community Protection 10 Act, 11 Corrections; and 12 or Section 5-6-3.3 of the Unified Code of (F) Arrests or charges not initiated by arrest 13 resulting 14 excluded 15 Section. 16 (3) When Records Are Eligible to Be Sealed. Records 17 identified as eligible under subsection (c)(2) may be 18 sealed as follows: 19 (A) in by felony convictions subsection Records (a) identified unless paragraph as otherwise (3) of eligible this under 20 subsection (c)(2)(A) and (c)(2)(B) may be sealed at any 21 time. 22 (B) Except as otherwise provided in subparagraph 23 (E) of this 24 eligible under subsection (c)(2)(C) may be sealed 2 25 years 26 sentence (as defined in subsection (a)(1)(F)). after paragraph the (3), termination records of identified petitioner's as last - 352 1 LRB101 12329 RLC 60273 b (C) Except as otherwise provided in subparagraph 2 (E) of this 3 eligible under subsections (c)(2)(D), (c)(2)(E), and 4 (c)(2)(F) may be sealed 3 years after the termination 5 of 6 subsection 7 registration under the Arsonist Registration Act, the 8 Sex Offender Registration Act, or the Murderer and 9 Violent Offender Against Youth Registration Act may the paragraph petitioner's last records sentence (a)(1)(F)). Convictions sealed defined requiring 11 required to register under that relevant Act. Records the (as not (D) until identified 10 12 be (3), petitioner identified is in no as in public longer subsection 13 (a)(3)(A)(iii) may be sealed after the petitioner has 14 reached the age of 25 years. 15 (E) 16 subsections 17 (c)(2)(F) 18 petitioner's last sentence if the petitioner earned a 19 high 20 certificate, vocational technical certification, or 21 bachelor's degree, or passed the high school level Test 22 of General Educational Development, during the period 23 of his or her sentence, aftercare release, or mandatory 24 supervised release. This subparagraph shall apply only 25 to 26 educational goal prior to the period of his or her a Records (c)(2)(C), may school identified be petitioner (c)(2)(D), sealed diploma, who as upon not under (c)(2)(E), termination associate's has eligible degree, completed of or the career the same - 353 - LRB101 12329 RLC 60273 b 1 sentence, aftercare release, or mandatory supervised 2 release. If a petition for sealing eligible records 3 filed under this subparagraph is denied by the court, 4 the time periods under subparagraph (B) or (C) shall 5 apply to any subsequent petition for sealing filed by 6 the petitioner. 7 (4) Subsequent felony convictions. A person may not 8 have subsequent felony conviction records sealed as 9 provided in this subsection (c) if he or she is convicted 10 of any felony offense after the date of the sealing of 11 prior felony convictions as provided in this subsection 12 (c). The court may, upon conviction for a subsequent felony 13 offense, order the unsealing of prior felony conviction 14 records previously ordered sealed by the court. 15 (5) Notice of eligibility for sealing. Upon entry of a 16 disposition for an eligible record under this subsection 17 (c), the petitioner shall be informed by the court of the 18 right to have the records sealed and the procedures for the 19 sealing of the records. 20 (d) Procedure. The following procedures apply to 21 expungement under subsections (b), (e), and (e-6) and sealing 22 under subsections (c) and (e-5): 23 (1) Filing the petition. Upon becoming eligible to 24 petition for the expungement or sealing of records under 25 this 26 requesting the expungement or sealing of records with the Section, the petitioner shall file a petition - 354 - LRB101 12329 RLC 60273 b 1 clerk of the court where the arrests occurred or the 2 charges were brought, or both. If arrests occurred or 3 charges were brought in multiple jurisdictions, a petition 4 must be filed in each such jurisdiction. The petitioner 5 shall pay the applicable fee, except no fee shall be 6 required if the petitioner has obtained a court order 7 waiving 8 otherwise waived. fees under Supreme Court Rule 298 or it is 9 (1.5) County fee waiver pilot program. In a county of 10 3,000,000 or more inhabitants, no fee shall be required to 11 be paid by a petitioner if the records sought to be 12 expunged 13 without charging or arrests or charges not initiated by 14 arrest resulting in acquittal, dismissal, or conviction 15 when 16 excluded by subsection (a)(3)(B). The provisions of this 17 paragraph (1.5), other than this sentence, are inoperative 18 on and after January 1, 2019. 19 or the (2) sealed conviction Contents of were was arrests resulting reversed petition. The or in vacated, petition release unless shall be 20 verified and shall contain the petitioner's name, date of 21 birth, current address and, for each arrest or charge not 22 initiated by arrest sought to be sealed or expunged, the 23 case number, the date of arrest (if any), the identity of 24 the arresting authority, and such other information as the 25 court may require. During the pendency of the proceeding, 26 the petitioner shall promptly notify the circuit court - 355 1 clerk 2 petitioner has received a certificate of eligibility for 3 sealing from the Prisoner Review Board under paragraph (10) 4 of subsection (a) of Section 3-3-2 of the Unified Code of 5 Corrections, the certificate shall be attached to the 6 petition. 7 of (3) any Drug change of test. The his LRB101 12329 RLC 60273 b or her address. petitioner must If attach to the the 8 petition proof that the petitioner has passed a test taken 9 within 30 days before the filing of the petition showing 10 the absence within 11 substances 12 Substances Act, the Methamphetamine Control and Community 13 Protection Act, and the Cannabis Control Act if he or she 14 is petitioning to: as his defined or by her the body of all Illinois illegal Controlled 15 (A) seal felony records under clause (c)(2)(E); 16 (B) seal felony records for a violation of the 17 Illinois Controlled Substances Act, the 18 Methamphetamine Control and Community Protection Act, 19 or the Cannabis Control Act under clause (c)(2)(F); 20 (C) seal felony records under subsection (e-5); or 21 (D) expunge felony records of a qualified 22 probation under clause (b)(1)(iv). 23 (4) Service of petition. The circuit court clerk shall 24 promptly serve a copy of the petition and documentation to 25 support the petition under subsection (e-5) or (e-6) on the 26 State's Attorney or prosecutor charged with the duty of - 356 - LRB101 12329 RLC 60273 b 1 prosecuting the offense, the Department of State Police, 2 the arresting agency and the chief legal officer of the 3 unit of local government effecting the arrest. 4 (5) Objections. 5 (A) Any party entitled to notice of the petition 6 may file an objection to the petition. All objections 7 shall be in writing, shall be filed with the circuit 8 court clerk, and shall state with specificity the basis 9 of the objection. Whenever a person who has been 10 convicted of an offense is granted a pardon by the 11 Governor which specifically authorizes expungement, an 12 objection to the petition may not be filed. 13 (B) Objections to a petition to expunge or seal 14 must be filed within 60 days of the date of service of 15 the petition. 16 (6) Entry of order. 17 (A) The Chief Judge of the circuit wherein the 18 charge was brought, any judge of that circuit 19 designated by the Chief Judge, or in counties of less 20 than 3,000,000 inhabitants, the presiding trial judge 21 at the petitioner's trial, if any, shall rule on the 22 petition to expunge or seal as set forth in this 23 subsection (d)(6). 24 (B) Unless the State's Attorney or prosecutor, the 25 Department of State Police, the arresting agency, or 26 the chief legal officer files an objection to the - 357 - LRB101 12329 RLC 60273 b 1 petition to expunge or seal within 60 days from the 2 date of service of the petition, the court shall enter 3 an order granting or denying the petition. 4 (C) Notwithstanding any other provision of law, 5 the court shall not deny a petition for sealing under 6 this Section because the petitioner has not satisfied 7 an outstanding legal financial obligation established, 8 imposed, or originated by a court, law enforcement 9 agency, or a municipal, State, county, or other unit of 10 local government, including, but not limited to, any 11 cost, assessment, fine, or fee. An outstanding legal 12 financial 13 ordered restitution to a victim under Section 5-5-6 of 14 the 15 restitution has been converted to a civil judgment. 16 Nothing in this subparagraph (C) waives, rescinds, or 17 abrogates a legal financial obligation or otherwise 18 eliminates or affects the right of the holder of any 19 financial 20 applicable federal, State, or local law. 21 (7) Hearings. If an objection is filed, the court shall 22 set a date for a hearing and notify the petitioner and all 23 parties entitled to notice of the petition of the hearing 24 date at least 30 days prior to the hearing. Prior to the 25 hearing, 26 Department as to the appropriateness of the relief sought obligation Unified the Code obligation State's does of not include Corrections, to Attorney pursue shall any court unless collection consult the under with the - 358 - LRB101 12329 RLC 60273 b 1 in the petition to expunge or seal. At the hearing, the 2 court shall hear evidence on whether the petition should or 3 should not be granted, and shall grant or deny the petition 4 to expunge or seal the records based on the evidence 5 presented at 6 following: 7 the hearing. The court may consider the (A) the strength of the evidence supporting the 8 defendant's conviction; 9 (B) the reasons for retention of the conviction 10 records by the State; 11 (C) the petitioner's age, criminal record history, 12 and employment history; 13 (D) the period of time between the petitioner's 14 arrest on the charge resulting in the conviction and 15 the filing of the petition under this Section; and 16 (E) the specific adverse consequences the 17 petitioner may be subject to if the petition is denied. 18 (8) Service of order. After entering an order to 19 expunge or seal records, the court must provide copies of 20 the 21 prescribed by the Department, to the petitioner, to the 22 State's Attorney or prosecutor charged with the duty of 23 prosecuting the offense, to the arresting agency, to the 24 chief 25 effecting the arrest, and to such other criminal justice 26 agencies as may be ordered by the court. order legal to the officer Department, of the in unit a of form local and manner government - 359 1 2 3 LRB101 12329 RLC 60273 b (9) Implementation of order. (A) Upon entry of an order to expunge records pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both: 4 (i) the records shall be expunged (as defined 5 in subsection (a)(1)(E)) by the arresting agency, 6 the Department, and any other agency as ordered by 7 the court, within 60 days of the date of service of 8 the order, unless a motion to vacate, modify, or 9 reconsider 10 the order is filed pursuant to paragraph (12) of subsection (d) of this Section; 11 (ii) the records of the circuit court clerk 12 shall be impounded until further order of the court 13 upon 14 petitioner 15 required to be kept by the circuit court clerk 16 under Section 16 of the Clerks of Courts Act, but 17 the order shall not affect any index issued by the 18 circuit court clerk before the entry of the order; 19 and good cause shown obliterated and on the the name of official the index 20 (iii) in response to an inquiry for expunged 21 records, the court, the Department, or the agency 22 receiving such inquiry, shall reply as it does in 23 response 24 existed. 25 (B) Upon entry of an order to expunge records 26 to inquiries when no records pursuant to (b)(2)(B)(i) or (b)(2)(C), or both: ever - 360 - LRB101 12329 RLC 60273 b 1 (i) the records shall be expunged (as defined 2 in subsection (a)(1)(E)) by the arresting agency 3 and any other agency as ordered by the court, 4 within 60 days of the date of service of the order, 5 unless a motion to vacate, modify, or reconsider 6 the order is filed pursuant to paragraph (12) of 7 subsection (d) of this Section; 8 (ii) the records of the circuit court clerk 9 shall be impounded until further order of the court 10 upon good cause shown 11 petitioner 12 required to be kept by the circuit court clerk 13 under Section 16 of the Clerks of Courts Act, but 14 the order shall not affect any index issued by the 15 circuit court clerk before the entry of the order; obliterated and on the the name of official the index 16 (iii) the records shall be impounded by the 17 Department within 60 days of the date of service of 18 the order as ordered by the court, unless a motion 19 to vacate, modify, or reconsider the order is filed 20 pursuant to paragraph (12) of subsection (d) of 21 this Section; 22 (iv) records impounded by the Department may 23 be disseminated by the Department only as required 24 by law or to the arresting authority, the State's 25 Attorney, and the court upon a later arrest for the 26 same or a similar offense or for the purpose of - 361 - LRB101 12329 RLC 60273 b 1 sentencing for any subsequent felony, and to the 2 Department of Corrections upon conviction for any 3 offense; and 4 (v) in response to an inquiry for such records 5 from anyone not authorized by law to access such 6 records, the court, the Department, or the agency 7 receiving such inquiry shall reply as it does in 8 response 9 existed. 10 11 to inquiries when no records ever (B-5) Upon entry of an order to expunge records under subsection (e-6): 12 (i) the records shall be expunged (as defined 13 in subsection (a)(1)(E)) by the arresting agency 14 and any other agency as ordered by the court, 15 within 60 days of the date of service of the order, 16 unless a motion to vacate, modify, or reconsider 17 the 18 subsection (d) of this Section; order is filed under paragraph (12) of 19 (ii) the records of the circuit court clerk 20 shall be impounded until further order of the court 21 upon 22 petitioner 23 required to be kept by the circuit court clerk 24 under Section 16 of the Clerks of Courts Act, but 25 the order shall not affect any index issued by the 26 circuit court clerk before the entry of the order; good cause shown obliterated and on the the name of official the index - 362 - LRB101 12329 RLC 60273 b 1 (iii) the records shall be impounded by the 2 Department within 60 days of the date of service of 3 the order as ordered by the court, unless a motion 4 to vacate, modify, or reconsider the order is filed 5 under paragraph (12) of subsection (d) of this 6 Section; 7 (iv) records impounded by the Department may 8 be disseminated by the Department only as required 9 by law or to the arresting authority, the State's 10 Attorney, and the court upon a later arrest for the 11 same or a similar offense or for the purpose of 12 sentencing for any subsequent felony, and to the 13 Department of Corrections upon conviction for any 14 offense; and 15 (v) in response to an inquiry for these records 16 from anyone not authorized by law to access the 17 records, the court, the Department, or the agency 18 receiving the inquiry shall reply as it does in 19 response 20 existed. 21 (C) Upon entry of an order to seal records under 22 subsection (c), the arresting agency, any other agency 23 as ordered by the court, the Department, and the court 24 shall 25 (a)(1)(K)). In response to an inquiry for such records, 26 from seal to the anyone not inquiries records (as when no defined authorized by law records in to ever subsection access such - 363 - LRB101 12329 RLC 60273 b 1 records, the court, the Department, or the agency 2 receiving such 3 response to inquiries when no records ever existed. inquiry shall reply as it does in 4 (D) The Department shall send written notice to the 5 petitioner of its compliance with each order to expunge 6 or seal records within 60 days of the date of service 7 of that order or, if a motion to vacate, modify, or 8 reconsider is filed, within 60 days of service of the 9 order resolving the motion, if that order requires the 10 Department to expunge or seal records. In the event of 11 an appeal from the circuit court order, the Department 12 shall send written notice to the petitioner of its 13 compliance with an Appellate Court or Supreme Court 14 judgment to expunge or seal records within 60 days of 15 the issuance of the court's mandate. The notice is not 16 required 17 reconsider, 18 discretionary appellate review, is pending. 19 while any or motion any to appeal vacate, or modify, petition or for (E) Upon motion, the court may order that a sealed 20 judgment or other 21 demonstrate 22 obligation due and owing be made available for the 23 limited 24 obligations 25 established, imposed, or originated in the criminal 26 proceeding for which those records have been sealed. the purpose court amount of owed record of any collecting by the any necessary legal legal petitioner to financial financial that were - 364 - LRB101 12329 RLC 60273 b 1 The records made available under this subparagraph (E) 2 shall not be entered into the official index required 3 to be kept by the circuit court clerk under Section 16 4 of the Clerks of Courts Act and shall be immediately 5 re-impounded upon the collection of the outstanding 6 financial obligations. 7 (F) Notwithstanding any other provision of this 8 Section, a circuit court clerk may access a sealed 9 record for the limited purpose of collecting payment 10 for any legal 11 established, imposed, or originated in the criminal 12 proceedings for which those records have been sealed. 13 (10) Fees. The Department may charge the petitioner a 14 fee equivalent to the cost of processing any order to 15 expunge or seal records. Notwithstanding any provision of 16 the Clerks of Courts Act to the contrary, the circuit court 17 clerk may charge a fee equivalent to the cost associated 18 with the sealing or expungement of records by the circuit 19 court clerk. From the total filing fee collected for the 20 petition to seal or expunge, the circuit court clerk shall 21 deposit $10 into the Circuit Court Clerk Operation and 22 Administrative 23 incurred by the circuit court clerk in performing the 24 additional duties required to serve the petition to seal or 25 expunge on all parties. The circuit court clerk shall 26 collect and forward the Department of State Police portion Fund, financial to be obligations used to offset that the were costs - 365 - LRB101 12329 RLC 60273 b 1 of the fee to the Department and it shall be deposited in 2 the State Police Services Fund. If the record brought under 3 an expungement petition was previously sealed under this 4 Section, the fee for the expungement petition for that same 5 record shall be waived. 6 (11) Final Order. No court order issued under the 7 expungement or sealing provisions of this Section shall 8 become final for purposes of appeal until 30 days after 9 service of the order on the petitioner and all parties 10 11 entitled to notice of the petition. (12) Motion to Vacate, Modify, or Reconsider. Under 12 Section 2-1203 of the Code of Civil Procedure, the 13 petitioner or any party entitled to notice may file a 14 motion to vacate, modify, or reconsider the order granting 15 or denying the petition to expunge or seal within 60 days 16 of service of the order. If filed more than 60 days after 17 service of the order, a petition to vacate, modify, or 18 reconsider shall comply with subsection (c) of Section 19 2-1401 of the Code of Civil Procedure. Upon filing of a 20 motion to vacate, modify, or reconsider, notice of the 21 motion shall be served upon the petitioner and all parties 22 entitled to notice of the petition. 23 (13) Effect of Order. An order granting a petition 24 under the expungement or sealing provisions of this Section 25 shall not be considered void because it fails to comply 26 with the provisions of this Section or because of any error - 366 - LRB101 12329 RLC 60273 b 1 asserted in a motion to vacate, modify, or reconsider. The 2 circuit court retains jurisdiction to determine whether 3 the order is voidable and to vacate, modify, or reconsider 4 its terms based on a motion filed under paragraph (12) of 5 this subsection (d). 6 (14) Compliance with Order Granting Petition to Seal 7 Records. Unless a court has entered a stay of an order 8 granting a petition to seal, all parties entitled to notice 9 of the petition must fully comply with the terms of the 10 order within 60 days of service of the order even if a 11 party is seeking relief from the order through a motion 12 filed under paragraph (12) of this subsection (d) or is 13 appealing the order. 14 (15) Compliance with Order Granting Petition to 15 Expunge Records. While a party is seeking relief from the 16 order granting the petition to expunge through a motion 17 filed under paragraph (12) of this subsection (d) or is 18 appealing the order, and unless a court has entered a stay 19 of that order, the parties entitled to notice of the 20 petition must seal, but need not expunge, the records until 21 there is a final order on the motion for relief or, in the 22 case of an appeal, the issuance of that court's mandate. 23 (16) The changes to this subsection (d) made by Public 24 Act 98-163 apply to all petitions pending on August 5, 2013 25 (the effective date of Public Act 98-163) and to all orders 26 ruling on a petition to expunge or seal on or after August - 367 - LRB101 12329 RLC 60273 b 1 5, 2013 (the effective date of Public Act 98-163). 2 (e) Whenever a person who has been convicted of an offense 3 is granted a 4 authorizes expungement, he or she may, upon verified petition 5 to the Chief Judge of the circuit where the person had been 6 convicted, any judge of the circuit designated by the Chief 7 Judge, or in counties of less than 3,000,000 inhabitants, the 8 presiding trial judge at the defendant's trial, have a court 9 order entered expunging the record of arrest from the official 10 records of the arresting authority and order that the records 11 of the circuit court clerk and the Department be sealed until 12 further 13 otherwise provided herein, and 14 obliterated from the official index requested to be kept by the 15 circuit court clerk under Section 16 of the Clerks of Courts 16 Act in connection with the arrest and conviction for the 17 offense for which he or she had been pardoned but the order 18 shall not affect any index issued by the circuit court clerk 19 before the entry of the order. All records sealed by the 20 Department may be disseminated by the Department only to the 21 arresting authority, the State's Attorney, and the court upon a 22 later arrest for the same or similar offense or for the purpose 23 of sentencing for any subsequent felony. Upon conviction for 24 any subsequent offense, the Department of Corrections shall 25 have access to all sealed records of the Department pertaining 26 to that individual. Upon entry of the order of expungement, the order pardon of the by the court Governor upon good the which cause name of specifically shown the or as defendant - 368 - LRB101 12329 RLC 60273 b 1 circuit court clerk shall promptly mail a copy of the order to 2 the person who was pardoned. 3 (e-5) Whenever a person who has been convicted of an 4 offense is granted a certificate of eligibility for sealing by 5 the 6 sealing, he or she may, upon verified petition to the Chief 7 Judge of the circuit where the person had been convicted, any 8 judge of the circuit designated by the Chief Judge, or in 9 counties of less than 3,000,000 inhabitants, the presiding 10 trial judge at the petitioner's trial, have a court order 11 entered sealing the record of arrest from the official records 12 of the arresting authority and order that the records of the 13 circuit court clerk and the Department be sealed until further 14 order of the court upon good cause shown or as otherwise 15 provided herein, and the name of the petitioner obliterated 16 from the official index requested to be kept by the circuit 17 court clerk under Section 16 of the Clerks of Courts Act in 18 connection with the arrest and conviction for the offense for 19 which he or she had been granted the certificate but the order 20 shall not affect any index issued by the circuit court clerk 21 before the entry of the order. All records sealed by the 22 Department may 23 required by this Act or to the arresting authority, a law 24 enforcement agency, the State's Attorney, and the court upon a 25 later arrest for the same or similar offense or for the purpose 26 of sentencing for any subsequent felony. Upon conviction for Prisoner Review be Board which disseminated by specifically the authorizes Department only as - 369 - LRB101 12329 RLC 60273 b 1 any subsequent offense, the Department of Corrections shall 2 have access to all sealed records of the Department pertaining 3 to that individual. Upon entry of the order of sealing, the 4 circuit court clerk shall promptly mail a copy of the order to 5 the person who was granted the certificate of eligibility for 6 sealing. 7 (e-6) Whenever a person who has been convicted of an 8 offense is granted a certificate of eligibility for expungement 9 by the Prisoner Review Board which specifically authorizes 10 expungement, he or she may, upon verified petition to the Chief 11 Judge of the circuit where the person had been convicted, any 12 judge of the circuit designated by the Chief Judge, or in 13 counties of less than 3,000,000 inhabitants, the presiding 14 trial judge at the petitioner's trial, have a court order 15 entered expunging the 16 records of the arresting authority and order that the records 17 of the circuit court clerk and the Department be sealed until 18 further 19 otherwise provided herein, and the name of the petitioner 20 obliterated from the official index requested to be kept by the 21 circuit court clerk under Section 16 of the Clerks of Courts 22 Act in connection with the arrest and conviction for the 23 offense for which he or she had been granted the certificate 24 but the order shall not affect any index issued by the circuit 25 court clerk before the entry of the order. All records sealed 26 by the Department may be disseminated by the Department only as order of the record of court upon arrest from good cause the official shown or as - 370 - LRB101 12329 RLC 60273 b 1 required by this Act or to the arresting authority, a law 2 enforcement agency, the State's Attorney, and the court upon a 3 later arrest for the same or similar offense or for the purpose 4 of sentencing for any subsequent felony. Upon conviction for 5 any subsequent offense, the Department of Corrections shall 6 have 7 pertaining to that individual. Upon entry of the order of 8 expungement, the circuit court clerk shall promptly mail a copy 9 of the order to the person who was granted the certificate of 10 access to all expunged records of the Department eligibility for expungement. 11 (f) Subject to available funding, the Illinois Department 12 of Corrections shall conduct a study of the impact of sealing, 13 especially on employment and recidivism rates, utilizing a 14 random sample of those who apply for the sealing of their 15 criminal records under Public Act 93-211. At the request of the 16 Illinois Department of Corrections, records of the Illinois 17 Department 18 appropriate to 19 disclose 20 identification of any particular individual or employing unit. 21 The study shall be made available to the General Assembly no 22 later than September 1, 2010. 23 of any Employment Security assist the data in in a shall study. manner The that be utilized study would shall allow as not the (g) Immediate Sealing. 24 (1) Applicability. Notwithstanding any other provision 25 of this Act to the contrary, and cumulative with any rights 26 to expungement or sealing of criminal records, this - 371 - LRB101 12329 RLC 60273 b 1 subsection authorizes the immediate sealing of criminal 2 records of adults and of minors prosecuted as adults. 3 (2) Eligible Records. Arrests or charges not initiated 4 by 5 prejudice, except as excluded by subsection (a)(3)(B), 6 that occur on or after January 1, 2018 (the effective date 7 of Public Act 100-282), may be sealed immediately if the 8 petition is filed with the circuit court clerk on the same 9 day and during the same hearing in which the case is 10 arrest resulting in acquittal or dismissal with disposed. 11 (3) When Records are Eligible to be Immediately Sealed. 12 Eligible records under paragraph (2) of this subsection (g) 13 may 14 disposition of a case, notwithstanding the disposition of 15 other charges in the same case. be sealed immediately after entry of the final 16 (4) Notice of Eligibility for Immediate Sealing. Upon 17 entry of a disposition for an eligible record under this 18 subsection (g), the defendant shall be informed by the 19 court 20 immediately sealed and the procedure for the immediate 21 sealing of these records. 22 23 of (5) his or Procedure. her right The to following have eligible procedures records apply to immediate sealing under this subsection (g). 24 (A) Filing the Petition. Upon entry of the final 25 disposition of the case, the defendant's attorney may 26 immediately petition the court, on behalf of the - 372 - LRB101 12329 RLC 60273 b 1 defendant, for immediate sealing of eligible records 2 under paragraph (2) of this subsection (g) that are 3 entered on or after January 1, 2018 (the effective date 4 of Public Act 100-282). The immediate sealing petition 5 may be filed with the circuit court clerk during the 6 hearing in which the final disposition of the case is 7 entered. If the defendant's attorney does not file the 8 petition for immediate sealing during the hearing, the 9 defendant may file a petition for sealing at any time 10 11 as authorized under subsection (c)(3)(A). (B) Contents of Petition. The immediate sealing 12 petition 13 petitioner's name, date of birth, current address, and 14 for each eligible record, the case number, the date of 15 arrest if applicable, the identity of the arresting 16 authority if applicable, and other information as the 17 court may require. 18 19 shall be verified and shall contain the (C) Drug Test. The petitioner shall not be required to attach proof that he or she has passed a drug test. 20 (D) Service of Petition. A copy of the petition 21 shall be served on the State's Attorney in open court. 22 The petitioner shall not be required to serve a copy of 23 the petition on any other agency. 24 (E) Entry of Order. The presiding trial judge shall 25 enter an order granting or denying the petition for 26 immediate sealing during the hearing in which it is - 373 - LRB101 12329 RLC 60273 b 1 filed. Petitions for immediate sealing shall be ruled 2 on in the same hearing in which the final disposition 3 of the case is entered. 4 (F) Hearings. The court shall hear the petition for 5 immediate sealing on the same day and during the same 6 hearing in which the disposition is rendered. 7 (G) Service of Order. An order to immediately seal 8 eligible records shall be served in conformance with 9 subsection (d)(8). 10 (H) Implementation 11 immediately 12 conformance with subsections (d)(9)(C) and (d)(9)(D). seal of records Order. shall be An order implemented to in 13 (I) Fees. The fee imposed by the circuit court 14 clerk and the Department of State Police shall comply 15 with paragraph (1) of subsection (d) of this Section. 16 (J) Final Order. No court order issued under this 17 subsection (g) shall become final for purposes of 18 appeal until 30 days after service of the order on the 19 petitioner and all parties entitled to service of the 20 order in conformance with subsection (d)(8). 21 (K) Motion to Vacate, Modify, or Reconsider. Under 22 Section 2-1203 of the Code of Civil Procedure, the 23 petitioner, State's Attorney, or the Department of 24 State Police may file a motion to vacate, modify, or 25 reconsider 26 immediately seal within 60 days of service of the the order denying the petition to - 374 - LRB101 12329 RLC 60273 b 1 order. If filed more than 60 days after service of the 2 order, a petition to vacate, modify, or reconsider 3 shall comply with subsection (c) of Section 2-1401 of 4 the Code of Civil Procedure. 5 (L) Effect of Order. An order granting an immediate 6 sealing petition shall not be considered void because 7 it fails to comply with the provisions of this Section 8 or because of an error asserted in a motion to vacate, 9 modify, or reconsider. to The determine circuit whether court the retains 10 jurisdiction order is 11 voidable, and to vacate, modify, or reconsider its 12 terms based on a motion filed under subparagraph (L) of 13 this subsection (g). 14 (M) Compliance with Order Granting Petition to 15 Seal Records. Unless a court has entered a stay of an 16 order granting a petition to immediately seal, all 17 parties entitled to service of the order must fully 18 comply with the terms of the order within 60 days of 19 service of the order. 20 (h) Sealing; trafficking victims. 21 (1) A trafficking victim as defined by paragraph (10) 22 of subsection (a) of Section 10-9 of the Criminal Code of 23 2012 shall be eligible to petition for immediate sealing of 24 his or her criminal record upon the completion of his or 25 her last sentence if his or her participation in the 26 underlying offense was a direct result of human trafficking - 375 - LRB101 12329 RLC 60273 b 1 under Section 10-9 of the Criminal Code of 2012 or a severe 2 form of trafficking under the federal Trafficking Victims 3 Protection Act. 4 (2) A petitioner under this subsection (h), in addition 5 to 6 subsection (d) of this Section, shall include in his or her 7 petition a clear and concise statement that: (A) he or she 8 was a victim of human trafficking at the time of the 9 offense; and (B) that his or her participation in the 10 offense was a direct result of human trafficking under 11 Section 10-9 of the Criminal Code of 2012 or a severe form 12 of 13 Protection Act. 14 the requirements trafficking (3) If an provided under the objection under federal is paragraph Trafficking filed alleging (4) of Victims that the 15 petitioner is not entitled to immediate sealing under this 16 subsection (h), the court shall conduct a hearing under 17 paragraph (7) of subsection (d) of this Section and the 18 court shall determine whether the petitioner is entitled to 19 immediate sealing under this subsection (h). A petitioner 20 is eligible for immediate relief under this subsection (h) 21 if he or she shows, by a preponderance of the evidence, 22 that: (A) he or she was a victim of human trafficking at 23 the 24 participation in the offense was a direct result of human 25 trafficking under Section 10-9 of the Criminal Code of 2012 26 or time a of severe the form offense; of and (B) trafficking that under his the or her federal - 376 - LRB101 12329 RLC 60273 b 1 Trafficking Victims Protection Act. 2 (i) Expungement of Minor Violations of the Cannabis Control 3 Act. 4 (1) Applicability. Notwithstanding any other provision 5 of this Section to the contrary, and cumulative with any 6 rights to expungement or sealing of criminal records, this 7 subsection 8 violations of the Cannabis Control Act that are deemed 9 legally invalid under the Cannabis Regulation and Tax Act. (i) authorizes the expungement of minor 10 (2) Eligible Records. Any criminal history record of a 11 minor violation of the Cannabis Control Act is eligible for 12 expungement as of the effective date of this amendatory Act 13 of the 101st General Assembly. 14 15 (3) Procedure. (A) Department of State Police Review. The 16 Department of State Police shall review all criminal 17 history 18 individuals 19 Control 20 expungement 21 conducting that review, the Department of State Police 22 shall 23 violations of the Cannabis Control Act within 2 years 24 after the effective date of this amendatory Act of the 25 101st General Assembly, but no sooner than 180 days 26 after providing notification to the State's Attorneys record with Act information minor that under automatically and violations are this identify of eligible for subsection expunge the records all Cannabis automatic (i). of After minor - 377 1 LRB101 12329 RLC 60273 b and law enforcement as provided in subparagraph (B). 2 (B) Department of State Police; Notification to 3 State's Attorneys and Law Enforcement. No later than 4 180 days after the effective date of this amendatory 5 Act of the 101st General Assembly, the Department shall 6 send a notice to the State's Attorneys or prosecutors 7 charged with the duty of prosecuting the offenses; all 8 local law enforcement agencies; and the Office of the 9 Attorney General. with The notice 11 Control 12 expungement 13 jurisdiction. Upon request of a State's Attorney or the 14 Attorney General, the Department shall provide the 15 State's Attorney or the Attorney General with the 16 record from the Law Enforcement Agencies Data System 17 (LEADS) relating to the minor violation of the Cannabis 18 Control Act. under are this of eligible subsection the all individuals that violations identify 10 Act minor shall for Cannabis automatic (i) in each 19 (C) Proposed Order. No later than 180 days after 20 receipt of notice from the Department of State Police, 21 the State's Attorney of the county of arrest, charge or 22 conviction 23 Cannabis Control Act occurred, shall file a proposed 24 order or orders with each court identifying all minor 25 violations 26 expungement. Notwithstanding any other provision of in in which that the minor violations jurisdiction of eligible the for - 378 - LRB101 12329 RLC 60273 b 1 law, for purposes of this subsection (i), the State's 2 Attorney may elect to submit one proposed order on 3 behalf of multiple or all minor violations eligible for 4 expungement, as permitted by the court. The proposed 5 order shall include the following information: 6 7 (i) name of the individual eligible for expungement; 8 (ii) date of birth; 9 (iii) current address, if available; 10 (iv) case number; 11 (v) identification of the minor violation of 12 the Cannabis Control Act; 13 (vi) date of arrest, if applicable; 14 (vii) arresting agency, if applicable; and 15 (viii) a statement that the minor violation of 16 the Cannabis Control Act has been identified by the 17 Department 18 expungement because the conviction is now legally 19 invalid under the Cannabis Regulation and Tax Act. 20 If a State's Attorney or the Attorney General has 21 not submitted a proposed order within 180 days after 22 receiving notice from the Department of State Police, 23 the Office of the Attorney General may file a proposed 24 order expunging all records of minor violations of the 25 Cannabis Control Act it received from the Department of 26 State Police for that jurisdiction. Notwithstanding of State Police as eligible for - 379 1 any 2 subsection (i), the Office of the Attorney General may 3 elect 4 multiple 5 Control Act eligible for expungement, as permitted by 6 the court. 7 other provision of LRB101 12329 RLC 60273 b to submit or all one law, for proposed minor purposes of order violations on of this behalf the of Cannabis (D) Automatic Court Order for Expungement. Within 8 180 days after receiving a 9 State's Attorney or the Attorney General referenced in 10 subparagraph (C), a court shall review the proposed 11 order and order the expungement of the court and law 12 enforcement records unless the court determines that 13 the offense to be expunged does not meet the definition 14 of a minor violation of the Cannabis Control Act. 15 Whenever a court is expunging a record of a minor 16 violation 17 subsection (i), an objection to the proposed order may 18 not be filed. of the Cannabis proposed order Control Act from under a this 19 (E) Notification to Law Enforcement. Upon entry of 20 the order to expunge or seal records, the court must 21 provide copies of the order to the Department of State 22 Police, 23 Department, 24 criminal justice agencies as determined by the court. in a form the and manner arresting prescribed agency, and by such the other 25 (F) Notification to Individuals. Upon entry of an 26 order of expungement, the court shall provide a copy of - 380 - LRB101 12329 RLC 60273 b 1 the order to the individual whose record has been 2 expunged. The Department of State Police shall allow a 3 person 4 established in the Department of State Police, for 5 verifying that his or her records relating to minor 6 violations of the Cannabis Control Act eligible under 7 this subsection (i) have been expunged. to use the access and review process, 8 (G) Expungement of Arresting Agency Records. Local 9 law enforcement shall automatically expunge records 10 pertaining to arrests not resulting in a charge for 11 minor 12 identified by the Department of State Police within 365 13 days of notice from the Department of State Police. Any 14 minor 15 identified by the Department of State Police shall be 16 identified by local law enforcement and automatically 17 expunged as follows: 18 violations violations of of the the Cannabis Cannabis Control Control Act Act not (i) records prior to January 1, 2016, but on or 19 after January 1, 2013, shall be 20 expunged prior to January 1, 2023; automatically 21 (ii) records prior to January 1, 2013, but on 22 or after January 1, 2000, shall be automatically 23 expunged prior to January 1, 2026; 24 (iii) records prior to January 1, 2000 shall be 25 automatically expunged prior to January 1, 2030; 26 or - 381 1 2 3 LRB101 12329 RLC 60273 b (iv) as required by court order. (H) Petitions for Expungement of Minor Violations. (i) An individual with an arrest, charge not 4 initiated by arrest, 5 supervision, or order of qualified probation for a 6 minor 7 committed prior to 8 amendatory Act of the 101st General Assembly may 9 file a petition with the court in the jurisdiction 10 of the arrest, charge or conviction seeking the 11 entry of an order of expungement at any time after 12 the effective date of this amendatory Act of the 13 101st General Assembly. The court shall order the 14 expungement 15 Department 16 agency 17 offense to be expunged does not meet the definition 18 of a minor violation of the Cannabis Control Act. 19 Whenever a court is expunging a record of a minor 20 violation 21 objection to the proposed order may not be filed. violation of of unless of of the State the the conviction, the Cannabis order Control of Act the effective date of this records of Police, court the and the determines Cannabis court, Control the arresting that the Act, an 22 (ii) An individual with a conviction, order of 23 supervision, or order of qualified probation for a 24 Class 4 felony or misdemeanor violation of Section 25 4, 5, or 8 of the Cannabis Control Act, that was 26 accompanied by charges other than a minor - 382 - LRB101 12329 RLC 60273 b 1 violation of the Cannabis Control Act, may file a 2 petition for expungement with the court in the 3 jurisdiction 4 supervision, 5 provided that the individual did not receive a 6 penalty enhancement pursuant to Section 7 of the 7 Cannabis Control Act. The individual may file a 8 petition following the procedures set forth for 9 expungement of 10 conviction which 11 provided in subsection (b)(2)(A). of or the conviction, order of arrests was order qualified that vacated probation resulted or of in reversed a as 12 (4) Future Offenses. Commencing one year after the 13 effective date of this amendatory Act of the 101st General 14 Assembly, the clerk of the circuit court, the arresting 15 agency, and the Department of State Police shall expunge, 16 upon order of the court, or in the absence of a court order 17 on or before January 1 and July 1 of each year, the court 18 and law enforcement records of a person found to have 19 committed a minor violation of the Cannabis Control Act and 20 that contains the final satisfactory disposition for those 21 offenses. 22 (5) Effect of Expungement. A person's right to expunge 23 an expungeable offense shall not be limited under this 24 Section. The effect of an order of expungement shall be to 25 restore the person to the status he or she occupied before 26 the arrest, charge, or conviction. No person for whom an - 383 - LRB101 12329 RLC 60273 b 1 order of expungement has been entered under this subsection 2 (i) shall be held thereafter under any provisions of any 3 law to be guilty of perjury or otherwise giving a false 4 statement by reason of failure to state or acknowledge the 5 arrest, 6 incarceration, or expungement in response to any inquiry 7 made of him or her for any purpose whatsoever. 8 9 10 plea, trial, conviction, supervision, (6) Information. The Department of State Police shall post general information on its website about the expungement process described in this subsection (i). 11 (Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385, 12 eff. 13 99-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff. 14 1-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692, 15 eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18; 16 100-863, eff. 8-14-18; revised 8-30-18.) 17 18 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16; Section 900-15. The State Finance Act is amended by adding Sections 5.891, 5.892, and 6z-107 as follows: 19 (30 ILCS 105/5.891 new) 20 Sec. 5.891. The Cannabis Regulation Fund. 21 (30 ILCS 105/5.892 new) 22 Sec. 5.892. The Cannabis Business Development Fund. - 384 - LRB101 12329 RLC 60273 b 1 (30 ILCS 105/6z-107 new) 2 Sec. 6z-107. The Cannabis Regulation Fund. 3 (a) The Cannabis Regulation Fund is created as a special 4 fund in the State treasury. Unless otherwise provided, all 5 moneys collected under the Cannabis Regulation and Tax Act 6 shall 7 consisting of taxes, license fees, other fees, and any other 8 amounts required to be deposited or transferred into the Fund. 9 be deposited into the Cannabis Regulation Fund, (b) Whenever the Department determines that a refund should 10 be made 11 claimant, the Department shall notify the State Comptroller, 12 who shall cause the order to be drawn for the amount specified 13 and 14 Department. 15 irrevocable 16 necessary for the payment of refunds out of the Fund as 17 authorized under this subsection (b). to under the the person This and Cannabis named Regulation and in subsection continuing the (b) Tax Act notification shall appropriation to a from the constitute an of all amounts 18 (c) On or before the 25th day of each calendar month, the 19 Department shall prepare and certify to the Comptroller and the 20 Treasurer the stated sums of money from the Cannabis Regulation 21 Fund to be transferred to other named funds in the State 22 treasury. The Comptroller shall direct, and the Treasurer shall 23 transfer, the stated sums of money in accordance with the 24 directions contained in the certification. The amount subject 25 to transfer shall be the amount of the taxes, license fees, 26 other fees, and any other amounts paid into the Fund during the - 385 - LRB101 12329 RLC 60273 b 1 second preceding calendar month, minus the refunds made under 2 subsection (b) of this Section during the second preceding 3 calendar month 4 certified as follows: by the Department. The transfers shall be 5 (1) First, to pay for the direct and indirect costs 6 associated with the implementation, administration, and 7 enforcement of the Cannabis Regulation and Tax Act by the 8 Department of Revenue, the Department of State Police, the 9 Department of Financial and Professional Regulation, the 10 Department of 11 Health, 12 Opportunity, and the Illinois Criminal Justice Information 13 Authority; the Agriculture, Department the of Department Commerce of and Public Economic 14 (2) Second, after the transfers have been made as 15 provided in paragraph (1) of this subsection (c), the 16 Department may certify transfers for costs incurred by 17 State courts, State's Attorneys, or law enforcement to 18 carry out the expungement of minor violations pursuant to 19 the Cannabis Regulation and Tax Act; 20 (3) Third, after the transfers have been made as 21 provided in paragraphs (1) and (2) of this subsection (c), 22 the Department shall certify the following transfers: 23 (A) 2% shall be transferred to the Drug Treatment 24 Fund to be used, subject to appropriation, by the 25 Department of Public Health for: (i) developing and 26 administering a scientifically and medically accurate - 386 - LRB101 12329 RLC 60273 b 1 public education campaign educating youth and adults 2 about the health and safety risks of alcohol, tobacco, 3 illegal drug use (including prescription drugs), and 4 cannabis including use by pregnant women; and (ii) data 5 collection and analysis of the public health impacts of 6 legalizing the recreational use of cannabis. 7 (B) 8% shall be transferred to the Illinois Law 8 Enforcement 9 subject to Training Standards appropriation, by Board to the be used, Illinois Law 10 Enforcement Training Standards Board for the purpose 11 of creating a law enforcement grant program available 12 for jurisdictions to fund crime prevention programs, 13 training, 14 enforcement and prevention efforts, relating to the 15 illegal 16 influence of cannabis. 17 (D) and interdiction cannabis 25% shall market be efforts, and driving transferred to including under the the Criminal 18 Justice Information Projects Fund to be used, subject 19 to appropriation, by the Restoring Our Communities 20 Program 21 disinvestment, 22 historical overuse of criminal justice responses in 23 certain communities. The 24 Program Board 25 targeted 26 promotion of an employment infrastructure and capacity Board to address the concentrated shall poverty, Restoring address investments and impact these of economic violence, Our the Communities issues through intervention programs and - 387 - LRB101 12329 RLC 60273 b 1 building related to the social determinants of health 2 in impacted community areas. 3 (E) 20% shall be appropriated to certified local 4 health departments, 5 Administrative Code 600, to be used for the purpose of 6 substance 7 treatment. The allocation methodology shall be based 8 on the most recent census population data for the 9 certified local health department jurisdiction. These 10 funds may be redistributed to subcontractors within 11 their certified local health department jurisdictions. abuse as and defined mental by health 77 prevention 12 (F) 10% to the Budget Stabilization Fund. 13 (G) 14 35%, or any remaining Illinois balance, shall and be transferred to the General Revenue Fund. 15 As soon as may be practical, but no later than 10 days 16 after receipt by the Comptroller of the transfer certification 17 provided 18 Comptroller by the Department of Revenue, the Comptroller shall 19 direct and the Treasurer shall transfer the respective amounts 20 in 21 certification. for in accordance this with subsection (c) the directions to be given contained to in the the 22 (d) Notwithstanding any other law to the contrary and 23 except as otherwise provided in this Section, this Fund is not 24 subject to sweeps, administrative charge-backs, or any other 25 fiscal or budgetary maneuver that would in any way transfer any 26 amounts from this Fund into any other fund of the State. - 388 - 1 2 LRB101 12329 RLC 60273 b Section 900-16. The Use Tax Act is amended by changing Section 9 as follows: 3 (35 ILCS 105/9) (from Ch. 120, par. 439.9) 4 Sec. 9. Except as to motor vehicles, watercraft, aircraft, 5 and trailers that are required to be registered with an agency 6 of this State, each retailer required or authorized to collect 7 the tax imposed by this Act shall pay to the Department the 8 amount of such tax (except as otherwise provided) at the time 9 when he is required to file his return for the period during 10 which such tax was collected, less a discount of 2.1% prior to 11 January 1, 1990, and 1.75% on and after January 1, 1990, or $5 12 per calendar year, whichever is greater, which is allowed to 13 reimburse the retailer for expenses incurred in collecting the 14 tax, keeping records, preparing and filing returns, remitting 15 the tax and supplying data to the Department on request. In the 16 case of retailers who report and pay the tax on a transaction 17 by 18 discount shall be taken with each such tax remittance instead 19 of when such retailer files his periodic return. The discount 20 allowed under this Section is allowed only for returns that are 21 filed in the manner required by this Act. The Department may 22 disallow 23 registration is revoked at the time the return is filed, but 24 only if the Department's decision to revoke the certificate of transaction the basis, discount as for provided in retailers this whose Section, such certificate of - 389 - LRB101 12329 RLC 60273 b 1 registration has become final. A retailer need not remit that 2 part of any tax collected by him to the extent that he is 3 required to remit and does remit the tax imposed by the 4 Retailers' Occupation Tax Act, with respect to the sale of the 5 same property. 6 Where such tangible personal property is sold under a 7 conditional sales contract, or under any other form of sale 8 wherein the payment of the principal sum, or a part thereof, is 9 extended beyond the close of the period for which the return is 10 filed, the retailer, in collecting the tax (except as to motor 11 vehicles, watercraft, aircraft, and trailers that are required 12 to be registered with an agency of this State), may collect for 13 each tax return period, only the tax applicable to that part of 14 the selling price actually received during such tax return 15 period. 16 Except as provided in this Section, on or before the 17 twentieth day of each calendar month, such retailer shall file 18 a return for the preceding calendar month. Such return shall be 19 filed on forms prescribed by the Department and shall furnish 20 such information as the Department may reasonably require. On 21 and 22 vehicles, watercraft, aircraft, and trailers that are required 23 to be registered with an agency of this State, with respect to 24 retailers whose annual gross receipts average $20,000 or more, 25 all returns required to be filed pursuant to this Act shall be 26 filed electronically. Retailers who demonstrate that they do after January 1, 2018, except for returns for motor - 390 - LRB101 12329 RLC 60273 b 1 not have access to the Internet or demonstrate hardship in 2 filing electronically may petition the Department to waive the 3 electronic filing requirement. 4 The Department may require returns to be filed on a 5 quarterly basis. If so required, a return for each calendar 6 quarter shall be filed on or before the twentieth day of the 7 calendar month following the end of such calendar quarter. The 8 taxpayer shall also file a return with the Department for each 9 of the first two months of each calendar quarter, on or before 10 the twentieth day of the following calendar month, stating: 11 1. The name of the seller; 12 2. The address of the principal place of business from 13 which he engages in the business of 14 personal property at retail in this State; selling tangible 15 3. The total amount of taxable receipts received by him 16 during the preceding calendar month from sales of tangible 17 personal property by him during such preceding calendar 18 month, including receipts from charge and time sales, but 19 less all deductions allowed by law; 20 21 4. The amount of credit provided in Section 2d of this Act; 22 5. The amount of tax due; 23 5-5. The signature of the taxpayer; and 24 6. Such other reasonable information as the Department 25 may require. 26 If a taxpayer fails to sign a return within 30 days after - 391 - LRB101 12329 RLC 60273 b 1 the proper notice and demand for signature by the Department, 2 the return shall be considered valid and any amount shown to be 3 due on the return shall be deemed assessed. 4 Notwithstanding any other provision of this Act to the 5 contrary, retailers subject to tax on cannabis shall file all 6 cannabis tax returns and shall make all cannabis tax payments 7 by electronic means in the manner and form required by the 8 Department. 9 Beginning October 1, 1993, a taxpayer who has an average 10 monthly tax liability of $150,000 or more shall make all 11 payments required by rules of the Department by electronic 12 funds transfer. Beginning October 1, 1994, a taxpayer who has 13 an average monthly tax liability of $100,000 or more shall make 14 all payments required by rules of the Department by electronic 15 funds transfer. Beginning October 1, 1995, a taxpayer who has 16 an average monthly tax liability of $50,000 or more shall make 17 all payments required by rules of the Department by electronic 18 funds transfer. Beginning October 1, 2000, a taxpayer who has 19 an annual tax liability of $200,000 or more shall make all 20 payments required by rules of the Department by electronic 21 funds transfer. The term "annual tax liability" shall be the 22 sum of the taxpayer's liabilities under this Act, and under all 23 other State and local occupation and use tax laws administered 24 by the Department, for the immediately preceding calendar year. 25 The term "average monthly tax liability" means the sum of the 26 taxpayer's liabilities under this Act, and under all other - 392 - LRB101 12329 RLC 60273 b 1 State and local occupation and use tax laws administered by the 2 Department, 3 divided by 12. Beginning on October 1, 2002, a taxpayer who has 4 a tax liability in the amount set forth in subsection (b) of 5 Section 2505-210 of the Department of Revenue Law shall make 6 all payments required by rules of the Department by electronic 7 funds transfer. 8 Before for August the 1 immediately of each preceding year calendar beginning in 1993, year the 9 Department shall notify all taxpayers required to make payments 10 by electronic funds transfer. All taxpayers required to make 11 payments by electronic funds transfer shall make those payments 12 for a minimum of one year beginning on October 1. 13 Any taxpayer not required to make payments by electronic 14 funds transfer may make payments by electronic funds transfer 15 with the permission of the Department. 16 All taxpayers required to make payment by electronic funds 17 transfer and any taxpayers authorized to voluntarily make 18 payments by electronic funds transfer shall make those payments 19 in the manner authorized by the Department. 20 The Department shall adopt such rules as are necessary to 21 effectuate a program of electronic funds transfer and the 22 requirements of this Section. 23 Before October 1, 2000, if the taxpayer's average monthly 24 tax liability to the Department under this Act, the Retailers' 25 Occupation Tax Act, the Service Occupation Tax Act, the Service 26 Use Tax Act was $10,000 or more during the preceding 4 complete - 393 - LRB101 12329 RLC 60273 b 1 calendar quarters, he shall file a return with the Department 2 each month by the 20th day of the month next following the 3 month during which such tax liability is incurred and shall 4 make payments to the Department on or before the 7th, 15th, 5 22nd and last day of the month during which such liability is 6 incurred. On and after October 1, 2000, if the taxpayer's 7 average monthly tax liability to the Department under this Act, 8 the Retailers' Occupation Tax Act, the Service Occupation Tax 9 Act, and the Service Use Tax Act was $20,000 or more during the 10 preceding 4 complete calendar quarters, he shall file a return 11 with the Department each month by the 20th day of the month 12 next following the month during which such tax liability is 13 incurred and shall make payment to the Department on or before 14 the 7th, 15th, 22nd and last day of the month during which such 15 liability is incurred. If the month during which such tax 16 liability is incurred began prior to January 1, 1985, each 17 payment shall be in an amount equal to 1/4 of the taxpayer's 18 actual 19 Department not to exceed 1/4 of the average monthly liability 20 of the taxpayer to the Department for the preceding 4 complete 21 calendar quarters (excluding the month of highest liability and 22 the month of lowest liability in such 4 quarter period). If the 23 month during which such tax liability is incurred begins on or 24 after January 1, 1985, and prior to January 1, 1987, each 25 payment shall be in an amount equal to 22.5% of the taxpayer's 26 actual liability for the month or 27.5% of the taxpayer's liability for the month or an amount set by the - 394 - LRB101 12329 RLC 60273 b 1 liability for the same calendar month of the preceding year. If 2 the month during which such tax liability is incurred begins on 3 or after January 1, 1987, and prior to January 1, 1988, each 4 payment shall be in an amount equal to 22.5% of the taxpayer's 5 actual liability for the month or 26.25% of the taxpayer's 6 liability for the same calendar month of the preceding year. If 7 the month during which such tax liability is incurred begins on 8 or after January 1, 1988, and prior to January 1, 1989, or 9 begins on or after January 1, 1996, each payment shall be in an 10 amount equal to 22.5% of the taxpayer's actual liability for 11 the month or 25% of the taxpayer's liability for the same 12 calendar month of the preceding year. If the month during which 13 such tax liability is incurred begins on or after January 1, 14 1989, and prior to January 1, 1996, each payment shall be in an 15 amount equal to 22.5% of the taxpayer's actual liability for 16 the month or 25% of the taxpayer's liability for the same 17 calendar month of the preceding year or 100% of the taxpayer's 18 actual liability for the quarter monthly reporting period. The 19 amount of such quarter monthly payments shall be credited 20 against the final tax liability of the taxpayer's return for 21 that 22 requirement of the making of quarter monthly payments to the 23 Department 24 monthly liability to the Department during the preceding 4 25 complete calendar quarters (excluding the month of highest 26 liability and the month of lowest liability) is less than month. Before October 1, shall continue 2000, until once such applicable, the taxpayer's average - 395 - LRB101 12329 RLC 60273 b 1 $9,000, or until such taxpayer's average monthly liability to 2 the Department as computed for each calendar quarter of the 4 3 preceding 4 $10,000. However, if a taxpayer can show the Department that a 5 substantial change in the taxpayer's business has occurred 6 which causes the 7 monthly tax liability for the reasonably foreseeable future 8 will fall below the $10,000 threshold stated above, then such 9 taxpayer complete may calendar quarter taxpayer to petition the period is anticipate that Department for less his change than average in such 10 taxpayer's reporting status. On and after October 1, 2000, once 11 applicable, the requirement of the making of quarter monthly 12 payments to the Department shall continue until such taxpayer's 13 average 14 preceding 4 complete calendar quarters (excluding the month of 15 highest liability and the month of lowest liability) is less 16 than $19,000 or until such taxpayer's average monthly liability 17 to the Department as computed for each calendar quarter of the 18 4 preceding complete calendar quarter period is less than 19 $20,000. However, if a taxpayer can show the Department that a 20 substantial change in the taxpayer's business has occurred 21 which causes the 22 monthly tax liability for the reasonably foreseeable future 23 will fall below the $20,000 threshold stated above, then such 24 taxpayer may petition the Department for a change in such 25 taxpayer's reporting status. The Department shall change such 26 taxpayer's reporting status unless it finds that such change is monthly liability to taxpayer to the Department anticipate that during his the average - 396 - LRB101 12329 RLC 60273 b 1 seasonal in nature and not likely to be long term. If any such 2 quarter monthly payment is not paid at the time or in the 3 amount required by this Section, then the taxpayer shall be 4 liable for penalties and interest on the difference between the 5 minimum amount due and the amount of such quarter monthly 6 payment 7 taxpayer has previously made payments for that month to the 8 Department in excess of the minimum payments previously due as 9 provided in this Section. The Department shall make reasonable 10 rules and regulations to govern the quarter monthly payment 11 amount and quarter monthly payment dates for taxpayers who file 12 on other than a calendar monthly basis. actually and timely paid, except insofar as the 13 If any such payment provided for in this Section exceeds 14 the taxpayer's liabilities under this Act, the Retailers' 15 Occupation Tax Act, the Service Occupation Tax Act and the 16 Service Use Tax Act, as shown by an original monthly return, 17 the Department shall issue to the taxpayer a credit memorandum 18 no 19 memorandum may be submitted by the taxpayer to the Department 20 in payment of tax liability subsequently to be remitted by the 21 taxpayer to the Department or be assigned by the taxpayer to a 22 similar taxpayer under this Act, the Retailers' Occupation Tax 23 Act, the Service Occupation Tax Act or the Service Use Tax Act, 24 in accordance with reasonable rules and regulations to be 25 prescribed by 26 payment is shown on an original monthly return and is made later than 30 the days after the date of Department, except that payment, if such which excess - 397 - LRB101 12329 RLC 60273 b 1 after December 31, 1986, no credit memorandum shall be issued, 2 unless requested by the taxpayer. If no such request is made, 3 the 4 liability subsequently to be remitted by the taxpayer to the 5 Department under this Act, the Retailers' Occupation Tax Act, 6 the Service Occupation Tax Act or the Service Use Tax Act, in 7 accordance with reasonable rules and regulations prescribed by 8 the Department. If the Department subsequently determines that 9 all or any part of the credit taken was not actually due to the 10 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall 11 be reduced by 2.1% or 1.75% of the difference between the 12 credit taken and that actually due, and the taxpayer shall be 13 liable for penalties and interest on such difference. taxpayer may credit such excess payment against tax 14 If the retailer is otherwise required to file a monthly 15 return and if the retailer's average monthly tax liability to 16 the 17 authorize his returns to be filed on a quarter annual basis, 18 with the return for January, February, and March of a given 19 year being due by April 20 of such year; with the return for 20 April, May and June of a given year being due by July 20 of such 21 year; with the return for July, August and September of a given 22 year being due by October 20 of such year, and with the return 23 for October, November and December of a given year being due by 24 January 20 of the following year. Department does not exceed $200, the Department may 25 If the retailer is otherwise required to file a monthly or 26 quarterly return and if the retailer's average monthly tax - 398 - LRB101 12329 RLC 60273 b 1 liability to the Department does not exceed $50, the Department 2 may authorize his returns to be filed on an annual basis, with 3 the return for a given year being due by January 20 of the 4 following year. 5 Such quarter annual and annual returns, as to form and 6 substance, shall be subject to the same requirements as monthly 7 returns. 8 Notwithstanding any other provision in this Act concerning 9 the time within which a retailer may file his return, in the 10 case of any retailer who ceases to engage in a kind of business 11 which makes him responsible for filing returns under this Act, 12 such retailer shall file a final return under this Act with the 13 Department not more than one month after discontinuing such 14 business. 15 In addition, with respect to motor vehicles, watercraft, 16 aircraft, and trailers that are required to be registered with 17 an agency of this State, except as otherwise provided in this 18 Section, every retailer selling this kind of tangible personal 19 property shall file, with the Department, upon a form to be 20 prescribed and supplied by the Department, a separate return 21 for each such item of tangible personal property which the 22 retailer sells, except that if, in the same transaction, (i) a 23 retailer of aircraft, watercraft, motor vehicles or trailers 24 transfers more than one aircraft, watercraft, motor vehicle or 25 trailer to another aircraft, watercraft, motor vehicle or 26 trailer retailer for the purpose of resale or (ii) a retailer - 399 - LRB101 12329 RLC 60273 b 1 of aircraft, watercraft, motor vehicles, or trailers transfers 2 more than one aircraft, watercraft, motor vehicle, or trailer 3 to a purchaser for use as a qualifying rolling stock as 4 provided in Section 3-55 of this Act, then that seller may 5 report the transfer of all the aircraft, watercraft, motor 6 vehicles or 7 Department on the same uniform invoice-transaction reporting 8 return form. For purposes of this Section, "watercraft" means a 9 Class 2, Class 3, or Class 4 watercraft as defined in Section of the trailers involved in Boat Registration and that transaction to 10 3-2 Safety Act, a 11 watercraft, or any boat equipped with an inboard motor. the personal 12 In addition, with respect to motor vehicles, watercraft, 13 aircraft, and trailers that are required to be registered with 14 an agency of this State, every person who is engaged in the 15 business 16 connection with 17 retailer for the purpose of resale is, notwithstanding any 18 other provision of this Section to the contrary, authorized to 19 meet the return-filing requirement of this Act by reporting the 20 transfer of all the aircraft, watercraft, motor vehicles, or 21 trailers 22 Department on the same uniform invoice-transaction reporting 23 return form on or before the 20th of the month following the 24 month in which the transfer takes place. Notwithstanding any 25 other provision of this Act to the contrary, all returns filed 26 under this paragraph must be filed by electronic means in the of leasing such transferred or renting such business, sells for resale items any during and such a who, item month to in to a the - 400 1 LRB101 12329 RLC 60273 b manner and form as required by the Department. 2 The transaction reporting return in the case of motor 3 vehicles or trailers that are required to be registered with an 4 agency of this State, shall be the same document as the Uniform 5 Invoice referred to in Section 5-402 of the Illinois Vehicle 6 Code and must show the name and address of the seller; the name 7 and address of the purchaser; the amount of the selling price 8 including the amount allowed by the retailer for traded-in 9 property, if any; the amount allowed by the retailer for the 10 traded-in tangible personal property, if any, to the extent to 11 which Section 2 of this Act allows an exemption for the value 12 of traded-in property; the balance payable after deducting such 13 trade-in allowance from the total selling price; the amount of 14 tax due from the retailer with respect to such transaction; the 15 amount of tax collected from the purchaser by the retailer on 16 such transaction (or satisfactory evidence that such tax is not 17 due in that particular instance, if that is claimed to be the 18 fact); 19 identification of the property sold; such other information as 20 is required in Section 5-402 of the Illinois Vehicle Code, and 21 such 22 require. the other place and information date as of the the sale; Department a may sufficient reasonably 23 The transaction reporting return in the case of watercraft 24 and aircraft must show the name and address of the seller; the 25 name and address of the purchaser; the amount of the selling 26 price including the amount allowed by the retailer for - 401 - LRB101 12329 RLC 60273 b 1 traded-in property, if any; the amount allowed by the retailer 2 for the traded-in tangible personal property, if any, to the 3 extent to which Section 2 of this Act allows an exemption for 4 the value of traded-in property; the balance payable after 5 deducting such trade-in allowance from the total selling price; 6 the amount of tax due from the retailer with respect to such 7 transaction; the amount of tax collected from the purchaser by 8 the retailer on such transaction (or satisfactory evidence that 9 such tax is not due in that particular instance, if that is 10 claimed to be the fact); the place and date of the sale, a 11 sufficient identification of the property sold, and such other 12 information as the Department may reasonably require. 13 Such transaction reporting return shall be filed not later 14 than 20 days after the date of delivery of the item that is 15 being sold, but may be filed by the retailer at any time sooner 16 than that if he chooses to do so. The transaction reporting 17 return and tax remittance or proof of exemption from the tax 18 that 19 Department by way of the State agency with which, or State 20 officer with whom, the tangible personal property must be 21 titled or registered (if titling or registration is required) 22 if the Department and such agency or State officer determine 23 that 24 applications for title or registration. is imposed this by procedure this Act will may be expedite transmitted the to processing the of 25 With each such transaction reporting return, the retailer 26 shall remit the proper amount of tax due (or shall submit - 402 - LRB101 12329 RLC 60273 b 1 satisfactory evidence that the sale is not taxable if that is 2 the case), to the Department or its agents, whereupon the 3 Department shall issue, in the purchaser's name, a tax receipt 4 (or a certificate of exemption if the Department is satisfied 5 that the particular sale is tax exempt) which such purchaser 6 may submit to the agency with which, or State officer with 7 whom, he must title or register the tangible personal property 8 that is involved (if titling or registration is required) in 9 support of such purchaser's application for an Illinois 10 certificate or other evidence of title or registration to such 11 tangible personal property. 12 No retailer's failure or refusal to remit tax under this 13 Act precludes a user, who has paid the proper tax to the 14 retailer, from obtaining his certificate of title or other 15 evidence of title or registration (if titling or registration 16 is required) upon satisfying the Department that such user has 17 paid the proper tax (if tax is due) to the retailer. The 18 Department shall adopt appropriate rules to carry out the 19 mandate of this paragraph. 20 If the user who would otherwise pay tax to the retailer 21 wants the transaction reporting return filed and the payment of 22 tax or proof of exemption made to the Department before the 23 retailer is willing to take these actions and such user has not 24 paid the tax to the retailer, such user may certify to the fact 25 of such delay by the retailer, and may (upon the Department 26 being satisfied of the truth of such certification) transmit - 403 - LRB101 12329 RLC 60273 b 1 the information required by the transaction reporting return 2 and the remittance for tax or proof of exemption directly to 3 the 4 determination, in which event the transaction reporting return 5 and tax remittance (if a tax payment was required) shall be 6 credited by the Department to the proper retailer's account 7 with the Department, but without the 2.1% or 1.75% discount 8 provided for in this Section being allowed. When the user pays 9 the tax directly to the Department, he shall pay the tax in the 10 same amount and in the same form in which it would be remitted 11 if the tax had been remitted to the Department by the retailer. Department and obtain his tax receipt or exemption 12 Where a retailer collects the tax with respect to the 13 selling price of tangible personal property which he sells and 14 the 15 property and the retailer refunds the selling price thereof to 16 the 17 purchaser, the tax so collected from the purchaser. When filing 18 his return for the period in which he refunds such tax to the 19 purchaser, the retailer may deduct the amount of the tax so 20 refunded by him to the purchaser from any other use tax which 21 such 22 Department, as shown by such return, if the amount of the tax 23 to be deducted was previously remitted to the Department by 24 such retailer. If the retailer has not previously remitted the 25 amount of such tax to the Department, he is entitled to no 26 deduction under purchaser purchaser, retailer thereafter such may retailer be this returns shall required Act upon such to tangible also pay refund, or remit refunding such tax personal to to to the the the - 404 1 LRB101 12329 RLC 60273 b purchaser. 2 Any retailer filing a return under this Section shall also 3 include (for the purpose of paying tax thereon) the total tax 4 covered by such return upon the selling price of tangible 5 personal property purchased by him at retail from a retailer, 6 but as to which the tax imposed by this Act was not collected 7 from the retailer filing such return, and such retailer shall 8 remit the amount of such tax to the Department when filing such 9 return. 10 If experience indicates such action to be practicable, the 11 Department may prescribe and furnish a combination or joint 12 return which will enable retailers, who are required to file 13 returns hereunder and also under the Retailers' Occupation Tax 14 Act, to furnish all the return information required by both 15 Acts on the one form. 16 Where the retailer has more than one business registered 17 with the Department under separate registration under this Act, 18 such retailer may not file each return that is due as a single 19 return covering all such registered businesses, but shall file 20 separate returns for each such registered business. 21 Beginning January 1, 1990, each month the Department shall 22 pay into the State and Local Sales Tax Reform Fund, a special 23 fund in the State Treasury which is hereby created, the net 24 revenue realized for the preceding month from the 1% tax 25 imposed under this Act. 26 Beginning January 1, 1990, each month the Department shall - 405 - LRB101 12329 RLC 60273 b 1 pay into the County and Mass Transit District Fund 4% of the 2 net revenue realized for the preceding month from the 6.25% 3 general rate on the selling price of tangible personal property 4 which is purchased outside Illinois at retail from a retailer 5 and which is titled or registered by an agency of this State's 6 government. 7 Beginning January 1, 1990, each month the Department shall 8 pay into the State and Local Sales Tax Reform Fund, a special 9 fund in the State Treasury, 20% of the net revenue realized for 10 the preceding month from the 6.25% general rate on the selling 11 price 12 personal property which is purchased outside Illinois at retail 13 from a retailer and which is titled or registered by an agency 14 of this State's government. of tangible personal property, other than tangible 15 Beginning August 1, 2000, each month the Department shall 16 pay into the State and Local Sales Tax Reform Fund 100% of the 17 net revenue realized for the preceding month from the 1.25% 18 rate on the selling price of motor fuel and gasohol. Beginning 19 September 1, 2010, each month the Department shall pay into the 20 State and Local Sales Tax Reform Fund 100% of the net revenue 21 realized for the preceding month from the 1.25% rate on the 22 selling price of sales tax holiday items. 23 Beginning January 1, 1990, each month the Department shall 24 pay into the Local Government Tax Fund 16% of the net revenue 25 realized for the preceding month from the 6.25% general rate on 26 the selling price of tangible personal property which is - 406 - LRB101 12329 RLC 60273 b 1 purchased outside Illinois at retail from a retailer and which 2 is 3 government. titled or registered by an agency of this State's 4 Beginning October 1, 2009, each month the Department shall 5 pay into the Capital Projects Fund an amount that is equal to 6 an amount estimated by the Department to represent 80% of the 7 net revenue realized for the preceding month from the sale of 8 candy, grooming and hygiene products, and soft drinks that had 9 been taxed at a rate of 1% prior to September 1, 2009 but that 10 are now taxed at 6.25%. 11 Beginning July 1, 2011, each month the Department shall pay 12 into the Clean Air Act Permit Fund 80% of the net revenue 13 realized for the preceding month from the 6.25% general rate on 14 the selling price of sorbents used in Illinois in the process 15 of sorbent injection as used to comply with the Environmental 16 Protection Act or the federal Clean Air Act, but the total 17 payment into the Clean Air Act Permit Fund under this Act and 18 the Retailers' Occupation Tax Act shall not exceed $2,000,000 19 in any fiscal year. 20 Beginning July 1, 2013, each month the Department shall pay 21 into the Underground Storage Tank Fund from the proceeds 22 collected under this Act, the Service Use Tax Act, the Service 23 Occupation Tax Act, and the Retailers' Occupation Tax Act an 24 amount equal to the average monthly deficit in the Underground 25 Storage Tank Fund during the prior year, as certified annually 26 by the Illinois Environmental Protection Agency, but the total - 407 - LRB101 12329 RLC 60273 b 1 payment into the Underground Storage Tank Fund under this Act, 2 the Service Use Tax Act, the Service Occupation Tax Act, and 3 the Retailers' Occupation Tax Act shall not exceed $18,000,000 4 in any State fiscal year. As used in this paragraph, the 5 "average monthly deficit" shall be equal to the difference 6 between the average monthly claims for payment by the fund and 7 the average monthly revenues deposited into the fund, excluding 8 payments made pursuant to this paragraph. 9 Beginning July 1, 2015, of the remainder of the moneys 10 received by the Department under this Act, the Service Use Tax 11 Act, 12 Occupation Tax Act, each month the Department shall deposit 13 $500,000 into the State Crime Laboratory Fund. the Service Occupation Tax Act, and the Retailers' 14 Of the remainder of the moneys received by the Department 15 pursuant to this Act, (a) 1.75% thereof shall be paid into the 16 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 17 and after July 1, 1989, 3.8% thereof shall be paid into the 18 Build Illinois Fund; provided, however, that if in any fiscal 19 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 20 may be, of the moneys received by the Department and required 21 to be paid into the Build Illinois Fund pursuant to Section 3 22 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 23 Act, Section 9 of the Service Use Tax Act, and Section 9 of the 24 Service Occupation Tax Act, such Acts being hereinafter called 25 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 26 may be, of moneys being hereinafter called the "Tax Act - 408 - LRB101 12329 RLC 60273 b 1 Amount", and (2) the amount transferred to the Build Illinois 2 Fund from the State and Local Sales Tax Reform Fund shall be 3 less than the Annual Specified Amount (as defined in Section 3 4 of the Retailers' Occupation Tax Act), an amount equal to the 5 difference shall be immediately paid into the Build Illinois 6 Fund from other moneys received by the Department pursuant to 7 the Tax Acts; and further provided, that if on the last 8 business day of any month the sum of (1) the Tax Act Amount 9 required to be deposited into the Build Illinois Bond Account 10 in the Build Illinois Fund during such month and (2) the amount 11 transferred during such month to the Build Illinois Fund from 12 the State and Local Sales Tax Reform Fund shall have been less 13 than 1/12 of the Annual Specified Amount, an amount equal to 14 the 15 Illinois Fund from other moneys received by the Department 16 pursuant to the Tax Acts; and, further provided, that in no 17 event shall the payments required under the preceding proviso 18 result in aggregate payments into the Build Illinois Fund 19 pursuant to this clause (b) for any fiscal year in excess of 20 the greater of (i) the Tax Act Amount or (ii) the Annual 21 Specified Amount for such fiscal year; and, further provided, 22 that the amounts payable into the Build Illinois Fund under 23 this clause (b) shall be payable only until such time as the 24 aggregate amount on deposit under each trust indenture securing 25 Bonds issued and outstanding pursuant to the Build Illinois 26 Bond difference Act is shall be sufficient, immediately taking into paid into account the any Build future - 409 - LRB101 12329 RLC 60273 b 1 investment income, to fully provide, in accordance with such 2 indenture, 3 principal of, premium, if any, and interest on the Bonds 4 secured by such indenture and on any Bonds expected to be 5 issued thereafter and all fees and costs payable with respect 6 thereto, all as certified by the Director of the Bureau of the 7 Budget (now Governor's Office of Management and Budget). If on 8 the 9 outstanding pursuant to last for the business defeasance day of of any the or month the in payment which Build Illinois Bond of the Bonds are Act, the 10 aggregate of the moneys deposited in the Build Illinois Bond 11 Account in the Build Illinois Fund in such month shall be less 12 than the amount required to be transferred in such month from 13 the Build Illinois Bond Account to the Build Illinois Bond 14 Retirement and Interest Fund pursuant to Section 13 of the 15 Build Illinois Bond Act, an amount equal to such deficiency 16 shall be immediately paid from other moneys received by the 17 Department pursuant to the Tax Acts to the Build Illinois Fund; 18 provided, however, that any amounts paid to the Build Illinois 19 Fund in any fiscal year pursuant to this sentence shall be 20 deemed to constitute payments pursuant to clause (b) of the 21 preceding 22 payable for such fiscal year pursuant to clause (b) of the 23 preceding sentence. The moneys received by the Department 24 pursuant to this Act and required to be deposited into the 25 Build Illinois Fund are subject to the pledge, claim and charge 26 set forth in Section 12 of the Build Illinois Bond Act. sentence and shall reduce the amount otherwise - 410 - LRB101 12329 RLC 60273 b 1 Subject to payment of amounts into the Build Illinois Fund 2 as provided in the preceding paragraph or in any amendment 3 thereto hereafter enacted, the following specified monthly 4 installment of the amount requested in the certificate of the 5 Chairman of the Metropolitan Pier and Exposition Authority 6 provided under Section 8.25f of the State Finance Act, but not 7 in excess of the sums designated as "Total Deposit", shall be 8 deposited in the aggregate from collections under Section 9 of 9 the Use Tax Act, Section 9 of the Service Use Tax Act, Section 10 9 of the Service Occupation Tax Act, and Section 3 of the 11 Retailers' 12 Expansion Project Fund in the specified fiscal years. Occupation Tax Act into the McCormick Place 13 Fiscal Year Total Deposit 14 1993 $0 15 1994 53,000,000 16 1995 58,000,000 17 1996 61,000,000 18 1997 64,000,000 19 1998 68,000,000 20 1999 71,000,000 21 2000 75,000,000 22 2001 80,000,000 23 2002 93,000,000 24 2003 99,000,000 25 2004 103,000,000 26 2005 108,000,000 - 411 - LRB101 12329 RLC 60273 b 1 2006 113,000,000 2 2007 119,000,000 3 2008 126,000,000 4 2009 132,000,000 5 2010 139,000,000 6 2011 146,000,000 7 2012 153,000,000 8 2013 161,000,000 9 2014 170,000,000 10 2015 179,000,000 11 2016 189,000,000 12 2017 199,000,000 13 2018 210,000,000 14 2019 221,000,000 15 2020 233,000,000 16 2021 246,000,000 17 2022 260,000,000 18 2023 275,000,000 19 2024 275,000,000 20 2025 275,000,000 21 2026 279,000,000 22 2027 292,000,000 23 2028 307,000,000 24 2029 322,000,000 25 2030 338,000,000 26 2031 350,000,000 - 412 1 2032 2 and 3 each fiscal year 4 thereafter that bonds 5 are outstanding under 6 Section 13.2 of the 7 Metropolitan Pier and 8 Exposition Authority Act, 9 but not after fiscal year 2060. LRB101 12329 RLC 60273 b 350,000,000 10 Beginning July 20, 1993 and in each month of each fiscal 11 year thereafter, one-eighth of the amount requested in the 12 certificate of 13 Exposition Authority for that fiscal year, less the amount 14 deposited into the McCormick Place Expansion Project Fund by 15 the State Treasurer in the respective month under subsection 16 (g) of Section 13 of the Metropolitan Pier and Exposition 17 Authority Act, plus cumulative deficiencies in the deposits 18 required under this Section for previous months and years, 19 shall be deposited into the McCormick Place Expansion Project 20 Fund, until the full amount requested for the fiscal year, but 21 not in excess of the amount specified above as "Total Deposit", 22 has been deposited. the Chairman of the Metropolitan Pier and 23 Subject to payment of amounts into the Build Illinois Fund 24 and the McCormick Place Expansion Project Fund pursuant to the 25 preceding paragraphs or in any amendments thereto hereafter 26 enacted, beginning July 1, 1993 and ending on September 30, - 413 - LRB101 12329 RLC 60273 b 1 2013, the Department shall each month pay into the Illinois Tax 2 Increment Fund 0.27% of 80% of the net revenue realized for the 3 preceding month from the 6.25% general rate on the selling 4 price of tangible personal property. 5 Subject to payment of amounts into the Build Illinois Fund 6 and the McCormick Place Expansion Project Fund pursuant to the 7 preceding paragraphs or in any amendments thereto hereafter 8 enacted, beginning with the receipt of the first report of 9 taxes paid by an eligible business and continuing for a 25-year 10 period, the Department shall each month pay into the Energy 11 Infrastructure Fund 80% of the net revenue realized from the 12 6.25% general rate on the selling price of Illinois-mined coal 13 that was sold to an eligible business. For purposes of this 14 paragraph, the term "eligible business" means a new electric 15 generating facility certified pursuant to Section 605-332 of 16 the Department of Commerce and Economic Opportunity Law of the 17 Civil Administrative Code of Illinois. 18 Subject to payment of amounts into the Build Illinois Fund, 19 the McCormick Place Expansion Project Fund, the Illinois Tax 20 Increment Fund, and the Energy Infrastructure Fund pursuant to 21 the preceding paragraphs or in any amendments to this Section 22 hereafter enacted, beginning on the first day of the first 23 calendar month to occur on or after August 26, 2014 (the 24 effective date of Public Act 98-1098), each month, from the 25 collections made under Section 9 of the Use Tax Act, Section 9 26 of the Service Use Tax Act, Section 9 of the Service Occupation - 414 - LRB101 12329 RLC 60273 b 1 Tax Act, and Section 3 of the Retailers' Occupation Tax Act, 2 the 3 Administration Fund, to be used, subject to appropriation, to 4 fund 5 Department of Revenue, an amount equal to 1/12 of 5% of 80% of 6 the cash receipts collected during the preceding fiscal year by 7 the Audit Bureau of the Department under the Use Tax Act, the 8 Service Use Tax Act, the Service Occupation Tax Act, the 9 Retailers' Occupation Tax Act, and associated local occupation 10 Department additional shall pay auditors into and the Tax compliance Compliance personnel at and the and use taxes administered by the Department. 11 Subject to payments of amounts into the Build Illinois 12 Fund, the McCormick Place Expansion Project Fund, the Illinois 13 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax 14 Compliance and Administration Fund as provided in this Section, 15 beginning on July 1, 2018 the Department shall pay each month 16 into 17 required to be so paid under Section 2-3 of the Downstate 18 Public Transportation Act. the Downstate Public Transportation Fund the moneys 19 Of the remainder of the moneys received by the Department 20 pursuant to this Act, 75% thereof shall be paid into the State 21 Treasury and 25% shall be reserved in a special account and 22 used only for the transfer to the Common School Fund as part of 23 the 24 accordance with Section 8a of the State Finance Act. monthly transfer from the General Revenue Fund in 25 As soon as possible after the first day of each month, upon 26 certification of the Department of Revenue, the Comptroller - 415 - LRB101 12329 RLC 60273 b 1 shall order transferred and the Treasurer shall transfer from 2 the General Revenue Fund to the Motor Fuel Tax Fund an amount 3 equal to 1.7% of 80% of the net revenue realized under this Act 4 for the second preceding month. Beginning April 1, 2000, this 5 transfer is no longer required and shall not be made. 6 Net revenue realized for a month shall be the revenue 7 collected by the State pursuant to this Act, less the amount 8 paid 9 overpayment of liability. out during that month as refunds to taxpayers for 10 For greater simplicity of administration, manufacturers, 11 importers and wholesalers whose products are sold at retail in 12 Illinois by numerous retailers, and who wish to do so, may 13 assume the responsibility for accounting and paying to the 14 Department all tax accruing under this Act with respect to such 15 sales, if the retailers who are affected do not make written 16 objection to the Department to this arrangement. 17 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 18 99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff. 19 7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.) 20 21 Section 900-17. The Service Use Tax Act is amended by changing Section 9 as follows: 22 (35 ILCS 110/9) (from Ch. 120, par. 439.39) 23 Sec. 9. Each serviceman required or authorized to collect 24 the tax herein imposed shall pay to the Department the amount - 416 - LRB101 12329 RLC 60273 b 1 of such tax (except as otherwise provided) at the time when he 2 is required to file his return for the period during which such 3 tax was collected, less a discount of 2.1% prior to January 1, 4 1990 and 1.75% on and after January 1, 1990, or $5 per calendar 5 year, whichever is greater, which is allowed to reimburse the 6 serviceman for expenses incurred in collecting the tax, keeping 7 records, preparing and filing returns, remitting the tax and 8 supplying data to the Department on request. The discount 9 allowed under this Section is allowed only for returns that are 10 filed in the manner required by this Act. The Department may 11 disallow the discount for servicemen whose certificate of 12 registration is revoked at the time the return is filed, but 13 only if the Department's decision to revoke the certificate of 14 registration has become final. A serviceman need not remit that 15 part of any tax collected by him to the extent that he is 16 required to pay and does pay the tax imposed by the Service 17 Occupation 18 involving the incidental transfer by him of the same property. 19 Tax Act with respect to his sale of service Except as provided hereinafter in this Section, on or 20 before the twentieth 21 serviceman shall file a return for the preceding calendar month 22 in accordance with reasonable Rules and Regulations to be 23 promulgated by the Department. Such return shall be filed on a 24 form 25 information as the Department may reasonably require. On and 26 after January 1, 2018, with respect to servicemen whose annual prescribed by the day of each calendar Department and shall month, such contain such - 417 - LRB101 12329 RLC 60273 b 1 gross receipts average $20,000 or more, all returns required to 2 be filed pursuant to this Act shall be filed electronically. 3 Servicemen who demonstrate that they do not have access to the 4 Internet or demonstrate hardship in filing electronically may 5 petition 6 requirement. 7 The the Department Department may to waive require the returns electronic to be filed filing on a 8 quarterly basis. If so required, a return for each calendar 9 quarter shall be filed on or before the twentieth day of the 10 calendar month following the end of such calendar quarter. The 11 taxpayer shall also file a return with the Department for each 12 of the first two months of each calendar quarter, on or before 13 the twentieth day of the following calendar month, stating: 14 1. The name of the seller; 15 2. The address of the principal place of business from 16 which he engages in business as a serviceman in this State; 17 3. The total amount of taxable receipts received by him 18 during the preceding calendar month, including receipts 19 from charge and time sales, but less all deductions allowed 20 by law; 21 22 4. The amount of credit provided in Section 2d of this Act; 23 5. The amount of tax due; 24 5-5. The signature of the taxpayer; and 25 6. Such other reasonable information as the Department 26 may require. - 418 - LRB101 12329 RLC 60273 b 1 If a taxpayer fails to sign a return within 30 days after 2 the proper notice and demand for signature by the Department, 3 the return shall be considered valid and any amount shown to be 4 due on the return shall be deemed assessed. 5 Notwithstanding any other provision of this Act to the 6 contrary, servicemen subject to tax on cannabis shall file all 7 cannabis tax returns and shall make all cannabis tax payments 8 by electronic means in the manner and form required by the 9 Department. 10 Beginning October 1, 1993, a taxpayer who has an average 11 monthly tax liability of $150,000 or more shall make all 12 payments required by rules of the Department by electronic 13 funds transfer. Beginning October 1, 1994, a taxpayer who has 14 an average monthly tax liability of $100,000 or more shall make 15 all payments required by rules of the Department by electronic 16 funds transfer. Beginning October 1, 1995, a taxpayer who has 17 an average monthly tax liability of $50,000 or more shall make 18 all payments required by rules of the Department by electronic 19 funds transfer. Beginning October 1, 2000, a taxpayer who has 20 an annual tax liability of $200,000 or more shall make all 21 payments required by rules of the Department by electronic 22 funds transfer. The term "annual tax liability" shall be the 23 sum of the taxpayer's liabilities under this Act, and under all 24 other State and local occupation and use tax laws administered 25 by the Department, for the immediately preceding calendar year. 26 The term "average monthly tax liability" means the sum of the - 419 - LRB101 12329 RLC 60273 b 1 taxpayer's liabilities under this Act, and under all other 2 State and local occupation and use tax laws administered by the 3 Department, 4 divided by 12. Beginning on October 1, 2002, a taxpayer who has 5 a tax liability in the amount set forth in subsection (b) of 6 Section 2505-210 of the Department of Revenue Law shall make 7 all payments required by rules of the Department by electronic 8 funds transfer. 9 Before for the August 1 immediately of each preceding year calendar beginning in 1993, year the 10 Department shall notify all taxpayers required to make payments 11 by electronic funds transfer. All taxpayers required to make 12 payments by electronic funds transfer shall make those payments 13 for a minimum of one year beginning on October 1. 14 Any taxpayer not required to make payments by electronic 15 funds transfer may make payments by electronic funds transfer 16 with the permission of the Department. 17 All taxpayers required to make payment by electronic funds 18 transfer and any taxpayers authorized to voluntarily make 19 payments by electronic funds transfer shall make those payments 20 in the manner authorized by the Department. 21 The Department shall adopt such rules as are necessary to 22 effectuate a program of electronic funds transfer and the 23 requirements of this Section. 24 If the serviceman is otherwise required to file a monthly 25 return and if the serviceman's average monthly tax liability to 26 the Department does not exceed $200, the Department may - 420 - LRB101 12329 RLC 60273 b 1 authorize his returns to be filed on a quarter annual basis, 2 with the return for January, February and March of a given year 3 being due by April 20 of such year; with the return for April, 4 May and June of a given year being due by July 20 of such year; 5 with the return for July, August and September of a given year 6 being due by October 20 of such year, and with the return for 7 October, November and December of a given year being due by 8 January 20 of the following year. 9 If the serviceman is otherwise required to file a monthly 10 or quarterly return and if the serviceman's average monthly tax 11 liability to the Department does not exceed $50, the Department 12 may authorize his returns to be filed on an annual basis, with 13 the return for a given year being due by January 20 of the 14 following year. 15 Such quarter annual and annual returns, as to form and 16 substance, shall be subject to the same requirements as monthly 17 returns. 18 Notwithstanding any other provision in this Act concerning 19 the time within which a serviceman may file his return, in the 20 case of any serviceman who ceases to engage in a kind of 21 business which makes him responsible for filing returns under 22 this Act, such serviceman shall file a final return under this 23 Act 24 discontinuing such business. with the Department not more than 1 month after 25 Where a serviceman collects the tax with respect to the 26 selling price of property which he sells and the purchaser - 421 - LRB101 12329 RLC 60273 b 1 thereafter returns such property and the serviceman refunds the 2 selling price thereof to the purchaser, such serviceman shall 3 also refund, to the purchaser, the tax so collected from the 4 purchaser. When filing his return for the period in which he 5 refunds such tax to the purchaser, the serviceman may deduct 6 the amount of the tax so refunded by him to the purchaser from 7 any other Service Use Tax, Service Occupation Tax, retailers' 8 occupation tax or use tax which such serviceman may be required 9 to pay or remit to the Department, as shown by such return, 10 provided that the amount of the tax to be deducted shall 11 previously have 12 serviceman. If 13 remitted the amount of such tax to the Department, he shall be 14 entitled to no deduction hereunder upon refunding such tax to 15 the purchaser. been the remitted serviceman to the shall Department not by such previously have 16 Any serviceman filing a return hereunder shall also include 17 the total tax upon the selling price of tangible personal 18 property purchased for use by him as an incident to a sale of 19 service, and such serviceman shall remit the amount of such tax 20 to the Department when filing such return. 21 If experience indicates such action to be practicable, the 22 Department may prescribe and furnish a combination or joint 23 return which will enable servicemen, who are required to file 24 returns hereunder and also under the Service Occupation Tax 25 Act, to furnish all the return information required by both 26 Acts on the one form. - 422 - LRB101 12329 RLC 60273 b 1 Where the serviceman has more than one business registered 2 with the Department under separate registration hereunder, 3 such serviceman shall not file each return that is due as a 4 single return covering all such registered businesses, but 5 shall file separate returns for each such registered business. 6 Beginning January 1, 1990, each month the Department shall 7 pay into the State and Local Tax Reform Fund, a special fund in 8 the State Treasury, the net revenue realized for the preceding 9 month from the 1% tax imposed under this Act. 10 Beginning January 1, 1990, each month the Department shall 11 pay into the State and Local Sales Tax Reform Fund 20% of the 12 net revenue realized for the preceding month from the 6.25% 13 general rate on transfers of tangible personal property, other 14 than tangible personal property which is purchased outside 15 Illinois at retail from a retailer and which is titled or 16 registered by an agency of this State's government. 17 Beginning August 1, 2000, each month the Department shall 18 pay into the State and Local Sales Tax Reform Fund 100% of the 19 net revenue realized for the preceding month from the 1.25% 20 rate on the selling price of motor fuel and gasohol. 21 Beginning October 1, 2009, each month the Department shall 22 pay into the Capital Projects Fund an amount that is equal to 23 an amount estimated by the Department to represent 80% of the 24 net revenue realized for the preceding month from the sale of 25 candy, grooming and hygiene products, and soft drinks that had 26 been taxed at a rate of 1% prior to September 1, 2009 but that - 423 1 2 LRB101 12329 RLC 60273 b are now taxed at 6.25%. Beginning July 1, 2013, each month the Department shall pay 3 into the Underground Storage Tank 4 collected 5 Occupation Tax Act, and the Retailers' Occupation Tax Act an 6 amount equal to the average monthly deficit in the Underground 7 Storage Tank Fund during the prior year, as certified annually 8 by the Illinois Environmental Protection Agency, but the total 9 payment into the Underground Storage Tank Fund under this Act, 10 the Use Tax Act, the Service Occupation Tax Act, and the 11 Retailers' Occupation Tax Act shall not exceed $18,000,000 in 12 any State fiscal year. As used in this paragraph, the "average 13 monthly deficit" shall be equal to the difference between the 14 average monthly claims for payment by the fund and the average 15 monthly revenues deposited into the fund, excluding payments 16 made pursuant to this paragraph. under this Act, the Use Fund Tax from Act, the the proceeds Service 17 Beginning July 1, 2015, of the remainder of the moneys 18 received by the Department under the Use Tax Act, this Act, the 19 Service Occupation Tax Act, and the Retailers' Occupation Tax 20 Act, each month the Department shall deposit $500,000 into the 21 State Crime Laboratory Fund. 22 Of the remainder of the moneys received by the Department 23 pursuant to this Act, (a) 1.75% thereof shall be paid into the 24 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 25 and after July 1, 1989, 3.8% thereof shall be paid into the 26 Build Illinois Fund; provided, however, that if in any fiscal - 424 - LRB101 12329 RLC 60273 b 1 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 2 may be, of the moneys received by the Department and required 3 to be paid into the Build Illinois Fund pursuant to Section 3 4 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 5 Act, Section 9 of the Service Use Tax Act, and Section 9 of the 6 Service Occupation Tax Act, such Acts being hereinafter called 7 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 8 may 9 Amount", and (2) the amount transferred to the Build Illinois 10 Fund from the State and Local Sales Tax Reform Fund shall be 11 less than the Annual Specified Amount (as defined in Section 3 12 of the Retailers' Occupation Tax Act), an amount equal to the 13 difference shall be immediately paid into the Build Illinois 14 Fund from other moneys received by the Department pursuant to 15 the Tax Acts; and further provided, that if on the last 16 business day of any month the sum of (1) the Tax Act Amount 17 required to be deposited into the Build Illinois Bond Account 18 in the Build Illinois Fund during such month and (2) the amount 19 transferred during such month to the Build Illinois Fund from 20 the State and Local Sales Tax Reform Fund shall have been less 21 than 1/12 of the Annual Specified Amount, an amount equal to 22 the 23 Illinois Fund from other moneys received by the Department 24 pursuant to the Tax Acts; and, further provided, that in no 25 event shall the payments required under the preceding proviso 26 result in aggregate payments into the Build Illinois Fund be, of moneys difference being shall be hereinafter called immediately paid the into "Tax the Act Build - 425 - LRB101 12329 RLC 60273 b 1 pursuant to this clause (b) for any fiscal year in excess of 2 the greater of (i) the Tax Act Amount or (ii) the Annual 3 Specified Amount for such fiscal year; and, further provided, 4 that the amounts payable into the Build Illinois Fund under 5 this clause (b) shall be payable only until such time as the 6 aggregate amount on deposit under each trust indenture securing 7 Bonds issued and outstanding pursuant to the Build Illinois 8 Bond 9 investment income, to fully provide, in accordance with such Act is the taking 12 secured by such indenture and on any Bonds expected to be 13 issued thereafter and all fees and costs payable with respect 14 thereto, all as certified by the Director of the Bureau of the 15 Budget (now Governor's Office of Management and Budget). If on 16 the 17 outstanding pursuant to 18 aggregate of the moneys deposited in the Build Illinois Bond 19 Account in the Build Illinois Fund in such month shall be less 20 than the amount required to be transferred in such month from 21 the Build Illinois Bond Account to the Build Illinois Bond 22 Retirement and Interest Fund pursuant to Section 13 of the 23 Build Illinois Bond Act, an amount equal to such deficiency 24 shall be immediately paid from other moneys received by the 25 Department pursuant to the Tax Acts to the Build Illinois Fund; 26 provided, however, that any amounts paid to the Build Illinois the any month the in payment future principal of, premium, if any, and interest on the Bonds of or any 11 day of account indenture, business defeasance into 10 last for sufficient, which Build Illinois Bond of the Bonds are Act, the - 426 - LRB101 12329 RLC 60273 b 1 Fund in any fiscal year pursuant to this sentence shall be 2 deemed to constitute payments pursuant to clause (b) of the 3 preceding 4 payable for such fiscal year pursuant to clause (b) of the 5 preceding sentence. The moneys received by the Department 6 pursuant to this Act and required to be deposited into the 7 Build Illinois Fund are subject to the pledge, claim and charge 8 set forth in Section 12 of the Build Illinois Bond Act. sentence and shall reduce the amount otherwise 9 Subject to payment of amounts into the Build Illinois Fund 10 as provided in the preceding paragraph or in any amendment 11 thereto hereafter enacted, the following specified monthly 12 installment of the amount requested in the certificate of the 13 Chairman of the Metropolitan Pier and Exposition Authority 14 provided under Section 8.25f of the State Finance Act, but not 15 in excess of the sums designated as "Total Deposit", shall be 16 deposited in the aggregate from collections under Section 9 of 17 the Use Tax Act, Section 9 of the Service Use Tax Act, Section 18 9 of the Service Occupation Tax Act, and Section 3 of the 19 Retailers' 20 Expansion Project Fund in the specified fiscal years. Occupation 21 Tax Act into the McCormick Place Total Fiscal Year Deposit 22 1993 $0 23 1994 53,000,000 24 1995 58,000,000 25 1996 61,000,000 - 427 - LRB101 12329 RLC 60273 b 1 1997 64,000,000 2 1998 68,000,000 3 1999 71,000,000 4 2000 75,000,000 5 2001 80,000,000 6 2002 93,000,000 7 2003 99,000,000 8 2004 103,000,000 9 2005 108,000,000 10 2006 113,000,000 11 2007 119,000,000 12 2008 126,000,000 13 2009 132,000,000 14 2010 139,000,000 15 2011 146,000,000 16 2012 153,000,000 17 2013 161,000,000 18 2014 170,000,000 19 2015 179,000,000 20 2016 189,000,000 21 2017 199,000,000 22 2018 210,000,000 23 2019 221,000,000 24 2020 233,000,000 25 2021 246,000,000 26 2022 260,000,000 - 428 - LRB101 12329 RLC 60273 b 1 2023 275,000,000 2 2024 275,000,000 3 2025 275,000,000 4 2026 279,000,000 5 2027 292,000,000 6 2028 307,000,000 7 2029 322,000,000 8 2030 338,000,000 9 2031 350,000,000 10 2032 350,000,000 11 and 12 each fiscal year 13 thereafter that bonds 14 are outstanding under 15 Section 13.2 of the 16 Metropolitan Pier and 17 Exposition Authority Act, 18 but not after fiscal year 2060. 19 Beginning July 20, 1993 and in each month of each fiscal 20 year thereafter, one-eighth of the amount requested in the 21 certificate of 22 Exposition Authority for that fiscal year, less the amount 23 deposited into the McCormick Place Expansion Project Fund by 24 the State Treasurer in the respective month under subsection 25 (g) of Section 13 of the Metropolitan Pier and Exposition 26 Authority Act, plus cumulative deficiencies in the deposits the Chairman of the Metropolitan Pier and - 429 - LRB101 12329 RLC 60273 b 1 required under this Section for previous months and years, 2 shall be deposited into the McCormick Place Expansion Project 3 Fund, until the full amount requested for the fiscal year, but 4 not in excess of the amount specified above as "Total Deposit", 5 has been deposited. 6 Subject to payment of amounts into the Build Illinois Fund 7 and the McCormick Place Expansion Project Fund pursuant to the 8 preceding paragraphs or in any amendments thereto hereafter 9 enacted, beginning July 1, 1993 and ending on September 30, 10 2013, the Department shall each month pay into the Illinois Tax 11 Increment Fund 0.27% of 80% of the net revenue realized for the 12 preceding month from the 6.25% general rate on the selling 13 price of tangible personal property. 14 Subject to payment of amounts into the Build Illinois Fund 15 and the McCormick Place Expansion Project Fund pursuant to the 16 preceding paragraphs or in any amendments thereto hereafter 17 enacted, beginning with the receipt of the first report of 18 taxes paid by an eligible business and continuing for a 25-year 19 period, the Department shall each month pay into the Energy 20 Infrastructure Fund 80% of the net revenue realized from the 21 6.25% general rate on the selling price of Illinois-mined coal 22 that was sold to an eligible business. For purposes of this 23 paragraph, the term "eligible business" means a new electric 24 generating facility certified pursuant to Section 605-332 of 25 the Department of Commerce and Economic Opportunity Law of the 26 Civil Administrative Code of Illinois. - 430 - LRB101 12329 RLC 60273 b 1 Subject to payment of amounts into the Build Illinois Fund, 2 the McCormick Place Expansion Project Fund, the Illinois Tax 3 Increment Fund, and the Energy Infrastructure Fund pursuant to 4 the preceding paragraphs or in any amendments to this Section 5 hereafter enacted, beginning on the first day of the first 6 calendar month to occur on or after August 26, 2014 (the 7 effective date of Public Act 98-1098), each month, from the 8 collections made under Section 9 of the Use Tax Act, Section 9 9 of the Service Use Tax Act, Section 9 of the Service Occupation 10 Tax Act, and Section 3 of the Retailers' Occupation Tax Act, 11 the 12 Administration Fund, to be used, subject to appropriation, to 13 fund 14 Department of Revenue, an amount equal to 1/12 of 5% of 80% of 15 the cash receipts collected during the preceding fiscal year by 16 the Audit Bureau of the Department under the Use Tax Act, the 17 Service Use Tax Act, the Service Occupation Tax Act, the 18 Retailers' Occupation Tax Act, and associated local occupation 19 and use taxes administered by the Department. Department additional shall pay auditors into and the Tax compliance Compliance personnel at and the 20 Subject to payments of amounts into the Build Illinois 21 Fund, the McCormick Place Expansion Project Fund, the Illinois 22 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax 23 Compliance and Administration Fund as provided in this Section, 24 beginning on July 1, 2018 the Department shall pay each month 25 into 26 required to be so paid under Section 2-3 of the Downstate the Downstate Public Transportation Fund the moneys - 431 1 LRB101 12329 RLC 60273 b Public Transportation Act. 2 Of the remainder of the moneys received by the Department 3 pursuant to this Act, 75% thereof shall be paid into the 4 General Revenue Fund of the State Treasury and 25% shall be 5 reserved in a special account and used only for the transfer to 6 the Common School Fund as part of the monthly transfer from the 7 General Revenue Fund in accordance with Section 8a of the State 8 Finance Act. 9 As soon as possible after the first day of each month, upon 10 certification of the Department of Revenue, the Comptroller 11 shall order transferred and the Treasurer shall transfer from 12 the General Revenue Fund to the Motor Fuel Tax Fund an amount 13 equal to 1.7% of 80% of the net revenue realized under this Act 14 for the second preceding month. Beginning April 1, 2000, this 15 transfer is no longer required and shall not be made. 16 Net revenue realized for a month shall be the revenue 17 collected by the State pursuant to this Act, less the amount 18 paid 19 overpayment of liability. 20 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 21 100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff. 22 8-14-18; 100-1171, eff. 1-4-19.) 23 24 out during that month as refunds to taxpayers for Section 900-18. The Service Occupation Tax Act is amended by changing Section 9 as follows: - 432 - LRB101 12329 RLC 60273 b 1 (35 ILCS 115/9) (from Ch. 120, par. 439.109) 2 Sec. 9. Each serviceman required or authorized to collect 3 the tax herein imposed shall pay to the Department the amount 4 of such tax at the time when he is required to file his return 5 for the period during which such tax was collectible, less a 6 discount of 2.1% prior to January 1, 1990, and 1.75% on and 7 after January 1, 1990, or $5 per calendar year, whichever is 8 greater, which is allowed to reimburse the serviceman for 9 expenses incurred in collecting the tax, keeping records, 10 preparing and filing returns, remitting the tax and supplying 11 data to the Department on request. The discount allowed under 12 this Section is allowed only for returns that are filed in the 13 manner required by this Act. The Department may disallow the 14 discount for servicemen whose certificate of registration is 15 revoked at the time the return is filed, but only if the 16 Department's 17 registration has become final. decision to revoke the certificate of 18 Where such tangible personal property is sold under a 19 conditional sales contract, or under any other form of sale 20 wherein the payment of the principal sum, or a part thereof, is 21 extended beyond the close of the period for which the return is 22 filed, the serviceman, in collecting the tax may collect, for 23 each tax return period, only the tax applicable to the part of 24 the selling price actually received during such tax return 25 period. 26 Except as provided hereinafter in this Section, on or - 433 1 before 2 serviceman shall file a return for the preceding calendar month 3 in accordance with reasonable rules and regulations to be 4 promulgated by the Department of Revenue. Such return shall be 5 filed on a form prescribed by the Department and shall contain 6 such information as the Department may reasonably require. On 7 and after January 1, 2018, with respect to servicemen whose 8 annual gross receipts average $20,000 or more, all returns 9 required to be filed pursuant to this Act shall be filed 10 electronically. Servicemen who demonstrate that they do not 11 have access to the Internet or demonstrate hardship in filing 12 electronically 13 electronic filing requirement. 14 The the twentieth may day of LRB101 12329 RLC 60273 b petition Department may each the require calendar Department returns to month, to be such waive filed the on a 15 quarterly basis. If so required, a return for each calendar 16 quarter shall be filed on or before the twentieth day of the 17 calendar month following the end of such calendar quarter. The 18 taxpayer shall also file a return with the Department for each 19 of the first two months of each calendar quarter, on or before 20 the twentieth day of the following calendar month, stating: 21 1. The name of the seller; 22 2. The address of the principal place of business from 23 which he engages in business as a serviceman in this State; 24 3. The total amount of taxable receipts received by him 25 during the preceding calendar month, including receipts 26 from charge and time sales, but less all deductions allowed - 434 1 LRB101 12329 RLC 60273 b by law; 2 4. The amount of credit provided in Section 2d of this 3 Act; 4 5. The amount of tax due; 5 5-5. The signature of the taxpayer; and 6 6. Such other reasonable information as the Department 7 may require. 8 If a taxpayer fails to sign a return within 30 days after 9 the proper notice and demand for signature by the Department, 10 the return shall be considered valid and any amount shown to be 11 due on the return shall be deemed assessed. 12 Notwithstanding any other provision of this Act to the 13 contrary, servicemen subject to tax on cannabis shall file all 14 cannabis tax returns and shall make all cannabis tax payments 15 by electronic means in the manner and form required by the 16 Department. 17 Prior to October 1, 2003, and on and after September 1, 18 2004 a serviceman may accept a Manufacturer's Purchase Credit 19 certification from a purchaser in satisfaction of Service Use 20 Tax as provided in Section 3-70 of the Service Use Tax Act if 21 the 22 required 23 Manufacturer's Purchase Credit certification, accepted prior 24 to October 1, 2003 or on or after September 1, 2004 by a 25 serviceman as provided in Section 3-70 of the Service Use Tax 26 Act, purchaser may by be provides Section used the 3-70 by of that appropriate the Service serviceman to documentation Use Tax satisfy Act. as A Service - 435 Tax liability in the LRB101 12329 RLC 60273 b 1 Occupation amount claimed in the 2 certification, not to exceed 6.25% of the receipts subject to 3 tax from a qualifying purchase. A Manufacturer's Purchase 4 Credit reported on any original or amended return filed under 5 this Act after October 20, 2003 for reporting periods prior to 6 September 1, 2004 shall be disallowed. Manufacturer's Purchase 7 Credit reported on annual returns due on or after January 1, 8 2005 will be disallowed for periods prior to September 1, 2004. 9 No Manufacturer's Purchase Credit may be used after September 10 30, 2003 through August 31, 2004 to satisfy any tax liability 11 imposed under this Act, including any audit liability. 12 If the serviceman's average monthly tax liability to the 13 Department does not exceed $200, the Department may authorize 14 his returns to be filed on a quarter annual basis, with the 15 return for January, February and March of a given year being 16 due by April 20 of such year; with the return for April, May 17 and June of a given year being due by July 20 of such year; with 18 the return for July, August and September of a given year being 19 due by October 20 of such year, and with the return for 20 October, November and December of a given year being due by 21 January 20 of the following year. 22 If the serviceman's average monthly tax liability to the 23 Department does not exceed $50, the Department may authorize 24 his returns to be filed on an annual basis, with the return for 25 a given year being due by January 20 of the following year. 26 Such quarter annual and annual returns, as to form and - 436 - LRB101 12329 RLC 60273 b 1 substance, shall be subject to the same requirements as monthly 2 returns. 3 Notwithstanding any other provision in this Act concerning 4 the time within which a serviceman may file his return, in the 5 case of any serviceman who ceases to engage in a kind of 6 business which makes him responsible for filing returns under 7 this Act, such serviceman shall file a final return under this 8 Act 9 discontinuing such business. with the Department not more than 1 month after 10 Beginning October 1, 1993, a taxpayer who has an average 11 monthly tax liability of $150,000 or more shall make all 12 payments required by rules of the Department by electronic 13 funds transfer. Beginning October 1, 1994, a taxpayer who has 14 an average monthly tax liability of $100,000 or more shall make 15 all payments required by rules of the Department by electronic 16 funds transfer. Beginning October 1, 1995, a taxpayer who has 17 an average monthly tax liability of $50,000 or more shall make 18 all payments required by rules of the Department by electronic 19 funds transfer. Beginning October 1, 2000, a taxpayer who has 20 an annual tax liability of $200,000 or more shall make all 21 payments required by rules of the Department by electronic 22 funds transfer. The term "annual tax liability" shall be the 23 sum of the taxpayer's liabilities under this Act, and under all 24 other State and local occupation and use tax laws administered 25 by the Department, for the immediately preceding calendar year. 26 The term "average monthly tax liability" means the sum of the - 437 - LRB101 12329 RLC 60273 b 1 taxpayer's liabilities under this Act, and under all other 2 State and local occupation and use tax laws administered by the 3 Department, 4 divided by 12. Beginning on October 1, 2002, a taxpayer who has 5 a tax liability in the amount set forth in subsection (b) of 6 Section 2505-210 of the Department of Revenue Law shall make 7 all payments required by rules of the Department by electronic 8 funds transfer. 9 Before for the August 1 immediately of each preceding year calendar beginning in 1993, year the 10 Department shall notify all taxpayers required to make payments 11 by electronic funds transfer. All taxpayers required to make 12 payments by electronic funds transfer shall make those payments 13 for a minimum of one year beginning on October 1. 14 Any taxpayer not required to make payments by electronic 15 funds transfer may make payments by electronic funds transfer 16 with the permission of the Department. 17 All taxpayers required to make payment by electronic funds 18 transfer and any taxpayers authorized to voluntarily make 19 payments by electronic funds transfer shall make those payments 20 in the manner authorized by the Department. 21 The Department shall adopt such rules as are necessary to 22 effectuate a program of electronic funds transfer and the 23 requirements of this Section. 24 Where a serviceman collects the tax with respect to the 25 selling price of tangible personal property which he sells and 26 the purchaser thereafter returns such tangible personal - 438 - LRB101 12329 RLC 60273 b 1 property and the serviceman refunds the selling price thereof 2 to the purchaser, such serviceman shall also refund, to the 3 purchaser, the tax so collected from the purchaser. When filing 4 his return for the period in which he refunds such tax to the 5 purchaser, the serviceman may deduct the amount of the tax so 6 refunded by 7 Occupation Tax, Service Use Tax, Retailers' Occupation Tax or 8 Use Tax which such serviceman may be required to pay or remit 9 to the Department, as shown by such return, provided that the 10 amount of the tax to be deducted shall previously have been 11 remitted 12 serviceman shall not previously have remitted the amount of 13 such 14 deduction hereunder upon refunding such tax to the purchaser. tax to to him the the to the purchaser from Department by Department, he such shall any other serviceman. be entitled Service If the to no 15 If experience indicates such action to be practicable, the 16 Department may prescribe and furnish a combination or joint 17 return which will enable servicemen, who are required to file 18 returns hereunder and also under the Retailers' Occupation Tax 19 Act, the Use Tax Act or the Service Use Tax Act, to furnish all 20 the return information required by all said Acts on the one 21 form. 22 Where the serviceman has more than one business registered 23 with the Department under separate registrations hereunder, 24 such serviceman shall file separate returns for each registered 25 business. 26 Beginning January 1, 1990, each month the Department shall - 439 - LRB101 12329 RLC 60273 b 1 pay into the Local Government Tax Fund the revenue realized for 2 the preceding month from the 1% tax imposed under this Act. 3 Beginning January 1, 1990, each month the Department shall 4 pay into the County and Mass Transit District Fund 4% of the 5 revenue realized for the preceding month from the 6.25% general 6 rate. 7 Beginning August 1, 2000, each month the Department shall 8 pay into the County and Mass Transit District Fund 20% of the 9 net revenue realized for the preceding month from the 1.25% 10 rate on the selling price of motor fuel and gasohol. 11 Beginning January 1, 1990, each month the Department shall 12 pay into the Local Government Tax Fund 16% of the revenue 13 realized for the preceding month from the 6.25% general rate on 14 transfers of tangible personal property. 15 Beginning August 1, 2000, each month the Department shall 16 pay into the Local Government Tax Fund 80% of the net revenue 17 realized for the preceding month from the 1.25% rate on the 18 selling price of motor fuel and gasohol. 19 Beginning October 1, 2009, each month the Department shall 20 pay into the Capital Projects Fund an amount that is equal to 21 an amount estimated by the Department to represent 80% of the 22 net revenue realized for the preceding month from the sale of 23 candy, grooming and hygiene products, and soft drinks that had 24 been taxed at a rate of 1% prior to September 1, 2009 but that 25 are now taxed at 6.25%. 26 Beginning July 1, 2013, each month the Department shall pay - 440 the Underground Storage Tank LRB101 12329 RLC 60273 b 1 into 2 collected under this Act, the Use Tax Act, the Service Use Tax 3 Act, and the Retailers' Occupation Tax Act an amount equal to 4 the average monthly deficit in the Underground Storage Tank 5 Fund during the prior year, as certified annually by the 6 Illinois 7 payment into the Underground Storage Tank Fund under this Act, 8 the Use Tax Act, the Service Use Tax Act, and the Retailers' 9 Occupation Tax Act shall not exceed $18,000,000 in any State 10 fiscal year. As used in this paragraph, the "average monthly 11 deficit" shall be equal to the difference between the average 12 monthly claims for payment by the fund and the average monthly 13 revenues deposited into the fund, excluding payments made 14 pursuant to this paragraph. Environmental Protection Fund from Agency, the but proceeds the total 15 Beginning July 1, 2015, of the remainder of the moneys 16 received by the Department under the Use Tax Act, the Service 17 Use Tax Act, this Act, and the Retailers' Occupation Tax Act, 18 each month the Department shall deposit $500,000 into the State 19 Crime Laboratory Fund. 20 Of the remainder of the moneys received by the Department 21 pursuant to this Act, (a) 1.75% thereof shall be paid into the 22 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 23 and after July 1, 1989, 3.8% thereof shall be paid into the 24 Build Illinois Fund; provided, however, that if in any fiscal 25 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 26 may be, of the moneys received by the Department and required - 441 - LRB101 12329 RLC 60273 b 1 to be paid into the Build Illinois Fund pursuant to Section 3 2 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax 3 Act, Section 9 of the Service Use Tax Act, and Section 9 of the 4 Service Occupation Tax Act, such Acts being hereinafter called 5 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case 6 may 7 Amount", and (2) the amount transferred to the Build Illinois 8 Fund from the State and Local Sales Tax Reform Fund shall be 9 less than the Annual Specified Amount (as defined in Section 3 10 of the Retailers' Occupation Tax Act), an amount equal to the 11 difference shall be immediately paid into the Build Illinois 12 Fund from other moneys received by the Department pursuant to 13 the Tax Acts; and further provided, that if on the last 14 business day of any month the sum of (1) the Tax Act Amount 15 required to be deposited into the Build Illinois Account in the 16 Build Illinois Fund during such month and (2) the amount 17 transferred during such month to the Build Illinois Fund from 18 the State and Local Sales Tax Reform Fund shall have been less 19 than 1/12 of the Annual Specified Amount, an amount equal to 20 the 21 Illinois Fund from other moneys received by the Department 22 pursuant to the Tax Acts; and, further provided, that in no 23 event shall the payments required under the preceding proviso 24 result in aggregate payments into the Build Illinois Fund 25 pursuant to this clause (b) for any fiscal year in excess of 26 the greater of (i) the Tax Act Amount or (ii) the Annual be, of moneys difference being shall be hereinafter called immediately paid the into "Tax the Act Build - 442 - LRB101 12329 RLC 60273 b 1 Specified Amount for such fiscal year; and, further provided, 2 that the amounts payable into the Build Illinois Fund under 3 this clause (b) shall be payable only until such time as the 4 aggregate amount on deposit under each trust indenture securing 5 Bonds issued and outstanding pursuant to the Build Illinois 6 Bond 7 investment income, to fully provide, in accordance with such 8 indenture, 9 principal of, premium, if any, and interest on the Bonds 10 secured by such indenture and on any Bonds expected to be 11 issued thereafter and all fees and costs payable with respect 12 thereto, all as certified by the Director of the Bureau of the 13 Budget (now Governor's Office of Management and Budget). If on 14 the 15 outstanding pursuant to 16 aggregate of the moneys deposited in the Build Illinois Bond 17 Account in the Build Illinois Fund in such month shall be less 18 than the amount required to be transferred in such month from 19 the Build Illinois Bond Account to the Build Illinois Bond 20 Retirement and Interest Fund pursuant to Section 13 of the 21 Build Illinois Bond Act, an amount equal to such deficiency 22 shall be immediately paid from other moneys received by the 23 Department pursuant to the Tax Acts to the Build Illinois Fund; 24 provided, however, that any amounts paid to the Build Illinois 25 Fund in any fiscal year pursuant to this sentence shall be 26 deemed to constitute payments pursuant to clause (b) of the Act last is for sufficient, the business taking defeasance day of the any into of or month account the in any payment which Build Illinois Bond future of the Bonds are Act, the - 443 sentence and shall LRB101 12329 RLC 60273 b 1 preceding reduce the amount otherwise 2 payable for such fiscal year pursuant to clause (b) of the 3 preceding sentence. The moneys received by the Department 4 pursuant to this Act and required to be deposited into the 5 Build Illinois Fund are subject to the pledge, claim and charge 6 set forth in Section 12 of the Build Illinois Bond Act. 7 Subject to payment of amounts into the Build Illinois Fund 8 as provided in the preceding paragraph or in any amendment 9 thereto hereafter enacted, the following specified monthly 10 installment of the amount requested in the certificate of the 11 Chairman of the Metropolitan Pier and Exposition Authority 12 provided under Section 8.25f of the State Finance Act, but not 13 in excess of the sums designated as "Total Deposit", shall be 14 deposited in the aggregate from collections under Section 9 of 15 the Use Tax Act, Section 9 of the Service Use Tax Act, Section 16 9 of the Service Occupation Tax Act, and Section 3 of the 17 Retailers' 18 Expansion Project Fund in the specified fiscal years. Occupation 19 Tax Act into the McCormick Place Total Fiscal Year Deposit 20 1993 $0 21 1994 53,000,000 22 1995 58,000,000 23 1996 61,000,000 24 1997 64,000,000 25 1998 68,000,000 - 444 - LRB101 12329 RLC 60273 b 1 1999 71,000,000 2 2000 75,000,000 3 2001 80,000,000 4 2002 93,000,000 5 2003 99,000,000 6 2004 103,000,000 7 2005 108,000,000 8 2006 113,000,000 9 2007 119,000,000 10 2008 126,000,000 11 2009 132,000,000 12 2010 139,000,000 13 2011 146,000,000 14 2012 153,000,000 15 2013 161,000,000 16 2014 170,000,000 17 2015 179,000,000 18 2016 189,000,000 19 2017 199,000,000 20 2018 210,000,000 21 2019 221,000,000 22 2020 233,000,000 23 2021 246,000,000 24 2022 260,000,000 25 2023 275,000,000 26 2024 275,000,000 - 445 - LRB101 12329 RLC 60273 b 1 2025 275,000,000 2 2026 279,000,000 3 2027 292,000,000 4 2028 307,000,000 5 2029 322,000,000 6 2030 338,000,000 7 2031 350,000,000 8 2032 350,000,000 9 and 10 each fiscal year 11 thereafter that bonds 12 are outstanding under 13 Section 13.2 of the 14 Metropolitan Pier and 15 Exposition Authority Act, 16 but not after fiscal year 2060. 17 Beginning July 20, 1993 and in each month of each fiscal 18 year thereafter, one-eighth of the amount requested in the 19 certificate of 20 Exposition Authority for that fiscal year, less the amount 21 deposited into the McCormick Place Expansion Project Fund by 22 the State Treasurer in the respective month under subsection 23 (g) of Section 13 of the Metropolitan Pier and Exposition 24 Authority Act, plus cumulative deficiencies in the deposits 25 required under this Section for previous months and years, 26 shall be deposited into the McCormick Place Expansion Project the Chairman of the Metropolitan Pier and - 446 - LRB101 12329 RLC 60273 b 1 Fund, until the full amount requested for the fiscal year, but 2 not in excess of the amount specified above as "Total Deposit", 3 has been deposited. 4 Subject to payment of amounts into the Build Illinois Fund 5 and the McCormick Place Expansion Project Fund pursuant to the 6 preceding paragraphs or in any amendments thereto hereafter 7 enacted, beginning July 1, 1993 and ending on September 30, 8 2013, the Department shall each month pay into the Illinois Tax 9 Increment Fund 0.27% of 80% of the net revenue realized for the 10 preceding month from the 6.25% general rate on the selling 11 price of tangible personal property. 12 Subject to payment of amounts into the Build Illinois Fund 13 and the McCormick Place Expansion Project Fund pursuant to the 14 preceding paragraphs or in any amendments thereto hereafter 15 enacted, beginning with the receipt of the first report of 16 taxes paid by an eligible business and continuing for a 25-year 17 period, the Department shall each month pay into the Energy 18 Infrastructure Fund 80% of the net revenue realized from the 19 6.25% general rate on the selling price of Illinois-mined coal 20 that was sold to an eligible business. For purposes of this 21 paragraph, the term "eligible business" means a new electric 22 generating facility certified pursuant to Section 605-332 of 23 the Department of Commerce and Economic Opportunity Law of the 24 Civil Administrative Code of Illinois. 25 Subject to payment of amounts into the Build Illinois Fund, 26 the McCormick Place Expansion Project Fund, the Illinois Tax - 447 - LRB101 12329 RLC 60273 b 1 Increment Fund, and the Energy Infrastructure Fund pursuant to 2 the preceding paragraphs or in any amendments to this Section 3 hereafter enacted, beginning on the first day of the first 4 calendar month to occur on or after August 26, 2014 (the 5 effective date of Public Act 98-1098), each month, from the 6 collections made under Section 9 of the Use Tax Act, Section 9 7 of the Service Use Tax Act, Section 9 of the Service Occupation 8 Tax Act, and Section 3 of the Retailers' Occupation Tax Act, 9 the Department shall pay into the Tax Compliance and 10 Administration Fund, to be used, subject to appropriation, to 11 fund 12 Department of Revenue, an amount equal to 1/12 of 5% of 80% of 13 the cash receipts collected during the preceding fiscal year by 14 the Audit Bureau of the Department under the Use Tax Act, the 15 Service Use Tax Act, the Service Occupation Tax Act, the 16 Retailers' Occupation Tax Act, and associated local occupation 17 and use taxes administered by the Department. additional auditors and compliance personnel at the 18 Subject to payments of amounts into the Build Illinois 19 Fund, the McCormick Place Expansion Project Fund, the Illinois 20 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax 21 Compliance and Administration Fund as provided in this Section, 22 beginning on July 1, 2018 the Department shall pay each month 23 into 24 required to be so paid under Section 2-3 of the Downstate 25 Public Transportation Act. 26 the Downstate Public Transportation Fund the moneys Of the remainder of the moneys received by the Department - 448 - LRB101 12329 RLC 60273 b 1 pursuant to this Act, 75% shall be paid into the General 2 Revenue Fund of the State Treasury and 25% shall be reserved in 3 a special account and used only for the transfer to the Common 4 School Fund as part of the monthly transfer from the General 5 Revenue Fund in accordance with Section 8a of the State Finance 6 Act. 7 The Department may, upon separate written notice to a 8 taxpayer, require the taxpayer to prepare and file with the 9 Department on a form prescribed by the Department within not 10 less than 60 days after receipt of the notice an annual 11 information return for the tax year specified in the notice. 12 Such annual return to the Department shall include a statement 13 of gross receipts as shown by the taxpayer's last Federal 14 income tax return. If the total receipts of the business as 15 reported in the Federal income tax return do not agree with the 16 gross receipts reported to the Department of Revenue for the 17 same period, the taxpayer shall attach to his annual return a 18 schedule showing a reconciliation of the 2 amounts and the 19 reasons for the difference. The taxpayer's annual return to the 20 Department shall also disclose the cost of goods sold by the 21 taxpayer during the year covered by such return, opening and 22 closing inventories of such goods for such year, cost of goods 23 used from stock or taken from stock and given away by the 24 taxpayer 25 taxpayer's 26 reasonable information which the Department deems would be during such business year, during pay roll information such year and any of the additional - 449 - LRB101 12329 RLC 60273 b 1 helpful in determining the accuracy of the monthly, quarterly 2 or 3 provided for in this Section. annual returns filed by such taxpayer as hereinbefore 4 If the annual information return required by this Section 5 is not filed when and as required, the taxpayer shall be liable 6 as follows: 7 (i) Until January 1, 1994, the taxpayer shall be liable 8 for a penalty equal to 1/6 of 1% of the tax due from such 9 taxpayer under this Act during the period to be covered by 10 the annual return for each month or fraction of a month 11 until such return is filed as required, the penalty to be 12 assessed and collected in the same manner as any other 13 penalty provided for in this Act. 14 (ii) On and after January 1, 1994, the taxpayer shall 15 be liable for a penalty as described in Section 3-4 of the 16 Uniform Penalty and Interest Act. 17 The chief executive officer, proprietor, owner or highest 18 ranking manager shall sign the annual return to certify the 19 accuracy of the information contained therein. Any person who 20 willfully 21 inaccurate information shall be guilty of perjury and punished 22 accordingly. 23 Department shall include a warning that the person signing the 24 return may be liable for perjury. signs The the annual annual return return form containing prescribed false by or the 25 The foregoing portion of this Section concerning the filing 26 of an annual information return shall not apply to a serviceman - 450 - LRB101 12329 RLC 60273 b 1 who is not required to file an income tax return with the 2 United States Government. 3 As soon as possible after the first day of each month, upon 4 certification of the Department of Revenue, the Comptroller 5 shall order transferred and the Treasurer shall transfer from 6 the General Revenue Fund to the Motor Fuel Tax Fund an amount 7 equal to 1.7% of 80% of the net revenue realized under this Act 8 for the second preceding month. Beginning April 1, 2000, this 9 transfer is no longer required and shall not be made. 10 Net revenue realized for a month shall be the revenue 11 collected by the State pursuant to this Act, less the amount 12 paid 13 overpayment of liability. out during that month as refunds to taxpayers for 14 For greater simplicity of administration, it shall be 15 permissible for manufacturers, importers and wholesalers whose 16 products are sold by numerous servicemen in Illinois, and who 17 wish to do so, to assume the responsibility for accounting and 18 paying to the Department all tax accruing under this Act with 19 respect to such sales, if the servicemen who are affected do 20 not 21 arrangement. 22 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 23 100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff. 24 8-14-18; 100-1171, eff. 1-4-19.) 25 make Section written 900-19. objection The to the Retailers' Department Occupation Tax to this Act is - 451 1 LRB101 12329 RLC 60273 b amended by changing Section 3 as follows: 2 (35 ILCS 120/3) (from Ch. 120, par. 442) 3 Sec. 3. Except as provided in this Section, on or before 4 the twentieth day of each calendar month, every person engaged 5 in the business of selling tangible personal property at retail 6 in this State during the preceding calendar month shall file a 7 return with the Department, stating: 8 1. The name of the seller; 9 2. 10 principal place of 11 principal place of 12 address) from which he engages in the business of selling 13 tangible personal property at retail in this State; His residence address and the address of his business and the address of the business (if that is a different 14 3. Total amount of receipts received by him during the 15 preceding calendar month or quarter, as the case may be, 16 from sales of tangible personal property, and from services 17 furnished, by him during such preceding calendar month or 18 quarter; 19 4. Total amount received by him during the preceding 20 calendar month or quarter on charge and time sales of 21 tangible personal property, and from services furnished, 22 by him prior to the month or quarter for which the return 23 is filed; 24 5. Deductions allowed by law; 25 6. Gross receipts which were received by him during the - 452 - LRB101 12329 RLC 60273 b 1 preceding calendar month or quarter and upon the basis of 2 which the tax is imposed; 3 4 7. The amount of credit provided in Section 2d of this Act; 5 8. The amount of tax due; 6 9. The signature of the taxpayer; and 7 10. Such other reasonable information as the 8 Department may require. 9 On and after January 1, 2018, except for returns for motor 10 vehicles, watercraft, aircraft, and trailers that are required 11 to be registered with an agency of this State, with respect to 12 retailers whose annual gross receipts average $20,000 or more, 13 all returns required to be filed pursuant to this Act shall be 14 filed electronically. Retailers who demonstrate that they do 15 not have access to the Internet or demonstrate hardship in 16 filing electronically may petition the Department to waive the 17 electronic filing requirement. 18 If a taxpayer fails to sign a return within 30 days after 19 the proper notice and demand for signature by the Department, 20 the return shall be considered valid and any amount shown to be 21 due on the return shall be deemed assessed. 22 Each return shall be accompanied by the statement of 23 prepaid tax issued pursuant to Section 2e for which credit is 24 claimed. 25 Prior to October 1, 2003, and on and after September 1, 26 2004 a retailer may accept a Manufacturer's Purchase Credit - 453 - LRB101 12329 RLC 60273 b 1 certification from a purchaser in satisfaction of Use Tax as 2 provided in Section 3-85 of the Use Tax Act if the purchaser 3 provides the appropriate documentation as required by Section 4 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit 5 certification, accepted by a retailer prior to October 1, 2003 6 and on and after September 1, 2004 as provided in Section 3-85 7 of the Use Tax Act, may be used by that retailer to satisfy 8 Retailers' Occupation Tax liability in the amount claimed in 9 the certification, not to exceed 6.25% of the receipts subject 10 to tax from a qualifying purchase. A Manufacturer's Purchase 11 Credit reported on any original or amended return filed under 12 this Act after October 20, 2003 for reporting periods prior to 13 September 14 Purchaser Credit reported on annual returns due on or after 15 January 16 September 1, 2004. No Manufacturer's Purchase Credit may be 17 used after September 30, 2003 through August 31, 2004 to 18 satisfy any tax liability imposed under this Act, including any 19 audit liability. 20 The 1, 1, 2004 2005 shall will Department may be be disallowed. disallowed for require returns Manufacturer's periods to be prior filed on to a 21 quarterly basis. If so required, a return for each calendar 22 quarter shall be filed on or before the twentieth day of the 23 calendar month following the end of such calendar quarter. The 24 taxpayer shall also file a return with the Department for each 25 of the first two months of each calendar quarter, on or before 26 the twentieth day of the following calendar month, stating: - 454 - LRB101 12329 RLC 60273 b 1 1. The name of the seller; 2 2. The address of the principal place of business from 3 which he engages in the business of 4 personal property at retail in this State; selling tangible 5 3. The total amount of taxable receipts received by him 6 during the preceding calendar month from sales of tangible 7 personal property by him during such preceding calendar 8 month, including receipts from charge and time sales, but 9 less all deductions allowed by law; 10 11 4. The amount of credit provided in Section 2d of this Act; 12 5. The amount of tax due; and 13 6. Such other reasonable information as the Department 14 may require. 15 Beginning on October 1, 2003, any person who is not a 16 licensed distributor, importing distributor, or manufacturer, 17 as defined in the Liquor Control Act of 1934, but is engaged in 18 the business of selling, at retail, alcoholic liquor shall file 19 a statement with the Department of Revenue, in a format and at 20 a time prescribed by the Department, showing the total amount 21 paid for alcoholic liquor purchased during the preceding month 22 and such other information as is reasonably required by the 23 Department. The Department may adopt rules to require that this 24 statement be filed in an electronic or telephonic format. Such 25 rules may provide for exceptions from the filing requirements 26 of this paragraph. For the purposes of this paragraph, the term - 455 - LRB101 12329 RLC 60273 b 1 "alcoholic liquor" shall have the meaning prescribed in the 2 Liquor Control Act of 1934. 3 Beginning on October 1, 2003, every distributor, importing 4 distributor, and manufacturer of alcoholic liquor as defined in 5 the Liquor Control Act of 1934, shall file a statement with the 6 Department of Revenue, no later than the 10th day of the month 7 for the preceding month during which transactions occurred, by 8 electronic means, showing the total amount of gross receipts 9 from the sale of alcoholic liquor sold or distributed during 10 the preceding month to purchasers; identifying the purchaser to 11 whom 12 registration number; and such other information reasonably 13 required 14 distributor, 15 personally deliver, mail, or provide by electronic means to 16 each 17 containing a cumulative total of that distributor's, importing 18 distributor's, or 19 liquor to that retailer no later than the 10th day of the month 20 for the preceding month during which the transaction occurred. 21 The distributor, importing distributor, or manufacturer shall 22 notify the retailer as to the method by which the distributor, 23 importing distributor, or manufacturer will provide the sales 24 information. If the retailer is unable to receive the sales 25 information by electronic means, the distributor, importing 26 distributor, it was by retailer sold the or or Department. manufacturer listed or distributed; on the A of the distributor, alcoholic monthly manufacturer's total manufacturer purchaser's shall sales furnish importing liquor statement of tax a must report alcoholic the sales - 456 - LRB101 12329 RLC 60273 b 1 information by personal delivery or by mail. For purposes of 2 this paragraph, the term "electronic means" includes, but is 3 not limited to, the use of a secure Internet website, e-mail, 4 or facsimile. 5 If a total amount of less than $1 is payable, refundable or 6 creditable, such amount shall be disregarded if it is less than 7 50 cents and shall be increased to $1 if it is 50 cents or more. 8 Notwithstanding any other provision of this Act to the 9 contrary, retailers subject to tax on cannabis shall file all 10 cannabis tax returns and shall make all cannabis tax payments 11 by electronic means in the manner and form required by the 12 Department. 13 Beginning October 1, 1993, a taxpayer who has an average 14 monthly tax liability of $150,000 or more shall make all 15 payments required by rules of the Department by electronic 16 funds transfer. Beginning October 1, 1994, a taxpayer who has 17 an average monthly tax liability of $100,000 or more shall make 18 all payments required by rules of the Department by electronic 19 funds transfer. Beginning October 1, 1995, a taxpayer who has 20 an average monthly tax liability of $50,000 or more shall make 21 all payments required by rules of the Department by electronic 22 funds transfer. Beginning October 1, 2000, a taxpayer who has 23 an annual tax liability of $200,000 or more shall make all 24 payments required by rules of the Department by electronic 25 funds transfer. The term "annual tax liability" shall be the 26 sum of the taxpayer's liabilities under this Act, and under all - 457 - LRB101 12329 RLC 60273 b 1 other State and local occupation and use tax laws administered 2 by the Department, for the immediately preceding calendar year. 3 The term "average monthly tax liability" shall be the sum of 4 the taxpayer's liabilities under this Act, and under all other 5 State and local occupation and use tax laws administered by the 6 Department, 7 divided by 12. Beginning on October 1, 2002, a taxpayer who has 8 a tax liability in the amount set forth in subsection (b) of 9 Section 2505-210 of the Department of Revenue Law shall make 10 all payments required by rules of the Department by electronic 11 funds transfer. 12 Before for August the 1 immediately of each preceding year calendar beginning in 1993, year the 13 Department shall notify all taxpayers required to make payments 14 by electronic funds transfer. All taxpayers required to make 15 payments by electronic funds transfer shall make those payments 16 for a minimum of one year beginning on October 1. 17 Any taxpayer not required to make payments by electronic 18 funds transfer may make payments by electronic funds transfer 19 with the permission of the Department. 20 All taxpayers required to make payment by electronic funds 21 transfer and any taxpayers authorized to voluntarily make 22 payments by electronic funds transfer shall make those payments 23 in the manner authorized by the Department. 24 The Department shall adopt such rules as are necessary to 25 effectuate a program of electronic funds transfer and the 26 requirements of this Section. - 458 - LRB101 12329 RLC 60273 b 1 Any amount which is required to be shown or reported on any 2 return or other document under this Act shall, if such amount 3 is not a whole-dollar amount, be increased to the nearest 4 whole-dollar amount in any case where the fractional part of a 5 dollar is 50 cents or more, and decreased to the nearest 6 whole-dollar amount where the fractional part of a dollar is 7 less than 50 cents. 8 If the retailer is otherwise required to file a monthly 9 return and if the retailer's average monthly tax liability to 10 the Department does not exceed $200, the Department may 11 authorize his returns to be filed on a quarter annual basis, 12 with the return for January, February and March of a given year 13 being due by April 20 of such year; with the return for April, 14 May and June of a given year being due by July 20 of such year; 15 with the return for July, August and September of a given year 16 being due by October 20 of such year, and with the return for 17 October, November and December of a given year being due by 18 January 20 of the following year. 19 If the retailer is otherwise required to file a monthly or 20 quarterly return and if the retailer's average monthly tax 21 liability 22 Department may authorize his returns to be filed on an annual 23 basis, with the return for a given year being due by January 20 24 of the following year. with the Department does not exceed $50, the 25 Such quarter annual and annual returns, as to form and 26 substance, shall be subject to the same requirements as monthly - 459 1 LRB101 12329 RLC 60273 b returns. 2 Notwithstanding any other provision in this Act concerning 3 the time within which a retailer may file his return, in the 4 case of any retailer who ceases to engage in a kind of business 5 which makes him responsible for filing returns under this Act, 6 such retailer shall file a final return under this Act with the 7 Department not more than one month after discontinuing such 8 business. 9 Where the same person has more than one business registered 10 with the Department under separate registrations under this 11 Act, such person may not file each return that is due as a 12 single return covering all such registered businesses, but 13 shall file separate returns for each such registered business. 14 In addition, with respect to motor vehicles, watercraft, 15 aircraft, and trailers that are required to be registered with 16 an agency of this State, except as otherwise provided in this 17 Section, every retailer selling this kind of tangible personal 18 property shall file, with the Department, upon a form to be 19 prescribed and supplied by the Department, a separate return 20 for each such item of tangible personal property which the 21 retailer sells, except that if, in the same transaction, (i) a 22 retailer of aircraft, watercraft, motor vehicles or trailers 23 transfers more than one aircraft, watercraft, motor vehicle or 24 trailer 25 retailer or trailer retailer for the purpose of resale or (ii) 26 a retailer of aircraft, watercraft, motor vehicles, or trailers to another aircraft, watercraft, motor vehicle - 460 - LRB101 12329 RLC 60273 b 1 transfers more than one aircraft, watercraft, motor vehicle, or 2 trailer to a purchaser for use as a qualifying rolling stock as 3 provided in Section 2-5 of this Act, then that seller may 4 report the transfer of all aircraft, watercraft, motor vehicles 5 or trailers involved in that transaction to the Department on 6 the same uniform invoice-transaction reporting return form. 7 For purposes of this Section, "watercraft" means a Class 2, 8 Class 3, or Class 4 watercraft as defined in Section 3-2 of the 9 Boat Registration and Safety Act, a personal watercraft, or any 10 boat equipped with an inboard motor. 11 In addition, with respect to motor vehicles, watercraft, 12 aircraft, and trailers that are required to be registered with 13 an agency of this State, every person who is engaged in the 14 business 15 connection with 16 retailer for the purpose of resale is, notwithstanding any 17 other provision of this Section to the contrary, authorized to 18 meet the return-filing requirement of this Act by reporting the 19 transfer of all the aircraft, watercraft, motor vehicles, or 20 trailers 21 Department on the same uniform invoice-transaction reporting 22 return form on or before the 20th of the month following the 23 month in which the transfer takes place. Notwithstanding any 24 other provision of this Act to the contrary, all returns filed 25 under this paragraph must be filed by electronic means in the 26 manner and form as required by the Department. of leasing such transferred or renting such business, sells for resale items any during and such a who, item month to in to a the - 461 - LRB101 12329 RLC 60273 b 1 Any retailer who sells only motor vehicles, watercraft, 2 aircraft, or trailers that are required to be registered with 3 an agency of this State, so that all retailers' occupation tax 4 liability is required to be reported, and is reported, on such 5 transaction reporting returns and who is not otherwise required 6 to file monthly or quarterly returns, need not file monthly or 7 quarterly returns. However, those retailers shall be required 8 to file returns on an annual basis. 9 The transaction reporting return, in the case of motor 10 vehicles or trailers that are required to be registered with an 11 agency of this State, shall be the same document as the Uniform 12 Invoice referred to in Section 5-402 of the Illinois Vehicle 13 Code and must show the name and address of the seller; the name 14 and address of the purchaser; the amount of the selling price 15 including the amount allowed by the retailer for traded-in 16 property, if any; the amount allowed by the retailer for the 17 traded-in tangible personal property, if any, to the extent to 18 which Section 1 of this Act allows an exemption for the value 19 of traded-in property; the balance payable after deducting such 20 trade-in allowance from the total selling price; the amount of 21 tax due from the retailer with respect to such transaction; the 22 amount of tax collected from the purchaser by the retailer on 23 such transaction (or satisfactory evidence that such tax is not 24 due in that particular instance, if that is claimed to be the 25 fact); 26 identification of the property sold; such other information as the place and date of the sale; a sufficient - 462 - LRB101 12329 RLC 60273 b 1 is required in Section 5-402 of the Illinois Vehicle Code, and 2 such 3 require. other information as the Department may reasonably 4 The transaction reporting return in the case of watercraft 5 or aircraft must show the name and address of the seller; the 6 name and address of the purchaser; the amount of the selling 7 price 8 traded-in property, if any; the amount allowed by the retailer 9 for the traded-in tangible personal property, if any, to the 10 extent to which Section 1 of this Act allows an exemption for 11 the value of traded-in property; the balance payable after 12 deducting such trade-in allowance from the total selling price; 13 the amount of tax due from the retailer with respect to such 14 transaction; the amount of tax collected from the purchaser by 15 the retailer on such transaction (or satisfactory evidence that 16 such tax is not due in that particular instance, if that is 17 claimed to be the fact); the place and date of the sale, a 18 sufficient identification of the property sold, and such other 19 information as the Department may reasonably require. including the amount allowed by the retailer for 20 Such transaction reporting return shall be filed not later 21 than 20 days after the day of delivery of the item that is 22 being sold, but may be filed by the retailer at any time sooner 23 than that if he chooses to do so. The transaction reporting 24 return and tax remittance or proof of exemption from the 25 Illinois use tax may be transmitted to the Department by way of 26 the State agency with which, or State officer with whom the - 463 - LRB101 12329 RLC 60273 b 1 tangible personal property must be titled or registered (if 2 titling or registration is required) if the Department and such 3 agency or State officer determine that this procedure will 4 expedite 5 registration. the processing of applications for title or 6 With each such transaction reporting return, the retailer 7 shall remit the proper amount of tax due (or shall submit 8 satisfactory evidence that the sale is not taxable if that is 9 the case), to the Department or its agents, whereupon the 10 Department shall issue, in the purchaser's name, a use tax 11 receipt (or a certificate of exemption if the Department is 12 satisfied that the particular sale is tax exempt) which such 13 purchaser may submit to the agency with which, or State officer 14 with whom, he must title or register the tangible personal 15 property that 16 required) in support of such purchaser's application for an 17 Illinois certificate or other evidence of title or registration 18 to such tangible personal property. is involved (if titling or registration is 19 No retailer's failure or refusal to remit tax under this 20 Act precludes a user, who has paid the proper tax to the 21 retailer, from obtaining his certificate of title or other 22 evidence of title or registration (if titling or registration 23 is required) upon satisfying the Department that such user has 24 paid the proper tax (if tax is due) to the retailer. The 25 Department shall adopt appropriate rules to carry out the 26 mandate of this paragraph. - 464 - LRB101 12329 RLC 60273 b 1 If the user who would otherwise pay tax to the retailer 2 wants the transaction reporting return filed and the payment of 3 the tax or proof of exemption made to the Department before the 4 retailer is willing to take these actions and such user has not 5 paid the tax to the retailer, such user may certify to the fact 6 of such delay by the retailer and may (upon the Department 7 being satisfied of the truth of such certification) transmit 8 the information required by the transaction reporting return 9 and the remittance for tax or proof of exemption directly to 10 the Department and obtain his tax receipt or exemption 11 determination, in which event the transaction reporting return 12 and tax remittance (if a tax payment was required) shall be 13 credited by the Department to the proper retailer's account 14 with the Department, but without the 2.1% or 1.75% discount 15 provided for in this Section being allowed. When the user pays 16 the tax directly to the Department, he shall pay the tax in the 17 same amount and in the same form in which it would be remitted 18 if the tax had been remitted to the Department by the retailer. 19 Refunds made by the seller during the preceding return 20 period to purchasers, on account of tangible personal property 21 returned to the seller, shall be allowed as a deduction under 22 subdivision 5 of his monthly or quarterly return, as the case 23 may 24 receipts from the sale of such tangible personal property in a 25 return filed by him and had paid the tax imposed by this Act 26 with respect to such receipts. be, in case the seller had theretofore included the - 465 - LRB101 12329 RLC 60273 b 1 Where the seller is a corporation, the return filed on 2 behalf of such corporation shall be signed by the president, 3 vice-president, secretary or treasurer or by the properly 4 accredited agent of such corporation. 5 Where the seller is a limited liability company, the return 6 filed on behalf of the limited liability company shall be 7 signed by a manager, member, or properly accredited agent of 8 the limited liability company. 9 Except as provided in this Section, the retailer filing the 10 return under this Section shall, at the time of filing such 11 return, pay to the Department the amount of tax imposed by this 12 Act less a discount of 2.1% prior to January 1, 1990 and 1.75% 13 on 14 whichever 15 retailer 16 preparing and filing returns, remitting the tax and supplying 17 data to the Department on request. Any prepayment made pursuant 18 to Section 2d of this Act shall be included in the amount on 19 which such 2.1% or 1.75% discount is computed. In the case of 20 retailers who report and pay the tax on a transaction by 21 transaction basis, as provided in this Section, such discount 22 shall be taken with each such tax remittance instead of when 23 such retailer files his periodic return. The discount allowed 24 under this Section is allowed only for returns that are filed 25 in the manner required by this Act. The Department may disallow 26 the discount for retailers whose certificate of registration is and after is for January greater, the 1, 1990, which expenses is or $5 per allowed incurred in to calendar year, reimburse keeping the records, - 466 - LRB101 12329 RLC 60273 b 1 revoked at the time the return is filed, but only if the 2 Department's 3 registration has become final. decision to revoke the certificate of 4 Before October 1, 2000, if the taxpayer's average monthly 5 tax liability to the Department under this Act, the Use Tax 6 Act, the Service Occupation Tax Act, and the Service Use Tax 7 Act, excluding any liability for prepaid sales tax to be 8 remitted in accordance with Section 2d of this Act, was $10,000 9 or more during the preceding 4 complete calendar quarters, he 10 shall file a return with the Department each month by the 20th 11 day of the month next following the month during which such tax 12 liability is incurred and shall make payments to the Department 13 on or before the 7th, 15th, 22nd and last day of the month 14 during which such liability is incurred. On and after October 15 1, 2000, if the taxpayer's average monthly tax liability to the 16 Department under 17 Occupation Tax Act, and the Service Use Tax Act, excluding any 18 liability for prepaid sales tax to be remitted in accordance 19 with Section 2d of this Act, was $20,000 or more during the 20 preceding 4 complete calendar quarters, he shall file a return 21 with the Department each month by the 20th day of the month 22 next following the month during which such tax liability is 23 incurred and shall make payment to the Department on or before 24 the 7th, 15th, 22nd and last day of the month during which such 25 liability is incurred. If the month during which such tax 26 liability is incurred began prior to January 1, 1985, each this Act, the Use Tax Act, the Service - 467 - LRB101 12329 RLC 60273 b 1 payment shall be in an amount equal to 1/4 of the taxpayer's 2 actual 3 Department not to exceed 1/4 of the average monthly liability 4 of the taxpayer to the Department for the preceding 4 complete 5 calendar quarters (excluding the month of highest liability and 6 the month of lowest liability in such 4 quarter period). If the 7 month during which such tax liability is incurred begins on or 8 after January 1, 1985 and prior to January 1, 1987, each 9 payment shall be in an amount equal to 22.5% of the taxpayer's 10 actual liability for the month or 27.5% of the taxpayer's 11 liability for the same calendar month of the preceding year. If 12 the month during which such tax liability is incurred begins on 13 or after January 1, 1987 and prior to January 1, 1988, each 14 payment shall be in an amount equal to 22.5% of the taxpayer's 15 actual liability for the month or 26.25% of the taxpayer's 16 liability for the same calendar month of the preceding year. If 17 the month during which such tax liability is incurred begins on 18 or after January 1, 1988, and prior to January 1, 1989, or 19 begins on or after January 1, 1996, each payment shall be in an 20 amount equal to 22.5% of the taxpayer's actual liability for 21 the month or 25% of the taxpayer's liability for the same 22 calendar month of the preceding year. If the month during which 23 such tax liability is incurred begins on or after January 1, 24 1989, and prior to January 1, 1996, each payment shall be in an 25 amount equal to 22.5% of the taxpayer's actual liability for 26 the month or 25% of the taxpayer's liability for the same liability for the month or an amount set by the - 468 - LRB101 12329 RLC 60273 b 1 calendar month of the preceding year or 100% of the taxpayer's 2 actual liability for the quarter monthly reporting period. The 3 amount of such quarter monthly payments shall be credited 4 against the final tax liability of the taxpayer's return for 5 that 6 requirement of the making of quarter monthly payments to the 7 Department by taxpayers having an average monthly tax liability 8 of $10,000 or more as determined in the manner provided above 9 shall continue until such taxpayer's average monthly liability 10 to the Department during the preceding 4 complete calendar 11 quarters (excluding the month of highest liability and the 12 month of lowest liability) is less than $9,000, or until such 13 taxpayer's average monthly liability to the Department as 14 computed for each calendar quarter of the 4 preceding complete 15 calendar quarter period is less than $10,000. However, if a 16 taxpayer can show the Department that a substantial change in 17 the taxpayer's business has occurred which causes the taxpayer 18 to anticipate that his average monthly tax liability for the 19 reasonably foreseeable future will fall below the $10,000 20 threshold stated above, then such taxpayer may petition the 21 Department for a change in such taxpayer's reporting status. On 22 and after October 1, 2000, once applicable, the requirement of 23 the making of quarter monthly payments to the Department by 24 taxpayers having an average monthly tax liability of $20,000 or 25 more as determined in the manner provided above shall continue 26 until month. Before October 1, such taxpayer's average 2000, once monthly applicable, the liability to the - 469 - LRB101 12329 RLC 60273 b 1 Department during the preceding 4 complete calendar quarters 2 (excluding the month of highest liability and the month of 3 lowest liability) is less than $19,000 or until such taxpayer's 4 average monthly liability to the Department as computed for 5 each calendar quarter of the 4 preceding complete calendar 6 quarter period is less than $20,000. However, if a taxpayer can 7 show the Department that a substantial change in the taxpayer's 8 business has occurred which causes the taxpayer to anticipate 9 that his average monthly tax liability for the reasonably 10 foreseeable future will fall below the $20,000 threshold stated 11 above, then such taxpayer may petition the Department for a 12 change in such taxpayer's reporting status. The Department 13 shall change such taxpayer's reporting status unless it finds 14 that such change is seasonal in nature and not likely to be 15 long term. If any such quarter monthly payment is not paid at 16 the time or in the amount required by this Section, then the 17 taxpayer shall be liable for penalties and interest on the 18 difference between the minimum amount due as a payment and the 19 amount of such quarter monthly payment actually and timely 20 paid, except insofar as 21 payments for that month to the Department in excess of the 22 minimum payments previously due as provided in this Section. 23 The Department shall make reasonable rules and regulations to 24 govern the quarter monthly payment amount and quarter monthly 25 payment dates for taxpayers who file on other than a calendar 26 monthly basis. the taxpayer has previously made - 470 - LRB101 12329 RLC 60273 b 1 The provisions of this paragraph apply before October 1, 2 2001. Without regard to whether a taxpayer is required to make 3 quarter monthly payments as specified above, any taxpayer who 4 is required by Section 2d of this Act to collect and remit 5 prepaid taxes and has collected prepaid taxes which average in 6 excess of $25,000 per month during the preceding 2 complete 7 calendar quarters, shall file a return with the Department as 8 required 9 Department on or before the 7th, 15th, 22nd and last day of the 10 month during which such liability is incurred. If the month 11 during which such tax liability is incurred began prior to 12 September 1, 1985 (the effective date of Public Act 84-221), 13 each payment shall be in an amount not less than 22.5% of the 14 taxpayer's actual liability under Section 2d. If the month 15 during which such tax liability is incurred begins on or after 16 January 1, 1986, each payment shall be in an amount equal to 17 22.5% of the taxpayer's actual liability for the month or 27.5% 18 of the taxpayer's liability for the same calendar month of the 19 preceding calendar year. If the month during which such tax 20 liability is incurred begins on or after January 1, 1987, each 21 payment shall be in an amount equal to 22.5% of the taxpayer's 22 actual liability for the month or 26.25% of the taxpayer's 23 liability for the same calendar month of the preceding year. 24 The amount of such quarter monthly payments shall be credited 25 against the final tax liability of the taxpayer's return for 26 that month filed under this Section or Section 2f, as the case by Section 2f and shall make payments to the - 471 - LRB101 12329 RLC 60273 b 1 may be. Once applicable, the requirement of the making of 2 quarter monthly payments to the Department pursuant to this 3 paragraph shall continue until such taxpayer's average monthly 4 prepaid 5 calendar quarters is $25,000 or less. If any such quarter 6 monthly payment is not paid at the time or in the amount 7 required, the 8 interest on such difference, except insofar as the taxpayer has 9 previously made payments for that month in excess of the 10 tax collections during taxpayer shall be the preceding liable for 2 complete penalties and minimum payments previously due. 11 The provisions of this paragraph apply on and after October 12 1, 2001. Without regard to whether a taxpayer is required to 13 make quarter monthly payments as specified above, any taxpayer 14 who is required by Section 2d of this Act to collect and remit 15 prepaid taxes and has collected prepaid taxes that average in 16 excess of $20,000 per month during the preceding 4 complete 17 calendar quarters shall file a return with the Department as 18 required 19 Department on or before the 7th, 15th, 22nd and last day of the 20 month during which the liability is incurred. Each payment 21 shall be in an amount equal to 22.5% of the taxpayer's actual 22 liability for the month or 25% of the taxpayer's liability for 23 the same calendar month of the preceding year. The amount of 24 the quarter monthly payments shall be credited against the 25 final tax liability of the taxpayer's return for that month 26 filed under this Section or Section 2f, as the case may be. by Section 2f and shall make payments to the - 472 - LRB101 12329 RLC 60273 b 1 Once applicable, the requirement of the making of quarter 2 monthly payments to the Department pursuant to this paragraph 3 shall continue until the taxpayer's average monthly prepaid tax 4 collections during the preceding 4 complete calendar quarters 5 (excluding the month of highest liability and the month of 6 lowest liability) is less than $19,000 or until such taxpayer's 7 average monthly liability to the Department as computed for 8 each calendar quarter of the 4 preceding complete calendar 9 quarters is less than $20,000. If any such quarter monthly 10 payment is not paid at the time or in the amount required, the 11 taxpayer shall be liable for penalties and interest on such 12 difference, except insofar as the taxpayer has previously made 13 payments for that month in excess of the minimum payments 14 previously due. 15 If any payment provided for in this Section exceeds the 16 taxpayer's liabilities under this Act, the Use Tax Act, the 17 Service Occupation Tax Act and the Service Use Tax Act, as 18 shown on an original monthly return, the Department shall, if 19 requested by the taxpayer, issue to the taxpayer a credit 20 memorandum no later than 30 days after the date of payment. The 21 credit evidenced by such credit memorandum may be assigned by 22 the taxpayer to a similar taxpayer under this Act, the Use Tax 23 Act, the Service Occupation Tax Act or the Service Use Tax Act, 24 in accordance with reasonable rules and regulations to be 25 prescribed by the Department. If no such request is made, the 26 taxpayer may credit such excess payment against tax liability - 473 - LRB101 12329 RLC 60273 b 1 subsequently to be remitted to the Department under this Act, 2 the Use Tax Act, the Service Occupation Tax Act or the Service 3 Use 4 regulations prescribed by the Department. If the Department 5 subsequently determined that all or any part of the credit 6 taken was not actually due to the taxpayer, the taxpayer's 2.1% 7 and 1.75% vendor's discount shall be reduced by 2.1% or 1.75% 8 of the difference between the credit taken and that actually 9 due, and that taxpayer shall be liable for penalties and 10 Tax Act, in accordance with reasonable rules and interest on such difference. 11 If a retailer of motor fuel is entitled to a credit under 12 Section 2d of this Act which exceeds the taxpayer's liability 13 to the Department under this Act for the month which the 14 taxpayer is filing a return, the Department shall issue the 15 taxpayer a credit memorandum for the excess. 16 Beginning January 1, 1990, each month the Department shall 17 pay into the Local Government Tax Fund, a special fund in the 18 State 19 realized for the preceding month from the 1% tax imposed under 20 this Act. treasury which is hereby created, the net revenue 21 Beginning January 1, 1990, each month the Department shall 22 pay into the County and Mass Transit District Fund, a special 23 fund in the State treasury which is hereby created, 4% of the 24 net revenue realized for the preceding month from the 6.25% 25 general rate. 26 Beginning August 1, 2000, each month the Department shall - 474 - LRB101 12329 RLC 60273 b 1 pay into the County and Mass Transit District Fund 20% of the 2 net revenue realized for the preceding month from the 1.25% 3 rate on the selling price of motor fuel and gasohol. Beginning 4 September 1, 2010, each month the Department shall pay into the 5 County and Mass Transit District Fund 20% of the net revenue 6 realized for the preceding month from the 1.25% rate on the 7 selling price of sales tax holiday items. 8 Beginning January 1, 1990, each month the Department shall 9 pay into the Local Government Tax Fund 16% of the net revenue 10 realized for the preceding month from the 6.25% general rate on 11 the selling price of tangible personal property. 12 Beginning August 1, 2000, each month the Department shall 13 pay into the Local Government Tax Fund 80% of the net revenue 14 realized for the preceding month from the 1.25% rate on the 15 selling price of motor fuel and gasohol. Beginning September 1, 16 2010, each month the Department shall pay into the Local 17 Government Tax Fund 80% of the net revenue realized for the 18 preceding month from the 1.25% rate on the selling price of 19 sales tax holiday items. 20 Beginning October 1, 2009, each month the Department shall 21 pay into the Capital Projects Fund an amount that is equal to 22 an amount estimated by the Department to represent 80% of the 23 net revenue realized for the preceding month from the sale of 24 candy, grooming and hygiene products, and soft drinks that had 25 been taxed at a rate of 1% prior to September 1, 2009 but that 26 are now taxed at 6.25%. - 475 - LRB101 12329 RLC 60273 b 1 Beginning July 1, 2011, each month the Department shall pay 2 into the Clean Air Act Permit Fund 80% of the net revenue 3 realized for the preceding month from the 6.25% general rate on 4 the selling price of sorbents used in Illinois in the process 5 of sorbent injection as used to comply with the Environmental 6 Protection Act or the federal Clean Air Act, but the total 7 payment into the Clean Air Act Permit Fund under this Act and 8 the Use Tax Act shall not exceed $2,000,000 in any fiscal year. 9 Beginning July 1, 2013, each month the Department shall pay 10 into the 11 collected under this Act, the Use Tax Act, the Service Use Tax 12 Act, and the Service Occupation Tax Act an amount equal to the 13 average monthly deficit in the Underground Storage Tank Fund 14 during the prior year, as certified annually by the Illinois 15 Environmental Protection Agency, but the total payment into the 16 Underground Storage Tank Fund under this Act, the Use Tax Act, 17 the Service Use Tax Act, and the Service Occupation Tax Act 18 shall not exceed $18,000,000 in any State fiscal year. As used 19 in this paragraph, the "average monthly deficit" shall be equal 20 to 21 payment by the fund and the average monthly revenues deposited 22 into 23 paragraph. the Underground Storage Tank difference between the the fund, excluding Fund from the proceeds average monthly claims for payments made pursuant to this 24 Beginning July 1, 2015, of the remainder of the moneys 25 received by the Department under the Use Tax Act, the Service 26 Use Tax Act, the Service Occupation Tax Act, and this Act, each - 476 - LRB101 12329 RLC 60273 b 1 month the Department shall deposit $500,000 into the State 2 Crime Laboratory Fund. 3 Of the remainder of the moneys received by the Department 4 pursuant to this Act, (a) 1.75% thereof shall be paid into the 5 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on 6 and after July 1, 1989, 3.8% thereof shall be paid into the 7 Build Illinois Fund; provided, however, that if in any fiscal 8 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case 9 may be, of the moneys received by the Department and required 10 to be paid into the Build Illinois Fund pursuant to this Act, 11 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax 12 Act, and Section 9 of the Service Occupation Tax Act, such Acts 13 being hereinafter called the "Tax Acts" and such aggregate of 14 2.2% or 3.8%, as the case may be, of moneys being hereinafter 15 called the "Tax Act Amount", and (2) the amount transferred to 16 the Build Illinois Fund from the State and Local Sales Tax 17 Reform Fund shall be less than the Annual Specified Amount (as 18 hereinafter defined), an amount equal to the difference shall 19 be immediately paid into the Build Illinois Fund from other 20 moneys received by the Department pursuant to the Tax Acts; the 21 "Annual Specified Amount" means the amounts specified below for 22 fiscal years 1986 through 1993: 23 Fiscal Year Annual Specified Amount 24 1986 $54,800,000 25 1987 $76,650,000 26 1988 $80,480,000 - 477 - LRB101 12329 RLC 60273 b 1 1989 $88,510,000 2 1990 $115,330,000 3 1991 $145,470,000 4 1992 $182,730,000 5 1993 $206,520,000; 6 and means the Certified Annual Debt Service Requirement (as 7 defined in Section 13 of the Build Illinois Bond Act) or the 8 Tax Act Amount, whichever is greater, for fiscal year 1994 and 9 each fiscal year thereafter; and further provided, that if on 10 the last business day of any month the sum of (1) the Tax Act 11 Amount required to be deposited into the Build Illinois Bond 12 Account in the Build Illinois Fund during such month and (2) 13 the amount transferred to the Build Illinois Fund from the 14 State and Local Sales Tax Reform Fund shall have been less than 15 1/12 of the Annual Specified Amount, an amount equal to the 16 difference shall be immediately paid into the Build Illinois 17 Fund from other moneys received by the Department pursuant to 18 the Tax Acts; and, further provided, that in no event shall the 19 payments 20 aggregate payments into the Build Illinois Fund pursuant to 21 this clause (b) for any fiscal year in excess of the greater of 22 (i) the Tax Act Amount or (ii) the Annual Specified Amount for 23 such fiscal year. The amounts payable into the Build Illinois 24 Fund under clause (b) of the first sentence in this paragraph 25 shall be payable only until such time as the aggregate amount 26 on deposit under each trust indenture securing Bonds issued and required under the preceding proviso result in - 478 pursuant 1 outstanding 2 sufficient, taking into account any future investment income, 3 to fully provide, in accordance with such indenture, for the 4 defeasance of or the payment of the principal of, premium, if 5 any, and interest on the Bonds secured by such indenture and on 6 any Bonds expected to be issued thereafter and all fees and 7 costs payable with respect thereto, all as certified by the 8 Director of the Bureau of the Budget (now Governor's Office of 9 Management and Budget). If on the last business day of any 10 month in which Bonds are outstanding pursuant to the Build 11 Illinois Bond Act, the aggregate of moneys deposited in the 12 Build Illinois Bond Account in the Build Illinois Fund in such 13 month shall be less than the amount required to be transferred 14 in such month from the Build Illinois Bond Account to the Build 15 Illinois Bond Retirement and Interest Fund pursuant to Section 16 13 of the Build Illinois Bond Act, an amount equal to such 17 deficiency shall be immediately paid from other moneys received 18 by the Department pursuant to the Tax Acts to the Build 19 Illinois Fund; provided, however, that any amounts paid to the 20 Build 21 sentence shall be deemed to constitute payments pursuant to 22 clause (b) of the first sentence of this paragraph and shall 23 reduce the 24 pursuant to 25 Department pursuant to this Act and required to be deposited 26 into the Build Illinois Fund are subject to the pledge, claim Illinois Fund to in the any Build LRB101 12329 RLC 60273 b fiscal Illinois year amount otherwise payable for that clause (b). The moneys Bond Act pursuant to such is this fiscal year received by the - 479 - LRB101 12329 RLC 60273 b 1 and charge set forth in Section 12 of the Build Illinois Bond 2 Act. 3 Subject to payment of amounts into the Build Illinois Fund 4 as provided in the preceding paragraph or in any amendment 5 thereto hereafter enacted, the following specified monthly 6 installment of the amount requested in the certificate of the 7 Chairman of the Metropolitan Pier and Exposition Authority 8 provided under Section 8.25f of the State Finance Act, but not 9 in excess of sums designated as "Total Deposit", shall be 10 deposited in the aggregate from collections under Section 9 of 11 the Use Tax Act, Section 9 of the Service Use Tax Act, Section 12 9 of the Service Occupation Tax Act, and Section 3 of the 13 Retailers' 14 Expansion Project Fund in the specified fiscal years. Occupation 15 Tax Act into the McCormick Place Total Fiscal Year Deposit 16 1993 $0 17 1994 53,000,000 18 1995 58,000,000 19 1996 61,000,000 20 1997 64,000,000 21 1998 68,000,000 22 1999 71,000,000 23 2000 75,000,000 24 2001 80,000,000 25 2002 93,000,000 - 480 - LRB101 12329 RLC 60273 b 1 2003 99,000,000 2 2004 103,000,000 3 2005 108,000,000 4 2006 113,000,000 5 2007 119,000,000 6 2008 126,000,000 7 2009 132,000,000 8 2010 139,000,000 9 2011 146,000,000 10 2012 153,000,000 11 2013 161,000,000 12 2014 170,000,000 13 2015 179,000,000 14 2016 189,000,000 15 2017 199,000,000 16 2018 210,000,000 17 2019 221,000,000 18 2020 233,000,000 19 2021 246,000,000 20 2022 260,000,000 21 2023 275,000,000 22 2024 275,000,000 23 2025 275,000,000 24 2026 279,000,000 25 2027 292,000,000 26 2028 307,000,000 - 481 - LRB101 12329 RLC 60273 b 1 2029 322,000,000 2 2030 338,000,000 3 2031 350,000,000 4 2032 350,000,000 5 and 6 each fiscal year 7 thereafter that bonds 8 are outstanding under 9 Section 13.2 of the 10 Metropolitan Pier and 11 Exposition Authority Act, 12 but not after fiscal year 2060. 13 Beginning July 20, 1993 and in each month of each fiscal 14 year thereafter, one-eighth of the amount requested in the 15 certificate of 16 Exposition Authority for that fiscal year, less the amount 17 deposited into the McCormick Place Expansion Project Fund by 18 the State Treasurer in the respective month under subsection 19 (g) of Section 13 of the Metropolitan Pier and Exposition 20 Authority Act, plus cumulative deficiencies in the deposits 21 required under this Section for previous months and years, 22 shall be deposited into the McCormick Place Expansion Project 23 Fund, until the full amount requested for the fiscal year, but 24 not in excess of the amount specified above as "Total Deposit", 25 has been deposited. 26 the Chairman of the Metropolitan Pier and Subject to payment of amounts into the Build Illinois Fund - 482 - LRB101 12329 RLC 60273 b 1 and the McCormick Place Expansion Project Fund pursuant to the 2 preceding paragraphs or in any amendments thereto hereafter 3 enacted, beginning July 1, 1993 and ending on September 30, 4 2013, the Department shall each month pay into the Illinois Tax 5 Increment Fund 0.27% of 80% of the net revenue realized for the 6 preceding month from the 6.25% general rate on the selling 7 price of tangible personal property. 8 Subject to payment of amounts into the Build Illinois Fund 9 and the McCormick Place Expansion Project Fund pursuant to the 10 preceding paragraphs or in any amendments thereto hereafter 11 enacted, beginning with the receipt of the first report of 12 taxes paid by an eligible business and continuing for a 25-year 13 period, the Department shall each month pay into the Energy 14 Infrastructure Fund 80% of the net revenue realized from the 15 6.25% general rate on the selling price of Illinois-mined coal 16 that was sold to an eligible business. For purposes of this 17 paragraph, the term "eligible business" means a new electric 18 generating facility certified pursuant to Section 605-332 of 19 the Department of Commerce and Economic Opportunity Law of the 20 Civil Administrative Code of Illinois. 21 Subject to payment of amounts into the Build Illinois Fund, 22 the McCormick Place Expansion Project Fund, the Illinois Tax 23 Increment Fund, and the Energy Infrastructure Fund pursuant to 24 the preceding paragraphs or in any amendments to this Section 25 hereafter enacted, beginning on the first day of the first 26 calendar month to occur on or after August 26, 2014 (the - 483 - LRB101 12329 RLC 60273 b 1 effective date of Public Act 98-1098), each month, from the 2 collections made under Section 9 of the Use Tax Act, Section 9 3 of the Service Use Tax Act, Section 9 of the Service Occupation 4 Tax Act, and Section 3 of the Retailers' Occupation Tax Act, 5 the 6 Administration Fund, to be used, subject to appropriation, to 7 fund 8 Department of Revenue, an amount equal to 1/12 of 5% of 80% of 9 the cash receipts collected during the preceding fiscal year by 10 the Audit Bureau of the Department under the Use Tax Act, the 11 Service Use Tax Act, the Service Occupation Tax Act, the 12 Retailers' Occupation Tax Act, and associated local occupation 13 and use taxes administered by the Department. Department additional shall pay auditors into and the Tax compliance Compliance personnel at and the 14 Subject to payments of amounts into the Build Illinois 15 Fund, the McCormick Place Expansion Project Fund, the Illinois 16 Tax Increment Fund, the Energy Infrastructure Fund, and the Tax 17 Compliance and Administration Fund as provided in this Section, 18 beginning on July 1, 2018 the Department shall pay each month 19 into 20 required to be so paid under Section 2-3 of the Downstate 21 Public Transportation Act. the Downstate Public Transportation Fund the moneys 22 Of the remainder of the moneys received by the Department 23 pursuant to this Act, 75% thereof shall be paid into the State 24 Treasury and 25% shall be reserved in a special account and 25 used only for the transfer to the Common School Fund as part of 26 the monthly transfer from the General Revenue Fund in - 484 1 LRB101 12329 RLC 60273 b accordance with Section 8a of the State Finance Act. 2 The Department may, upon separate written notice to a 3 taxpayer, require the taxpayer to prepare and file with the 4 Department on a form prescribed by the Department within not 5 less than 60 days after receipt of the notice an annual 6 information return for the tax year specified in the notice. 7 Such annual return to the Department shall include a statement 8 of gross receipts as shown by the retailer's last Federal 9 income tax return. If the total receipts of the business as 10 reported in the Federal income tax return do not agree with the 11 gross receipts reported to the Department of Revenue for the 12 same period, the retailer shall attach to his annual return a 13 schedule showing a reconciliation of the 2 amounts and the 14 reasons for the difference. The retailer's annual return to the 15 Department shall also disclose the cost of goods sold by the 16 retailer during the year covered by such return, opening and 17 closing inventories of such goods for such year, costs of goods 18 used from stock or taken from stock and given away by the 19 retailer 20 retailer's 21 reasonable information which the Department deems would be 22 helpful in determining the accuracy of the monthly, quarterly 23 or annual returns filed by such retailer as provided for in 24 this Section. during such business year, during payroll such year information and any of the additional 25 If the annual information return required by this Section 26 is not filed when and as required, the taxpayer shall be liable - 485 1 LRB101 12329 RLC 60273 b as follows: 2 (i) Until January 1, 1994, the taxpayer shall be liable 3 for a penalty equal to 1/6 of 1% of the tax due from such 4 taxpayer under this Act during the period to be covered by 5 the annual return for each month or fraction of a month 6 until such return is filed as required, the penalty to be 7 assessed and collected in the same manner as any other 8 penalty provided for in this Act. 9 (ii) On and after January 1, 1994, the taxpayer shall 10 be liable for a penalty as described in Section 3-4 of the 11 Uniform Penalty and Interest Act. 12 The chief executive officer, proprietor, owner or highest 13 ranking manager shall sign the annual return to certify the 14 accuracy of the information contained therein. Any person who 15 willfully 16 inaccurate information shall be guilty of perjury and punished 17 accordingly. 18 Department shall include a warning that the person signing the 19 return may be liable for perjury. signs The the annual annual return return form containing prescribed false by or the 20 The provisions of this Section concerning the filing of an 21 annual information return do not apply to a retailer who is not 22 required to file an income tax return with the United States 23 Government. 24 As soon as possible after the first day of each month, upon 25 certification of the Department of Revenue, the Comptroller 26 shall order transferred and the Treasurer shall transfer from - 486 - LRB101 12329 RLC 60273 b 1 the General Revenue Fund to the Motor Fuel Tax Fund an amount 2 equal to 1.7% of 80% of the net revenue realized under this Act 3 for the second preceding month. Beginning April 1, 2000, this 4 transfer is no longer required and shall not be made. 5 Net revenue realized for a month shall be the revenue 6 collected by the State pursuant to this Act, less the amount 7 paid 8 overpayment of liability. out during that month as refunds to taxpayers for 9 For greater simplicity of administration, manufacturers, 10 importers and wholesalers whose products are sold at retail in 11 Illinois by numerous retailers, and who wish to do so, may 12 assume the responsibility for accounting and paying to the 13 Department all tax accruing under this Act with respect to such 14 sales, if the retailers who are affected do not make written 15 objection to the Department to this arrangement. 16 Any person who promotes, organizes, provides retail 17 selling space for concessionaires or other types of sellers at 18 the Illinois State Fair, DuQuoin State Fair, county fairs, 19 local fairs, art shows, flea markets and similar exhibitions or 20 events, including any transient merchant as defined by Section 21 2 of the Transient Merchant Act of 1987, is required to file a 22 report with the Department providing the name of the merchant's 23 business, 24 merchant's 25 Retailers Occupation Tax Registration Number of the merchant, 26 the dates and location of the event and other reasonable the name business, of the the person permanent or persons address engaged and in Illinois - 487 - LRB101 12329 RLC 60273 b 1 information that the Department may require. The report must be 2 filed not later than the 20th day of the month next following 3 the month during which the event with retail sales was held. 4 Any person who fails to file a report required by this Section 5 commits a business offense and is subject to a fine not to 6 exceed $250. 7 Any person engaged in the business of selling tangible 8 personal property at retail as a concessionaire or other type 9 of seller at the Illinois State Fair, county fairs, art shows, 10 flea markets 11 transient merchants, as defined by Section 2 of the Transient 12 Merchant Act of 1987, may be required to make a daily report of 13 the amount of such sales to the Department and to make a daily 14 payment of the full amount of tax due. The Department shall 15 impose 16 significant risk of loss of revenue to the State at such an 17 exhibition or event. Such a finding shall be based on evidence 18 that a substantial number of concessionaires or other sellers 19 who are not residents of Illinois will be engaging in the 20 business of selling tangible personal property at retail at the 21 exhibition or event, or other evidence of a significant risk of 22 loss of revenue to the State. The Department shall notify 23 concessionaires and other sellers affected by the imposition of 24 this 25 Department, the concessionaires and other sellers shall file 26 their returns as otherwise required in this Section. this and similar requirement requirement. In the exhibitions when it absence or finds of events, that or there notification any is by a the - 488 - LRB101 12329 RLC 60273 b 1 (Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 2 99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff. 3 7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.) 4 (35 ILCS 520/Act rep.) 5 Section 900-20. The Cannabis and Controlled Substances Tax 6 Act is repealed. 7 8 Section 900-22. The Illinois Police Training Act is amended by changing Sections 9 and 10.12 as follows: 9 (50 ILCS 705/9) (from Ch. 85, par. 509) 10 (Text of Section before amendment by P.A. 100-987) 11 Sec. 9. A special fund is hereby established in the State 12 Treasury to be known as the Traffic and Criminal Conviction 13 Surcharge Fund and shall be financed as provided in Section 9.1 14 of 15 Corrections, unless the fines, costs, or additional amounts 16 imposed are subject to disbursement by the circuit clerk under 17 Section 27.5 of the Clerks of Courts Act. Moneys in this Fund 18 shall be expended as follows: this Act and Section 5-9-1 of the Unified Code of 19 (1) a portion of the total amount deposited in the Fund 20 may be used, as appropriated by the General Assembly, for 21 the ordinary and contingent expenses of the Illinois Law 22 Enforcement Training Standards Board; 23 (2) a portion of the total amount deposited in the Fund - 489 be appropriated 1 shall 2 governmental agencies participating in training programs 3 certified by the Board, in an amount equaling 1/2 of the 4 total sum paid by such agencies during the State's previous 5 fiscal year for mandated training for probationary police 6 officers or probationary county corrections officers and 7 for optional advanced and specialized law enforcement or 8 county 9 include the costs for tuition at training schools, the 10 salaries of trainees while in schools, and the necessary 11 travel and room and board expenses for each trainee; if the 12 appropriations under this paragraph (2) are not sufficient 13 to fully reimburse the participating local governmental 14 agencies, the available funds shall be apportioned among 15 such agencies, with priority first given to repayment of 16 the costs of mandatory training given to law enforcement 17 officer or county corrections officer recruits, then to 18 repayment of costs of advanced or specialized training for 19 permanent police officers or permanent county corrections 20 officers; corrections for LRB101 12329 RLC 60273 b the training; reimbursement these of local reimbursements may 21 (3) a portion of the total amount deposited in the Fund 22 may be used to fund the Intergovernmental Law Enforcement 23 Officer's In-Service Training Act, veto overridden October 24 29, 1981, as now or hereafter amended, at a rate and method 25 to be determined by the board; 26 (4) a portion of the Fund also may be used by the - 490 - LRB101 12329 RLC 60273 b 1 Illinois Department of State Police for expenses incurred 2 in the training of employees from any State, county or 3 municipal agency whose function includes enforcement of 4 criminal or traffic law; 5 (5) a portion of the Fund may be used by the Board to 6 fund grant-in-aid programs and services for the training of 7 employees from 8 functions include 9 criminal or traffic law; any county or corrections municipal or the agency whose enforcement of 10 (6) for fiscal years 2013 through 2017 only, a portion 11 of the Fund also may be used by the Department of State 12 Police to finance any of its lawful purposes or functions; 13 and 14 (7) a portion of the Fund may be used by the Board, 15 subject to appropriation, to administer grants to local law 16 enforcement agencies 17 bulletproof vests 18 Bulletproof Vest Act; and . for under the the purpose Law of purchasing Enforcement Officer 19 (8) a portion of the Fund may be used by the Board to 20 create a law enforcement grant program available for units 21 of local government to fund crime prevention programs, 22 training, and interdiction efforts, including enforcement 23 and prevention efforts, relating to the illegal cannabis 24 market and driving under the influence of cannabis. 25 All payments from the Traffic and Criminal Conviction 26 Surcharge Fund shall be made each year from moneys appropriated - 491 - LRB101 12329 RLC 60273 b 1 for the purposes specified in this Section. No more than 50% of 2 any appropriation under this Act shall be spent in any city 3 having a population of more than 500,000. The State Comptroller 4 and the State Treasurer shall from time to time, at the 5 direction of 6 Criminal Conviction Surcharge Fund to the General Revenue Fund 7 in the State Treasury such amounts as the Governor determines 8 are in excess of the amounts required to meet the obligations 9 of the Traffic and Criminal Conviction Surcharge Fund. 10 (Source: 11 98-743, 12 6-30-16.) P.A. eff. the Governor, transfer from 98-24, 1-1-15; eff. 6-19-13; 99-78, eff. the 98-674, 7-20-15; Traffic and eff. 6-30-14; 99-523, eff. 13 (Text of Section after amendment by P.A. 100-987) 14 Sec. 9. A special fund is hereby established in the State 15 Treasury to be known as the Traffic and Criminal Conviction 16 Surcharge Fund. Moneys in this Fund shall be expended as 17 follows: 18 (1) a portion of the total amount deposited in the Fund 19 may be used, as appropriated by the General Assembly, for 20 the ordinary and contingent expenses of the Illinois Law 21 Enforcement Training Standards Board; 22 (2) a portion of the total amount deposited in the Fund 23 shall be appropriated for the reimbursement of local 24 governmental agencies participating in training programs 25 certified by the Board, in an amount equaling 1/2 of the - 492 - LRB101 12329 RLC 60273 b 1 total sum paid by such agencies during the State's previous 2 fiscal year for mandated training for probationary police 3 officers or probationary county corrections officers and 4 for optional advanced and specialized law enforcement or 5 county 6 include the costs for tuition at training schools, the 7 salaries of trainees while in schools, and the necessary 8 travel and room and board expenses for each trainee; if the 9 appropriations under this paragraph (2) are not sufficient 10 to fully reimburse the participating local governmental 11 agencies, the available funds shall be apportioned among 12 such agencies, with priority first given to repayment of 13 the costs of mandatory training given to law enforcement 14 officer or county corrections officer recruits, then to 15 repayment of costs of advanced or specialized training for 16 permanent police officers or permanent county corrections 17 officers; corrections training; these reimbursements may 18 (3) a portion of the total amount deposited in the Fund 19 may be used to fund the Intergovernmental Law Enforcement 20 Officer's In-Service Training Act, veto overridden October 21 29, 1981, as now or hereafter amended, at a rate and method 22 to be determined by the board; 23 (4) a portion of the Fund also may be used by the 24 Illinois Department of State Police for expenses incurred 25 in the training of employees from any State, county or 26 municipal agency whose function includes enforcement of - 493 1 LRB101 12329 RLC 60273 b criminal or traffic law; 2 (5) a portion of the Fund may be used by the Board to 3 fund grant-in-aid programs and services for the training of 4 employees from 5 functions include 6 criminal or traffic law; any county or corrections municipal or the agency whose enforcement of 7 (6) for fiscal years 2013 through 2017 only, a portion 8 of the Fund also may be used by the Department of State 9 Police to finance any of its lawful purposes or functions; 10 and 11 (7) a portion of the Fund may be used by the Board, 12 subject to appropriation, to administer grants to local law 13 enforcement agencies 14 bulletproof vests 15 Bulletproof Vest Act; and . for under the the purpose Law of purchasing Enforcement Officer 16 (8) a portion of the Fund may be used by the Board to 17 create a law enforcement grant program available for units 18 of local government to fund crime prevention programs, 19 training, and interdiction efforts, including enforcement 20 and prevention efforts, relating to the illegal cannabis 21 market and driving under the influence of cannabis. 22 All payments from the Traffic and Criminal Conviction 23 Surcharge Fund shall be made each year from moneys appropriated 24 for the purposes specified in this Section. No more than 50% of 25 any appropriation under this Act shall be spent in any city 26 having a population of more than 500,000. The State Comptroller - 494 - LRB101 12329 RLC 60273 b 1 and the State Treasurer shall from time to time, at the 2 direction of 3 Criminal Conviction Surcharge Fund to the General Revenue Fund 4 in the State Treasury such amounts as the Governor determines 5 are in excess of the amounts required to meet the obligations 6 of the Traffic and Criminal Conviction Surcharge Fund. 7 (Source: 8 100-987, eff. 7-1-19.) 9 P.A. the Governor, transfer from 99-78, eff. 7-20-15; the 99-523, Traffic and eff. 6-30-16; (50 ILCS 705/10.12) 10 Sec. 10.12. Police dog training standards. All Beginning 11 July 1, 2012, all police dogs used by State and local law 12 enforcement agencies for drug enforcement purposes pursuant to 13 the 14 Controlled 15 Methamphetamine Control and Community Protection Act (720 ILCS 16 646/) shall be trained by programs that meet the minimum 17 certification requirements set by the Board. 18 (Source: P.A. 97-469, eff. 7-1-12.) 19 20 Cannabis Control Act (720 Substances Act (720 ILCS ILCS 550/), 570/), the or Illinois and the Section 900-25. The Counties Code is amended by changing Section 5-1009 as follows: 21 (55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009) 22 Sec. 5-1009. Limitation on home rule powers. Except as 23 provided in Sections 5-1006, 5-1006.5, 5-1007 and 5-1008, on - 495 - LRB101 12329 RLC 60273 b 1 and after September 1, 1990, no home rule county has the 2 authority to impose, pursuant to its home rule authority, a 3 retailer's occupation tax, service occupation tax, use tax, 4 sales tax or other tax on the use, sale or purchase of tangible 5 personal property based on the gross receipts from such sales 6 or the selling or purchase price of said tangible personal 7 property. Notwithstanding the foregoing, this Section does not 8 preempt any home rule imposed tax such as the following: (1) a 9 tax on alcoholic beverages, whether based on gross receipts, 10 volume sold or any other measurement; (2) a tax based on the 11 number of units of cigarettes or tobacco products; (3) a tax, 12 however measured, based on the use of a hotel or motel room or 13 similar facility; (4) a tax, however measured, on the sale or 14 transfer of real property; (5) a tax, however measured, on 15 lease receipts; (6) a tax on food prepared for immediate 16 consumption and on alcoholic beverages sold by a business which 17 provides for on premise consumption of said food or alcoholic 18 beverages; or (7) other taxes (other than a tax on cannabis in 19 any of its forms, which is prohibited) not based on the selling 20 or purchase price or gross receipts from the use, sale or 21 purchase of tangible personal property. This Section does not 22 preempt 23 measured, on the use, for consideration, of a parking lot, 24 garage, 25 limitation, pursuant to subsection (g) of Section 6 of Article 26 VII of the Illinois Constitution, on the power of home rule a or home rule other county parking from imposing a facility. This tax, Section however is a - 496 - LRB101 12329 RLC 60273 b 1 units to tax. 2 (Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.) 3 Section 900-30. The Illinois Municipal Code is amended by 4 changing Section 8-11-6a and by adding Section 8-11-22 as 5 follows: 6 (65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a) 7 Sec. 8-11-6a. Home rule municipalities; preemption of 8 certain taxes. Except as provided in Sections 8-11-1, 8-11-5, 9 8-11-6, 8-11-6b, 8-11-6c, and 11-74.3-6 on and after September 10 1, 1990, no home rule municipality has the authority to impose, 11 pursuant to its home rule authority, a retailer's occupation 12 tax, service occupation tax, use tax, sales tax or other tax on 13 the use, sale or purchase of tangible personal property based 14 on the gross receipts from such sales or the selling or 15 purchase 16 Notwithstanding the foregoing, this Section does not preempt 17 any home rule imposed tax such as the following: (1) a tax on 18 alcoholic beverages, whether based on gross receipts, volume 19 sold or any other measurement; (2) a tax based on the number of 20 units of cigarettes or tobacco products (provided, however, 21 that a home rule municipality that has not imposed a tax based 22 on the number of units of cigarettes or tobacco products before 23 July 1, 1993, shall not impose such a tax after that date); (3) 24 a tax, however measured, based on the use of a hotel or motel price of said tangible personal property. - 497 - LRB101 12329 RLC 60273 b 1 room or similar facility; (4) a tax, however measured, on the 2 sale or transfer of real property; (5) a tax, however measured, 3 on lease receipts; (6) a tax on food prepared for immediate 4 consumption and on alcoholic beverages sold by a business which 5 provides for on premise consumption of said food or alcoholic 6 beverages; or (7) other taxes (other than a tax on cannabis in 7 any of its forms, which is prohibited) not based on the selling 8 or purchase price or gross receipts from the use, sale or 9 purchase of tangible personal property. This Section does not 10 preempt a home rule municipality with a population of more than 11 2,000,000 from imposing a tax, however measured, on the use, 12 for consideration, of a parking lot, garage, or other parking 13 facility. This Section is not intended to affect any existing 14 tax on food and beverages prepared for immediate consumption on 15 the premises where the sale occurs, or any existing tax on 16 alcoholic beverages, or any existing tax imposed on the charge 17 for renting a hotel or motel room, which was in effect January 18 15, 1988, or any extension of the effective date of such an 19 existing tax by ordinance of the municipality imposing the tax, 20 which extension is hereby authorized, in any non-home rule 21 municipality in which the imposition of such a tax has been 22 upheld by judicial determination, nor is this Section intended 23 to preempt the authority granted by Public Act 85-1006. This 24 Section is a limitation, pursuant to subsection (g) of Section 25 6 of Article VII of the Illinois Constitution, on the power of 26 home rule units to tax. - 498 1 LRB101 12329 RLC 60273 b (Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.) 2 (65 ILCS 5/8-11-22 new) 3 Sec. 8-11-22. Municipal Cannabis Retailers' Occupation Tax 4 Law. 5 (a) This Section may be referred to as the Municipal 6 Cannabis Purchaser Excise Tax Law. On and after January 1, 7 2020, the corporate authorities of any municipality may, by 8 ordinance, impose 9 business of selling cannabis, other than cannabis purchased 10 under the Compassionate Use of Medical Cannabis Pilot Program 11 Act, at retail in the municipality on the gross receipts from 12 these sales made in the course of that business. If imposed, 13 the tax may not exceed 3% of the gross receipts from these 14 sales and shall only be imposed in 1/4% increments. The tax 15 imposed under this Section and all civil penalties that may be 16 assessed as an incident of the tax shall be collected and 17 enforced by 18 Revenue shall have full power to administer and enforce this 19 Section; to collect all taxes and penalties due hereunder; to 20 dispose of taxes and penalties so collected in the manner 21 hereinafter provided; and to determine all rights to credit 22 memoranda arising on account of the erroneous payment of tax or 23 penalty under this 24 compliance with this Section, the Department and persons who 25 are subject the to a tax upon all Department of Section. In this Section persons engaged Revenue. The the shall in Department of administration of have the the same and rights, - 499 - LRB101 12329 RLC 60273 b 1 remedies, privileges, immunities, powers and duties, and be 2 subject to the same conditions, restrictions, limitations, 3 penalties and definitions of terms, and employ the same modes 4 of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f, 5 1i, 6 provisions therein other than the State rate of tax), 2c, 3 7 (except 8 collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 9 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the 10 Retailers' Occupation Tax Act and Section 3-7 of the Uniform 11 Penalty and Interest Act, as fully as if those provisions were 12 set forth herein. 1j, 1k, as 1m, to 1n, the 2 through disposition 2-65 of (in respect taxes and to all penalties 13 (b) Persons subject to any tax imposed under the authority 14 granted in this Section may reimburse themselves for their 15 seller's tax liability hereunder by separately stating that tax 16 as 17 combination, in a single amount, with any State tax that 18 sellers are required to collect. an additional charge, which charge may be stated in 19 (c) Whenever the Department of Revenue determines that a 20 refund should be made under this Section to a claimant instead 21 of issuing a credit memorandum, the Department of Revenue shall 22 notify the State Comptroller, who shall cause the order to be 23 drawn for the amount specified and to the person named in the 24 notification from the Department of Revenue. 25 (d) The Department of Revenue shall immediately pay over to 26 the State Treasurer, ex officio, as trustee, all taxes and - 500 - LRB101 12329 RLC 60273 b 1 penalties collected hereunder for deposit into the Municipal 2 Cannabis Retailers' Occupation Tax Trust Fund. 3 (e) On or before the 25th day of each calendar month, the 4 Department of 5 Comptroller the amount of money to be disbursed from the 6 Municipal Cannabis Retailers' Occupation Tax Trust Fund to 7 municipalities 8 penalties 9 calendar month. The amount to be paid to each municipality 10 shall be the amount (not including credit memoranda) collected 11 under this Section from sales made in the municipality during 12 the 13 Department of Revenue determines is necessary to offset any 14 amounts that were erroneously paid to a different taxing body, 15 and not including an amount equal to the amount of refunds made 16 during the second preceding calendar month by the Department on 17 behalf of such municipality, and not including any amount that 18 the Department determines is necessary to offset any amounts 19 that 20 erroneously 21 remainder, which the Department shall transfer into the Tax 22 Compliance and Administration Fund. The Department, at the time 23 of each monthly disbursement to the municipalities, shall 24 prepare and certify to the State Comptroller the amount to be 25 transferred into the Tax Compliance and Administration Fund 26 under from under second were this Revenue which this paid retailers calendar to to prepare Section preceding payable shall a the and have during the month, different 10 days paid taxing an body less after to taxes second plus municipality, Section. Within certify the or preceding amount but 1.5% receipt of by the were the the - 501 1 Comptroller 2 municipalities and the Tax Compliance and Administration Fund 3 provided for in this Section to be given to the Comptroller by 4 the Department, the Comptroller shall cause the orders to be 5 drawn 6 directions contained in the certification. for of the the LRB101 12329 RLC 60273 b disbursement respective amounts certification in accordance to with the the 7 (f) An ordinance or resolution imposing or discontinuing a 8 tax under this Section or effecting a change in the rate 9 thereof shall be adopted and a certified copy thereof filed 10 with the Department on or before the first day of June, 11 whereupon 12 enforce this Section as of the first day of September next 13 following the adoption and filing. 14 15 the Department shall proceed to administer and Section 900-32. The Smoke Free Illinois Act is amended by changing Section 35 as follows: 16 (410 ILCS 82/35) 17 Sec. 35. Exemptions. Notwithstanding any other provision 18 19 of this Act, smoking is allowed in the following areas: (1) Private residences or dwelling places, except when 20 used as a child care, adult day care, or healthcare 21 facility or any other home-based business open to the 22 public. 23 (2) Retail tobacco stores as defined in Section 10 of 24 this Act in operation prior to the effective date of this - 502 - LRB101 12329 RLC 60273 b 1 amendatory Act of the 95th General Assembly. The retail 2 tobacco store shall annually file with the Department by 3 January 31st an affidavit stating the percentage of its 4 gross 5 derived from the sale of loose tobacco, plants, or herbs 6 and cigars, cigarettes, pipes, or other smoking devices for 7 smoking 8 retail 9 effective date of this amendatory Act may only qualify for income during the tobacco tobacco exemption and store if prior related that located calendar year smoking begins in a that accessories. operation freestanding after was Any the 10 an structure 11 occupied solely by the business and smoke from the business 12 does not migrate into an enclosed area where smoking is 13 prohibited. 14 (3) (Blank). 15 (4) Hotel and motel sleeping rooms that are rented to 16 guests and are designated as smoking rooms, provided that 17 all smoking rooms on the same floor must be contiguous and 18 smoke from these rooms must not infiltrate into nonsmoking 19 rooms or other areas where smoking is prohibited. Not more 20 than 25% of the rooms rented to guests in a hotel or motel 21 may be designated as rooms where smoking is allowed. The 22 status 23 changed, except to permanently add additional nonsmoking 24 rooms. of rooms as smoking or nonsmoking may not be 25 (5) Enclosed laboratories that are excluded from the 26 definition of "place of employment" in Section 10 of this - 503 - LRB101 12329 RLC 60273 b 1 Act. Rulemaking authority to implement this amendatory Act 2 of the 95th General Assembly, if any, is conditioned on the 3 rules being adopted in accordance with all provisions of 4 the Illinois Administrative Procedure Act and all rules and 5 procedures of the Joint Committee on Administrative Rules; 6 any purported rule not so adopted, for whatever reason, is 7 unauthorized. 8 (6) Common smoking rooms in long-term care facilities 9 operated under the authority of the Illinois Department of 10 Veterans' Affairs or licensed under the Nursing Home Care 11 Act that are accessible only to residents who are smokers 12 and have requested in writing to have access to the common 13 smoking room where smoking is permitted and the smoke shall 14 not infiltrate other areas of the long-term care facility. 15 Rulemaking authority to implement this amendatory Act of 16 the 95th General Assembly, if any, is conditioned on the 17 rules being adopted in accordance with all provisions of 18 the Illinois Administrative Procedure Act and all rules and 19 procedures of the Joint Committee on Administrative Rules; 20 any purported rule not so adopted, for whatever reason, is 21 unauthorized. 22 (7) A convention 23 Convention 24 manufacturers 25 products and accessories is being held, during the time the 26 meeting or trade show is occurring, if the meeting or trade Center and hall where a of the meeting suppliers of Donald or E. trade tobacco and Stephens show for tobacco - 504 1 show: 2 3 (i) is a trade-only event and not open to the public; 4 5 LRB101 12329 RLC 60273 b (ii) is limited to attendees and exhibitors that are 21 years of age or older; 6 (iii) is being produced or organized by a business 7 relating to tobacco or a professional association for 8 convenience stores; and 9 (iv) involves the display of tobacco products. 10 Smoking is not allowed in any public area outside of 11 12 13 the hall designated for the meeting or trade show. This paragraph (7) is inoperative on and after October 1, 2015. 14 (8) A privately owned facility at which cannabis or 15 cannabis products may be consumed on location by adults 21 16 years of age and older that is authorized and regulated by 17 the unit of local government in which the facility is 18 located. A privately owned facility authorized by a unit of 19 local government must include an area designated as a 20 consumption area, which must be separated from the rest of 21 the premises by walls and a secure door, and have a 22 separate ventilation system that directs air from the 23 cannabis consumption area to the outside of the building 24 through a filtration system sufficient to remove visible 25 smoke. A privately owned facility authorized by a unit of 26 local government must be compliant with all applicable - 505 - LRB101 12329 RLC 60273 b 1 building codes and ordinances, provide adequate filtration 2 to eliminate odor at the property line, and provide a 3 smoke-free area for employees. A privately owned facility 4 authorized by a unit of local government must be secure and 5 include measures to prohibit access by persons under 21 6 years old to the cannabis consumption area. 7 (Source: P.A. 98-1023, eff. 8-22-14.) 8 Section 900-35. The Compassionate Use of Medical Cannabis 9 Pilot Program Act is amended by changing Sections 20, 200, and 10 210 as follows: 11 (410 ILCS 130/20) 12 (Section scheduled to be repealed on July 1, 2020) 13 Sec. 20. Compassionate Use of Medical Cannabis Fund. 14 (a) There is created the Compassionate Use of Medical 15 Cannabis Fund in the State treasury to be used exclusively for 16 the 17 implementation, administration, and enforcement of this Act. 18 Funds in excess of the direct and indirect costs associated 19 with the implementation, administration, and enforcement of 20 this Act shall be used to fund crime prevention programs. On 21 January 22 Comptroller shall order transferred and the Treasurer shall 23 transfer the 24 Cannabis Fund to the Cannabis Regulation Fund. Any deposits or direct 1, and 2020, indirect or as balance in soon the costs associated thereafter as with the possible, the Compassionate Use of Medical - 506 - LRB101 12329 RLC 60273 b 1 transfers thereafter directed to be made into the Compassionate 2 Use of Medical Cannabis Fund shall instead be made into the 3 Cannabis Regulation Fund. Beginning on January 1, 2020, all 4 appropriation authority for State fiscal year 2020 or prior 5 years for expenditures out of the Compassionate Use of Medical 6 Cannabis Fund shall instead be deemed to be appropriation 7 authority for expenditures out of the Cannabis Regulation Fund. 8 (b) Until January 1, 2020, all moneys All monies collected 9 under this Act shall be deposited in the Compassionate Use of 10 Medical Cannabis Fund in the State treasury. Beginning on 11 January 1, 2020, all moneys collected under this Act shall be 12 deposited into the Cannabis Regulation Fund. Until January 1, 13 2020, all All earnings received from investment of moneys 14 monies in the Compassionate Use of Medical Cannabis Fund shall 15 be deposited in the Compassionate Use of Medical Cannabis Fund. 16 (c) Notwithstanding any other law to the contrary, the 17 Compassionate Use of Medical Cannabis Fund is not subject to 18 sweeps, administrative charge-backs, or any other fiscal or 19 budgetary maneuver that would in any way transfer any amounts 20 from the Compassionate Use of Medical Cannabis Fund into any 21 other fund of the State. 22 (Source: P.A. 98-122, eff. 1-1-14.) 23 (410 ILCS 130/200) 24 (Section scheduled to be repealed on July 1, 2020) 25 Sec. 200. Tax imposed. - 507 - LRB101 12329 RLC 60273 b 1 (a) Beginning on the effective date of this Act and until 2 September 1, 2019, a tax is imposed upon the privilege of 3 cultivating medical cannabis at a rate of 7% of the sales price 4 per ounce. Beginning on September 1, 2019, a tax is imposed 5 upon the privilege of cultivating and processing cannabis at 6 the rate of 7% of the gross receipts from the sale of cannabis 7 by a cultivator, craft grower, or processor to a dispensing 8 organization. The sale of any product that contains any amount 9 of cannabis or any derivative thereof is subject to the tax 10 under this Section on the full selling price of the product. 11 Until January 1, 2020, the The proceeds from this tax shall be 12 deposited into the Compassionate Use of Medical Cannabis Fund 13 created under the Compassionate Use of Medical Cannabis Pilot 14 Program Act. Beginning on January 1, 2020, the proceeds from 15 this tax shall be deposited into the Cannabis Regulation Fund. 16 This tax shall be paid by the cultivator who makes the first 17 sale a cultivation center and is not the responsibility of a 18 dispensing organization or a qualifying patient. 19 (a-5) In the administration of and compliance with this 20 Section, the Department of Revenue and persons who are subject 21 to 22 privileges, immunities, powers, and duties, (ii) are subject to 23 the same conditions, restrictions, limitations, penalties, and 24 definitions of terms, and (iii) shall employ the same modes of 25 procedure 26 Privilege Tax Law and the Uniform Penalty and Interest Act as this Section: as are (i) set have forth the in same the rights, Cannabis remedies, Cultivation - 508 1 LRB101 12329 RLC 60273 b if those provisions were set forth in this Section. 2 (b) The tax imposed under this Act shall be in addition to 3 all other occupation or privilege taxes imposed by the State of 4 Illinois 5 subdivision thereof. 6 (Source: P.A. 98-122, eff. 1-1-14.) or by any municipal corporation or 7 (410 ILCS 130/210) 8 (Section scheduled to be repealed on July 1, 2020) 9 Sec. 210. Returns. political 10 (a) This subsection (a) applies to returns due on or before 11 the effective date of this amendatory Act of the 101st General 12 Assembly. On or before the twentieth day of each calendar 13 month, every person subject to the tax imposed under this Law 14 during the preceding calendar month shall file a return with 15 the Department, stating: 16 (1) The name of the taxpayer; 17 (2) The number of ounces of medical cannabis sold to a 18 dispensary organization or a registered qualifying patient 19 during the preceding calendar month; 20 (3) The amount of tax due; 21 (4) The signature of the taxpayer; and 22 (5) Such other reasonable information as the 23 Department may require. 24 If a taxpayer fails to sign a return within 30 days after 25 the proper notice and demand for signature by the Department, - 509 - LRB101 12329 RLC 60273 b 1 the return shall be considered valid and any amount shown to be 2 due on the return shall be deemed assessed. 3 4 The taxpayer shall remit the amount of the tax due to the Department at the time the taxpayer files his or her return. 5 (b) Beginning on the effective date of this amendatory Act 6 of the 101st General Assembly, Section 65-20 of the Cannabis 7 Regulation and Tax Act shall apply to returns filed and taxes 8 paid under this Act to the same extent as if those provisions 9 were set forth in full in this Section. 10 11 12 (Source: P.A. 98-122, eff. 1-1-14.) Section 900-40. The Cannabis Control Act is amended by changing Sections 4, 5, 5.1, 5.3, and 8 as follows: 13 (720 ILCS 550/4) (from Ch. 56 1/2, par. 704) 14 Sec. 4. Except as otherwise provided in the Cannabis 15 Regulation and Tax Act, it It is unlawful for any person 16 knowingly to possess cannabis. 17 Any person who violates this Section section with respect to: 18 (a) not more than 10 grams of any substance containing 19 cannabis is guilty of a civil law violation punishable by a 20 minimum fine of $100 and a maximum fine of $200. The 21 proceeds of the fine shall be payable to the clerk of the 22 circuit court. Within 30 days after the deposit of the 23 fine, the clerk shall distribute the proceeds of the fine 24 as follows: - 510 - LRB101 12329 RLC 60273 b 1 (1) $10 of the fine to the circuit clerk and $10 of 2 the fine to the law enforcement agency that issued the 3 citation; the proceeds of each $10 fine distributed to 4 the circuit clerk and each $10 fine distributed to the 5 law enforcement agency that issued the citation for the 6 violation shall be used to defer the cost of automatic 7 expungements under paragraph (2.5) of subsection (a) 8 of Section 5.2 of the Criminal Identification Act; 9 10 11 12 (2) $15 to the county to fund drug addiction services; (3) $10 to the Office of the State's Attorneys Appellate Prosecutor for use in training programs; 13 (4) $10 to the State's Attorney; and 14 (5) any remainder of the fine to the law 15 enforcement agency that issued the citation for the 16 violation. 17 With respect to funds designated for the Department of 18 State Police, the moneys shall be remitted by the circuit 19 court clerk to the Department of State Police within one 20 month after receipt for deposit into the State Police 21 Operations 22 designated for the Department of Natural Resources, the 23 Department of Natural Resources shall deposit the moneys 24 into the Conservation Police Operations Assistance Fund; Assistance Fund. With respect to funds 25 (b) more than 10 grams but not more than 30 grams of 26 any substance containing cannabis is guilty of a Class B - 511 1 LRB101 12329 RLC 60273 b misdemeanor; 2 (c) more than 30 grams but not more than 100 grams of 3 any substance containing cannabis is guilty of a Class A 4 misdemeanor; provided, that if any offense under this 5 subsection (c) is a subsequent offense, the offender shall 6 be guilty of a Class 4 felony; 7 (d) more than 100 grams but not more than 500 grams of 8 any substance containing cannabis is guilty of a Class 4 9 felony; provided that if any offense under this subsection 10 (d) is a subsequent offense, the offender shall be guilty 11 of a Class 3 felony; 12 (e) more than 500 grams but not more than 2,000 grams 13 of any substance containing cannabis is guilty of a Class 3 14 felony; 15 (f) more than 2,000 grams but not more than 5,000 grams 16 of any substance containing cannabis is guilty of a Class 2 17 felony; 18 19 20 (g) more than 5,000 grams of any substance containing cannabis is guilty of a Class 1 felony. (Source: P.A. 99-697, eff. 7-29-16.) 21 (720 ILCS 550/5) (from Ch. 56 1/2, par. 705) 22 Sec. 5. Except as otherwise provided in the Cannabis 23 Regulation and Tax Act, it It is unlawful for any person 24 knowingly to manufacture, deliver, or possess with intent to 25 deliver, or manufacture, cannabis. Any person who violates this - 512 1 2 3 4 Section section with respect to: (a) not more than 2.5 grams of any substance containing cannabis is guilty of a Class B misdemeanor; (b) more than 2.5 grams but not more than 10 grams of any 5 substance 6 misdemeanor; 7 8 LRB101 12329 RLC 60273 b containing cannabis is guilty of a Class A (c) more than 10 grams but not more than 30 grams of any substance containing cannabis is guilty of a Class 4 felony; 9 (d) more than 30 grams but not more than 500 grams of any 10 substance containing cannabis is guilty of a Class 3 felony for 11 which a fine not to exceed $50,000 may be imposed; 12 (e) more than 500 grams but not more than 2,000 grams of 13 any substance containing cannabis is guilty of a Class 2 felony 14 for which a fine not to exceed $100,000 may be imposed; 15 (f) more than 2,000 grams but not more than 5,000 grams of 16 any substance containing cannabis is guilty of a Class 1 felony 17 for which a fine not to exceed $150,000 may be imposed; 18 (g) more than 5,000 grams of any substance containing 19 cannabis is guilty of a Class X felony for which a fine not to 20 exceed $200,000 may be imposed. 21 (Source: P.A. 90-397, eff. 8-15-97.) 22 (720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1) 23 Sec. 5.1. Cannabis Trafficking. 24 (a) Except for purposes authorized by this Act or the 25 Cannabis Regulation and Tax Act, any person who knowingly - 513 - LRB101 12329 RLC 60273 b 1 brings or causes to be brought into this State for the purpose 2 of manufacture or delivery or with the intent to manufacture or 3 deliver 2,500 grams or more of cannabis in this State or any 4 other state or country is guilty of cannabis trafficking. 5 (b) A person convicted of cannabis trafficking shall be 6 sentenced to a term of imprisonment not less than twice the 7 minimum term and fined an amount as authorized by subsection 8 (f) or (g) of Section 5 of this Act, based upon the amount of 9 cannabis brought or caused to be brought into this State, and 10 not more than twice the maximum term of imprisonment and fined 11 twice the amount as authorized by subsection (f) or (g) of 12 Section 5 of this Act, based upon the amount of cannabis 13 brought or caused to be brought into this State. 14 (Source: P.A. 90-397, eff. 8-15-97.) 15 (720 ILCS 550/5.3) 16 Sec. 17 5.3. Unlawful use of cannabis-based product manufacturing equipment. 18 (a) A person commits unlawful use of cannabis-based product 19 manufacturing equipment when he or she knowingly engages in the 20 possession, procurement, transportation, storage, or delivery 21 of 22 cannabis-based 23 including, but not limited to, canisters of butane gas, with 24 the intent to manufacture, compound, covert, produce, derive, 25 process, any equipment or used product prepare in using either the manufacturing volatile directly or or of any explosive gas, indirectly any - 514 1 LRB101 12329 RLC 60273 b cannabis-based product. 2 (b) This Section does not apply to a cultivation center or 3 cultivation center agent that prepares medical cannabis or 4 cannabis-infused products in compliance with the Compassionate 5 Use of Medical Cannabis Pilot Program Act and Department of 6 Public Health and Department of Agriculture rules. 7 8 9 (c) Sentence. A person who violates this Section is guilty of a Class 2 felony. (d) This Section does apply 10 cultivation centers, 11 under the Cannabis Regulation and Tax Act. 12 (e) This and not Section to craft growers, processing organizations licensed does not apply to manufacturers of 13 cannabis-based product manufacturing equipment or transporting 14 organizations with documentation identifying the seller and 15 purchaser of the equipment if the seller or purchaser is a 16 craft grower, cultivation center, or processing organization 17 licensed under the Cannabis Regulation and Tax Act. 18 (Source: P.A. 99-697, eff. 7-29-16.) 19 (720 ILCS 550/8) (from Ch. 56 1/2, par. 708) 20 Sec. 8. Except as otherwise provided in the Cannabis 21 Regulation and Tax Act, it It is unlawful for any person 22 knowingly to produce the Cannabis cannabis sativa plant or to 23 possess such plants unless production or possession has been 24 authorized pursuant to the provisions of Section 11 or 15.2 of 25 the Act. Any person who violates this Section with respect to - 515 1 LRB101 12329 RLC 60273 b production or possession of: 2 (a) Not more than 5 plants is guilty of a civil violation 3 punishable by a minimum fine of $100 and a maximum fine of 4 $200. The proceeds of the fine are payable to the clerk of the 5 circuit court. Within 30 days after the deposit of the fine, 6 the clerk shall distribute the proceeds of the fine as follows: 7 (1) $10 of the fine to the circuit clerk and $10 of the 8 fine to the law 9 citation; the proceeds of each $10 fine distributed to the 10 circuit clerk and each $10 fine distributed to the law 11 enforcement 12 violation shall be used to defer the cost of automatic 13 expungements under paragraph (2.5) of subsection (a) of 14 Section 5.2 of the Criminal Identification Act; agency enforcement that agency issued the that issued citation for the the 15 (2) $15 to the county to fund drug addiction services; 16 (3) 17 $10 to the Office of the State's Attorneys Appellate Prosecutor for use in training programs; 18 (4) $10 to the State's Attorney; and 19 (5) any remainder of the fine to the law enforcement 20 agency that issued the citation for the violation. 21 With respect to funds designated for the Department of 22 State Police, the moneys shall be remitted by the circuit court 23 clerk to the Department of State Police within one month after 24 receipt for deposit into the State Police Operations Assistance 25 Fund. With respect to funds designated for the Department of 26 Natural Resources, the Department of Natural Resources shall - 516 - LRB101 12329 RLC 60273 b 1 deposit the moneys into the Conservation Police Operations 2 Assistance Fund. Class A misdemeanor. 3 4 5 6 (b) More than 5, but not more than 20 plants, is guilty of a Class 4 felony. (c) More than 20, but not more than 50 plants, is guilty of a Class 3 felony. 7 (d) More than 50, but not more than 200 plants, is guilty 8 of a Class 2 felony for which a fine not to exceed $100,000 may 9 be imposed and for which liability for the cost of conducting 10 the investigation and eradicating such plants may be assessed. 11 Compensation for expenses incurred in the enforcement of this 12 provision 13 treasurer's office at the level of government represented by 14 the Illinois law enforcement agency whose officers or employees 15 conducted the investigation or caused the arrest or arrests 16 leading to the prosecution, to be subsequently made available 17 to that law enforcement agency as expendable receipts for use 18 in the enforcement of laws regulating controlled substances and 19 cannabis. If such seizure was made by a combination of law 20 enforcement 21 government, the court levying the assessment shall determine 22 the allocation of such assessment. The proceeds of assessment 23 awarded to the State treasury shall be deposited in a special 24 fund known as the Drug Traffic Prevention Fund. shall be transmitted personnel to representing and deposited different in levels the of 25 (e) More than 200 plants is guilty of a Class 1 felony for 26 which a fine not to exceed $100,000 may be imposed and for - 517 - LRB101 12329 RLC 60273 b 1 which liability for the cost of conducting the investigation 2 and eradicating such plants may be assessed. Compensation for 3 expenses incurred in the enforcement of this provision shall be 4 transmitted to and deposited in the treasurer's office at the 5 level of government represented by the Illinois law enforcement 6 agency whose officers or employees conducted the investigation 7 or caused the arrest or arrests leading to the prosecution, to 8 be subsequently made available to that law enforcement agency 9 as expendable receipts for use in the enforcement of laws 10 regulating controlled substances and cannabis. If such seizure 11 was 12 representing different levels of government, the court levying 13 the 14 assessment. The proceeds of assessment awarded to the State 15 treasury shall be deposited in a special fund known as the Drug 16 Traffic Prevention Fund. 17 (Source: P.A. 98-1072, eff. 1-1-15.) 18 made by a assessment combination shall of law determine the enforcement allocation personnel of such Section 900-45. The Condominium Property Act is amended by 19 adding Section 33 as follows: 20 (765 ILCS 605/33 new) 21 Sec. 33. Limitations on the use of smoking cannabis. The 22 declaration or bylaws of a condominium association may prohibit 23 or limit the smoking of cannabis as the term "smoking" is 24 defined in the Cannabis Regulation and Tax Act. The declaration - 518 - LRB101 12329 RLC 60273 b 1 or bylaws of a condominium association shall not otherwise 2 restrict the consumption of cannabis by any other method within 3 an owner's unit, but may restrict cannabis consumption in 4 common areas. 5 Section 900-50. The Right to Privacy in the Workplace Act 6 is amended by changing Section 5 as follows: 7 (820 ILCS 55/5) (from Ch. 48, par. 2855) 8 Sec. 9 prohibited. 5. Discrimination for use of lawful products 10 (a) Except as otherwise specifically provided by law and 11 except as provided in subsections (b) and (c) of this Section, 12 it shall be unlawful for an employer to refuse to hire or to 13 discharge 14 individual, with respect to compensation, terms, conditions or 15 privileges of employment because the individual uses lawful 16 products off the premises of the employer during nonworking 17 hours. As used in this Section, "lawful products" includes 18 cannabis 19 Regulation and Tax Act. any for individual, personal use or as otherwise permitted disadvantage by the any Cannabis 20 (b) This Section does not apply to any employer that is a 21 non-profit organization that, as one of its primary purposes or 22 objectives, discourages the use of one or more lawful products 23 by the general public. This Section does not apply to the use 24 of those lawful products which impairs an employee's ability to - 519 1 LRB101 12329 RLC 60273 b perform the employee's assigned duties. 2 (c) It is not a violation of this Section for an employer 3 to offer, impose or have in effect a health, disability or life 4 insurance policy that makes distinctions between employees for 5 the type of coverage or the price of coverage based upon the 6 employees' use of lawful products provided that: 7 8 (1) differential rates charged employees reflect a differential cost to the employer; and 9 (2) 10 delineating 11 carriers. 12 premium employers the provide employees differential rates with used a statement by insurance (Source: P.A. 87-807.) 13 ARTICLE 999. 14 MISCELLANEOUS PROVISIONS 15 Section 999-95. No acceleration or delay. Where this Act 16 makes changes in a statute that is represented in this Act by 17 text that is not yet or no longer in effect (for example, a 18 Section represented by multiple versions), the use of that text 19 does not accelerate or delay the taking effect of (i) the 20 changes made by this Act or (ii) provisions derived from any 21 other Public Act. 22 23 Section 999-99. Effective date. This Act takes effect upon becoming law. - 520 - LRB101 12329 RLC 60273 b 1 INDEX 2 Statutes amended in order of appearance 3 New Act 4 5 ILCS 100/5-45 from Ch. 127, par. 1005-45 5 20 ILCS 2505/2505-210 was 20 ILCS 2505/39c-1 6 20 ILCS 2630/5.2 7 30 ILCS 105/5.891 new 8 30 ILCS 105/5.892 new 9 30 ILCS 105/6z-107 new 10 35 ILCS 105/9 from Ch. 120, par. 439.9 11 35 ILCS 110/9 from Ch. 120, par. 439.39 12 35 ILCS 115/9 from Ch. 120, par. 439.109 13 35 ILCS 120/3 from Ch. 120, par. 442 14 35 ILCS 520/Act rep. 15 50 ILCS 705/9 16 50 ILCS 705/10.12 17 55 ILCS 5/5-1009 from Ch. 34, par. 5-1009 18 65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a 19 65 ILCS 5/8-11-22 new 20 410 ILCS 82/35 21 410 ILCS 130/20 22 410 ILCS 130/200 23 410 ILCS 130/210 24 720 ILCS 550/4 from Ch. 56 1/2, par. 704 25 720 ILCS 550/5 from Ch. 56 1/2, par. 705 from Ch. 85, par. 509 - 521 1 720 ILCS 550/5.1 2 720 ILCS 550/5.3 3 720 ILCS 550/8 4 765 ILCS 605/33 new 5 820 ILCS 55/5 LRB101 12329 RLC 60273 b from Ch. 56 1/2, par. 705.1 from Ch. 56 1/2, par. 708 from Ch. 48, par. 2855