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1		AN ACT concerning regulation.
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		Section 1-1. Short title. This Act may be cited as the
7		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 abuse prevention and treatment, freeing public
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.
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		(1) persons will have to show proof of age before
22		purchasing cannabis;

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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) cannabis sold in this State will be tested,
9		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 ensure consistency and fairness in the
16		application of this Act throughout the State and that,
17		therefore, the matters addressed by this Act are, except as
18		specified in this Act, matters of statewide concern.
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 supports and encourages labor
25		neutrality in the cannabis industry and further finds and
26		declares that employee workplace safety shall not be diminished

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

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

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1		plant through the use of propylene glycol, glycerin, butter,
2		olive oil or other typical cooking fats; water, ice, or dry
3		ice; or butane, propane, CO2, ethanol, or isopropanol. The use
4		of any other solvent is expressly prohibited unless and until
5		it is approved by the Department of Agriculture.
6		"Cannabis container" means a sealed, traceable, container,
7		or package used for the purpose of containment of cannabis or
8		cannabis-infused product during transportation.
9		"Cannabis flower" means marijuana, hashish, and other
10		substances that are identified as including any parts of the
11		plant Cannabis sativa and including derivatives or subspecies,
12		such as indica, of all strains of cannabis; including raw kief,
13		leaves, and buds, but not resin that has been extracted from
14		any part of such plant; nor any compound, manufacture, salt,
15		derivative, mixture, or preparation of such plant, its seeds,
16		or resin.
17		"Cannabis-infused product" means a beverage, food, oil,
18		ointment, tincture, topical formulation, or another product
19		containing cannabis that is not intended to be smoked.
20		"Cannabis plant monitoring system" or "plant monitoring
21		system" means a system that includes, but is not limited to,
22		testing and data collection established and maintained by the
23		cultivation center, craft grower, or processing organization
24		and that is available to the Department of Revenue, the
25		Department of Agriculture, the Department of Financial and
26		Professional Regulation, and the Department of State Police for

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1		the purposes of documenting each cannabis plant and monitoring
2		plant development throughout the life cycle of a cannabis plant
3		cultivated for the intended use by a customer from seed
4		planting to final packaging.
5		"Cannabis testing facility" means an entity registered by
6		the Department of Agriculture to test cannabis for potency and
7		contaminants.
8		"Clone" means a plant section from a female cannabis plant
9		not yet rootbound, growing in a water solution or other
10		propagation matrix, that is capable of developing into a new
11		plant.
12		"Community College Cannabis Vocational Training Pilot
13		Program faculty participant" means a person who is 21 years of
14		age or older, licensed by the Department of Agriculture, and is
15		employed or contracted by an Illinois community college to
16		provide student instruction using cannabis plants at an
17		Illinois Community College.
18		"Community College Cannabis Vocational Training Pilot
19		Program faculty participant Agent Identification Card" means a
20		document issued by the Department of Agriculture that
21		identifies a person as Community College Cannabis Vocational
22		Training Pilot Program faculty participant.
23		"Conditional Adult Use Dispensing Organization License"
24		means a license awarded to top-scoring applicants for an Adult
25		Use Dispensing Organization License that reserves the right to
26		an adult use dispensing organization license if the applicant

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1		meets certain conditions described in this Act, but does not
2		entitle the recipient to begin purchasing or selling cannabis
3		or cannabis-infused products.
4		"Conditional Adult Use Cultivation Center License" means a
5		license awarded to top-scoring applicants for an Adult Use
6		Cultivation Center License that reserves the right to an Adult
7		Use Cultivation Center License if the applicant meets certain
8		conditions as determined by the Department of Agriculture by
9		rule, but does not entitle the recipient to begin growing,
10		processing, or selling cannabis or cannabis-infused products.
11		"Craft grower" means a facility operated by an organization
12		or business that is licensed by the Department of Agriculture
13		to cultivate, dry, cure, and package cannabis and perform other
14		necessary activities to make cannabis available for sale at a
15		dispensing organization or use at a processing organization. A
16		craft grower may contain up to 5,000 square feet of canopy
17		space on its premises for plants in the flowering state. The
18		Department of Agriculture may authorize an increase or decrease
19		of flowering stage cultivation space in increments of 3,000
20		square feet by rule based on market need, craft grower
21		capacity, and the licensee's history of compliance or
22		noncompliance, with a maximum space of 14,000 square feet for
23		cultivating plants in the flowering stage, which must be
24		cultivated in all stages of growth in an enclosed and secure
25		area. A craft grower may share premises with a processing
26		organization or a dispensing organization, or both, provided

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1		each licensee stores currency and cannabis or cannabis-infused
2		products in a separate secured vault to which the other
3		licensee does not have access or all licensees sharing a vault
4		share more than 50% of the same ownership.
5		"Craft grower agent" means a principal officer, board
6		member, employee, or other agent of a craft grower who is 21
7		years of age or older.
8		"Craft Grower Agent Identification Card" means a document
9		issued by the Department of Agriculture that identifies a
10		person as a craft grower agent.
11		"Cultivation center" means a facility operated by an
12		organization or business that is licensed by the Department of
13		Agriculture to cultivate, process, transport (unless otherwise
14		limited by this Act), and perform other necessary activities to
15		provide cannabis and cannabis-infused products to cannabis
16		business establishments.
17		"Cultivation center agent" means a principal officer,
18		board member, employee, or other agent of a cultivation center
19		who is 21 years of age or older.
20		"Cultivation Center Agent Identification Card" means a
21		document issued by the Department of Agriculture that
22		identifies a person as a cultivation center agent.
23		"Currency" means currency and coin of the United States.
24		"Dispensary" means a facility operated by a dispensing
25		organization at which activities licensed by this Act may
26		occur.

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1		"Dispensing organization" means a facility operated by an
2		organization or business that is licensed by the Department of
3		Financial and Professional Regulation to acquire cannabis from
4		a cultivation center, craft grower, processing organization,
5		or another dispensary for the purpose of selling or dispensing
6		cannabis, cannabis-infused products, cannabis seeds,
7		paraphernalia, or related supplies under this Act to purchasers
8		or to qualified registered medical cannabis patients and
9		caregivers. As used in this Act, dispensary organization shall
10		include a registered medical cannabis organization as defined
11		in the Compassionate Use of Medical Cannabis Pilot Program Act
12		or its successor Act that has obtained an Early Approval Adult
13		Use Dispensing Organization License.
14		"Dispensing organization agent" means a principal officer,
15		employee, or agent of a dispensing organization who is 21 years
16		of age or older.
17		"Dispensing organization agent identification card" means
18		a document issued by the Department of Financial and
19		Professional Regulation that identifies a person as a
20		dispensing organization agent.
21		"Disproportionately Impacted Area" means a census tract or
22		comparable geographic area that satisfies the following
23		criteria as determined by the Department of Commerce and
24		Economic Opportunity, that:
25		(1) meets at least one of the following criteria:
26		(A) the area has a poverty rate of at least 20%

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1		according to the latest federal decennial census; or
2		(B) 75% or more of the children in the area
3		participate in the federal free lunch program
4		according to reported statistics from the State Board
5		of Education; or
6		(C) at least 20% of the households in the area
7		receive assistance under the Supplemental Nutrition
8		Assistance Program; or
9		(D) the area has an average unemployment rate, as
10		determined by the Illinois Department of Employment
11		Security, that is more than 120% of the national
12		unemployment average, as determined by the United
13		States Department of Labor, for a period of at least 2
14		consecutive calendar years preceding the date of the
15		application; and
16		(2) has high rates of arrest, conviction, and
17		incarceration related to the sale, possession, use,
18		cultivation, manufacture, or transport of cannabis.
19		"Early Approval Adult Use Cultivation Center License"
20		means a license that permits a medical cannabis cultivation
21		center licensed under the Compassionate Use of Medical Cannabis
22		Pilot Program Act as of the effective date of this Act to begin
23		cultivating, infusing, packaging, transporting (unless
24		otherwise provided in this Act), and selling cannabis to
25		cannabis business establishments for resale to purchasers as
26		permitted by this Act as of January 1, 2020.

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1		"Early Approval Adult Use Dispensing Organization License"
2		means a license that permits a medical cannabis dispensing
3		organization licensed under the Compassionate Use of Medical
4		Cannabis Pilot Program Act as of the effective date of this Act
5		to begin selling cannabis to purchasers as permitted by this
6		Act as of January 1, 2020.
7		"Early Approval Adult Use Dispensing Organization at a
8		secondary site" means a license that permits a medical cannabis
9		dispensing organization licensed under the Compassionate Use
10		of Medical Cannabis Pilot Program Act as of the effective date
11		of this Act to begin selling cannabis to purchasers as
12		permitted by this Act on January 1, 2020 at a different
13		dispensary location from its existing registered medical
14		dispensary location.
15		"Enclosed, locked facility" means a room, greenhouse,
16		building, or other enclosed area equipped with locks or other
17		security devices that permit access only by cannabis business
18		establishment agents working for the licensed cannabis
19		business establishment or acting pursuant to this Act to
20		cultivate, process, store, or distribute cannabis.
21		"Enclosed, locked space" means a closet, room, greenhouse,
22		building or other enclosed area equipped with locks or other
23		security devices that permit access only by authorized
24		individuals under this Act. "Enclosed, locked space" may
25		include:
26		(1) a space within a residential building that (i) is

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1		the primary residence of the individual cultivating 5 or
2		fewer cannabis plants that are more than 5 inches tall and
3		(ii) includes sleeping quarters and indoor plumbing. The
4		space must only be accessible by a key or code that is
5		different from any key or code that can be used to access
6		the residential building from the exterior; or
7		(2) a structure, such as a shed or greenhouse, that
8		lies on the same plot of land as a residential building
9		that (i) includes sleeping quarters and indoor plumbing and
10		(ii) is used as a primary residence by the person
11		cultivating 5 or fewer cannabis plants that are more than 5
12		inches tall, such as a shed or greenhouse. The structure
13		must remain locked when it is unoccupied by people.
14		"Financial institution" has the same meaning as "financial
15		organization" as defined in Section 1501 of the Illinois Income
16		Tax Act, and also includes the holding companies, subsidiaries,
17		and affiliates of such financial organizations.
18		"Flowering stage" means the stage of cultivation where and
19		when a cannabis plant is cultivated to produce plant material
20		for cannabis products. This includes mature plants as follows:
21		(1) if greater than 2 stigmas are visible at each
22		internode of the plant; or
23		(2) if the cannabis plant is in an area that has been
24		intentionally deprived of light for a period of time
25		intended to produce flower buds and induce maturation, from
26		the moment the light deprivation began through the

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1		remainder of the marijuana plant growth cycle.
2		"Individual" means a natural person.
3		"Infuser organization" or "infuser" means a facility
4		operated by an organization or business that is licensed by the
5		Department of Agriculture to directly incorporate cannabis or
6		cannabis concentrate into a product formulation to produce a
7		cannabis-infused product.
8		"Kief" means the resinous crystal-like trichomes that are
9		found on cannabis and that are accumulated, resulting in a
10		higher concentration of cannabinoids, untreated by heat or
11		pressure, or extracted using a solvent.
12		"Labor peace agreement" means an agreement between a
13		cannabis business establishment and any labor organization
14		recognized under the National Labor Relations Act, referred to
15		in this Act as a bona fide labor organization, that prohibits
16		labor organizations and members from engaging in picketing,
17		work stoppages, boycotts, and any other economic interference
18		with the cannabis business establishment. This agreement means
19		that the cannabis business establishment has agreed not to
20		disrupt efforts by the bona fide labor organization to
21		communicate with, and attempt to organize and represent, the
22		cannabis business establishment's employees. The agreement
23		shall provide a bona fide labor organization access at
24		reasonable times to areas in which the cannabis business
25		establishment's employees work, for the purpose of meeting with
26		employees to discuss their right to representation, employment

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1		rights under State law, and terms and conditions of employment.
2		This type of agreement shall not mandate a particular method of
3		election or certification of the bona fide labor organization.
4		"Limited access area" means a building, room, or other area
5		under the control of a cannabis dispensing organization
6		licensed under this Act and upon the licensed premises with
7		access limited to purchasers, dispensing organization owners
8		and other dispensing organization agents, or service
9		professionals conducting business with the dispensing
10		organization.
11		"Member of an impacted family" means an individual who has
12		a parent, legal guardian, child, spouse, or dependent, or was a
13		dependent of an individual who, prior to the effective date of
14		this Act, was arrested for, convicted of, or adjudicated
15		delinquent for any offense that is eligible for expungement
16		under this Act.
17		"Mother plant" means a cannabis plant that is cultivated or
18		maintained for the purpose of generating clones, and that will
19		not be used to produce plant material for sale to an infuser or
20		dispensing organization.
21		"Ordinary public view" means within the sight line with
22		normal visual range of a person, unassisted by visual aids,
23		from a public street or sidewalk adjacent to real property, or
24		from within an adjacent property.
25		"Ownership and control" means ownership of at least 51% of
26		the business, including corporate stock if a corporation, and

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1		control over the management and day-to-day operations of the
2		business and an interest in the capital, assets, and profits
3		and losses of the business proportionate to percentage of
4		ownership.
5		"Person" means a natural individual, firm, partnership,
6		association, joint stock company, joint venture, public or
7		private corporation, limited liability company, or a receiver,
8		executor, trustee, guardian, or other representative appointed
9		by order of any court.
10		"Possession limit" means the amount of cannabis under
11		Section 10-10 that may be possessed at any one time by a person
12		21 years of age or older or who is a registered qualifying
13		medical cannabis patient or caregiver under the Compassionate
14		Use of Medical Cannabis Pilot Program Act.
15		"Principal officer" includes a cannabis business
16		establishment applicant or licensed cannabis business
17		establishment's board member, owner with more than 1% interest
18		of the total cannabis business establishment or more than 5%
19		interest of the total cannabis business establishment of a
20		publicly traded company, president, vice president, secretary,
21		treasurer, partner, officer, member, manager member, or person
22		with a profit sharing, financial interest, or revenue sharing
23		arrangement. The definition includes a person with authority to
24		control the cannabis business establishment, a person who
25		assumes responsibility for the debts of the cannabis business
26		establishment and who is further defined in this Act.

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1		"Primary residence" means a dwelling where a person usually
2		stays or stays more often than other locations. It may be
3		determined by, without limitation, presence, tax filings;
4		address on an Illinois driver's license, an Illinois
5		Identification Card, or an Illinois Person with a Disability
6		Identification Card; or voter registration. No person may have
7		more than one primary residence.
8		"Processing organization" or "processor" means a facility
9		operated by an organization or business that is licensed by the
10		Department of Agriculture to either extract constituent
11		chemicals or compounds to produce cannabis concentrate or
12		incorporate cannabis or cannabis concentrate into a product
13		formulation to produce a cannabis product.
14		"Processing organization agent" means a principal officer,
15		board member, employee, or agent of a processing organization.
16		"Processing organization agent identification card" means
17		a document issued by the Department of Agriculture that
18		identifies a person as a processing organization agent.
19		"Purchaser" means a person 21 years of age or older who
20		acquires cannabis for a valuable consideration. "Purchaser"
21		does not include a cardholder under the Compassionate Use of
22		Medical Cannabis Pilot Program Act.
23		"Qualified Social Equity Applicant" means a Social Equity
24		Applicant who has been awarded a conditional license under this
25		Act to operate a cannabis business establishment.
26		"Resided" means an individual's primary residence was

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1		located within the relevant geographic area as established by 2
2		of the following:
3		(1) a signed lease agreement that includes the
4		applicant's name;
5		(2) a property deed that includes the applicant's name;
6		(3) school records;
7		(4) a voter registration card;
8		(5) an Illinois driver's license, an Illinois
9		Identification Card, or an Illinois Person with a
10		Disability Identification Card;
11		(6) a paycheck stub;
12		(7) a utility bill; or
13		(8) any other proof of residency or other information
14		necessary to establish residence as provided by rule.
15		"Smoking" means the inhalation of smoke caused by the
16		combustion of cannabis.
17		"Social Equity Applicant" means an applicant that is an
18		Illinois resident that meets one of the following criteria:
19		(1) an applicant with at least 51% ownership and
20		control by one or more individuals who have resided for at
21		least 5 of the preceding 10 years in a Disproportionately
22		Impacted Area;
23		(2) an applicant with at least 51% ownership and
24		control by one or more individuals who:
25		(i) have been arrested for, convicted of, or
26		adjudicated delinquent for any offense that is

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1		eligible for expungement under this Act; or
2		(ii) is a member of an impacted family;
3		(3) for applicants with a minimum of 10 full-time
4		employees, an applicant with at least 51% of current
5		employees who:
6		(i) currently reside in a Disproportionately
7		Impacted Area; or
8		(ii) have been arrested for, convicted of, or
9		adjudicated delinquent for any offense that is
10		eligible for expungement under this Act or member of an
11		impacted family.
12		Nothing in this Act shall be construed to preempt or limit
13		the duties of any employer under the Job Opportunities for
14		Qualified Applicants Act. Nothing in this Act shall permit an
15		employer to require an employee to disclose sealed or expunged
16		offenses, unless otherwise required by law.
17		"Tincture" means a cannabis-infused solution, typically
18		comprised of alcohol, glycerin, or vegetable oils, derived
19		either directly from the cannabis plant or from a processed
20		cannabis extract. A tincture is not an alcoholic liquor as
21		defined in the Liquor Control Act of 1934. A tincture shall
22		include a calibrated dropper or other similar device capable of
23		accurately measuring servings.
24		"Transporting organization" or "transporter" means an
25		organization or business that is licensed by the Department of
26		Agriculture to transport cannabis on behalf of a cannabis

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1		business establishment or a community college licensed under
2		the Community College Cannabis Vocational Training Pilot
3		Program.
4		"Transporting organization agent" means a principal
5		officer, board member, employee, or agent of a transporting
6		organization.
7		"Transporting organization agent identification card"
8		means a document issued by the Department of Agriculture that
9		identifies a person as a transporting organization agent.
10		"Unit of local government" means any county, city, village,
11		or incorporated town.
12		"Vegetative stage" means the stage of cultivation in which
13		a cannabis plant is propagated to produce additional cannabis
14		plants or reach a sufficient size for production. This includes
15		seedlings, clones, mothers, and other immature cannabis plants
16		as follows:
17		(1) if the cannabis plant is in an area that has not
18		been intentionally deprived of light for a period of time
19		intended to produce flower buds and induce maturation, it
20		has no more than 2 stigmas visible at each internode of the
21		cannabis plant; or
22		(2) any cannabis plant that is cultivated solely for
23		the purpose of propagating clones and is never used to
24		produce cannabis.
25		ARTICLE 5.

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1		AUTHORITY
2		Section 5-5. Sharing of authority. Notwithstanding any
3		provision or law to the contrary, any authority granted to any
4		State agency or State employees or appointees under the
5		Compassionate Use of Medical Cannabis Pilot Program Act shall
6		be shared by any State agency or State employees or appointees
7		given authority to license, discipline, revoke, regulate, or
8		make rules under this Act.
9		Section 5-10. Department of Agriculture. The Department of
10		Agriculture shall administer and enforce provisions of this Act
11		relating to the oversight and registration of cultivation
12		centers, craft growers, infuser organizations, and
13		transporting organizations and agents, including the issuance
14		of identification cards and establishing limits on potency or
15		serving size for cannabis or cannabis products. The Department
16		of Agriculture may suspend or revoke the license of, or impose
17		other penalties upon cultivation centers, craft growers,
18		infuser organizations, transporting organizations, and their
19		principal officers, Agents-in-Charge, and agents for
20		violations of this Act and any rules adopted under this Act.
21		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

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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
6		for violations of this Act and any rules adopted under this
7		Act.
8		Section 5-20. Background checks.
9		(a) Through the Department of State Police, the licensing
10		or issuing Department shall conduct a criminal history record
11		check of the prospective principal officers, board members, and
12		agents of a cannabis business establishment applying for a
13		license or identification card under this Act.
14		Each cannabis business establishment prospective principal
15		officer, board member, or agent shall submit his or her
16		fingerprints to the Department of State Police in the form and
17		manner prescribed by the Department of State Police.
18		Such fingerprints shall be transmitted through a live scan
19		fingerprint vendor licensed by the Department of Financial and
20		Professional Regulation. These fingerprints shall be checked
21		against the fingerprint records now and hereafter filed in the
22		Department of State Police and Federal Bureau of Investigation
23		criminal history records databases. The Department of State
24		Police shall charge a fee for conducting the criminal history
25		record check, which shall be deposited into the State Police

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1		Services Fund and shall not exceed the actual cost of the State
2		and national criminal history record check. The Department of
3		State Police shall furnish, pursuant to positive
4		identification, all Illinois conviction information and shall
5		forward the national criminal history record information to:
6		(i) the Department of Agriculture, with respect to a
7		cultivation center, craft grower, infuser organization, or
8		transporting organization; or
9		(ii) the Department of Financial and Professional
10		Regulation, with respect to a dispensing organization.
11		(b) When applying for the initial license or identification
12		card, the background checks for all prospective principal
13		officers, board members, and agents shall be completed before
14		submitting the application to the licensing or issuing agency.
15		(c) All applications for licensure under this Act by
16		applicants with criminal convictions shall be subject to
17		Sections 2105-131, 2105-135, and 2105-205 of the Department of
18		Professional Regulation Law of the Civil Administrative Code of
19		Illinois.
20		Section 5-25. Department of Public Health to make health
21		warning recommendations.
22		(a) The Department of Public Health shall make
23		recommendations to the Department of Agriculture and the
24		Department of Financial and Professional Regulation on
25		appropriate health warnings for dispensaries and advertising,

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1		which may apply to all cannabis products, including item-type
2		specific labeling or warning requirements, regulate the
3		facility where cannabis-infused products are made, regulate
4		cannabis-infused products as provided in subsection (e) of
5		Section 55-5, and facilitate the Adult Use Cannabis Health
6		Advisory Committee.
7		(b) An Adult Use Cannabis Health Advisory Committee is
8		hereby created and shall meet at least twice annually. The
9		Chairperson may schedule meetings more frequently upon his or
10		her initiative or upon the request of a Committee member.
11		Meetings may be held in person or by teleconference. The
12		Committee shall discuss and monitor changes in drug use data in
13		Illinois and the emerging science and medical information
14		relevant to the health effects associated with cannabis use and
15		may provide recommendations to the Department of Human Services
16		about public health awareness campaigns and messages. The
17		Committee shall include the following members appointed by the
18		Governor and shall represent the geographic, ethnic, and racial
19		diversity of the State:
20		(1) The Director of Public Health, or his or her
21		designee, who shall serve as the Chairperson.
22		(2) The Secretary of Human Services, or his or her
23		designee, who shall serve as the Co-Chairperson.
24		(3) A representative of the poison control center.
25		(4) A pharmacologist.
26		(5) A pulmonologist.

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1		(6) An emergency room physician.
2		(7) An emergency medical technician, paramedic, or
3		other first responder.
4		(8) A nurse practicing in a school-based setting.
5		(9) A psychologist.
6		(10) A neonatologist.
7		(11) An obstetrician-gynecologist.
8		(12) A drug epidemiologist.
9		(13) A medical toxicologist.
10		(14) An addiction psychiatrist.
11		(15) A pediatrician.
12		(16) A representative of a statewide professional
13		public health organization.
14		(17) A representative of a statewide hospital/health
15		system association.
16		(18) An individual registered as a patient in the
17		Compassionate Use of Medical Cannabis Pilot Program.
18		(19) An individual registered as a caregiver in the
19		Compassionate Use of Medical Cannabis Pilot Program.
20		(20) A representative of an organization focusing on
21		cannabis-related policy.
22		(21) A representative of an organization focusing on
23		the civil liberties of individuals who reside in Illinois.
24		(22) A representative of the criminal defense or civil
25		aid community of attorneys serving Disproportionately
26		Impacted Areas.

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1		(23) A representative of licensed cannabis business
2		establishments.
3		(24) A Social Equity Applicant.
4		(c) The Committee shall provide a report by September 30,
5		2021, and every year thereafter, to the General Assembly. The
6		Department of Public Health shall make the report available on
7		its website.
8		Section 5-30. Department of Human Services. The Department
9		of Human Services shall identify evidence-based programs for
10		preventive mental health, the prevention or treatment of
11		alcohol abuse, tobacco use, illegal drug use (including
12		prescription drugs), and cannabis use by pregnant women, and
13		make policy recommendations, as appropriate, to the Adult Use
14		Cannabis Health Advisory Committee. The Department of Human
15		Services shall develop and disseminate educational materials
16		for purchasers based on recommendations received from the
17		Department of Public Health and the Adult Use Cannabis Health
18		Advisory Committee.
19		Section 5-45. Illinois Cannabis Regulation Oversight
20		Officer.
21		(a) The position of Illinois Cannabis Regulation Oversight
22		Officer is created within the Department of Financial and
23		Professional Regulation under the Secretary of Financial and
24		Professional Regulation. The Illinois Cannabis Regulation

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1		Oversight Officer shall be appointed by the Governor with the
2		advice and consent of the Senate. The term of office of the
3		Officer shall expire on the third Monday of January in
4		odd-numbered years provided that he or she shall hold office
5		until a successor is appointed and qualified. In case of
6		vacancy in office during the recess of the Senate, the Governor
7		shall make a temporary appointment until the next meeting of
8		the Senate, when the Governor shall nominate some person to
9		fill the office, and any person so nominated who is confirmed
10		by the Senate shall hold office during the remainder of the
11		term and until his or her successor is appointed and qualified.
12		(b) The Illinois Cannabis Regulation Oversight Officer
13		may:
14		(1) maintain a staff;
15		(2) make recommendations for policy, statute, and rule
16		changes;
17		(3) collect data both in Illinois and outside Illinois
18		regarding the regulation of cannabis;
19		(4) compile or assist in the compilation of any reports
20		required by this Act;
21		(5) ensure the coordination of efforts between various
22		State agencies involved in regulating and taxing the sale
23		of cannabis in Illinois; and
24		(6) encourage, promote, suggest, and report best
25		practices for ensuring diversity in the cannabis industry
26		in Illinois.

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1		(c) The Illinois Cannabis Regulation Oversight Officer
2		shall not:
3		(1) participate in the issuance of any business
4		licensing or the making of awards; or
5		(2) participate in any adjudicative decision-making
6		process involving licensing or licensee discipline.
7		(d) Any funding required for the Illinois Cannabis
8		Regulation Oversight Officer, its staff, or its activities
9		shall be drawn from the Cannabis Regulation Fund.
10		(e) The Illinois Cannabis Regulation Oversight Officer
11		shall commission and publish a disparity and availability study
12		by March 1, 2021 that: (1) evaluates whether there exists
13		discrimination in the State's cannabis industry; and (2) if so,
14		evaluates the impact of such discrimination on the State and
15		includes recommendations to the Department of Financial and
16		Professional Regulation and the Department of Agriculture for
17		reducing or eliminating any identified barriers to entry in the
18		cannabis market. The Illinois Cannabis Regulation Oversight
19		Officer shall forward a copy of its findings and
20		recommendations to the Department of Financial and
21		Professional Regulation, the Department of Agriculture, the
22		Department of Commerce and Economic Opportunity, the General
23		Assembly, and the Governor.
24		(f) The Illinois Cannabis Regulation Oversight Officer may
25		compile, collect, or otherwise gather data necessary for the
26		administration of this Act and to carry out the Officer's duty

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1		relating to the recommendation of policy changes. The Illinois
2		Cannabis Regulation Oversight Officer may direct the
3		Department of Agriculture, Department of Financial and
4		Professional Regulation, Department of Public Health,
5		Department of Human Services, and Department of Commerce and
6		Economic Opportunity to assist in the compilation, collection,
7		and data gathering authorized pursuant to this subsection. The
8		Illinois Cannabis Regulation Oversight Officer shall compile
9		all of the data into a single report and submit the report to
10		the Governor and the General Assembly and publish the report on
11		its website.
12		ARTICLE 7.
13		SOCIAL EQUITY IN THE CANNABIS INDUSTRY
14		Section 7-1. Findings.
15		(a) The General Assembly finds that the medical cannabis
16		industry, established in 2014 through the Compassionate Use of
17		Medical Cannabis Pilot Program Act, has shown that additional
18		efforts are needed to reduce barriers to ownership. Through
19		that program, 55 licenses for dispensing organizations and 20
20		licenses for cultivation centers have been issued. Those
21		licenses are held by only a small number of businesses, the
22		ownership of which does not sufficiently meet the General
23		Assembly's interest in business ownership that reflects the
24		population of the State of Illinois and that demonstrates the

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1		need to reduce barriers to entry for individuals and
2		communities most adversely impacted by the enforcement of
3		cannabis-related laws.
4		(b) In the interest of establishing a legal cannabis
5		industry that is equitable and accessible to those most
6		adversely impacted by the enforcement of drug-related laws in
7		this State, including cannabis-related laws, the General
8		Assembly finds and declares that a social equity program should
9		be established.
10		(c) The General Assembly also finds and declares that
11		individuals who have been arrested or incarcerated due to drug
12		laws suffer long-lasting negative consequences, including
13		impacts to employment, business ownership, housing, health,
14		and long-term financial well-being.
15		(d) The General Assembly also finds and declares that
16		family members, especially children, and communities of those
17		who have been arrested or incarcerated due to drug laws, suffer
18		from emotional, psychological, and financial harms as a result
19		of such arrests or incarcerations.
20		(e) Furthermore, the General Assembly finds and declares
21		that certain communities have disproportionately suffered the
22		harms of enforcement of cannabis-related laws. Those
23		communities face greater difficulties accessing traditional
24		banking systems and capital for establishing businesses.
25		(f) The General Assembly also finds that individuals who
26		have resided in areas of high poverty suffer negative

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1		consequences, including barriers to entry in employment,
2		business ownership, housing, health, and long-term financial
3		well-being.
4		(g) The General Assembly also finds and declares that
5		promotion of business ownership by individuals who have resided
6		in areas of high poverty and high enforcement of
7		cannabis-related laws furthers an equitable cannabis industry.
8		(h) Therefore, in the interest of remedying the harms
9		resulting from the disproportionate enforcement of
10		cannabis-related laws, the General Assembly finds and declares
11		that a social equity program should offer, among other things,
12		financial assistance and license application benefits to
13		individuals most directly and adversely impacted by the
14		enforcement of cannabis-related laws who are interested in
15		starting cannabis business establishments.
16		Section 7-10. Cannabis Business Development Fund.
17		(a) There is created in the State treasury a special fund,
18		which shall be held separate and apart from all other State
19		moneys, to be known as the Cannabis Business Development Fund.
20		The Cannabis Business Development Fund shall be exclusively
21		used for the following purposes:
22		(1) to provide low-interest rate loans to Social Equity
23		Applicants to pay for ordinary and necessary expenses to
24		start and operate a cannabis business establishment
25		permitted by this Act;

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1		(2) to provide grants to Qualified Social Equity
2		Applicants to pay for ordinary and necessary expenses to
3		start and operate a cannabis business establishment
4		permitted by this Act;
5		(3) to compensate the Department of Commerce and
6		Economic Opportunity for any costs related to the provision
7		of low-interest loans and grants to Qualified Social Equity
8		Applicants;
9		(4) to pay for outreach that may be provided or
10		targeted to attract and support Social Equity Applicants;
11		(5) (blank);
12		(6) to conduct any study or research concerning the
13		participation of minorities, women, veterans, or people
14		with disabilities in the cannabis industry, including,
15		without limitation, barriers to such individuals entering
16		the industry as equity owners of cannabis business
17		establishments;
18		(7) (blank); and
19		(8) to assist with job training and technical
20		assistance for residents in Disproportionately Impacted
21		Areas.
22		(b) All moneys collected under Sections 15-15 and 15-20 for
23		Early Approval Adult Use Dispensing Organization Licenses
24		issued before January 1, 2021 and remunerations made as a
25		result of transfers of permits awarded to Qualified Social
26		Equity Applicants shall be deposited into the Cannabis Business

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1		Development Fund.
2		(c) As soon as practical after July 1, 2019, the
3		Comptroller shall order and the Treasurer shall transfer
4		$12,000,000 from the Compassionate Use of Medical Cannabis Fund
5		to the Cannabis Business Development Fund.
6		(d) Notwithstanding any other law to the contrary, the
7		Cannabis Business Development Fund is not subject to sweeps,
8		administrative charge-backs, or any other fiscal or budgetary
9		maneuver that would in any way transfer any amounts from the
10		Cannabis Business Development Fund into any other fund of the
11		State.
12		Section 7-15. Loans and grants to Social Equity Applicants.
13		(a) The Department of Commerce and Economic Opportunity
14		shall establish grant and loan programs, subject to
15		appropriations from the Cannabis Business Development Fund,
16		for the purposes of providing financial assistance, loans,
17		grants, and technical assistance to Social Equity Applicants.
18		(b) The Department of Commerce and Economic Opportunity has
19		the power to:
20		(1) provide Cannabis Social Equity loans and grants
21		from appropriations from the Cannabis Business Development
22		Fund to assist Social Equity Applicants in gaining entry
23		to, and successfully operating in, the State's regulated
24		cannabis marketplace;
25		(2) enter into agreements that set forth terms and

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1		conditions of the financial assistance, accept funds or
2		grants, and engage in cooperation with private entities and
3		agencies of State or local government to carry out the
4		purposes of this Section;
5		(3) fix, determine, charge, and collect any premiums,
6		fees, charges, costs and expenses, including application
7		fees, commitment fees, program fees, financing charges, or
8		publication fees in connection with its activities under
9		this Section;
10		(4) coordinate assistance under these loan programs
11		with activities of the Illinois Department of Financial and
12		Professional Regulation, the Illinois Department of
13		Agriculture, and other agencies as needed to maximize the
14		effectiveness and efficiency of this Act;
15		(5) provide staff, administration, and related support
16		required to administer this Section;
17		(6) take whatever actions are necessary or appropriate
18		to protect the State's interest in the event of bankruptcy,
19		default, foreclosure, or noncompliance with the terms and
20		conditions of financial assistance provided under this
21		Section, including the ability to recapture funds if the
22		recipient is found to be noncompliant with the terms and
23		conditions of the financial assistance agreement;
24		(7) establish application, notification, contract, and
25		other forms, procedures, or rules deemed necessary and
26		appropriate; and

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1		(8) utilize vendors or contract work to carry out the
2		purposes of this Act.
3		(c) Loans made under this Section:
4		(1) shall only be made if, in the Department's
5		judgment, the project furthers the goals set forth in this
6		Act; and
7		(2) shall be in such principal amount and form and
8		contain such terms and provisions with respect to security,
9		insurance, reporting, delinquency charges, default
10		remedies, and other matters as the Department shall
11		determine appropriate to protect the public interest and to
12		be consistent with the purposes of this Section. The terms
13		and provisions may be less than required for similar loans
14		not covered by this Section.
15		(d) Grants made under this Section shall be awarded on a
16		competitive and annual basis under the Grant Accountability and
17		Transparency Act. Grants made under this Section shall further
18		and promote the goals of this Act, including promotion of
19		Social Equity Applicants, job training and workforce
20		development, and technical assistance to Social Equity
21		Applicants.
22		(e) Beginning January 1, 2021 and each year thereafter, the
23		Department shall annually report to the Governor and the
24		General Assembly on the outcomes and effectiveness of this
25		Section that shall include the following:
26		(1) the number of persons or businesses receiving

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1		financial assistance under this Section;
2		(2) the amount in financial assistance awarded in the
3		aggregate, in addition to the amount of loans made that are
4		outstanding and the amount of grants awarded;
5		(3) the location of the project engaged in by the
6		person or business; and
7		(4) if applicable, the number of new jobs and other
8		forms of economic output created as a result of the
9		financial assistance.
10		(f) The Department of Commerce and Economic Opportunity
11		shall include engagement with individuals with limited English
12		proficiency as part of its outreach provided or targeted to
13		attract and support Social Equity Applicants.
14		Section 7-20. Fee waivers.
15		(a) For Social Equity Applicants, the Department of
16		Financial and Professional Regulation and the Department of
17		Agriculture shall waive 50% of any nonrefundable license
18		application fees, any nonrefundable fees associated with
19		purchasing a license to operate a cannabis business
20		establishment, and any surety bond or other financial
21		requirements, provided a Social Equity Applicant meets the
22		following qualifications at the time the payment is due:
23		(1) the applicant, including all individuals and
24		entities with 10% or greater ownership and all parent
25		companies, subsidiaries, and affiliates, has less than a

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1		total of $750,000 of income in the previous calendar year;
2		and
3		(2) the applicant, including all individuals and
4		entities with 10% or greater ownership and all parent
5		companies, subsidiaries, and affiliates, has no more than 2
6		other licenses for cannabis business establishments in the
7		State of Illinois.
8		(b) The Department of Financial and Professional
9		Regulation and the Department of Agriculture may require Social
10		Equity Applicants to attest that they meet the requirements for
11		a fee waiver as provided in subsection (a) and to provide
12		evidence of annual total income in the previous calendar year.
13		(c) If the Department of Financial and Professional
14		Regulation or the Department of Agriculture determines that an
15		applicant who applied as a Social Equity Applicant is not
16		eligible for such status, the applicant shall be provided an
17		additional 10 days to provide alternative evidence that he or
18		she qualifies as a Social Equity Applicant. Alternatively, the
19		applicant may pay the remainder of the waived fee and be
20		considered as a non-Social Equity Applicant. If the applicant
21		cannot do either, then the Departments may keep the initial
22		application fee and the application shall not be graded.
23		Section 7-25. Transfer of license awarded to Social Equity
24		Applicant.
25		(a) In the event a Social Equity Applicant seeks to

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1		transfer, sell, or grant a cannabis business establishment
2		license within 5 years after it was issued to a person or
3		entity that does not qualify as a Social Equity Applicant, the
4		transfer agreement shall require the new license holder to pay
5		the Cannabis Business Development Fund an amount equal to:
6		(1) any fees that were waived by any State agency based
7		on the applicant's status as a Social Equity Applicant, if
8		applicable;
9		(2) any outstanding amount owed by the Qualified Social
10		Equity Applicant for a loan through the Cannabis Business
11		Development Fund, if applicable; and
12		(3) the full amount of any grants that the Qualified
13		Social Equity Applicant received from the Department of
14		Commerce and Economic Opportunity, if applicable.
15		(b) Transfers of cannabis business establishment licenses
16		awarded to a Social Equity Applicant are subject to all other
17		provisions of this Act, the Compassionate Use of Medical
18		Cannabis Pilot Program Act, and rules regarding transfers.
19		Section 7-30. Reporting. By January 1, 2021, and on January
20		1 of every year thereafter, or upon request by the Illinois
21		Cannabis Regulation Oversight Officer, each cannabis business
22		establishment licensed under this Act shall report to the
23		Illinois Cannabis Regulation Oversight Officer, on a form to be
24		provided by the Illinois Cannabis Regulation Oversight
25		Officer, information that will allow it to assess the extent of

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1		diversity in the medical and adult use cannabis industry and
2		methods for reducing or eliminating any identified barriers to
3		entry, including access to capital. The information to be
4		collected shall be designed to identify the following:
5		(1) the number and percentage of licenses provided to
6		Social Equity Applicants and to businesses owned by
7		minorities, women, veterans, and people with disabilities;
8		(2) the total number and percentage of employees in the
9		cannabis industry who meet the criteria in (3)(i) or
10		(3)(ii) in the definition of Social Equity Applicant or who
11		are minorities, women, veterans, or people with
12		disabilities;
13		(3) the total number and percentage of contractors and
14		subcontractors in the cannabis industry that meet the
15		definition of a Social Equity Applicant or who are owned by
16		minorities, women, veterans, or people with disabilities,
17		if known to the cannabis business establishment; and
18		(4) recommendations on reducing or eliminating any
19		identified barriers to entry, including access to capital,
20		in the cannabis industry.
21		ARTICLE 10.
22		PERSONAL USE OF CANNABIS
23		Section 10-5. Personal use of cannabis; restrictions on
24		cultivation; penalties.

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1		(a) Beginning January 1, 2020, notwithstanding any other
2		provision of law, and except as otherwise provided in this Act,
3		the following acts are not a violation of this Act and shall
4		not be a criminal or civil offense under State law or the
5		ordinances of any unit of local government of this State or be
6		a basis for seizure or forfeiture of assets under State law for
7		persons other than natural individuals under 21 years of age:
8		(1) possession, consumption, use, purchase, obtaining,
9		or transporting an amount of cannabis for personal use that
10		does not exceed the possession limit under Section 10-10 or
11		otherwise in accordance with the requirements of this Act;
12		(2) cultivation of cannabis for personal use in
13		accordance with the requirements of this Act; and
14		(3) controlling property if actions that are
15		authorized by this Act occur on the property in accordance
16		with this Act.
17		(a-1) Beginning January 1, 2020, notwithstanding any other
18		provision of law, and except as otherwise provided in this Act,
19		possessing, consuming, using, purchasing, obtaining, or
20		transporting an amount of cannabis purchased or produced in
21		accordance with this Act that does not exceed the possession
22		limit under subsection (a) of Section 10-10 shall not be a
23		basis for seizure or forfeiture of assets under State law.
24		(b) Cultivating cannabis for personal use is subject to the
25		following limitations:
26		(1) An Illinois resident 21 years of age or older who

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1		is a registered qualifying patient under the Compassionate
2		Use of Medical Cannabis Pilot Program Act may cultivate
3		cannabis plants, with a limit of 5 plants that are more
4		than 5 inches tall, per household without a cultivation
5		center or craft grower license. In this Section, "resident"
6		means a person who has been domiciled in the State of
7		Illinois for a period of 30 days before cultivation.
8		(2) Cannabis cultivation must take place in an
9		enclosed, locked space.
10		(3) Adult registered qualifying patients may purchase
11		cannabis seeds from a dispensary for the purpose of home
12		cultivation. Seeds may not be given or sold to any other
13		person.
14		(4) Cannabis plants shall not be stored or placed in a
15		location where they are subject to ordinary public view, as
16		defined in this Act. A registered qualifying patient who
17		cultivates cannabis under this Section shall take
18		reasonable precautions to ensure the plants are secure from
19		unauthorized access, including unauthorized access by a
20		person under 21 years of age.
21		(5) Cannabis cultivation may occur only on residential
22		property lawfully in possession of the cultivator or with
23		the consent of the person in lawful possession of the
24		property. An owner or lessor of residential property may
25		prohibit the cultivation of cannabis by a lessee.
26		(6) (Blank).

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1		(7) A dwelling, residence, apartment, condominium
2		unit, enclosed, locked space, or piece of property not
3		divided into multiple dwelling units shall not contain more
4		than 5 plants at any one time.
5		(8) Cannabis plants may only be tended by registered
6		qualifying patients who reside at the residence, or their
7		authorized agent attending to the residence for brief
8		periods, such as when the qualifying patient is temporarily
9		away from the residence.
10		(9) A registered qualifying patient who cultivates
11		more than the allowable number of cannabis plants, or who
12		sells or gives away cannabis plants, cannabis, or
13		cannabis-infused products produced under this Section, is
14		liable for penalties as provided by law, including the
15		Cannabis Control Act, in addition to loss of home
16		cultivation privileges as established by rule.
17		Section 10-10. Possession limit.
18		(a) Except if otherwise authorized by this Act, for a
19		person who is 21 years of age or older and a resident of this
20		State, the possession limit is as follows:
21		(1) 30 grams of cannabis flower;
22		(2) no more than 500 milligrams of THC contained in
23		cannabis-infused product;
24		(3) 5 grams of cannabis concentrate; and
25		(4) for registered qualifying patients, any cannabis

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1		produced by cannabis plants grown under subsection (b) of
2		Section 10-5, provided any amount of cannabis produced in
3		excess of 30 grams of raw cannabis or its equivalent must
4		remain secured within the residence or residential
5		property in which it was grown.
6		(b) For a person who is 21 years of age or older and who is
7		not a resident of this State, the possession limit is:
8		(1) 15 grams of cannabis flower;
9		(2) 2.5 grams of cannabis concentrate; and
10		(3) 250 milligrams of THC contained in a
11		cannabis-infused product.
12		(c) The possession limits found in subsections (a) and (b)
13		of this Section are to be considered cumulative.
14		(d) No person shall knowingly obtain, seek to obtain, or
15		possess an amount of cannabis from a dispensing organization or
16		craft grower that would cause him or her to exceed the
17		possession limit under this Section, including cannabis that is
18		cultivated by a person under this Act or obtained under the
19		Compassionate Use of Medical Cannabis Pilot Program Act.
20		Section 10-15. Persons under 21 years of age.
21		(a) Nothing in this Act is intended to permit the transfer
22		of cannabis, with or without remuneration, to a person under 21
23		years of age, or to allow a person under 21 years of age to
24		purchase, possess, use, process, transport, grow, or consume
25		cannabis except where authorized by the Compassionate Use of

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1		Medical Cannabis Pilot Program Act or by the Community College
2		Cannabis Vocational Pilot Program.
3		(b) Notwithstanding any other provisions of law
4		authorizing the possession of medical cannabis, nothing in this
5		Act authorizes a person who is under 21 years of age to possess
6		cannabis. A person under 21 years of age with cannabis in his
7		or her possession is guilty of a civil law violation as
8		outlined in paragraph (a) of Section 4 of the Cannabis Control
9		Act.
10		(c) If the person under the age of 21 was in a motor
11		vehicle at the time of the offense, the Secretary of State may
12		suspend or revoke the driving privileges of any person for a
13		violation of this Section under Section 6-206 of the Illinois
14		Vehicle Code and the rules adopted under it.
15		(d) It is unlawful for any parent or guardian to knowingly
16		permit his or her residence, any other private property under
17		his or her control, or any vehicle, conveyance, or watercraft
18		under his or her control to be used by an invitee of the
19		parent's child or the guardian's ward, if the invitee is under
20		the age of 21, in a manner that constitutes a violation of this
21		Section. A parent or guardian is deemed to have knowingly
22		permitted his or her residence, any other private property
23		under his or her control, or any vehicle, conveyance, or
24		watercraft under his or her control to be used in violation of
25		this Section if he or she knowingly authorizes or permits
26		consumption of cannabis by underage invitees. Any person who

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1		violates this subsection (d) is guilty of a Class A misdemeanor
2		and the person's sentence shall include, but shall not be
3		limited to, a fine of not less than $500. If a violation of
4		this subsection (d) directly or indirectly results in great
5		bodily harm or death to any person, the person violating this
6		subsection is guilty of a Class 4 felony. In this subsection
7		(d), where the residence or other property has an owner and a
8		tenant or lessee, the trier of fact may infer that the
9		residence or other property is occupied only by the tenant or
10		lessee.
11		Section 10-20. Identification; false identification;
12		penalty.
13		(a) To protect personal privacy, the Department of
14		Financial and Professional Regulation shall not require a
15		purchaser to provide a dispensing organization with personal
16		information other than government-issued identification to
17		determine the purchaser's age, and a dispensing organization
18		shall not obtain and record personal information about a
19		purchaser without the purchaser's consent. A dispensing
20		organization shall use an electronic reader or electronic
21		scanning device to scan a purchaser's government-issued
22		identification, if applicable, to determine the purchaser's
23		age and the validity of the identification. Any identifying or
24		personal information of a purchaser obtained or received in
25		accordance with this Section shall not be retained, used,

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1		shared or disclosed for any purpose except as authorized by
2		this Act.
3		(b) A person who is under 21 years of age may not present
4		or offer to a cannabis business establishment or the cannabis
5		business establishment's principal or employee any written or
6		oral evidence of age that is false, fraudulent, or not actually
7		the person's own, for the purpose of:
8		(1) purchasing, attempting to purchase, or otherwise
9		obtaining or attempting to obtain cannabis or any cannabis
10		product; or
11		(2) gaining access to a cannabis business
12		establishment.
13		(c) A violation of this Section is a Class A misdemeanor
14		consistent with Section 6-20 of the Liquor Control Act of 1934.
15		(d) The Secretary of State may suspend or revoke the
16		driving privileges of any person for a violation of this
17		Section under Section 6-206 of the Illinois Vehicle Code and
18		the rules adopted under it.
19		(e) No agent or employee of the licensee shall be
20		disciplined or discharged for selling or furnishing cannabis or
21		cannabis products to a person under 21 years of age if the
22		agent or employee demanded and was shown, before furnishing
23		cannabis or cannabis products to a person under 21 years of
24		age, adequate written evidence of age and identity of the
25		person. This subsection (e) does not apply if the agent or
26		employee accepted the written evidence knowing it to be false

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1		or fraudulent. Adequate written evidence of age and identity of
2		the person is a document issued by a federal, State, county, or
3		municipal government, or subdivision or agency thereof,
4		including, but not limited to, a motor vehicle operator's
5		license, a registration certificate issued under the Military
6		Selective Service Act, or an identification card issued to a
7		member of the Armed Forces. Proof that the licensee or his or
8		her employee or agent was shown and reasonably relied upon such
9		written evidence in any transaction forbidden by this Section
10		is an affirmative defense in any criminal prosecution therefor
11		or to any proceedings for the suspension or revocation of any
12		license based thereon.
13		Section 10-25. Immunities and presumptions related to the
14		use of cannabis by purchasers.
15		(a) A purchaser who is 21 years of age or older is not
16		subject to arrest, prosecution, denial of any right or
17		privilege, or other punishment including, but not limited to,
18		any civil penalty or disciplinary action taken by an
19		occupational or professional licensing board, based solely on
20		the use of cannabis if (1) the purchaser possesses an amount of
21		cannabis that does not exceed the possession limit under
22		Section 10-10 and, if the purchaser is licensed, certified, or
23		registered to practice any trade or profession under any Act
24		and (2) the use of cannabis does not impair that person when he
25		or she is engaged in the practice of the profession for which

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1		he or she is licensed, certified, or registered.
2		(b) A purchaser 21 years of age or older is not subject to
3		arrest, prosecution, denial of any right or privilege, or other
4		punishment, including, but not limited to, any civil penalty or
5		disciplinary action taken by an occupational or professional
6		licensing board, based solely for (i) selling cannabis
7		paraphernalia if employed and licensed as a dispensing agent by
8		a dispensing organization or (ii) being in the presence or
9		vicinity of the use of cannabis as allowed under this Act.
10		(c) Mere possession of, or application for, an agent
11		identification card or license does not constitute probable
12		cause or reasonable suspicion to believe that a crime has been
13		committed, nor shall it be used as the sole basis to support
14		the search of the person, property, or home of the person
15		possessing or applying for the agent identification card. The
16		possession of, or application for, an agent identification card
17		does not preclude the existence of probable cause if probable
18		cause exists based on other grounds.
19		(d) No person employed by the State of Illinois shall be
20		subject to criminal or civil penalties for taking any action in
21		good faith in reliance on this Act when acting within the scope
22		of his or her employment. Representation and indemnification
23		shall be provided to State employees as set forth in Section 2
24		of the State Employee Indemnification Act.
25		(e) No law enforcement or correctional agency, nor any
26		person employed by a law enforcement or correctional agency,

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1		shall be subject to criminal or civil liability, except for
2		willful and wanton misconduct, as a result of taking any action
3		within the scope of the official duties of the agency or person
4		to prohibit or prevent the possession or use of cannabis by a
5		person incarcerated at a correctional facility, jail, or
6		municipal lockup facility, on parole or mandatory supervised
7		release, or otherwise under the lawful jurisdiction of the
8		agency or person.
9		(f) For purposes of receiving medical care, including organ
10		transplants, a person's use of cannabis under this Act does not
11		constitute the use of an illicit substance or otherwise
12		disqualify a person from medical care.
13		Section 10-30. Discrimination prohibited.
14		(a) Neither the presence of cannabinoid components or
15		metabolites in a person's bodily fluids nor possession of
16		cannabis-related paraphernalia, nor conduct related to the use
17		of cannabis or the participation in cannabis-related
18		activities lawful under this Act by a custodial or noncustodial
19		parent, grandparent, legal guardian, foster parent, or other
20		person charged with the well-being of a child, shall form the
21		sole or primary basis or supporting basis for any action or
22		proceeding by a child welfare agency or in a family or juvenile
23		court, any adverse finding, adverse evidence, or restriction of
24		any right or privilege in a proceeding related to adoption of a
25		child, acting as a foster parent of a child, or a person's

HB1438 Enrolled - 49 - LRB101 04919 JRG 49928 b
1		fitness to adopt a child or act as a foster parent of a child,
2		or serve as the basis of any adverse finding, adverse evidence,
3		or restriction of any right of privilege in a proceeding
4		related to guardianship, conservatorship, trusteeship, the
5		execution of a will, or the management of an estate, unless the
6		person's actions in relation to cannabis created an
7		unreasonable danger to the safety of the minor or otherwise
8		show the person to not be competent as established by clear and
9		convincing evidence. This subsection applies only to conduct
10		protected under this Act.
11		(b) No landlord may be penalized or denied any benefit
12		under State law for leasing to a person who uses cannabis under
13		this Act.
14		(c) Nothing in this Act may be construed to require any
15		person or establishment in lawful possession of property to
16		allow a guest, client, lessee, customer, or visitor to use
17		cannabis on or in that property.
18		Section 10-35. Limitations and penalties.
19		(a) This Act does not permit any person to engage in, and
20		does not prevent the imposition of any civil, criminal, or
21		other penalties for engaging in, any of the following conduct:
22		(1) undertaking any task under the influence of
23		cannabis when doing so would constitute negligence,
24		professional malpractice, or professional misconduct;
25		(2) possessing cannabis:

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1		(A) in a school bus, unless permitted for a
2		qualifying patient or caregiver pursuant to the
3		Compassionate Use of Medical Cannabis Pilot Program
4		Act;
5		(B) on the grounds of any preschool or primary or
6		secondary school, unless permitted for a qualifying
7		patient or caregiver pursuant to the Compassionate Use
8		of Medical Cannabis Pilot Program Act;
9		(C) in any correctional facility;
10		(D) in a vehicle not open to the public unless the
11		cannabis is in a reasonably secured, sealed container
12		and reasonably inaccessible while the vehicle is
13		moving; or
14		(E) in a private residence that is used at any time
15		to provide licensed child care or other similar social
16		service care on the premises;
17		(3) using cannabis:
18		(A) in a school bus, unless permitted for a
19		qualifying patient or caregiver pursuant to the
20		Compassionate Use of Medical Cannabis Pilot Program
21		Act;
22		(B) on the grounds of any preschool or primary or
23		secondary school, unless permitted for a qualifying
24		patient or caregiver pursuant to the Compassionate Use
25		of Medical Cannabis Pilot Program Act;
26		(C) in any correctional facility;

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1		(D) in any motor vehicle;
2		(E) in a private residence that is used at any time
3		to provide licensed child care or other similar social
4		service care on the premises;
5		(F) in any public place; or
6		(G) knowingly in close physical proximity to
7		anyone under 21 years of age who is not a registered
8		medical cannabis patient under the Compassionate Use
9		of Medical Cannabis Pilot Program Act;
10		(4) smoking cannabis in any place where smoking is
11		prohibited under the Smoke Free Illinois Act;
12		(5) operating, navigating, or being in actual physical
13		control of any motor vehicle, aircraft, or motorboat while
14		using or under the influence of cannabis in violation of
15		Section 11-501 or 11-502.1 of the Illinois Vehicle Code;
16		(6) facilitating the use of cannabis by any person who
17		is not allowed to use cannabis under this Act or the
18		Compassionate Use of Medical Cannabis Pilot Program Act;
19		(7) transferring cannabis to any person contrary to
20		this Act or the Compassionate Use of Medical Cannabis Pilot
21		Program Act;
22		(8) the use of cannabis by a law enforcement officer,
23		corrections officer, probation officer, or firefighter
24		while on duty; or
25		(9) the use of cannabis by a person who has a school
26		bus permit or a Commercial Driver's License while on duty.

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1		As used in this Section, "public place" means any place
2		where a person could reasonably be expected to be observed by
3		others. "Public place" includes all parts of buildings owned in
4		whole or in part, or leased, by the State or a unit of local
5		government. "Public place" does not include a private residence
6		unless the private residence is used to provide licensed child
7		care, foster care, or other similar social service care on the
8		premises.
9		(b) Nothing in this Act shall be construed to prevent the
10		arrest or prosecution of a person for reckless driving or
11		driving under the influence of cannabis if probable cause
12		exists.
13		(c) Nothing in this Act shall prevent a private business
14		from restricting or prohibiting the use of cannabis on its
15		property, including areas where motor vehicles are parked.
16		(d) Nothing in this Act shall require an individual or
17		business entity to violate the provisions of federal law,
18		including colleges or universities that must abide by the
19		Drug-Free Schools and Communities Act Amendments of 1989, that
20		require campuses to be drug free.
21		Section 10-40. Restore, Reinvest, and Renew Program.
22		(a) The General Assembly finds that in order to address the
23		disparities described below, aggressive approaches and
24		targeted resources to support local design and control of
25		community-based responses to these outcomes are required. To

HB1438 Enrolled - 53 - LRB101 04919 JRG 49928 b
1		carry out this intent, the Restore, Reinvest, and Renew (R3)
2		Program is created for the following purposes:
3		(1) to directly address the impact of economic
4		disinvestment, violence, and the historical overuse of
5		criminal justice responses to community and individual
6		needs by providing resources to support local design and
7		control of community-based responses to these impacts;
8		(2) to substantially reduce both the total amount of
9		gun violence and concentrated poverty in this State;
10		(3) to protect communities from gun violence through
11		targeted investments and intervention programs, including
12		economic growth and improving family violence prevention,
13		community trauma treatment rates, gun injury victim
14		services, and public health prevention activities;
15		(4) to promote employment infrastructure and capacity
16		building related to the social determinants of health in
17		the eligible community areas.
18		(b) In this Section, "Authority" means the Illinois
19		Criminal Justice Information Authority in coordination with
20		the Justice, Equity, and Opportunity Initiative of the
21		Lieutenant Governor's Office.
22		(c) Eligibility of R3 Areas. Within 180 days after the
23		effective date of this Act, the Authority shall identify as
24		eligible, areas in this State by way of historically recognized
25		geographic boundaries, to be designated by the Restore,
26		Reinvest, and Renew Program Board as R3 Areas and therefore

HB1438 Enrolled - 54 - LRB101 04919 JRG 49928 b
1		eligible to apply for R3 funding. Local groups within R3 Areas
2		will be eligible to apply for State funding through the
3		Restore, Reinvest, and Renew Program Board. Qualifications for
4		designation as an R3 Area are as follows:
5		(1) Based on an analysis of data, communities in this
6		State that are high need, underserved, disproportionately
7		impacted by historical economic disinvestment, and ravaged
8		by violence as indicated by the highest rates of gun
9		injury, unemployment, child poverty rates, and commitments
10		to and returns from the Illinois Department of Corrections.
11		(2) The Authority shall send to the Legislative Audit
12		Commission and make publicly available its analysis and
13		identification of eligible R3 Areas and shall recalculate
14		he eligibility data every 4 years. On an annual basis, the
15		Authority shall analyze data and indicate if data covering
16		any R3 Area or portion of an Area has, for 4 consecutive
17		years, substantially deviated from the average of
18		statewide data on which the original calculation was made
19		to determine the Areas, including disinvestment, violence,
20		gun injury, unemployment, child poverty rates, or
21		commitments to or returns from the Illinois Department of
22		Corrections.
23		(d) The Restore, Reinvest, and Renew Program Board shall
24		encourage collaborative partnerships within each R3 Area to
25		minimize multiple partnerships per Area.
26		(e) The Restore, Reinvest, and Renew Program Board is

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1		created and shall reflect the diversity of the State of
2		Illinois, including geographic, racial, and ethnic diversity.
3		Using the data provided by the Authority, the Restore,
4		Reinvest, and Renew Program Board shall be responsible for
5		designating the R3 Area boundaries and for the selection and
6		oversight of R3 Area grantees. The Restore, Reinvest, and Renew
7		Program Board ex officio members shall, within 4 months after
8		the effective date of this Act, convene the Board to appoint a
9		full Restore, Reinvest, and Renew Program Board and oversee,
10		provide guidance to, and develop an administrative structure
11		for the R3 Program.
12		(1) The ex officio members are:
13		(A) The Lieutenant Governor, or his or her
14		designee, who shall serve as chair.
15		(B) The Attorney General, or his or her
16		designee.
17		(C) The Director of Commerce and Economic
18		Opportunity, or his or her designee.
19		(D) The Director of Public Health, or his or
20		her designee.
21		(E) The Director of Corrections, or his or her
22		designee.
23		(F) The Executive Director of the Illinois
24		Criminal Justice Information Authority, or his or
25		her designee.
26		(G) The Director of Employment Security, or

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1		his or her designee.
2		(H) The Secretary of Human Services, or his or
3		her designee.
4		(I) A member of the Senate, designated by the
5		President of the Senate.
6		(J) A member of the House of Representatives,
7		designated by the Speaker of the House of
8		Representatives.
9		(K) A member of the Senate, designated by the
10		Minority Leader of the Senate.
11		(L) A member of the House of Representatives,
12		designated by the Minority Leader of the House of
13		Representatives.
14		(2) Within 90 days after the R3 Areas have been
15		designated by the Restore, Reinvest, and Renew Program
16		Board, the following members shall be appointed to the
17		Board by the R3 board chair:
18		(A) public officials of municipal geographic
19		jurisdictions in the State that include an R3 Area, or
20		their designees;
21		(B) 4 community-based providers or community
22		development organization representatives who provide
23		services to treat violence and address the social
24		determinants of health, or promote community
25		investment, including, but not limited to, services
26		such as job placement and training, educational

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1		services, workforce development programming, and
2		wealth building. The community-based organization
3		representatives shall work primarily in jurisdictions
4		that include an R3 Area and no more than 2
5		representatives shall work primarily in Cook County.
6		At least one of the community-based providers shall
7		have expertise in providing services to an immigrant
8		population;
9		(C) Two experts in the field of violence reduction;
10		(D) One male who has previously been incarcerated
11		and is over the age of 24 at time of appointment;
12		(E) One female who has previously been
13		incarcerated and is over the age of 24 at time of
14		appointment;
15		(F) Two individuals who have previously been
16		incarcerated and are between the ages of 17 and 24 at
17		time of appointment.
18		As used in this paragraph (2), "an individual who has
19		been previously incarcerated" means a person who has been
20		convicted of or pled guilty to one or more felonies, who
21		was sentenced to a term of imprisonment, and who has
22		completed his or her sentence. Board members shall serve
23		without compensation and may be reimbursed for reasonable
24		expenses incurred in the performance of their duties from
25		funds appropriated for that purpose. Once all its members
26		have been appointed as outlined in items (A) through (F) of

HB1438 Enrolled - 58 - LRB101 04919 JRG 49928 b
1		this paragraph (2), the Board may exercise any power,
2		perform any function, take any action, or do anything in
3		furtherance of its purposes and goals upon the appointment
4		of a quorum of its members. The Board terms of the non-ex
5		officio and General Assembly Board members shall end 4
6		years from the date of appointment.
7		(f) Within 12 months after the effective date of this Act,
8		the Board shall:
9		(1) develop a process to solicit applications from
10		eligible R3 Areas;
11		(2) develop a standard template for both planning and
12		implementation activities to be submitted by R3 Areas to
13		the State;
14		(3) identify resources sufficient to support the full
15		administration and evaluation of the R3 Program, including
16		building and sustaining core program capacity at the
17		community and State levels;
18		(4) review R3 Area grant applications and proposed
19		agreements and approve the distribution of resources;
20		(5) develop a performance measurement system that
21		focuses on positive outcomes;
22		(6) develop a process to support ongoing monitoring and
23		evaluation of R3 programs; and
24		(7) deliver an annual report to the General Assembly
25		and to the Governor to be posted on the Governor's Office
26		and General Assembly websites and provide to the public an

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1		annual report on its progress.
2		(g) R3 Area grants.
3		(1) Grant funds shall be awarded by the Illinois
4		Criminal Justice Information Authority, in coordination
5		with the R3 board, based on the likelihood that the plan
6		will achieve the outcomes outlined in subsection (a) and
7		consistent with the requirements of the Grant
8		Accountability and Transparency Act. The R3 Program shall
9		also facilitate the provision of training and technical
10		assistance for capacity building within and among R3 Areas.
11		(2) R3 Program Board grants shall be used to address
12		economic development, violence prevention services,
13		re-entry services, youth development, and civil legal aid.
14		(3) The Restore, Reinvest, and Renew Program Board and
15		the R3 Area grantees shall, within a period of no more than
16		120 days from the completion of planning activities
17		described in this Section, finalize an agreement on the
18		plan for implementation. Implementation activities may:
19		(A) have a basis in evidence or best practice
20		research or have evaluations demonstrating the
21		capacity to address the purpose of the program in
22		subsection (a);
23		(B) collect data from the inception of planning
24		activities through implementation, with data
25		collection technical assistance when needed, including
26		cost data and data related to identified meaningful

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1		short-term, mid-term, and long-term goals and metrics;
2		(C) report data to the Restore, Reinvest, and Renew
3		Program Board biannually; and
4		(D) report information as requested by the R3
5		Program Board.
6		Section 10-50. Employment; employer liability.
7		(a) Nothing in this Act shall prohibit an employer from
8		adopting reasonable zero tolerance or drug free workplace
9		policies, or employment policies concerning drug testing,
10		smoking, consumption, storage, or use of cannabis in the
11		workplace or while on call provided that the policy is applied
12		in a nondiscriminatory manner.
13		(b) Nothing in this Act shall require an employer to permit
14		an employee to be under the influence of or use cannabis in the
15		employer's workplace or while performing the employee's job
16		duties or while on call.
17		(c) Nothing in this Act shall limit or prevent an employer
18		from disciplining an employee or terminating employment of an
19		employee for violating an employer's employment policies or
20		workplace drug policy.
21		(d) An employer may consider an employee to be impaired or
22		under the influence of cannabis if the employer has a good
23		faith belief that an employee manifests specific, articulable
24		symptoms while working that decrease or lessen the employee's
25		performance of the duties or tasks of the employee's job

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1		position, including symptoms of the employee's speech,
2		physical dexterity, agility, coordination, demeanor,
3		irrational or unusual behavior, or negligence or carelessness
4		in operating equipment or machinery; disregard for the safety
5		of the employee or others, or involvement in any accident that
6		results in serious damage to equipment or property; disruption
7		of a production or manufacturing process; or carelessness that
8		results in any injury to the employee or others. If an employer
9		elects to discipline an employee on the basis that the employee
10		is under the influence or impaired by cannabis, the employer
11		must afford the employee a reasonable opportunity to contest
12		the basis of the determination.
13		(e) Nothing in this Act shall be construed to create or
14		imply a cause of action for any person against an employer for:
15		(1) actions, including but not limited to subjecting an
16		employee or applicant to reasonable drug and alcohol
17		testing under the employer's workplace drug policy,
18		including an employee's refusal to be tested or to
19		cooperate in testing procedures or disciplining or
20		termination of employment, based on the employer's good
21		faith belief that an employee used or possessed cannabis in
22		the employer's workplace or while performing the
23		employee's job duties or while on call in violation of the
24		employer's employment policies;
25		(2) actions, including discipline or termination of
26		employment, based on the employer's good faith belief that

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1		an employee was impaired as a result of the use of
2		cannabis, or under the influence of cannabis, while at the
3		employer's workplace or while performing the employee's
4		job duties or while on call in violation of the employer's
5		workplace drug policy; or
6		(3) injury, loss, or liability to a third party if the
7		employer neither knew nor had reason to know that the
8		employee was impaired.
9		(f) Nothing in this Act shall be construed to enhance or
10		diminish protections afforded by any other law, including but
11		not limited to the Compassionate Use of Medical Cannabis Pilot
12		Program Act or the Opioid Alternative Pilot Program.
13		(g) Nothing in this Act shall be construed to interfere
14		with any federal, State, or local restrictions on employment
15		including, but not limited to, the United States Department of
16		Transportation regulation 49 CFR 40.151(e) or impact an
17		employer's ability to comply with federal or State law or cause
18		it to lose a federal or State contract or funding.
19		(h) As used in this Section, "workplace" means the
20		employer's premises, including any building, real property,
21		and parking area under the control of the employer or area used
22		by an employee while in performance of the employee's job
23		duties, and vehicles, whether leased, rented, or owned.
24		"Workplace" may be further defined by the employer's written
25		employment policy, provided that the policy is consistent with
26		this Section.

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1		(i) For purposes of this Section, an employee is deemed "on
2		call" when such employee is scheduled with at least 24 hours'
3		notice by his or her employer to be on standby or otherwise
4		responsible for performing tasks related to his or her
5		employment either at the employer's premises or other
6		previously designated location by his or her employer or
7		supervisor to perform a work-related task.
8		ARTICLE 15.
9		LICENSE AND REGULATION OF DISPENSING ORGANIZATIONS
10		Section 15-5. Authority.
11		(a) In this Article, "Department" means the Department of
12		Financial and Professional Regulation.
13		(b) It is the duty of the Department to administer and
14		enforce the provisions of this Act relating to the licensure
15		and oversight of dispensing organizations and dispensing
16		organization agents unless otherwise provided in this Act.
17		(c) 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. No person shall be an officer, director, manager,
21		or employee of a dispensing organization without having been
22		issued a dispensing organization agent card by the Department.
23		(d) Subject to the provisions of this Act, the Department
24		may exercise the following powers and duties:

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1		(1) Prescribe forms to be issued for the administration
2		and enforcement of this Article.
3		(2) Examine, inspect, and investigate the premises,
4		operations, and records of dispensing organization
5		applicants and licensees.
6		(3) Conduct investigations of possible violations of
7		this Act pertaining to dispensing organizations and
8		dispensing organization agents.
9		(4) Conduct hearings on proceedings to refuse to issue
10		or renew licenses or to revoke, suspend, place on
11		probation, reprimand, or otherwise discipline a license
12		under this Article or take other nondisciplinary action.
13		(5) Adopt rules required for the administration of this
14		Article.
15		Section 15-10. Medical cannabis dispensing organization
16		exemption. This Article does not apply to medical cannabis
17		dispensing organizations registered under the Compassionate
18		Use of Medical Cannabis Pilot Program Act, except where
19		otherwise specified.
20		Section 15-15. Early Approval Adult Use Dispensing
21		Organization License.
22		(a) Any medical cannabis dispensing organization holding a
23		valid registration under the Compassionate Use of Medical
24		Cannabis Pilot Program Act as of the effective date of this Act

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1		may, within 60 days of the effective date of this Act, apply to
2		the Department for an Early Approval Adult Use Dispensing
3		Organization License to serve purchasers at any medical
4		cannabis dispensing location in operation on the effective date
5		of this Act, pursuant to this Section.
6		(b) A medical cannabis dispensing organization seeking
7		issuance of an Early Approval Adult Use Dispensing Organization
8		License to serve purchasers at any medical cannabis dispensing
9		location in operation as of the effective date of this Act
10		shall submit an application on forms provided by the
11		Department. The application must be submitted by the same
12		person or entity that holds the medical cannabis dispensing
13		organization registration and include the following:
14		(1) Payment of a nonrefundable fee of $30,000 to be
15		deposited into the Cannabis Regulation Fund;
16		(2) Proof of registration as a medical cannabis
17		dispensing organization that is in good standing;
18		(3) Certification that the applicant will comply with
19		the requirements contained in the Compassionate Use of
20		Medical Cannabis Pilot Program Act except as provided in
21		this Act;
22		(4) The legal name of the dispensing organization;
23		(5) The physical address of the dispensing
24		organization;
25		(6) The name, address, social security number, and date
26		of birth of each principal officer and board member of the

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1		dispensing organization, each of whom must be at least 21
2		years of age;
3		(7) A nonrefundable Cannabis Business Development Fee
4		equal to 3% of the dispensing organization's total sales
5		between June 1, 2018 to June 1, 2019, or $100,000,
6		whichever is less, to be deposited into the Cannabis
7		Business Development Fund; and
8		(8) Identification of one of the following Social
9		Equity Inclusion Plans to be completed by March 31, 2021:
10		(A) Make a contribution of 3% of total sales from
11		June 1, 2018 to June 1, 2019, or $100,000, whichever is
12		less, to the Cannabis Business Development Fund. This
13		is in addition to the fee required by item (7) of this
14		subsection (b);
15		(B) Make a grant of 3% of total sales from June 1,
16		2018 to June 1, 2019, or $100,000, whichever is less,
17		to a cannabis industry training or education program at
18		an Illinois community college as defined in the Public
19		Community College Act;
20		(C) Make a donation of $100,000 or more to a
21		program that provides job training services to persons
22		recently incarcerated or that operates in a
23		Disproportionately Impacted Area;
24		(D) Participate as a host in a cannabis business
25		establishment incubator program approved by the
26		Department of Commerce and Economic Opportunity, and

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1		in which an Early Approval Adult Use Dispensing
2		Organization License holder agrees to provide a loan of
3		at least $100,000 and mentorship to incubate a licensee
4		that qualifies as a Social Equity Applicant for at
5		least a year. As used in this Section, "incubate" means
6		providing direct financial assistance and training
7		necessary to engage in licensed cannabis industry
8		activity similar to that of the host licensee. The
9		Early Approval Adult Use Dispensing Organization
10		License holder or the same entity holding any other
11		licenses issued pursuant to this Act shall not take an
12		ownership stake of greater than 10% in any business
13		receiving incubation services to comply with this
14		subsection. If an Early Approval Adult Use Dispensing
15		Organization License holder fails to find a business to
16		incubate to comply with this subsection before its
17		Early Approval Adult Use Dispensing Organization
18		License expires, it may opt to meet the requirement of
19		this subsection by completing another item from this
20		subsection; or
21		(E) Participate in a sponsorship program for at
22		least 2 years approved by the Department of Commerce
23		and Economic Opportunity in which an Early Approval
24		Adult Use Dispensing Organization License holder
25		agrees to provide an interest-free loan of at least
26		$200,000 to a Social Equity Applicant. The sponsor

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1		shall not take an ownership stake in any cannabis
2		business establishment receiving sponsorship services
3		to comply with this subsection.
4		(c) The license fee required by paragraph (1) of subsection
5		(b) of this Section shall be in addition to any license fee
6		required for the renewal of a registered medical cannabis
7		dispensing organization license.
8		(d) Applicants must submit all required information,
9		including the requirements in subsection (b) of this Section,
10		to the Department. Failure by an applicant to submit all
11		required information may result in the application being
12		disqualified.
13		(e) If the Department receives an application that fails to
14		provide the required elements contained in subsection (b), the
15		Department shall issue a deficiency notice to the applicant.
16		The applicant shall have 10 calendar days from the date of the
17		deficiency notice to submit complete information. Applications
18		that are still incomplete after this opportunity to cure may be
19		disqualified.
20		(f) If an applicant meets all the requirements of
21		subsection (b) of this Section, the Department shall issue the
22		Early Approval Adult Use Dispensing Organization License
23		within 14 days of receiving a completed application unless:
24		(1) The licensee or a principal officer is delinquent
25		in filing any required tax returns or paying any amounts
26		owed to the State of Illinois;

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1		(2) The Secretary of Financial and Professional
2		Regulation determines there is reason, based on documented
3		compliance violations, the licensee is not entitled to an
4		Early Approval Adult Use Dispensing Organization License;
5		or
6		(3) Any principal officer fails to register and remain
7		in compliance with this Act or the Compassionate Use of
8		Medical Cannabis Pilot Program Act.
9		(g) A registered medical cannabis dispensing organization
10		that obtains an Early Approval Adult Use Dispensing
11		Organization License may begin selling cannabis,
12		cannabis-infused products, paraphernalia, and related items to
13		purchasers under the rules of this Act no sooner than January
14		1, 2020.
15		(h) A dispensing organization holding a medical cannabis
16		dispensing organization license issued under the Compassionate
17		Use of Medical Cannabis Pilot Program Act must maintain an
18		adequate supply of cannabis and cannabis-infused products for
19		purchase by qualifying patients, caregivers, provisional
20		patients, and Opioid Alternative Pilot Program participants.
21		For the purposes of this subsection, "adequate supply" means a
22		monthly inventory level that is comparable in type and quantity
23		to those medical cannabis products provided to patients and
24		caregivers on an average monthly basis for the 6 months before
25		the effective date of this Act.
26		(i) If there is a shortage of cannabis or cannabis-infused

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1		products, a dispensing organization holding both a dispensing
2		organization license under the Compassionate Use of Medical
3		Cannabis Pilot Program Act and this Act shall prioritize
4		serving qualifying patients, caregivers, provisional patients,
5		and Opioid Alternative Pilot Program participants before
6		serving purchasers.
7		(j) Notwithstanding any law or rule to the contrary, a
8		person that holds a medical cannabis dispensing organization
9		license issued under the Compassionate Use of Medical Cannabis
10		Pilot Program Act and an Early Approval Adult Use Dispensing
11		Organization License may permit purchasers into a limited
12		access area as that term is defined in administrative rules
13		made under the authority in the Compassionate Use of Medical
14		Cannabis Pilot Program Act.
15		(k) An Early Approval Adult Use Dispensing Organization
16		License is valid until March 31, 2021. A dispensing
17		organization that obtains an Early Approval Adult Use
18		Dispensing Organization License shall receive written or
19		electronic notice 90 days before the expiration of the license
20		that the license will expire, and inform the license holder
21		that it may renew its Early Approval Adult Use Dispensing
22		Organization License. The Department shall renew the Early
23		Approval Adult Use Dispensing Organization License within 60
24		days of the renewal application being deemed complete if:
25		(1) the dispensing organization submits an application
26		and the required nonrefundable renewal fee of $30,000, to

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1		be deposited into the Cannabis Regulation Fund;
2		(2) the Department has not suspended or revoked the
3		Early Approval Adult Use Dispensing Organization License
4		or a medical cannabis dispensing organization license on
5		the same premises for violations of this Act, the
6		Compassionate Use of Medical Cannabis Pilot Program Act, or
7		rules adopted pursuant to those Acts; and
8		(3) the dispensing organization has completed a Social
9		Equity Inclusion Plan as required by paragraph (8) of
10		subsection (b) of this Section.
11		(l) The Early Approval Adult Use Dispensing Organization
12		License renewed pursuant to subsection (k) of this Section
13		shall expire March 31, 2022. The Early Approval Adult Use
14		Dispensing Organization Licensee shall receive written or
15		electronic notice 90 days before the expiration of the license
16		that the license will expire, and inform the license holder
17		that it may apply for an Adult Use Dispensing Organization
18		License. The Department shall grant an Adult Use Dispensing
19		Organization License within 60 days of an application being
20		deemed complete if the applicant has met all of the criteria in
21		Section 15-36.
22		(m) If a dispensary fails to submit an application for an
23		Adult Use Dispensing Organization License before the
24		expiration of the Early Approval Adult Use Dispensing
25		Organization License pursuant to subsection (k) of this
26		Section, the dispensing organization shall cease serving

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1		purchasers and cease all operations until it receives an Adult
2		Use Dispensing Organization License.
3		(n) A dispensing organization agent who holds a valid
4		dispensing organization agent identification card issued under
5		the Compassionate Use of Medical Cannabis Pilot Program Act and
6		is an officer, director, manager, or employee of the dispensing
7		organization licensed under this Section may engage in all
8		activities authorized by this Article to be performed by a
9		dispensing organization agent.
10		(o) All fees collected pursuant to this Section shall be
11		deposited into the Cannabis Regulation Fund, unless otherwise
12		specified.
13		Section 15-20. Early Approval Adult Use Dispensing
14		Organization License; secondary site.
15		(a) If the Department suspends or revokes the Early
16		Approval Adult Use Dispensing Organization License of a
17		dispensing organization that also holds a medical cannabis
18		dispensing organization license issued under the Compassionate
19		Use of Medical Cannabis Pilot Program Act, the Department may
20		consider the suspension or revocation as grounds to take
21		disciplinary action against the medical cannabis dispensing
22		organization license.
23		(a-5) If, within 360 days of the effective date of this
24		Act, a dispensing organization is unable to find a location
25		within the BLS Regions prescribed in subsection (a) of this

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1		Section in which to operate an Early Approval Adult Use
2		Dispensing Organization at a secondary site because no
3		jurisdiction within the prescribed area allows the operation of
4		an Adult Use Cannabis Dispensing Organization, the Department
5		of Financial and Professional Regulation may waive the
6		geographic restrictions of subsection (a) of this Section and
7		specify another BLS Region into which the dispensary may be
8		placed.
9		(b) Any medical cannabis dispensing organization holding a
10		valid registration under the Compassionate Use of Medical
11		Cannabis Pilot Program Act as of the effective date of this Act
12		may, within 60 days of the effective date of this Act, apply to
13		the Department for an Early Approval Adult Use Dispensing
14		Organization License to operate a dispensing organization to
15		serve purchasers at a secondary site not within 1,500 feet of
16		another medical cannabis dispensing organization or adult use
17		dispensing organization. The Early Approval Adult Use
18		Dispensing Organization secondary site shall be within any BLS
19		region that shares territory with the dispensing organization
20		district to which the medical cannabis dispensing organization
21		is assigned under the administrative rules for dispensing
22		organizations under the Compassionate Use of Medical Cannabis
23		Pilot Program Act.
24		(c) A medical cannabis dispensing organization seeking
25		issuance of an Early Approval Adult Use Dispensing Organization
26		License at a secondary site to serve purchasers at a secondary

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1		site as prescribed in subsection (b) of this Section shall
2		submit an application on forms provided by the Department. The
3		application must meet or include the following qualifications:
4		(1) a payment of a nonrefundable application fee of
5		$30,000;
6		(2) proof of registration as a medical cannabis
7		dispensing organization that is in good standing;
8		(3) submission of the application by the same person or
9		entity that holds the medical cannabis dispensing
10		organization registration;
11		(4) the legal name of the medical cannabis dispensing
12		organization;
13		(5) the physical address of the medical cannabis
14		dispensing organization and the proposed physical address
15		of the secondary site;
16		(6) a copy of the current local zoning ordinance
17		Sections relevant to dispensary operations and
18		documentation of the approval, the conditional approval or
19		the status of a request for zoning approval from the local
20		zoning office that the proposed dispensary location is in
21		compliance with the local zoning rules;
22		(7) a plot plan of the dispensary drawn to scale. The
23		applicant shall submit general specifications of the
24		building exterior and interior layout;
25		(8) a statement that the dispensing organization
26		agrees to respond to the Department's supplemental

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1		requests for information;
2		(9) for the building or land to be used as the proposed
3		dispensary:
4		(A) if the property is not owned by the applicant,
5		a written statement from the property owner and
6		landlord, if any, certifying consent that the
7		applicant may operate a dispensary on the premises; or
8		(B) if the property is owned by the applicant,
9		confirmation of ownership;
10		(10) a copy of the proposed operating bylaws;
11		(11) a copy of the proposed business plan that complies
12		with the requirements in this Act, including, at a minimum,
13		the following:
14		(A) a description of services to be offered; and
15		(B) a description of the process of dispensing
16		cannabis;
17		(12) a copy of the proposed security plan that complies
18		with the requirements in this Article, including:
19		(A) a description of the delivery process by which
20		cannabis will be received from a transporting
21		organization, including receipt of manifests and
22		protocols that will be used to avoid diversion, theft,
23		or loss at the dispensary acceptance point; and
24		(B) the process or controls that will be
25		implemented to monitor the dispensary, secure the
26		premises, agents, patients, and currency, and prevent

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1		the diversion, theft, or loss of cannabis; and
2		(C) the process to ensure that access to the
3		restricted access areas is restricted to, registered
4		agents, service professionals, transporting
5		organization agents, Department inspectors, and
6		security personnel;
7		(13) a proposed inventory control plan that complies
8		with this Section;
9		(14) the name, address, social security number, and
10		date of birth of each principal officer and board member of
11		the dispensing organization; each of those individuals
12		shall be at least 21 years of age;
13		(15) a nonrefundable Cannabis Business Development Fee
14		equal to $200,000, to be deposited into the Cannabis
15		Business Development Fund; and
16		(16) a commitment to completing one of the following
17		Social Equity Inclusion Plans in subsection (d).
18		(d) Before receiving an Early Approval Adult Use Dispensing
19		Organization License at a secondary site, a dispensing
20		organization shall indicate the Social Equity Inclusion Plan
21		that the applicant plans to achieve before the expiration of
22		the Early Approval Adult Use Dispensing Organization License
23		from the list below:
24		(1) make a contribution of 3% of total sales from June
25		1, 2018 to June 1, 2019, or $100,000, whichever is less, to
26		the Cannabis Business Development Fund. This is in addition

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1		to the fee required by paragraph (16) of subsection (c) of
2		this Section;
3		(2) make a grant of 3% of total sales from June 1, 2018
4		to June 1, 2019, or $100,000, whichever is less, to a
5		cannabis industry training or education program at an
6		Illinois community college as defined in the Public
7		Community College Act;
8		(3) make a donation of $100,000 or more to a program
9		that provides job training services to persons recently
10		incarcerated or that operates in a Disproportionately
11		Impacted Area;
12		(4) participate as a host in a cannabis business
13		establishment incubator program approved by the Department
14		of Commerce and Economic Opportunity, and in which an Early
15		Approval Adult Use Dispensing Organization License at a
16		secondary site holder agrees to provide a loan of at least
17		$100,000 and mentorship to incubate a licensee that
18		qualifies as a Social Equity Applicant for at least a year.
19		In this paragraph (4), "incubate" means providing direct
20		financial assistance and training necessary to engage in
21		licensed cannabis industry activity similar to that of the
22		host licensee. The Early Approval Adult Use Dispensing
23		Organization License holder or the same entity holding any
24		other licenses issued under this Act shall not take an
25		ownership stake of greater than 10% in any business
26		receiving incubation services to comply with this

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1		subsection. If an Early Approval Adult Use Dispensing
2		Organization License at a secondary site holder fails to
3		find a business to incubate in order to comply with this
4		subsection before its Early Approval Adult Use Dispensing
5		Organization License at a secondary site expires, it may
6		opt to meet the requirement of this subsection by
7		completing another item from this subsection before the
8		expiration of its Early Approval Adult Use Dispensing
9		Organization License at a secondary site to avoid a
10		penalty; or
11		(5) participate in a sponsorship program for at least 2
12		years approved by the Department of Commerce and Economic
13		Opportunity in which an Early Approval Adult Use Dispensing
14		Organization License at a secondary site holder agrees to
15		provide an interest-free loan of at least $200,000 to a
16		Social Equity Applicant. The sponsor shall not take an
17		ownership stake of greater than 10% in any business
18		receiving sponsorship services to comply with this
19		subsection.
20		(e) The license fee required by paragraph (1) of subsection
21		(c) of this Section is in addition to any license fee required
22		for the renewal of a registered medical cannabis dispensing
23		organization license.
24		(f) Applicants must submit all required information,
25		including the requirements in subsection (c) of this Section,
26		to the Department. Failure by an applicant to submit all

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1		required information may result in the application being
2		disqualified.
3		(g) If the Department receives an application that fails to
4		provide the required elements contained in subsection (c), the
5		Department shall issue a deficiency notice to the applicant.
6		The applicant shall have 10 calendar days from the date of the
7		deficiency notice to submit complete information. Applications
8		that are still incomplete after this opportunity to cure may be
9		disqualified.
10		(h) Once all required information and documents have been
11		submitted, the Department will review the application. The
12		Department may request revisions and retains final approval
13		over dispensary features. Once the application is complete and
14		meets the Department's approval, the Department shall
15		conditionally approve the license. Final approval is
16		contingent on the build-out and Department inspection.
17		(i) Upon submission of the Early Approval Adult Use
18		Dispensing Organization at a secondary site application, the
19		applicant shall request an inspection and the Department may
20		inspect the Early Approval Adult Use Dispensing Organization's
21		secondary site to confirm compliance with the application and
22		this Act.
23		(j) The Department shall only issue an Early Approval Adult
24		Use Dispensing Organization License at a secondary site after
25		the completion of a successful inspection.
26		(k) If an applicant passes the inspection under this

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1		Section, the Department shall issue the Early Approval Adult
2		Use Dispensing Organization License at a secondary site within
3		10 business days unless:
4		(1) The licensee; principal officer, board member, or
5		person having a financial or voting interest of 5% or
6		greater in the licensee; or agent is delinquent in filing
7		any required tax returns or paying any amounts owed to the
8		State of Illinois; or
9		(2) The Secretary of Financial and Professional
10		Regulation determines there is reason, based on documented
11		compliance violations, the licensee is not entitled to an
12		Early Approval Adult Use Dispensing Organization License
13		at its secondary site.
14		(l) Once the Department has issued a license, the
15		dispensing organization shall notify the Department of the
16		proposed opening date.
17		(m) A registered medical cannabis dispensing organization
18		that obtains an Early Approval Adult Use Dispensing
19		Organization License at a secondary site may begin selling
20		cannabis, cannabis-infused products, paraphernalia, and
21		related items to purchasers under the rules of this Act no
22		sooner than January 1, 2020.
23		(n) If there is a shortage of cannabis or cannabis-infused
24		products, a dispensing organization holding both a dispensing
25		organization license under the Compassionate Use of Medical
26		Cannabis Pilot Program Act and this Article shall prioritize

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1		serving qualifying patients and caregivers before serving
2		purchasers.
3		(o) An Early Approval Adult Use Dispensing Organization
4		License at a secondary site is valid until March 31, 2021. A
5		dispensing organization that obtains an Early Approval Adult
6		Use Dispensing Organization License at a secondary site shall
7		receive written or electronic notice 90 days before the
8		expiration of the license that the license will expire, and
9		inform the license holder that it may renew its Early Approval
10		Adult Use Dispensing Organization License at a secondary site.
11		The Department shall renew an Early Approval Adult Use
12		Dispensing Organization License at a secondary site within 60
13		days of submission of the renewal application being deemed
14		complete if:
15		(1) the dispensing organization submits an application
16		and the required nonrefundable renewal fee of $30,000, to
17		be deposited into the Cannabis Regulation Fund;
18		(2) the Department has not suspended or revoked the
19		Early Approval Adult Use Dispensing Organization License
20		or a medical cannabis dispensing organization license held
21		by the same person or entity for violating this Act or
22		rules adopted under this Act or the Compassionate Use of
23		Medical Cannabis Pilot Program Act or rules adopted under
24		that Act; and
25		(3) the dispensing organization has completed a Social
26		Equity Inclusion Plan as required by paragraph (16) of

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1		subsection (c) of this Section.
2		(p) The Early Approval Adult Use Dispensing Organization
3		Licensee at a secondary site renewed pursuant to subsection (o)
4		shall receive written or electronic notice 90 days before the
5		expiration of the license that the license will expire, and
6		inform the license holder that it may apply for an Adult Use
7		Dispensing Organization License. The Department shall grant an
8		Adult Use Dispensing Organization License within 60 days of an
9		application being deemed complete if the applicant has meet all
10		of the criteria in Section 15-36.
11		(q) If a dispensing organization fails to submit an
12		application for renewal of an Early Approval Adult Use
13		Dispensing Organization License or for an Adult Use Dispensing
14		Organization License before the expiration dates provided in
15		subsections (o) and (p) of this Section, the dispensing
16		organization shall cease serving purchasers until it receives a
17		renewal or an Adult Use Dispensing Organization License.
18		(r) A dispensing organization agent who holds a valid
19		dispensing organization agent identification card issued under
20		the Compassionate Use of Medical Cannabis Pilot Program Act and
21		is an officer, director, manager, or employee of the dispensing
22		organization licensed under this Section may engage in all
23		activities authorized by this Article to be performed by a
24		dispensing organization agent.
25		(s) If the Department suspends or revokes the Early
26		Approval Adult Use Dispensing Organization License of a

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1		dispensing organization that also holds a medical cannabis
2		dispensing organization license issued under the Compassionate
3		Use of Medical Cannabis Pilot Program Act, the Department may
4		consider the suspension or revocation as grounds to take
5		disciplinary action against the medical cannabis dispensing
6		organization.
7		(t) All fees or fines collected from an Early Approval
8		Adult Use Dispensary Organization License at a secondary site
9		holder as a result of a disciplinary action in the enforcement
10		of this Act shall be deposited into the Cannabis Regulation
11		Fund and be appropriated to the Department for the ordinary and
12		contingent expenses of the Department in the administration and
13		enforcement of this Section.
14		Section 15-25. Awarding of Conditional Adult Use
15		Dispensing Organization Licenses prior to January 1, 2021.
16		(a) The Department shall issue up to 75 Conditional Adult
17		Use Dispensing Organization Licenses before May 1, 2020.
18		(b) The Department shall make the application for a
19		Conditional Adult Use Dispensing Organization License
20		available no later than October 1, 2019 and shall accept
21		applications no later than January 1, 2020.
22		(c) To ensure the geographic dispersion of Conditional
23		Adult Use Dispensing Organization License holders, the
24		following number of licenses shall be awarded in each BLS
25		Region as determined by each region's percentage of the State's

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1		population:
2		(1) Bloomington: 1
3		(2) Cape Girardeau: 1
4		(3) Carbondale-Marion: 1
5		(4) Champaign-Urbana: 1
6		(5) Chicago-Naperville-Elgin: 47
7		(6) Danville: 1
8		(7) Davenport-Moline-Rock Island: 1
9		(8) Decatur: 1
10		(9) Kankakee: 1
11		(10) Peoria: 3
12		(11) Rockford: 2
13		(12) St. Louis: 4
14		(13) Springfield: 1
15		(14) Northwest Illinois nonmetropolitan: 3
16		(15) West Central Illinois nonmetropolitan: 3
17		(16) East Central Illinois nonmetropolitan: 2
18		(17) South Illinois nonmetropolitan: 2
19		(d) An applicant seeking issuance of a Conditional Adult
20		Use Dispensing Organization License shall submit an
21		application on forms provided by the Department. An applicant
22		must meet the following requirements:
23		(1) Payment of a nonrefundable application fee of
24		$5,000 for each license for which the applicant is
25		applying, which shall be deposited into the Cannabis
26		Regulation Fund;

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1		(2) Certification that the applicant will comply with
2		the requirements contained in this Act;
3		(3) The legal name of the proposed dispensing
4		organization;
5		(4) A statement that the dispensing organization
6		agrees to respond to the Department's supplemental
7		requests for information;
8		(5) From each principal officer, a statement
9		indicating whether that person:
10		(A) has previously held or currently holds an
11		ownership interest in a cannabis business
12		establishment in Illinois; or
13		(B) has held an ownership interest in a dispensing
14		organization or its equivalent in another state or
15		territory of the United States that had the dispensing
16		organization registration or license suspended,
17		revoked, placed on probationary status, or subjected
18		to other disciplinary action;
19		(6) Disclosure of whether any principal officer has
20		ever filed for bankruptcy or defaulted on spousal support
21		or child support obligation;
22		(7) A resume for each principal officer, including
23		whether that person has an academic degree, certification,
24		or relevant experience with a cannabis business
25		establishment or in a related industry;
26		(8) A description of the training and education that

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1		will be provided to dispensing organization agents;
2		(9) A copy of the proposed operating bylaws;
3		(10) A copy of the proposed business plan that complies
4		with the requirements in this Act, including, at a minimum,
5		the following:
6		(A) A description of services to be offered; and
7		(B) A description of the process of dispensing
8		cannabis;
9		(11) A copy of the proposed security plan that complies
10		with the requirements in this Article, including:
11		(A) The process or controls that will be
12		implemented to monitor the dispensary, secure the
13		premises, agents, and currency, and prevent the
14		diversion, theft, or loss of cannabis; and
15		(B) The process to ensure that access to the
16		restricted access areas is restricted to, registered
17		agents, service professionals, transporting
18		organization agents, Department inspectors, and
19		security personnel;
20		(12) A proposed inventory control plan that complies
21		with this Section;
22		(13) A proposed floor plan, a square footage estimate,
23		and a description of proposed security devices, including,
24		without limitation, cameras, motion detectors, servers,
25		video storage capabilities, and alarm service providers;
26		(14) The name, address, social security number, and

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1		date of birth of each principal officer and board member of
2		the dispensing organization; each of those individuals
3		shall be at least 21 years of age;
4		(15) Evidence of the applicant's status as a Social
5		Equity Applicant, if applicable, and whether a Social
6		Equity Applicant plans to apply for a loan or grant issued
7		by the Department of Commerce and Economic Opportunity;
8		(16) The address, telephone number, and email address
9		of the applicant's principal place of business, if
10		applicable. A post office box is not permitted;
11		(17) Written summaries of any information regarding
12		instances in which a business or not-for-profit that a
13		prospective board member previously managed or served on
14		were fined or censured, or any instances in which a
15		business or not-for-profit that a prospective board member
16		previously managed or served on had its registration
17		suspended or revoked in any administrative or judicial
18		proceeding;
19		(18) A plan for community engagement;
20		(19) Procedures to ensure accurate recordkeeping and
21		security measures that are in accordance with this Article
22		and Department rules;
23		(20) The estimated volume of cannabis it plans to store
24		at the dispensary;
25		(21) A description of the features that will provide
26		accessibility to purchasers as required by the Americans

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1		with Disabilities Act;
2		(22) A detailed description of air treatment systems
3		that will be installed to reduce odors;
4		(23) A reasonable assurance that the issuance of a
5		license will not have a detrimental impact on the community
6		in which the applicant wishes to locate;
7		(24) The dated signature of each principal officer;
8		(25) A description of the enclosed, locked facility
9		where cannabis will be stored by the dispensing
10		organization;
11		(26) Signed statements from each dispensing
12		organization agent stating that he or she will not divert
13		cannabis;
14		(27) The number of licenses it is applying for in each
15		BLS Region;
16		(28) A diversity plan that includes a narrative of at
17		least 2,500 words that establishes a goal of diversity in
18		ownership, management, employment, and contracting to
19		ensure that diverse participants and groups are afforded
20		equality of opportunity;
21		(29) A contract with a private security contractor that
22		is licensed under Section 10-5 of the Private Detective,
23		Private Alarm, Private Security, Fingerprint Vendor, and
24		Locksmith Act of 2004 in order for the dispensary to have
25		adequate security at its facility; and
26		(30) Other information deemed necessary by the

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1		Illinois Cannabis Regulation Oversight Officer to conduct
2		the disparity and availability study referenced in
3		subsection (e) of Section 5-45.
4		(e) An applicant who receives a Conditional Adult Use
5		Dispensing Organization License under this Section has 180 days
6		from the date of award to identify a physical location for the
7		dispensing organization retail storefront. Before a
8		conditional licensee receives an authorization to build out the
9		dispensing organization from the Department, the Department
10		shall inspect the physical space selected by the conditional
11		licensee. The Department shall verify the site is suitable for
12		public access, the layout promotes the safe dispensing of
13		cannabis, the location is sufficient in size, power allocation,
14		lighting, parking, handicapped accessible parking spaces,
15		accessible entry and exits as required by the Americans with
16		Disabilities Act, product handling, and storage. The applicant
17		shall also provide a statement of reasonable assurance that the
18		issuance of a license will not have a detrimental impact on the
19		community. The applicant shall also provide evidence that the
20		location is not within 1,500 feet of an existing dispensing
21		organization. If an applicant is unable to find a suitable
22		physical address in the opinion of the Department within 180
23		days of the issuance of the Conditional Adult Use Dispensing
24		Organization License, the Department may extend the period for
25		finding a physical address another 180 days if the Conditional
26		Adult Use Dispensing Organization License holder demonstrates

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1		concrete attempts to secure a location and a hardship. If the
2		Department denies the extension or the Conditional Adult Use
3		Dispensing Organization License holder is unable to find a
4		location or become operational within 360 days of being awarded
5		a conditional license, the Department shall rescind the
6		conditional license and award it to the next highest scoring
7		applicant in the BLS Region for which the license was assigned,
8		provided the applicant receiving the license: (i) confirms a
9		continued interest in operating a dispensing organization;
10		(ii) can provide evidence that the applicant continues to meet
11		the financial requirements provided in subsection (c) of this
12		Section; and (iii) has not otherwise become ineligible to be
13		awarded a dispensing organization license. If the new awardee
14		is unable to accept the Conditional Adult Use Dispensing
15		Organization License, the Department shall award the
16		Conditional Adult Use Dispensing Organization License to the
17		next highest scoring applicant in the same manner. The new
18		awardee shall be subject to the same required deadlines as
19		provided in this subsection.
20		(e-5) If, within 180 days of being awarded a Conditional
21		Adult Use Dispensing Organization license, a dispensing
22		organization is unable to find a location within the BLS Region
23		in which it was awarded a Conditional Adult Use Dispensing
24		Organization license because no jurisdiction within the BLS
25		Region allows for the operation of an Adult Use Dispensing
26		Organization, the Department of Financial and Professional

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1		Regulation may authorize the Conditional Adult Use Dispensing
2		Organization License holder to transfer its license to a BLS
3		Region specified by the Department.
4		(f) A dispensing organization that is awarded a Conditional
5		Adult Use Dispensing Organization License pursuant to the
6		criteria in Section 15-30 shall not purchase, possess, sell, or
7		dispense cannabis or cannabis-infused products until the
8		person has received an Adult Use Dispensing Organization
9		License issued by the Department pursuant to Section 15-36 of
10		this Act. The Department shall not issue an Adult Use
11		Dispensing Organization License until:
12		(1) the Department has inspected the dispensary site
13		and proposed operations and verified that they are in
14		compliance with this Act and local zoning laws; and
15		(2) the Conditional Adult Use Dispensing Organization
16		License holder has paid a registration fee of $60,000, or a
17		prorated amount accounting for the difference of time
18		between when the Adult Use Dispensing Organization License
19		is issued and March 31 of the next even-numbered year.
20		(g) The Department shall conduct a background check of the
21		prospective organization agents in order to carry out this
22		Article. The Department of State Police shall charge the
23		applicant a fee for conducting the criminal history record
24		check, which shall be deposited into the State Police Services
25		Fund and shall not exceed the actual cost of the record check.
26		Each person applying as a dispensing organization agent shall

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1		submit a full set of fingerprints to the Department of State
2		Police for the purpose of obtaining a State and federal
3		criminal records check. These fingerprints shall be checked
4		against the fingerprint records now and hereafter, to the
5		extent allowed by law, filed in the Department of State Police
6		and Federal Bureau of Identification criminal history records
7		databases. The Department of State Police shall furnish,
8		following positive identification, all Illinois conviction
9		information to the Department.
10		Section 15-30. Selection criteria for conditional licenses
11		awarded under Section 15-25.
12		(a) Applicants for a Conditional Adult Use Dispensing
13		Organization License must submit all required information,
14		including the information required in Section 15-25, to the
15		Department. Failure by an applicant to submit all required
16		information may result in the application being disqualified.
17		(b) If the Department receives an application that fails to
18		provide the required elements contained in this Section, the
19		Department shall issue a deficiency notice to the applicant.
20		The applicant shall have 10 calendar days from the date of the
21		deficiency notice to resubmit the incomplete information.
22		Applications that are still incomplete after this opportunity
23		to cure will not be scored and will be disqualified.
24		(c) The Department will award up to 250 points to complete
25		applications based on the sufficiency of the applicant's

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1		responses to required information. Applicants will be awarded
2		points based on a determination that the application
3		satisfactorily includes the following elements:
4		(1) Suitability of Employee Training Plan (15 points).
5		The plan includes an employee training plan that
6		demonstrates that employees will understand the rules
7		and laws to be followed by dispensary employees, have
8		knowledge of any security measures and operating
9		procedures of the dispensary, and are able to advise
10		purchasers on how to safely consume cannabis and use
11		individual products offered by the dispensary.
12		(2) Security and Recordkeeping (65 points).
13		(A) The security plan accounts for the prevention
14		of the theft or diversion of cannabis. The security
15		plan demonstrates safety procedures for dispensary
16		agents and purchasers, and safe delivery and storage of
17		cannabis and currency. It demonstrates compliance with
18		all security requirements in this Act and rules.
19		(B) A plan for recordkeeping, tracking, and
20		monitoring inventory, quality control, and other
21		policies and procedures that will promote standard
22		recordkeeping and discourage unlawful activity. This
23		plan includes the applicant's strategy to communicate
24		with the Department and the Department of State Police
25		on the destruction and disposal of cannabis. The plan
26		must also demonstrate compliance with this Act and

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1		rules.
2		(C) The security plan shall also detail which
3		private security contractor licensed under Section
4		10-5 of the Private Detective, Private Alarm, Private
5		Security, Fingerprint Vendor, and Locksmith Act of
6		2004 the dispensary will contract with in order to
7		provide adequate security at its facility.
8		(3) Applicant's Business Plan, Financials, Operating
9		and Floor Plan (65 points).
10		(A) The business plan shall describe, at a minimum,
11		how the dispensing organization will be managed on a
12		long-term basis. This shall include a description of
13		the dispensing organization's point-of-sale system,
14		purchases and denials of sale, confidentiality, and
15		products and services to be offered. It will
16		demonstrate compliance with this Act and rules.
17		(B) The operating plan shall include, at a minimum,
18		best practices for day-to-day dispensary operation and
19		staffing. The operating plan may also include
20		information about employment practices, including
21		information about the percentage of full-time
22		employees who will be provided a living wage.
23		(C) The proposed floor plan is suitable for public
24		access, the layout promotes safe dispensing of
25		cannabis, is compliant with the Americans with
26		Disabilities Act and the Environmental Barriers Act,

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1		and facilitates safe product handling and storage.
2		(4) Knowledge and Experience (30 points).
3		(A) The applicant's principal officers must
4		demonstrate experience and qualifications in business
5		management or experience with the cannabis industry.
6		This includes ensuring optimal safety and accuracy in
7		the dispensing and sale of cannabis.
8		(B) The applicant's principal officers must
9		demonstrate knowledge of various cannabis product
10		strains or varieties and describe the types and
11		quantities of products planned to be sold. This
12		includes confirmation of whether the dispensing
13		organization plans to sell cannabis paraphernalia or
14		edibles.
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		(5) Status as a Social Equity Applicant (50 points).
20		The applicant meets the qualifications for a
21		Social Equity Applicant as set forth in this Act.
22		(6) Labor and employment practices (5 points): The
23		applicant may describe plans to provide a safe, healthy,
24		and economically beneficial working environment for its
25		agents, including, but not limited to, codes of conduct,
26		health care benefits, educational benefits, retirement

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1		benefits, living wage standards, and entering a labor peace
2		agreement with employees.
3		(7) Environmental Plan (5 points): The applicant may
4		demonstrate an environmental plan of action to minimize the
5		carbon footprint, environmental impact, and resource needs
6		for the dispensary, which may include, without limitation,
7		recycling cannabis product packaging.
8		(8) Illinois owner (5 points): The applicant is 51% or
9		more owned and controlled by an Illinois resident, who can
10		prove residency in each of the past 5 years with tax
11		records.
12		(9) Status as veteran (5 points): The applicant is 51%
13		or more controlled and owned by an individual or
14		individuals who meet the qualifications of a veteran as
15		defined by Section 45-57 of the Illinois Procurement Code.
16		(10) A diversity plan (5 points): that includes a
17		narrative of not more than 2,500 words that establishes a
18		goal of diversity in ownership, management, employment,
19		and contracting to ensure that diverse participants and
20		groups are afforded equality of opportunity.
21		(d) The Department may also award up to 2 bonus points for
22		a plan to engage with the community. The applicant may
23		demonstrate a desire to engage with its community by
24		participating in one or more of, but not limited to, the
25		following actions: (i) establishment of an incubator program
26		designed to increase participation in the cannabis industry by

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1		persons who would qualify as Social Equity Applicants; (ii)
2		providing financial assistance to substance abuse treatment
3		centers; (iii) educating children and teens about the potential
4		harms of cannabis use; or (iv) other measures demonstrating a
5		commitment to the applicant's community. Bonus points will only
6		be awarded if the Department receives applications that receive
7		an equal score for a particular region.
8		(e) The Department may verify information contained in each
9		application and accompanying documentation to assess the
10		applicant's veracity and fitness to operate a dispensing
11		organization.
12		(f) The Department may, in its discretion, refuse to issue
13		an authorization to any applicant:
14		(1) Who is unqualified to perform the duties required
15		of the applicant;
16		(2) Who fails to disclose or states falsely any
17		information called for in the application;
18		(3) Who has been found guilty of a violation of this
19		Act, or whose medical cannabis dispensing organization,
20		medical cannabis cultivation organization, or Early
21		Approval Adult Use Dispensing Organization License, or
22		Early Approval Adult Use Dispensing Organization License
23		at a secondary site, or Early Approval Cultivation Center
24		License was suspended, restricted, revoked, or denied for
25		just cause, or the applicant's cannabis business
26		establishment license was suspended, restricted, revoked,

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1		or denied in any other state; or
2		(4) Who has engaged in a pattern or practice of unfair
3		or illegal practices, methods, or activities in the conduct
4		of owning a cannabis business establishment or other
5		business.
6		(g) The Department shall deny the license if any 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		the State of Illinois.
11		(h) The Department shall verify an applicant's compliance
12		with the requirements of this Article and rules before issuing
13		a dispensing organization license.
14		(i) Should the applicant be awarded a license, the
15		information and plans provided in the application, including
16		any plans submitted for bonus points, shall become a condition
17		of the Conditional Adult Use Dispensing Organization Licenses,
18		except as otherwise provided by this Act or rule. Dispensing
19		organizations have a duty to disclose any material changes to
20		the application. The Department shall review all material
21		changes disclosed by the dispensing organization, and may
22		re-evaluate its prior decision regarding the awarding of a
23		license, including, but not limited to, suspending or revoking
24		a license. Failure to comply with the conditions or
25		requirements in the application may subject the dispensing
26		organization to discipline, up to and including suspension or

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1		revocation of its authorization or license by the Department.
2		(j) If an applicant has not begun operating as a dispensing
3		organization within one year of the issuance of the Conditional
4		Adult Use Dispensing Organization License, the Department may
5		revoke the Conditional Adult Use Dispensing Organization
6		License and award it to the next highest scoring applicant in
7		the BLS Region if a suitable applicant indicates a continued
8		interest in the license or begin a new selection process to
9		award a Conditional Adult Use Dispensing Organization License.
10		(k) The Department shall deny an application if granting
11		that application would result in a single person or entity
12		having a direct or indirect financial interest in more than 10
13		Early Approval Adult Use Dispensing Organization Licenses,
14		Conditional Adult Use Dispensing Organization Licenses, or
15		Adult Use Dispensing Organization Licenses. Any entity that is
16		awarded a license that results in a single person or entity
17		having a direct or indirect financial interest in more than 10
18		licenses shall forfeit the most recently issued license and
19		suffer a penalty to be determined by the Department, unless the
20		entity declines the license at the time it is awarded.
21		Section 15-35. Conditional Adult Use Dispensing
22		Organization License after January 1, 2021.
23		(a) In addition to any of the licenses issued in Sections
24		15-15, Section 15-20, or Section 15-25 of this Act, by December
25		21, 2021, the Department shall issue up to 110 Conditional

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1		Adult Use Dispensing Organization Licenses, pursuant to the
2		application process adopted under this Section. Prior to
3		issuing such licenses, the Department may adopt rules through
4		emergency rulemaking in accordance with subsection (gg) of
5		Section 5-45 of the Illinois Administrative Procedure Act. The
6		General Assembly finds that the adoption of rules to regulate
7		cannabis use is deemed an emergency and necessary for the
8		public interest, safety, and welfare. Such rules may:
9		(1) Modify or change the BLS Regions as they apply to
10		this Article or modify or raise the number of Adult
11		Conditional Use Dispensing Organization Licenses assigned
12		to each region based on the following factors:
13		(A) Purchaser wait times;
14		(B) Travel time to the nearest dispensary for
15		potential purchasers;
16		(C) Percentage of cannabis sales occurring in
17		Illinois not in the regulated market using data from
18		the Substance Abuse and Mental Health Services
19		Administration, National Survey on Drug Use and
20		Health, Illinois Behavioral Risk Factor Surveillance
21		System, and tourism data from the Illinois Office of
22		Tourism to ascertain total cannabis consumption in
23		Illinois compared to the amount of sales in licensed
24		dispensing organizations;
25		(D) Whether there is an adequate supply of cannabis
26		and cannabis-infused products to serve registered

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1		medical cannabis patients;
2		(E) Population increases or shifts;
3		(F) Density of dispensing organizations in a
4		region;
5		(G) The Department's capacity to appropriately
6		regulate additional licenses;
7		(H) The findings and recommendations from the
8		disparity and availability study commissioned by the
9		Illinois Cannabis Regulation Oversight Officer in
10		subsection (e) of Section 5-45 to reduce or eliminate
11		any identified barriers to entry in the cannabis
12		industry; and
13		(I) Any other criteria the Department deems
14		relevant.
15		(2) Modify or change the licensing application process
16		to reduce or eliminate the barriers identified in the
17		disparity and availability study commissioned by the
18		Illinois Cannabis Regulation Oversight Officer and make
19		modifications to remedy evidence of discrimination.
20		(b) After January 1, 2022, the Department may by rule
21		modify or raise the number of Adult Use Dispensing Organization
22		Licenses assigned to each region, and modify or change the
23		licensing application process to reduce or eliminate barriers
24		based on the criteria in subsection (a). At no time shall the
25		Department issue more than 500 Adult Use Dispensary
26		Organization Licenses.

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1		Section 15-36. Adult Use Dispensing Organization License.
2		(a) A person is only eligible to receive an Adult Use
3		Dispensing Organization if the person has been awarded a
4		Conditional Adult Use Dispensing Organization License pursuant
5		to this Act or has renewed its license pursuant to subsection
6		(k) of Section 15-15 or subsection (p) of Section 15-20.
7		(b) The Department shall not issue an Adult Use Dispensing
8		Organization License until:
9		(1) the Department has inspected the dispensary site
10		and proposed operations and verified that they are in
11		compliance with this Act and local zoning laws;
12		(2) the Conditional Adult Use Dispensing Organization
13		License holder has paid a registration fee of $60,000 or a
14		prorated amount accounting for the difference of time
15		between when the Adult Use Dispensing Organization License
16		is issued and March 31 of the next even-numbered year; and
17		(3) the Conditional Adult Use Dispensing Organization
18		License holder has met all the requirements in the Act and
19		rules.
20		(c) No person or entity shall hold any legal, equitable,
21		ownership, or beneficial interest, directly or indirectly, of
22		more than 10 dispensing organizations licensed under this
23		Article. Further, no person or entity that is:
24		(1) employed by, is an agent of, or participates in the
25		management of a dispensing organization or registered

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1		medical cannabis dispensing organization;
2		(2) a principal officer of a dispensing organization or
3		registered medical cannabis dispensing organization; or
4		(3) an entity controlled by or affiliated with a
5		principal officer of a dispensing organization or
6		registered medical cannabis dispensing organization;
7		shall hold any legal, equitable, ownership, or beneficial
8		interest, directly or indirectly, in a dispensing organization
9		that would result in such person or entity owning or
10		participating in the management of more than 10 dispensing
11		organizations. For the purpose of this subsection,
12		participating in management may include, without limitation,
13		controlling decisions regarding staffing, pricing, purchasing,
14		marketing, store design, hiring, and website design.
15		(d) The Department shall deny an application if granting
16		that application would result in a person or entity obtaining
17		direct or indirect financial interest in more than 10 Early
18		Approval Adult Use Dispensing Organization Licenses,
19		Conditional Adult Use Dispensing Organization Licenses, Adult
20		Use Dispensing Organization Licenses, or any combination
21		thereof. If a person or entity is awarded a Conditional Adult
22		Use Dispensing Organization License that would cause the person
23		or entity to be in violation of this subsection, he, she, or it
24		shall choose which license application it wants to abandon and
25		such licenses shall become available to the next qualified
26		applicant in the region in which the abandoned license was

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1		awarded.
2		Section 15-40. Dispensing organization agent
3		identification card; agent training.
4		(a) The Department shall:
5		(1) Verify the information contained in an application
6		or renewal for a dispensing organization agent
7		identification card submitted under this Article, and
8		approve or deny an application or renewal, within 30 days
9		of receiving a completed application or renewal
10		application and all supporting documentation required by
11		rule;
12		(2) Issue a dispensing organization agent
13		identification card to a qualifying agent within 15
14		business days of approving the application or renewal;
15		(3) Enter the registry identification number of the
16		dispensing organization where the agent works;
17		(4) Within one year from the effective date of this
18		Act, allow for an electronic application process and
19		provide a confirmation by electronic or other methods that
20		an application has been submitted; and
21		(5) Collect a $100 nonrefundable fee from the applicant
22		to be deposited into the Cannabis Regulation Fund.
23		(b) A dispensing agent must keep his or her identification
24		card visible at all times when on the property of the
25		dispensing organization.

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1		(c) The dispensing organization agent identification cards
2		shall contain the following:
3		(1) The name of the cardholder;
4		(2) The date of issuance and expiration date of the
5		dispensing organization agent identification cards;
6		(3) A random 10-digit alphanumeric identification
7		number containing at least 4 numbers and at least 4 letters
8		that is unique to the cardholder; and
9		(4) A photograph of the cardholder.
10		(d) The dispensing organization agent identification cards
11		shall be immediately returned to the dispensing organization
12		upon termination of employment.
13		(e) The Department shall not issue an agent identification
14		card if the applicant is delinquent in filing any required tax
15		returns or paying any amounts owed to the State of Illinois.
16		(f) Any card lost by a dispensing organization agent shall
17		be reported to the Department of State Police and the
18		Department immediately upon discovery of the loss.
19		(g) An applicant shall be denied a dispensing organization
20		agent identification card if he or she fails to complete the
21		training provided for 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		(i) Cannabis retail sales training requirements.
26		(1) Within 90 days of September 1, 2019, or 90 days of

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1		employment, whichever is later, all owners, managers,
2		employees, and agents involved in the handling or sale of
3		cannabis or cannabis-infused product employed by an adult
4		use dispensing organization or medical cannabis dispensing
5		organization as defined in Section 10 of the Compassionate
6		Use of Medical Cannabis Pilot Program Act shall attend and
7		successfully complete a Responsible Vendor Program.
8		(2) Each owner, manager, employee, and agent of an
9		adult use dispensing organization or medical cannabis
10		dispensing organization shall successfully complete the
11		program annually.
12		(3) Responsible Vendor Program Training modules shall
13		include at least 2 hours of instruction time approved by
14		the Department including:
15		(i) Health and safety concerns of cannabis use,
16		including the responsible use of cannabis, its
17		physical effects, onset of physiological effects,
18		recognizing signs of impairment, and appropriate
19		responses in the event of overconsumption.
20		(ii) Training on laws and regulations on driving
21		while under the influence.
22		(iii) Sales to minors prohibition. Training shall
23		cover all relevant Illinois laws and rules.
24		(iv) Quantity limitations on sales to purchasers.
25		Training shall cover all relevant Illinois laws and
26		rules.

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1		(v) Acceptable forms of identification. Training
2		shall include:
3		(I) How to check identification; and
4		(II) Common mistakes made in verification;
5		(vi) Safe storage of cannabis;
6		(vii) Compliance with all inventory tracking
7		system regulations;
8		(viii) Waste handling, management, and disposal;
9		(ix) Health and safety standards;
10		(x) Maintenance of records;
11		(xi) Security and surveillance requirements;
12		(xii) Permitting inspections by State and local
13		licensing and enforcement authorities;
14		(xiii) Privacy issues;
15		(xiv) Packaging and labeling requirement for sales
16		to purchasers; and
17		(xv) Other areas as determined by rule.
18		(j)BLANK.
19		(k) Upon the successful completion of the Responsible
20		Vendor Program, the provider shall deliver proof of completion
21		either through mail or electronic communication to the
22		dispensing organization, which shall retain a copy of the
23		certificate.
24		(l) The license of a dispensing organization or medical
25		cannabis dispensing organization whose owners, managers,
26		employees, or agents fail to comply with this Section may be

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1		suspended or revoked under Section 15-145 or may face other
2		disciplinary action.
3		(m) The regulation of dispensing organization and medical
4		cannabis dispensing employer and employee training is an
5		exclusive function of the State, and regulation by a unit of
6		local government, including a home rule unit, is prohibited.
7		This subsection (m) is a denial and limitation of home rule
8		powers and functions under subsection (h) of Section 6 of
9		Article VII of the Illinois Constitution.
10		(n) Persons seeking Department approval to offer the
11		training required by paragraph (3) of subsection (i) may apply
12		for such approval between August 1 and August 15 of each
13		odd-numbered year in a manner prescribed by the Department.
14		(o) Persons seeking Department approval to offer the
15		training required by paragraph (3) of subsection (i) shall
16		submit a non-refundable application fee of $2,000 to be
17		deposited into the Cannabis Regulation Fund or a fee as may be
18		set by rule. Any changes made to the training module shall be
19		approved by the Department.
20		(p) The Department shall not unreasonably deny approval of
21		a training module that meets all the requirements of paragraph
22		(3) of subsection (i). A denial of approval shall include a
23		detailed description of the reasons for the denial.
24		(q) Any person approved to provide the training required by
25		paragraph (3) of subsection (i) shall submit an application for
26		re-approval between August 1 and August 15 of each odd-numbered

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1		year and include a non-refundable application fee of $2,000 to
2		be deposited into the Cannabis Regulation Fund or a fee as may
3		be set by rule.
4		Section 15-45. Renewal.
5		(a) Adult Use Dispensing Organization Licenses shall
6		expire on March 31 of even-numbered years.
7		(b) Agent identification cards shall expire one year from
8		the date they are issued.
9		(c) Licensees and dispensing agents shall submit a renewal
10		application as provided by the Department and pay the required
11		renewal fee. The Department shall require an agent, employee,
12		contracting, and subcontracting diversity report and an
13		environmental impact report with its renewal application. No
14		license or agent identification card shall be renewed if it is
15		currently under revocation or suspension for violation of this
16		Article or any rules that may be adopted under this Article or
17		the licensee, principal officer, board member, person having a
18		financial or voting interest of 5% or greater in the licensee,
19		or agent is delinquent in filing any required tax returns or
20		paying any amounts owed to the State of Illinois.
21		(d) Renewal fees are:
22		(1) For a dispensing organization, $60,000, to be
23		deposited into the Cannabis Regulation Fund.
24		(2) For an agent identification card, $100, to be
25		deposited into the Cannabis Regulation Fund.

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1		(e) If a dispensing organization fails to renew its license
2		before expiration, the dispensing organization shall cease
3		operations until the license is renewed.
4		(f) If a dispensing organization agent fails to renew his
5		or her registration before its expiration, he or she shall
6		cease to perform duties authorized by this Article at a
7		dispensing organization until his or her registration is
8		renewed.
9		(g) Any dispensing organization that continues to operate
10		or dispensing agent that continues to perform duties authorized
11		by this Article at a dispensing organization that fails to
12		renew its license is subject to penalty as provided in this
13		Article, or any rules that may be adopted pursuant to this
14		Article.
15		(h) The Department shall not renew a license if the
16		applicant is delinquent in filing any required tax returns or
17		paying any amounts owed to the State of Illinois. The
18		Department shall not renew a dispensing agent identification
19		card if the applicant is delinquent in filing any required tax
20		returns or paying any amounts owed to the State of Illinois.
21		Section 15-50. Disclosure of ownership and control.
22		(a) Each dispensing organization applicant and licensee
23		shall file and maintain a Table of Organization, Ownership and
24		Control with the Department. The Table of Organization,
25		Ownership and Control shall contain the information required by

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1		this Section in sufficient detail to identify all owners,
2		directors, and principal officers, and the title of each
3		principal officer or business entity that, through direct or
4		indirect means, manages, owns, or controls the applicant or
5		licensee.
6		(b) The Table of Organization, Ownership and Control shall
7		identify the following information:
8		(1) The management structure, ownership, and control
9		of the applicant or license holder including the name of
10		each principal officer or business entity, the office or
11		position held, and the percentage ownership interest, if
12		any. If the business entity has a parent company, the name
13		of each owner, board member, and officer of the parent
14		company and his or her percentage ownership interest in the
15		parent company and the dispensing organization.
16		(2) If the applicant or licensee is a business entity
17		with publicly traded stock, the identification of
18		ownership shall be provided as required in subsection (c).
19		(c) If a business entity identified in subsection (b) is a
20		publicly traded company, the following information shall be
21		provided in the Table of Organization, Ownership and Control:
22		(1) The name and percentage of ownership interest of
23		each individual or business entity with ownership of more
24		than 5% of the voting shares of the entity, to the extent
25		such information is known or contained in 13D or 13G
26		Securities and Exchange Commission filings.

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1		(2) To the extent known, the names and percentage of
2		interest of ownership of persons who are relatives of one
3		another and who together exercise control over or own more
4		than 10% of the voting shares of the entity.
5		(d) A dispensing organization with a parent company or
6		companies, or partially owned or controlled by another entity
7		must disclose to the Department the relationship and all
8		owners, board members, officers, or individuals with control or
9		management of those entities. A dispensing organization shall
10		not shield its ownership or control from the Department.
11		(e) All principal officers must submit a complete online
12		application with the Department within 14 days of the
13		dispensing organization being licensed by the Department or
14		within 14 days of Department notice of approval as a new
15		principal officer.
16		(f) A principal officer may not allow his or her
17		registration to expire.
18		(g) A dispensing organization separating with a principal
19		officer must do so under this Act. The principal officer must
20		communicate the separation to the Department within 5 business
21		days.
22		(h) A principal officer not in compliance with the
23		requirements of this Act shall be removed from his or her
24		position with the dispensing organization or shall otherwise
25		terminate his or her affiliation. Failure to do so may subject
26		the dispensing organization to discipline, suspension, or

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1		revocation of its license by the Department.
2		(i) It is the responsibility of the dispensing organization
3		and its principal officers to promptly notify the Department of
4		any change of the principal place of business address, hours of
5		operation, change in ownership or control, or a change of the
6		dispensing organization's primary or secondary contact
7		information. Any changes must be made to the Department in
8		writing.
9		Section 15-55. Financial responsibility. Evidence of
10		financial responsibility is a requirement for the issuance,
11		maintenance, or reactivation of a license under this Article.
12		Evidence of financial responsibility shall be used to guarantee
13		that the dispensing organization timely and successfully
14		completes dispensary construction, operates in a manner that
15		provides an uninterrupted supply of cannabis, faithfully pays
16		registration renewal fees, keeps accurate books and records,
17		makes regularly required reports, complies with State tax
18		requirements, and conducts the dispensing organization in
19		conformity with this Act and rules. Evidence of financial
20		responsibility shall be provided by one of the following:
21		(1) Establishing and maintaining an escrow or surety
22		account in a financial institution in the amount of
23		$50,000, with escrow terms, approved by the Department,
24		that it shall be payable to the Department in the event of
25		circumstances outlined in this Act and rules.

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1		(A) A financial institution may not return money in
2		an escrow or surety account to the dispensing
3		organization that established the account or a
4		representative of the organization unless the
5		organization or representative presents a statement
6		issued by the Department indicating that the account
7		may be released.
8		(B) The escrow or surety account shall not be
9		canceled on less than 30 days' notice in writing to the
10		Department, unless otherwise approved by the
11		Department. If an escrow or surety account is canceled
12		and the registrant fails to secure a new account with
13		the required amount on or before the effective date of
14		cancellation, the registrant's registration may be
15		revoked. The total and aggregate liability of the
16		surety on the bond is limited to the amount specified
17		in the escrow or surety account.
18		(2) Providing a surety bond in the amount of $50,000,
19		naming the dispensing organization as principal of the
20		bond, with terms, approved by the Department, that the bond
21		defaults to the Department in the event of circumstances
22		outlined in this Act and rules. Bond terms shall include:
23		(A) The business name and registration number on
24		the bond must correspond exactly with the business name
25		and registration number in the Department's records.
26		(B) The bond must be written on a form approved by

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1		the Department.
2		(C) A copy of the bond must be received by the
3		Department within 90 days after the effective date.
4		(D) The bond shall not be canceled by a surety on
5		less than 30 days' notice in writing to the Department.
6		If a bond is canceled and the registrant fails to file
7		a new bond with the Department in the required amount
8		on or before the effective date of cancellation, the
9		registrant's registration may be revoked. The total
10		and aggregate liability of the surety on the bond is
11		limited to the amount specified in the bond.
12		Section 15-60. Changes to a dispensing organization.
13		(a) A license shall be issued to the specific dispensing
14		organization identified on the application and for the specific
15		location proposed. The license is valid only as designated on
16		the license and for the location for which it is issued.
17		(b) A dispensing organization may only add principal
18		officers after being approved by the Department.
19		(c) A dispensing organization shall provide written notice
20		of the removal of a principal officer within 5 business days
21		after removal. The notice shall include the written agreement
22		of the principal officer being removed, unless otherwise
23		approved by the Department, and allocation of ownership shares
24		after removal in an updated ownership chart.
25		(d) A dispensing organization shall provide a written

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1		request to the Department for the addition of principal
2		officers. A dispensing organization shall submit proposed
3		principal officer applications on forms approved by the
4		Department.
5		(e) All proposed new principal officers shall be subject to
6		the requirements of this Act, this Article, and any rules that
7		may be adopted pursuant to this Act.
8		(f) The Department may prohibit the addition of a principal
9		officer to a dispensing organization for failure to comply with
10		this Act, this Article, and any rules that may be adopted
11		pursuant to this Act.
12		(g) A dispensing organization may not assign a license.
13		(h) A dispensing organization may not transfer a license
14		without prior Department approval. Such approval may be
15		withheld if the person to whom the license is being transferred
16		does not commit to the same or a similar community engagement
17		plan provided as part of the dispensing organization's
18		application under paragraph (18) of subsection (d) of Section
19		15-25, and such transferee's license shall be conditional upon
20		that commitment.
21		(i) With the addition or removal of principal officers, the
22		Department will review the ownership structure to determine
23		whether the change in ownership has had the effect of a
24		transfer of the license. The dispensing organization shall
25		supply all ownership documents requested by the Department.
26		(j) A dispensing organization may apply to the Department

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1		to approve a sale of the dispensing organization. A request to
2		sell the dispensing organization must be on application forms
3		provided by the Department. A request for an approval to sell a
4		dispensing organization must comply with the following:
5		(1) New application materials shall comply with this
6		Act and any rules that may be adopted pursuant to this Act;
7		(2) Application materials shall include a change of
8		ownership fee of $5,000 to be deposited into the Cannabis
9		Regulation Fund;
10		(3) The application materials shall provide proof that
11		the transfer of ownership will not have the effect of
12		granting any of the owners or principal officers direct or
13		indirect ownership or control of more than 10 adult use
14		dispensing organization licenses;
15		(4) New principal officers shall each complete the
16		proposed new principal officer application;
17		(5) If the Department approves the application
18		materials and proposed new principal officer applications,
19		it will perform an inspection before approving the sale and
20		issuing the dispensing organization license;
21		(6) If a new license is approved, the Department will
22		issue a new license number and certificate to the new
23		dispensing organization.
24		(k) The dispensing organization shall provide the
25		Department with the personal information for all new dispensing
26		organizations agents as required in this Article and all new

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1		dispensing organization agents shall be subject to the
2		requirements of this Article. A dispensing organization agent
3		must obtain an agent identification card from the Department
4		before beginning work at a dispensary.
5		(l) Before remodeling, expansion, reduction, or other
6		physical, noncosmetic alteration of a dispensary, the
7		dispensing organization must notify the Department and confirm
8		the alterations are in compliance with this Act and any rules
9		that may be adopted pursuant to this Act.
10		Section 15-65. Administration.
11		(a) A dispensing organization shall establish, maintain,
12		and comply with written policies and procedures as submitted in
13		the Business, Financial and Operating plan as required in this
14		Article or by rules established by the Department, and approved
15		by the Department, for the security, storage, inventory, and
16		distribution of cannabis. These policies and procedures shall
17		include methods for identifying, recording, and reporting
18		diversion, theft, or loss, and for correcting errors and
19		inaccuracies in inventories. At a minimum, dispensing
20		organizations shall ensure the written policies and procedures
21		provide for the following:
22		(1) Mandatory and voluntary recalls of cannabis
23		products. The policies shall be adequate to deal with
24		recalls due to any action initiated at the request of the
25		Department and any voluntary action by the dispensing

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1		organization to remove defective or potentially defective
2		cannabis from the market or any action undertaken to
3		promote public health and safety, including:
4		(i) A mechanism reasonably calculated to contact
5		purchasers who have, or likely have, obtained the
6		product from the dispensary, including information on
7		the policy for return of the recalled product;
8		(ii) A mechanism to identify and contact the adult
9		use cultivation center, craft grower, or infuser that
10		manufactured the cannabis;
11		(iii) Policies for communicating with the
12		Department, the Department of Agriculture, and the
13		Department of Public Health within 24 hours of
14		discovering defective or potentially defective
15		cannabis; and
16		(iv) Policies for destruction of any recalled
17		cannabis product;
18		(2) Responses to local, State, or national
19		emergencies, including natural disasters, that affect the
20		security or operation of a dispensary;
21		(3) Segregation and destruction of outdated, damaged,
22		deteriorated, misbranded, or adulterated cannabis. This
23		procedure shall provide for written documentation of the
24		cannabis disposition;
25		(4) Ensure the oldest stock of a cannabis product is
26		distributed first. The procedure may permit deviation from

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1		this requirement, if such deviation is temporary and
2		appropriate;
3		(5) Training of dispensing organization agents in the
4		provisions of this Act and rules, to effectively operate
5		the point-of-sale system and the State's verification
6		system, proper inventory handling and tracking, specific
7		uses of cannabis or cannabis-infused products, instruction
8		regarding regulatory inspection preparedness and law
9		enforcement interaction, awareness of the legal
10		requirements for maintaining status as an agent, and other
11		topics as specified by the dispensing organization or the
12		Department. The dispensing organization shall maintain
13		evidence of all training provided to each agent in its
14		files that is subject to inspection and audit by the
15		Department. The dispensing organization shall ensure
16		agents receive a minimum of 8 hours of training subject to
17		the requirements in subsection (i) of Section 15-40
18		annually, unless otherwise approved by the Department;
19		(6) Maintenance of business records consistent with
20		industry standards, including bylaws, consents, manual or
21		computerized records of assets and liabilities, audits,
22		monetary transactions, journals, ledgers, and supporting
23		documents, including agreements, checks, invoices,
24		receipts, and vouchers. Records shall be maintained in a
25		manner consistent with this Act and shall be retained for 5
26		years;

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1		(7) Inventory control, including:
2		(i) Tracking purchases and denials of sale;
3		(ii) Disposal of unusable or damaged cannabis as
4		required by this Act and rules; and
5		(8) Purchaser education and support, including:
6		(i) Whether possession of cannabis is illegal
7		under federal law;
8		(ii) Current educational information issued by the
9		Department of Public Health about the health risks
10		associated with the use or abuse of cannabis;
11		(iii) Information about possible side effects;
12		(iv) Prohibition on smoking cannabis in public
13		places; and
14		(v) Offering any other appropriate purchaser
15		education or support materials.
16		(b) BLANK.
17		(c) A dispensing organization shall maintain copies of the
18		policies and procedures on the dispensary premises and provide
19		copies to the Department upon request. The dispensing
20		organization shall review the dispensing organization policies
21		and procedures at least once every 12 months from the issue
22		date of the license and update as needed due to changes in
23		industry standards or as requested by the Department.
24		(d) A dispensing organization shall ensure that each
25		principal officer and each dispensing organization agent has a
26		current agent identification card in the agent's immediate

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1		possession when the agent is at the dispensary.
2		(e) A dispensing organization shall provide prompt written
3		notice to the Department, including the date of the event, when
4		a dispensing organization agent no longer is employed by the
5		dispensing organization.
6		(f) A dispensing organization shall promptly document and
7		report any loss or theft of cannabis from the dispensary to the
8		Department of State Police and the Department. It is the duty
9		of any dispensing organization agent who becomes aware of the
10		loss or theft to report it as provided in this Article.
11		(g) A dispensing organization shall post the following
12		information in a conspicuous location in an area of the
13		dispensary accessible to consumers:
14		(1) The dispensing organization's license;
15		(2) The hours of operation.
16		(h) Signage that shall be posted inside the premises.
17		(1) All dispensing organizations must display a
18		placard that states the following: "Cannabis consumption
19		can impair cognition and driving, is for adult use only,
20		may be habit forming, and should not be used by pregnant or
21		breastfeeding women.".
22		(2) Any dispensing organization that sells edible
23		cannabis-infused products must display a placard that
24		states the following:
25		(A) "Edible cannabis-infused products were
26		produced in a kitchen that may also process common food

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1		allergens."; and
2		(B) "The effects of cannabis products can vary from
3		person to person, and it can take as long as two hours
4		to feel the effects of some cannabis-infused products.
5		Carefully review the portion size information and
6		warnings contained on the product packaging before
7		consuming.".
8		(3) All of the required signage in this subsection (h)
9		shall be no smaller than 24 inches tall by 36 inches wide,
10		with typed letters no smaller than 2 inches. The signage
11		shall be clearly visible and readable by customers. The
12		signage shall be placed in the area where cannabis and
13		cannabis-infused products are sold and may be translated
14		into additional languages as needed. The Department may
15		require a dispensary to display the required signage in a
16		different language, other than English, if the Secretary
17		deems it necessary.
18		(i) A dispensing organization shall prominently post
19		notices inside the dispensing organization that state
20		activities that are strictly prohibited and punishable by law,
21		including, but not limited to:
22		(1) No minors permitted on the premises unless the
23		minor is a minor qualifying patient under the Compassionate
24		Use of Medical Cannabis Pilot Program Act;
25		(2) Distribution to persons under the age of 21 is
26		prohibited;

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1		(3) Transportation of cannabis or cannabis products
2		across state lines is prohibited.
3		Section 15-70. Operational requirements; prohibitions.
4		(a) A dispensing organization shall operate in accordance
5		with the representations made in its application and license
6		materials. It shall be in compliance with this Act and rules.
7		(b) A dispensing organization must include the legal name
8		of the dispensary on the packaging of any cannabis product it
9		sells.
10		(c) All cannabis, cannabis-infused products, and cannabis
11		seeds must be obtained from an Illinois registered adult use
12		cultivation center, craft grower, infuser, or another
13		dispensary.
14		(d) Dispensing organizations are prohibited from selling
15		any product containing alcohol except tinctures, which must be
16		limited to containers that are no larger than 100 milliliters.
17		(e) A dispensing organization shall inspect and count
18		product received by the adult use cultivation center before
19		dispensing it.
20		(f) A dispensing organization may only accept cannabis
21		deliveries into a restricted access area. Deliveries may not be
22		accepted through the public or limited access areas unless
23		otherwise approved by the Department.
24		(g) A dispensing organization shall maintain compliance
25		with State and local building, fire, and zoning requirements or

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1		regulations.
2		(h) A dispensing organization shall submit a list to the
3		Department of the names of all service professionals that will
4		work at the dispensary. The list shall include a description of
5		the type of business or service provided. Changes to the
6		service professional list shall be promptly provided. No
7		service professional shall work in the dispensary until the
8		name is provided to the Department on the service professional
9		list.
10		(i) A dispensing organization's license allows for a
11		dispensary to be operated only at a single location.
12		(j) A dispensary may operate between 6 a.m. and 10 p.m.
13		local time.
14		(k) A dispensing organization must keep all lighting
15		outside and inside the dispensary in good working order and
16		wattage sufficient for security cameras.
17		(l) A dispensing organization shall ensure that any
18		building or equipment used by a dispensing organization for the
19		storage or sale of cannabis is maintained in a clean and
20		sanitary condition.
21		(m) The dispensary shall be free from infestation by
22		insects, rodents, or pests.
23		(n) A dispensing organization shall not:
24		(1) Produce or manufacture cannabis;
25		(2) Accept a cannabis product from an adult use
26		cultivation center, craft grower, infuser, dispensing

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1		organization, or transporting organization unless it is
2		pre-packaged and labeled in accordance with this Act and
3		any rules that may be adopted pursuant to this Act;
4		(3) Obtain cannabis or cannabis-infused products from
5		outside the State of Illinois;
6		(4) Sell cannabis or cannabis-infused products to a
7		purchaser unless the dispensary organization is licensed
8		under the Compassionate Use of Medical Cannabis Pilot
9		Program, and the individual is registered under the
10		Compassionate Use of Medical Cannabis Pilot Program or the
11		purchaser has been verified to be over the age of 21;
12		(5) Enter into an exclusive agreement with any adult
13		use cultivation center, craft grower, or infuser.
14		Dispensaries shall provide consumers an assortment of
15		products from various cannabis business establishment
16		licensees such that the inventory available for sale at any
17		dispensary from any single cultivation center, craft
18		grower, processor, or infuser entity shall not be more than
19		40% of the total inventory available for sale. For the
20		purpose of this subsection, a cultivation center, craft
21		grower, processor, or infuser shall be considered part of
22		the same entity if the licensees share at least one
23		principal officer. The Department may request that a
24		dispensary diversify its products as needed or otherwise
25		discipline a dispensing organization for violating this
26		requirement;

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1		(6) Refuse to conduct business with an adult use
2		cultivation center, craft grower, transporting
3		organization, or infuser that has the ability to properly
4		deliver the product and is permitted by the Department of
5		Agriculture, on the same terms as other adult use
6		cultivation centers, craft growers, infusers, or
7		transporters with whom it is dealing;
8		(7) Operate drive-through windows;
9		(8) Allow for the dispensing of cannabis or
10		cannabis-infused products in vending machines;
11		(9) Transport cannabis to residences or other
12		locations where purchasers may be for delivery;
13		(10) Enter into agreements to allow persons who are not
14		dispensing organization agents to deliver cannabis or to
15		transport cannabis to purchasers.
16		(11) Operate a dispensary if its video surveillance
17		equipment is inoperative;
18		(12) Operate a dispensary if the point-of-sale
19		equipment is inoperative;
20		(13) Operate a dispensary if the State's cannabis
21		electronic verification system is inoperative;
22		(14) Have fewer than 2 people working at the dispensary
23		at any time while the dispensary is open;
24		(15) Be located within 1,500 feet of the property line
25		of a pre-existing dispensing organization;
26		(16) Sell clones or any other live plant material;

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1		(17) Sell cannabis, cannabis concentrate, or
2		cannabis-infused products in combination or bundled with
3		each other or any other items for one price, and each item
4		of cannabis, concentrate, or cannabis-infused product must
5		be separately identified by quantity and price on the
6		receipt;
7		(18) Violate any other requirements or prohibitions
8		set by Department rules.
9		(o) It is unlawful for any person having an Early Approval
10		Adult Use Cannabis Dispensing Organization License, a
11		Conditional Adult Use Cannabis Dispensing Organization, an
12		Adult Use Dispensing Organization License, or a medical
13		cannabis dispensing organization license issued under the
14		Compassionate Use of Medical Cannabis Pilot Program or any
15		officer, associate, member, representative, or agent of such
16		licensee to accept, receive, or borrow money or anything else
17		of value or accept or receive credit (other than merchandising
18		credit in the ordinary course of business for a period not to
19		exceed 30 days) directly or indirectly from any adult use
20		cultivation center, craft grower, infuser, or transporting
21		organization. This includes anything received or borrowed or
22		from any stockholders, officers, agents, or persons connected
23		with an adult use cultivation center, craft grower, infuser, or
24		transporting organization. This also excludes any received or
25		borrowed in exchange for preferential placement by the
26		dispensing organization, including preferential placement on

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1		the dispensing organization's shelves, display cases, or
2		website.
3		(p) It is unlawful for any person having an Early Approval
4		Adult Use Cannabis Dispensing Organization License, a
5		Conditional Adult Use Cannabis Dispensing Organization, an
6		Adult Use Dispensing Organization License, or a medical
7		cannabis dispensing organization license issued under the
8		Compassionate Use of Medical Cannabis Pilot Program to enter
9		into any contract with any person licensed to cultivate,
10		process, or transport cannabis whereby such dispensary
11		organization agrees not to sell any cannabis cultivated,
12		processed, transported, manufactured, or distributed by any
13		other cultivator, transporter, or infuser, and any provision in
14		any contract violative of this Section shall render the whole
15		of such contract void and no action shall be brought thereon in
16		any court.
17		Section 15-75. Inventory control system.
18		(a) A dispensing organization agent-in-charge shall have
19		primary oversight of the dispensing organization's cannabis
20		inventory verification system, and its point-of-sale system.
21		The inventory point-of-sale system shall be real-time,
22		web-based, and accessible by the Department at any time. The
23		point-of-sale system shall track, at a minimum the date of
24		sale, amount, price, and currency.
25		(b) A dispensing organization shall establish an account

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1		with the State's verification system that documents:
2		(1) Each sales transaction at the time of sale and each
3		day's beginning inventory, acquisitions, sales, disposal,
4		and ending inventory.
5		(2) Acquisition of cannabis and cannabis-infused
6		products from a licensed adult use cultivation center,
7		craft grower, infuser, or transporter, including:
8		(i) A description of the products, including the
9		quantity, strain, variety, and batch number of each
10		product received;
11		(ii) The name and registry identification number
12		of the licensed adult use cultivation center, craft
13		grower, or infuser providing the cannabis and
14		cannabis-infused products;
15		(iii) The name and registry identification number
16		of the licensed adult use cultivation center, craft
17		grower, infuser, or transportation agent delivering
18		the cannabis;
19		(iv) The name and registry identification number
20		of the dispensing organization agent receiving the
21		cannabis; and
22		(v) The date of acquisition.
23		(3) The disposal of cannabis, including:
24		(i) A description of the products, including the
25		quantity, strain, variety, batch number, and reason
26		for the cannabis being disposed;

HB1438 Enrolled - 131 - LRB101 04919 JRG 49928 b
1		(ii) The method of disposal; and
2		(iii) The date and time of disposal.
3		(c) Upon cannabis delivery, a dispensing organization
4		shall confirm the product's name, strain name, weight, and
5		identification number on the manifest matches the information
6		on the cannabis product label and package. The product name
7		listed and the weight listed in the State's verification system
8		shall match the product packaging.
9		(d) The agent-in-charge shall conduct daily inventory
10		reconciliation documenting and balancing cannabis inventory by
11		confirming the State's verification system matches the
12		dispensing organization's point-of-sale system and the amount
13		of physical product at the dispensary.
14		(1) A dispensing organization must receive Department
15		approval before completing an inventory adjustment. It
16		shall provide a detailed reason for the adjustment.
17		Inventory adjustment documentation shall be kept at the
18		dispensary for 2 years from the date performed.
19		(2) If the dispensing organization identifies an
20		imbalance in the amount of cannabis after the daily
21		inventory reconciliation due to mistake, the dispensing
22		organization shall determine how the imbalance occurred
23		and immediately upon discovery take and document
24		corrective action. If the dispensing organization cannot
25		identify the reason for the mistake within 2 calendar days
26		after first discovery, it shall inform the Department

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1		immediately in writing of the imbalance and the corrective
2		action taken to date. The dispensing organization shall
3		work diligently to determine the reason for the mistake.
4		(3) If the dispensing organization identifies an
5		imbalance in the amount of cannabis after the daily
6		inventory reconciliation or through other means due to
7		theft, criminal activity, or suspected criminal activity,
8		the dispensing organization shall immediately determine
9		how the reduction occurred and take and document corrective
10		action. Within 24 hours after the first discovery of the
11		reduction due to theft, criminal activity, or suspected
12		criminal activity, the dispensing organization shall
13		inform the Department and the Department of State Police in
14		writing.
15		(4) The dispensing organization shall file an annual
16		compilation report with the Department, including a
17		financial statement that shall include, but not be limited
18		to, an income statement, balance sheet, profit and loss
19		statement, statement of cash flow, wholesale cost and
20		sales, and any other documentation requested by the
21		Department in writing. The financial statement shall
22		include any other information the Department deems
23		necessary in order to effectively administer this Act and
24		all rules, orders, and final decisions promulgated under
25		this Act. Statements required by this Section shall be
26		filed with the Department within 60 days after the end of

HB1438 Enrolled - 133 - LRB101 04919 JRG 49928 b
1		the calendar year. The compilation report shall include a
2		letter authored by a licensed certified public accountant
3		that it has been reviewed and is accurate based on the
4		information provided. The dispensing organization,
5		financial statement, and accompanying documents are not
6		required to be audited unless specifically requested by the
7		Department.
8		(e) A dispensing organization shall:
9		(1) Maintain the documentation required in this
10		Section in a secure locked location at the dispensing
11		organization for 5 years from the date on the document;
12		(2) Provide any documentation required to be
13		maintained in this Section to the Department for review
14		upon request; and
15		(3) If maintaining a bank account, retain for a period
16		of 5 years a record of each deposit or withdrawal from the
17		account.
18		(f) If a dispensing organization chooses to have a return
19		policy for cannabis and cannabis products, the dispensing
20		organization shall seek prior approval from the Department.
21		Section 15-80. Storage requirements.
22		(a) Authorized on-premises storage. A dispensing
23		organization must store inventory on its premises. All
24		inventory stored on the premises must be secured in a
25		restricted access area and tracked consistently with the

HB1438 Enrolled - 134 - LRB101 04919 JRG 49928 b
1		inventory tracking rules.
2		(b) A dispensary shall be of suitable size and construction
3		to facilitate cleaning, maintenance, and proper operations.
4		(c) A dispensary shall maintain adequate lighting,
5		ventilation, temperature, humidity control, and equipment.
6		(d) Containers storing cannabis that have been tampered
7		with, damaged, or opened shall be labeled with the date opened
8		and quarantined from other cannabis products in the vault until
9		they are disposed.
10		(e) Cannabis that was tampered with, expired, or damaged
11		shall not be stored at the premises for more than 7 calendar
12		days.
13		(f) Cannabis samples shall be in a sealed container.
14		Samples shall be maintained in the restricted access area.
15		(g) The dispensary storage areas shall be maintained in
16		accordance with the security requirements in this Act and
17		rules.
18		(h) Cannabis must be stored at appropriate temperatures and
19		under appropriate conditions to help ensure that its packaging,
20		strength, quality, and purity are not adversely affected.
21		Section 15-85. Dispensing cannabis.
22		(a) Before a dispensing organization agent dispenses
23		cannabis to a purchaser, the agent shall:
24		(1) Verify the age of the purchaser by checking a
25		government-issued identification card by use of an

HB1438 Enrolled - 135 - LRB101 04919 JRG 49928 b
1		electronic reader or electronic scanning device to scan a
2		purchaser's government-issued identification, if
3		applicable, to determine the purchaser's age and the
4		validity of the identification;
5		(2) Verify the validity of the government-issued
6		identification card;
7		(3) Offer any appropriate purchaser education or
8		support materials;
9		(4) Enter the following information into the State's
10		cannabis electronic verification system:
11		(i) The dispensing organization agent's
12		identification number;
13		(ii) The dispensing organization's identification
14		number;
15		(iii) The amount, type (including strain, if
16		applicable) of cannabis or cannabis-infused product
17		dispensed;
18		(iv) The date and time the cannabis was dispensed.
19		(b) A dispensing organization shall refuse to sell cannabis
20		or cannabis-infused products to any person unless the person
21		produces a valid identification showing that the person is 21
22		years of age or older. A medical cannabis dispensing
23		organization may sell cannabis or cannabis-infused products to
24		a person who is under 21 years of age if the sale complies with
25		the provisions of the Compassionate Use of Medical Cannabis
26		Pilot Program Act and rules.

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1		(c) For the purposes of this Section, valid identification
2		must:
3		(1) Be valid and unexpired;
4		(2) Contain a photograph and the date of birth of the
5		person.
6		Section 15-90. Destruction and disposal of cannabis.
7		(a) Cannabis and cannabis-infused products must be
8		destroyed by rendering them unusable using methods approved by
9		the Department that 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 waste rendered unusable may be delivered to a
13		permitted solid waste facility for final disposition.
14		Acceptable permitted solid waste facilities include, but are
15		not limited to:
16		(1) Compostable mixed waste: Compost, anaerobic
17		digester, or other facility with approval of the
18		jurisdictional health department.
19		(2) Noncompostable mixed waste: Landfill, incinerator,
20		or other facility with approval of the jurisdictional
21		health department.
22		(c) All waste and unusable product shall be weighed,
23		recorded, and entered into the inventory system before
24		rendering it unusable. All waste and unusable cannabis
25		concentrates and cannabis-infused products shall be recorded

HB1438 Enrolled - 137 - LRB101 04919 JRG 49928 b
1		and entered into the inventory system before rendering it
2		unusable. Verification of this event shall be performed by an
3		agent-in-charge and conducted in an area with video
4		surveillance.
5		(d) Electronic documentation of destruction and disposal
6		shall be maintained for a period of at least 5 years.
7		Section 15-95. Agent-in-charge.
8		(a) Every dispensing organization shall designate, at a
9		minimum, one agent-in-charge for each licensed dispensary. The
10		designated agent-in-charge must hold a dispensing organization
11		agent identification card. Maintaining an agent-in-charge is a
12		continuing requirement for the license, except as provided in
13		subsection (f).
14		(b) The agent-in-charge shall be a principal officer or a
15		full-time agent of the dispensing organization and shall manage
16		the dispensary. Managing the dispensary includes, but is not
17		limited to, responsibility for opening and closing the
18		dispensary, delivery acceptance, oversight of sales and
19		dispensing organization agents, recordkeeping, inventory,
20		dispensing organization agent training, and compliance with
21		this Act and rules. Participation in affairs also includes the
22		responsibility for maintaining all files subject to audit or
23		inspection by the Department at the dispensary.
24		(c) The agent-in-charge is responsible for promptly
25		notifying the Department of any change of information required

HB1438 Enrolled - 138 - LRB101 04919 JRG 49928 b
1		to be reported to the Department.
2		(d) In determining whether an agent-in-charge manages the
3		dispensary, the Department may consider the responsibilities
4		identified in this Section, the number of dispensing
5		organization agents under the supervision of the
6		agent-in-charge, and the employment relationship between the
7		agent-in-charge and the dispensing organization, including the
8		existence of a contract for employment and any other relevant
9		fact or circumstance.
10		(e) The agent-in-charge is responsible for notifying the
11		Department of a change in the employment status of all
12		dispensing organization agents within 5 business days after the
13		change, including notice to the Department if the termination
14		of an agent was for diversion of product or theft of currency.
15		(f) In the event of the separation of an agent-in-charge
16		due to death, incapacity, termination, or any other reason and
17		if the dispensary does not have an active agent-in-charge, the
18		dispensing organization shall immediately contact the
19		Department and request a temporary certificate of authority
20		allowing the continuing operation. The request shall include
21		the name of an interim agent-in-charge until a replacement is
22		identified, or shall include the name of the replacement. The
23		Department shall issue the temporary certificate of authority
24		promptly after it approves the request. If a dispensing
25		organization fails to promptly request a temporary certificate
26		of authority after the separation of the agent-in-charge, its

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1		registration shall cease until the Department approves the
2		temporary certificate of authority or registers a new
3		agent-in-charge. No temporary certificate of authority shall
4		be valid for more than 90 days. The succeeding agent-in-charge
5		shall register with the Department in compliance with this
6		Article. Once the permanent succeeding agent-in-charge is
7		registered with the Department, the temporary certificate of
8		authority is void. No temporary certificate of authority shall
9		be issued for the separation of an agent-in-charge due to
10		disciplinary action by the Department related to his or her
11		conduct on behalf of the dispensing organization.
12		(g) The dispensing organization agent-in-charge
13		registration shall expire one year from the date it is issued.
14		The agent-in-charge's registration shall be renewed annually.
15		The Department shall review the dispensing organization's
16		compliance history when determining whether to grant the
17		request to renew.
18		(h) Upon termination of an agent-in-charge's employment,
19		the dispensing organization shall immediately reclaim the
20		dispensing agent identification card. The dispensing
21		organization shall promptly return the identification card to
22		the Department.
23		(i) The Department may deny an application or renewal or
24		discipline or revoke an agent-in-charge identification card
25		for any of the following reasons:
26		(1) Submission of misleading, incorrect, false, or

HB1438 Enrolled - 140 - LRB101 04919 JRG 49928 b
1		fraudulent information in the application or renewal
2		application;
3		(2) Violation of the requirements of this Act or rules;
4		(3) Fraudulent use of the agent-in-charge
5		identification card;
6		(4) Selling, distributing, transferring in any manner,
7		or giving cannabis to any unauthorized person;
8		(5) Theft of cannabis, currency, or any other items
9		from a dispensary.
10		(6) Tampering with, falsifying, altering, modifying,
11		or duplicating an agent-in-charge identification card;
12		(7) Tampering with, falsifying, altering, or modifying
13		the surveillance video footage, point-of-sale system, or
14		the State's verification system;
15		(8) Failure to notify the Department immediately upon
16		discovery that the agent-in-charge identification card has
17		been lost, stolen, or destroyed;
18		(9) Failure to notify the Department within 5 business
19		days after a change in the information provided in the
20		application for an agent-in-charge identification card;
21		(10) Conviction of a felony offense in accordance with
22		Sections 2105-131, 2105-135, and 2105-205 of the
23		Department of Professional Regulation Law of the Civil
24		Administrative Code of Illinois or any incident listed in
25		this Act or rules following the issuance of an
26		agent-in-charge identification card;

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1		(11) Dispensing to purchasers in amounts above the
2		limits provided in this Act; or
3		(12) Delinquency in filing any required tax returns or
4		paying any amounts owed to the State of Illinois
5		Section 15-100. Security.
6		(a) A dispensing organization shall implement security
7		measures to deter and prevent entry into and theft of cannabis
8		or currency.
9		(b) A dispensing organization shall submit any changes to
10		the floor plan or security plan to the Department for
11		pre-approval. All cannabis shall be maintained and stored in a
12		restricted access area during construction.
13		(c) The dispensing organization shall implement security
14		measures to protect the premises, purchasers, and dispensing
15		organization agents including, but not limited to the
16		following:
17		(1) Establish a locked door or barrier between the
18		facility's entrance and the limited access area;
19		(2) Prevent individuals from remaining on the premises
20		if they are not engaging in activity permitted by this Act
21		or rules;
22		(3) Develop a policy that addresses the maximum
23		capacity and purchaser flow in the waiting rooms and
24		limited access areas;
25		(4) Dispose of cannabis in accordance with this Act and

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1		rules;
2		(5) During hours of operation, store and dispense all
3		cannabis from the restricted access area. During
4		operational hours, cannabis shall be stored in an enclosed
5		locked room or cabinet and accessible only to specifically
6		authorized dispensing organization agents;
7		(6) When the dispensary is closed, store all cannabis
8		and currency in a reinforced vault room in the restricted
9		access area and in a manner as to prevent diversion, theft,
10		or loss;
11		(7) Keep the reinforced vault room and any other
12		equipment or cannabis storage areas securely locked and
13		protected from unauthorized entry;
14		(8) Keep an electronic daily log of dispensing
15		organization agents with access to the reinforced vault
16		room and knowledge of the access code or combination;
17		(9) Keep all locks and security equipment in good
18		working order;
19		(10) Maintain an operational security and alarm system
20		at all times;
21		(11) Prohibit keys, if applicable, from being left in
22		the locks, or stored or placed in a location accessible to
23		persons other than specifically authorized personnel;
24		(12) Prohibit accessibility of security measures,
25		including combination numbers, passwords, or electronic or
26		biometric security systems to persons other than

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1		specifically authorized dispensing organization agents;
2		(13) Ensure that the dispensary interior and exterior
3		premises are sufficiently lit to facilitate surveillance;
4		(14) Ensure that trees, bushes, and other foliage
5		outside of the dispensary premises do not allow for a
6		person or persons to conceal themselves from sight;
7		(15) Develop emergency policies and procedures for
8		securing all product and currency following any instance of
9		diversion, theft, or loss of cannabis, and conduct an
10		assessment to determine whether additional safeguards are
11		necessary; and
12		(16) Develop sufficient additional safeguards in
13		response to any special security concerns, or as required
14		by the Department.
15		(d) The Department may request or approve alternative
16		security provisions that it determines are an adequate
17		substitute for a security requirement specified in this
18		Article. Any additional protections may be considered by the
19		Department in evaluating overall security measures.
20		(e) A dispensary organization may share premises with a
21		craft grower or an infuser organization, or both, provided each
22		licensee stores currency and cannabis or cannabis-infused
23		products in a separate secured vault to which the other
24		licensee does not have access or all licensees sharing a vault
25		share more than 50% of the same ownership.
26		(f) A dispensing organization shall provide additional

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1		security as needed and in a manner appropriate for the
2		community where it operates.
3		(g) Restricted access areas.
4		(1) All restricted access areas must be identified by
5		the posting of a sign that is a minimum of 12 inches by 12
6		inches and that states "Do Not Enter - Restricted Access
7		Area - Authorized Personnel Only" in lettering no smaller
8		than one inch in height.
9		(2) All restricted access areas shall be clearly
10		described in the floor plan of the premises, in the form
11		and manner determined by the Department, reflecting walls,
12		partitions, counters, and all areas of entry and exit. The
13		floor plan shall show all storage, disposal, and retail
14		sales areas.
15		(3) All restricted access areas must be secure, with
16		locking devices that prevent access from the limited access
17		areas.
18		(h) Security and alarm.
19		(1) A dispensing organization shall have an adequate
20		security plan and security system to prevent and detect
21		diversion, theft, or loss of cannabis, currency, or
22		unauthorized intrusion using commercial grade equipment
23		installed by an Illinois licensed private alarm contractor
24		or private alarm contractor agency that shall, at a
25		minimum, include:
26		(i) A perimeter alarm on all entry points and glass

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1		break protection on perimeter windows;
2		(ii) Security shatterproof tinted film on exterior
3		windows;
4		(iii) A failure notification system that provides
5		an audible, text, or visual notification of any failure
6		in the surveillance system, including, but not limited
7		to, panic buttons, alarms, and video monitoring
8		system. The failure notification system shall provide
9		an alert to designated dispensing organization agents
10		within 5 minutes after the failure, either by telephone
11		or text message;
12		(iv) A duress alarm, panic button, and alarm, or
13		holdup alarm and after-hours intrusion detection alarm
14		that by design and purpose will directly or indirectly
15		notify, by the most efficient means, the Public Safety
16		Answering Point for the law enforcement agency having
17		primary jurisdiction;
18		(v) Security equipment to deter and prevent
19		unauthorized entrance into the dispensary, including
20		electronic door locks on the limited and restricted
21		access areas that include devices or a series of
22		devices to detect unauthorized intrusion that may
23		include a signal system interconnected with a radio
24		frequency method, cellular, private radio signals or
25		other mechanical or electronic device.
26		(2) All security system equipment and recordings shall

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1		be maintained in good working order, in a secure location
2		so as to prevent theft, loss, destruction, or alterations.
3		(3) Access to surveillance monitoring recording
4		equipment shall be limited to persons who are essential to
5		surveillance operations, law enforcement authorities
6		acting within their jurisdiction, security system service
7		personnel, and the Department. A current list of authorized
8		dispensing organization agents and service personnel that
9		have access to the surveillance equipment must be available
10		to the Department upon request.
11		(4) All security equipment shall be inspected and
12		tested at regular intervals, not to exceed one month from
13		the previous inspection, and tested to ensure the systems
14		remain functional.
15		(5) The security system shall provide protection
16		against theft and diversion that is facilitated or hidden
17		by tampering with computers or electronic records.
18		(6) The dispensary shall ensure all access doors are
19		not solely controlled by an electronic access panel to
20		ensure that locks are not released during a power outage.
21		(i) To monitor the dispensary, the dispensing organization
22		shall incorporate continuous electronic video monitoring
23		including the following:
24		(1) All monitors must be 19 inches or greater;
25		(2) Unobstructed video surveillance of all enclosed
26		dispensary areas, unless prohibited by law, including all

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1		points of entry and exit that shall be appropriate for the
2		normal lighting conditions of the area under surveillance.
3		The cameras shall be directed so all areas are captured,
4		including, but not limited to, safes, vaults, sales areas,
5		and areas where cannabis is stored, handled, dispensed, or
6		destroyed. Cameras shall be angled to allow for facial
7		recognition, the capture of clear and certain
8		identification of any person entering or exiting the
9		dispensary area and in lighting sufficient during all times
10		of night or day;
11		(3) Unobstructed video surveillance of outside areas,
12		the storefront, and the parking lot, that shall be
13		appropriate for the normal lighting conditions of the area
14		under surveillance. Cameras shall be angled so as to allow
15		for the capture of facial recognition, clear and certain
16		identification of any person entering or exiting the
17		dispensary and the immediate surrounding area, and license
18		plates of vehicles in the parking lot;
19		(4) 24-hour recordings from all video cameras
20		available for immediate viewing by the Department upon
21		request. Recordings shall not be destroyed or altered and
22		shall be retained for at least 90 days. Recordings shall be
23		retained as long as necessary if the dispensing
24		organization is aware of the loss or theft of cannabis or a
25		pending criminal, civil, or administrative investigation
26		or legal proceeding for which the recording may contain

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1		relevant information;
2		(5) The ability to immediately produce a clear, color
3		still photo from the surveillance video, either live or
4		recorded;
5		(6) A date and time stamp embedded on all video
6		surveillance recordings. The date and time shall be
7		synchronized and set correctly and shall not significantly
8		obscure the picture;
9		(7) The ability to remain operational during a power
10		outage and ensure all access doors are not solely
11		controlled by an electronic access panel to ensure that
12		locks are not released during a power outage;
13		(8) All video surveillance equipment shall allow for
14		the exporting of still images in an industry standard image
15		format, including .jpg, .bmp, and .gif. Exported video
16		shall have the ability to be archived in a proprietary
17		format that ensures authentication of the video and
18		guarantees that no alteration of the recorded image has
19		taken place. Exported video shall also have the ability to
20		be saved in an industry standard file format that can be
21		played on a standard computer operating system. All
22		recordings shall be erased or destroyed before disposal;
23		(9) The video surveillance system shall be operational
24		during a power outage with a 4-hour minimum battery backup;
25		(10) A video camera or cameras recording at each
26		point-of-sale location allowing for the identification of

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1		the dispensing organization agent distributing the
2		cannabis and any purchaser. The camera or cameras shall
3		capture the sale, the individuals and the computer monitors
4		used for the sale;
5		(11) A failure notification system that provides an
6		audible and visual notification of any failure in the
7		electronic video monitoring system; and
8		(12) All electronic video surveillance monitoring must
9		record at least the equivalent of 8 frames per second and
10		be available as recordings to the Department and the
11		Department of State Police 24 hours a day via a secure
12		web-based portal with reverse functionality.
13		(j) The requirements contained in this Act are minimum
14		requirements for operating a dispensing organization. The
15		Department may establish additional requirements by rule.
16		Section 15-110. Recordkeeping.
17		(a) Dispensing organization records must be maintained
18		electronically for 3 years and be available for inspection by
19		the Department upon request. Required written records include,
20		but are not limited to, the following:
21		(1) Operating procedures;
22		(2) Inventory records, policies, and procedures;
23		(3) Security records;
24		(4) Audit records;
25		(5) Staff training plans and completion documentation;

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1		(6) Staffing plan; and
2		(7) Business records, including but not limited to:
3		(i) Assets and liabilities;
4		(ii) Monetary transactions;
5		(iii) Written or electronic accounts, including
6		bank statements, journals, ledgers, and supporting
7		documents, agreements, checks, invoices, receipts, and
8		vouchers; and
9		(iv) Any other financial accounts reasonably
10		related to the dispensary operations.
11		(b) Storage and transfer of records. If a dispensary closes
12		due to insolvency, revocation, bankruptcy, or for any other
13		reason, all records must be preserved at the expense of the
14		dispensing organization for at least 3 years in a form and
15		location in Illinois acceptable to the Department. The
16		dispensing organization shall keep the records longer if
17		requested by the Department. The dispensing organization shall
18		notify the Department of the location where the dispensary
19		records are stored or transferred.
20		Section 15-120. Closure of a dispensary.
21		(a) If a dispensing organization decides not to renew its
22		license or decides to close its business, it shall promptly
23		notify the Department not less than 3 months before the
24		effective date of the closing date or as otherwise authorized
25		by the Department.

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1		(b) The dispensing organization shall work with the
2		Department to develop a closure plan that addresses, at a
3		minimum, the transfer of business records, transfer of cannabis
4		products, and anything else the Department finds necessary.
5		Section 15-125. Fees. After January 1, 2022, the Department
6		may by rule modify any fee established under this Article.
7		Section 15-135. Investigations.
8		(a) Dispensing organizations are subject to random and
9		unannounced dispensary inspections and cannabis testing by the
10		Department, the Department of State Police, and local law
11		enforcement.
12		(b) The Department and its authorized representatives may
13		enter any place, including a vehicle, in which cannabis is
14		held, stored, dispensed, sold, produced, delivered,
15		transported, manufactured, or disposed of and inspect, in a
16		reasonable manner, the place and all pertinent equipment,
17		containers and labeling, and all things including records,
18		files, financial data, sales data, shipping data, pricing data,
19		personnel data, research, papers, processes, controls, and
20		facility, and inventory any stock of cannabis and obtain
21		samples of any cannabis or cannabis-infused product, any labels
22		or containers for cannabis, or paraphernalia.
23		(c) The Department may conduct an investigation of an
24		applicant, application, dispensing organization, principal

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1		officer, dispensary agent, third party vendor, or any other
2		party associated with a dispensing organization for an alleged
3		violation of this Act or rules or to determine qualifications
4		to be granted a registration by the Department.
5		(d) The Department may require an applicant or holder of
6		any license issued pursuant to this Article to produce
7		documents, records, or any other material pertinent to the
8		investigation of an application or alleged violations of this
9		Act or rules. Failure to provide the required material may be
10		grounds for denial or discipline.
11		(e) Every person charged with preparation, obtaining, or
12		keeping records, logs, reports, or other documents in
13		connection with this Act and rules and every person in charge,
14		or having custody, of those documents shall, upon request by
15		the Department, make the documents immediately available for
16		inspection and copying by the Department, the Department's
17		authorized representative, or others authorized by law to
18		review the documents.
19		Section 15-140. Citations. The Department may issue
20		nondisciplinary citations for minor violations. Any such
21		citation issued by the Department may be accompanied by a fee.
22		The fee shall not exceed $20,000 per violation. The citation
23		shall be issued to the licensee and shall contain the
24		licensee's name and address, the licensee's license number, a
25		brief factual statement, the Sections of the law allegedly

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1		violated, and the fee, if any, imposed. The citation must
2		clearly state that the licensee may choose, in lieu of
3		accepting the citation, to request a hearing. If the licensee
4		does not dispute the matter in the citation with the Department
5		within 30 days after the citation is served, then the citation
6		shall become final and not subject to appeal. The penalty shall
7		be a fee or other conditions as established by rule.
8		Section 15-145. Grounds for discipline.
9		(a) The Department may deny issuance, refuse to renew or
10		restore, or may reprimand, place on probation, suspend, revoke,
11		or take other disciplinary or nondisciplinary action against
12		any license or agent identification card or may impose a fine
13		for any of the following:
14		(1) Material misstatement in furnishing information to
15		the Department;
16		(2) Violations of this Act or rules;
17		(3) Obtaining an authorization or license by fraud or
18		misrepresentation;
19		(4) A pattern of conduct that demonstrates
20		incompetence or that the applicant has engaged in conduct
21		or actions that would constitute grounds for discipline
22		under the Act;
23		(5) Aiding or assisting another person in violating any
24		provision of this Act or rules;
25		(6) Failing to respond to a written request for

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1		information by the Department within 30 days;
2		(7) Engaging in unprofessional, dishonorable, or
3		unethical conduct of a character likely to deceive,
4		defraud, or harm the public;
5		(8) Adverse action by another United States
6		jurisdiction or foreign nation;
7		(9) A finding by the Department that the licensee,
8		after having his or her license placed on suspended or
9		probationary status, has violated the terms of the
10		suspension or probation;
11		(10) Conviction, entry of a plea of guilty, nolo
12		contendere, or the equivalent in a State or federal court
13		of a principal officer or agent-in-charge of a felony
14		offense in accordance with Sections 2105-131, 2105-135,
15		and 2105-205 of the Department of Professional Regulation
16		Law of the Civil Administrative Code of Illinois;
17		(11) Excessive use or addiction to alcohol, narcotics,
18		stimulants, or any other chemical agent or drug;
19		(12) A finding by the Department of a discrepancy in a
20		Department audit of cannabis;
21		(13) A finding by the Department of a discrepancy in a
22		Department audit of capital or funds;
23		(14) A finding by the Department of acceptance of
24		cannabis from a source other than an Adult Use Cultivation
25		Center, craft grower, infuser, or transporting
26		organization licensed by the Department of Agriculture, or

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1		a dispensing organization licensed by the Department;
2		(15) An inability to operate using reasonable
3		judgment, skill, or safety due to physical or mental
4		illness or other impairment or disability, including,
5		without limitation, deterioration through the aging
6		process or loss of motor skills or mental incompetence;
7		(16) Failing to report to the Department within the
8		time frames established, or if not identified, 14 days, of
9		any adverse action taken against the dispensing
10		organization or an agent by a licensing jurisdiction in any
11		state or any territory of the United States or any foreign
12		jurisdiction, any governmental agency, any law enforcement
13		agency or any court defined in this Section;
14		(17) Any violation of the dispensing organization's
15		policies and procedures submitted to the Department
16		annually as a condition for licensure;
17		(18) Failure to inform the Department of any change of
18		address within 10 business days;
19		(19) Disclosing customer names, personal information,
20		or protected health information in violation of any State
21		or federal law;
22		(20) Operating a dispensary before obtaining a license
23		from the Department;
24		(21) Performing duties authorized by this Act prior to
25		receiving a license to perform such duties;
26		(22) Dispensing cannabis when prohibited by this Act or

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1		rules;
2		(23) Any fact or condition that, if it had existed at
3		the time of the original application for the license, would
4		have warranted the denial of the license;
5		(24) Permitting a person without a valid agent
6		identification card to perform licensed activities under
7		this Act;
8		(25) Failure to assign an agent-in-charge as required
9		by this Article;
10		(26) Failure to provide the training required by
11		paragraph (3) of subsection (i) of Section 15-40 within the
12		provided timeframe
13		(27) Personnel insufficient in number or unqualified
14		in training or experience to properly operate the
15		dispensary business;
16		(28) Any pattern of activity that causes a harmful
17		impact on the community; and
18		(29) Failing to prevent diversion, theft, or loss of
19		cannabis.
20		(b) All fines and fees imposed under this Section shall be
21		paid within 60 days after the effective date of the order
22		imposing the fine or as otherwise specified in the order.
23		(c) A circuit court order establishing that an
24		agent-in-charge or principal officer holding an agent
25		identification card is subject to involuntary admission as that
26		term is defined in Section 1-119 or 1-119.1 of the Mental

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1		Health and Developmental Disabilities Code shall operate as a
2		suspension of that card.
3		Section 15-150. Temporary suspension.
4		(a) The Secretary of Financial and Professional Regulation
5		may temporarily suspend a dispensing organization license or an
6		agent registration without a hearing if the Secretary finds
7		that public safety or welfare requires emergency action. The
8		Secretary shall cause the temporary suspension by issuing a
9		suspension notice in connection with the institution of
10		proceedings for a hearing.
11		(b) If the Secretary temporarily suspends a license or
12		agent registration without a hearing, the licensee or agent is
13		entitled to a hearing within 45 days after the suspension
14		notice has been issued. The hearing shall be limited to the
15		issues cited in the suspension notice, unless all parties agree
16		otherwise.
17		(c) If the Department does not hold a hearing with 45 days
18		after the date the suspension notice was issued, then the
19		suspended license or registration shall be automatically
20		reinstated and the suspension vacated.
21		(d) The suspended licensee or agent may seek a continuance
22		of the hearing date, during which time the suspension remains
23		in effect and the license or registration shall not be
24		automatically reinstated.
25		(e) Subsequently discovered causes of action by the

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1		Department after the issuance of the suspension notice may be
2		filed as a separate notice of violation. The Department is not
3		precluded from filing a separate action against the suspended
4		licensee or agent.
5		Section 15-155. Consent to administrative supervision
6		order. In appropriate cases, the Department may resolve a
7		complaint against a licensee or agent through the issuance of a
8		consent order for administrative supervision. A license or
9		agent subject to a consent order shall be considered by the
10		Department to hold a license or registration in good standing.
11		Section 15-160. Notice; hearing.
12		(a) The Department shall, before disciplining an applicant
13		or licensee, at least 30 days before the date set for the
14		hearing: (i) notify the accused in writing of the charges made
15		and the time and place for the hearing on the charges; (ii)
16		direct him or her to file a written answer to the charges under
17		oath within 20 days after service; and (iii) inform the
18		applicant or licensee that failure to answer will result in a
19		default being entered against the applicant or licensee.
20		(b) At the time and place fixed in the notice, the hearing
21		officer appointed by the Secretary shall proceed to hear the
22		charges, and the parties or their counsel shall be accorded
23		ample opportunity to present any pertinent statements,
24		testimony, evidence, and arguments. The hearing officer may

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1		continue the hearing from time to time. In case the person,
2		after receiving the notice, fails to file an answer, his or her
3		license may, in the discretion of the Secretary, having first
4		received the recommendation of the hearing officer, be
5		suspended, revoked, or placed on probationary status, or be
6		subject to whatever disciplinary action the Secretary
7		considers proper, including a fine, without hearing, if that
8		act or acts charged constitute sufficient grounds for that
9		action under this Act.
10		(c) The written notice and any notice in the subsequent
11		proceeding may be served by regular mail or email to the
12		licensee's or applicant's address of record.
13		Section 15-165. Subpoenas; oaths. The Department shall
14		have the power to subpoena and bring before it any person and
15		to take testimony either orally or by deposition, or both, with
16		the same fees and mileage and in the same manner as prescribed
17		by law in judicial proceedings in civil cases in courts in this
18		State. The Secretary or the hearing officer shall each have the
19		power to administer oaths to witnesses at any hearings that the
20		Department is authorized to conduct.
21		Section 15-170. Hearing; motion for rehearing.
22		(a) The hearing officer shall hear evidence in support of
23		the formal charges and evidence produced by the licensee. At
24		the conclusion of the hearing, the hearing officer shall

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1		present to the Secretary a written report of his or her
2		findings of fact, conclusions of law, and recommendations.
3		(b) At the conclusion of the hearing, a copy of the hearing
4		officer's report shall be served upon the applicant or licensee
5		by the Department, either personally or as provided in this Act
6		for the service of a notice of hearing. Within 20 calendar days
7		after service, the applicant or licensee may present to the
8		Department a motion in writing for rehearing, which shall
9		specify the particular grounds for rehearing. The Department
10		may respond to the motion for rehearing within 20 calendar days
11		after its service on the Department. If no motion for rehearing
12		is filed, then, upon the expiration of the time specified for
13		filing such motion or upon denial of a motion for rehearing,
14		the Secretary may enter an order in accordance with the
15		recommendation of the hearing officer. If the applicant or
16		licensee orders from the reporting service and pays for a
17		transcript of the record within the time for filing a motion
18		for rehearing, the 20-day period within which a motion may be
19		filed shall commence upon the delivery of the transcript to the
20		applicant or licensee.
21		(c) If the Secretary disagrees in any regard with the
22		report of the hearing officer, the Secretary may issue an order
23		contrary to the report.
24		(d) Whenever the Secretary is not satisfied that
25		substantial justice has been done, the Secretary may order a
26		rehearing by the same or another hearing officer.

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1		(e) At any point in any investigation or disciplinary
2		proceeding under in this Article, both parties may agree to a
3		negotiated consent order. The consent order shall be final upon
4		signature of the Secretary.
5		Section 15-175. Review under the Administrative Review
6		Law.
7		(a) All final administrative decisions of the Department
8		hereunder shall be subject to judicial review under the
9		provisions of the Administrative Review Law, and all amendment
10		and modifications thereof. The term "administrative decision"
11		is defined as in Section 3-101 of the Code of Civil Procedure.
12		(b) Proceedings for judicial review shall be commenced in
13		the circuit court of the county in which the party applying for
14		review resides, but if the party is not a resident of Illinois,
15		the venue shall be in Sangamon County.
16		(c) The Department shall not be required to certify any
17		record to the court, file any answer in court, or otherwise
18		appear in any court in a judicial review proceeding, unless and
19		until the Department has received from the plaintiff payment of
20		the costs of furnishing and certifying the record, which costs
21		shall be determined by the Department. Failure on the part of
22		the plaintiff to file a receipt in court shall be grounds for
23		dismissal of the action.
24		ARTICLE 20.

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1		ADULT USE CULTIVATION CENTERS
2		Section 20-1. Definition. In this Article, "Department"
3		means the Department of Agriculture.
4		Section 20-5. Issuance of licenses. On or after July 1,
5		2021, the Department of Agriculture by rule may:
6		(1) Modify or change the number of cultivation center
7		licenses available, which shall at no time exceed 30
8		cultivation center licenses. In determining whether to
9		exercise the authority granted by this subsection, the
10		Department of Agriculture must consider the following
11		factors:
12		(A) The percentage of cannabis sales occurring in
13		Illinois not in the regulated market using data from
14		the Substance Abuse and Mental Health Services
15		Administration, National Survey on Drug Use and
16		Health, Illinois Behavioral Risk Factor Surveillance
17		System, and tourism data from the Illinois Office of
18		Tourism to ascertain total cannabis consumption in
19		Illinois compared to the amount of sales in licensed
20		dispensing organizations;
21		(B) Whether there is an adequate supply of cannabis
22		and cannabis-infused products to serve registered
23		medical cannabis patients;
24		(C) Whether there is an adequate supply of cannabis

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1		and cannabis-infused products to serve purchasers;
2		(D) Whether there is an oversupply of cannabis in
3		Illinois leading to trafficking of cannabis to any
4		other state;
5		(E) Population increases or shifts;
6		(F) Changes to federal law;
7		(G) Perceived security risks of increasing the
8		number or location of cultivation centers;
9		(H) The past security records of cultivation
10		centers;
11		(I) The Department of Agriculture's capacity to
12		appropriately regulate additional licensees;
13		(J) The findings and recommendations from the
14		disparity and availability study commissioned by the
15		Illinois Cannabis Regulation Oversight Officer
16		referenced in subsection (e) of Section 5-45 to reduce
17		or eliminate any identified barriers to entry in the
18		cannabis industry; and
19		(K) Any other criteria the Department of
20		Agriculture deems relevant.
21		(2) Modify or change the licensing application process
22		to reduce or eliminate the barriers identified in the
23		disparity and availability study commission by the
24		Illinois Cannabis Regulation Oversight Officer and shall
25		make modifications to remedy evidence of discrimination.

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1		Section 20-10. Early Approval of Adult Use Cultivation
2		Center License.
3		(a) Any medical cannabis cultivation center registered and
4		in good standing under the Compassionate Use of Medical
5		Cannabis Pilot Program Act as of the effective date of this Act
6		may, within 60 days of the effective date of this Act but no
7		later than 180 days from the effective date of this Act, apply
8		to the Department of Agriculture for an Early Approval Adult
9		Use Cultivation Center License to produce cannabis and
10		cannabis-infused products at its existing facilities as of the
11		effective date of this Act.
12		(b) A medical cannabis cultivation center seeking issuance
13		of an Early Approval Adult Use Cultivation Center License shall
14		submit an application on forms provided by the Department of
15		Agriculture. The application must meet or include the following
16		qualifications:
17		(1) Payment of a nonrefundable application fee of
18		$100,000 to be deposited into the Cannabis Regulation Fund;
19		(2) Proof of registration as a medical cannabis
20		cultivation center that is in good standing;
21		(3) Submission of the application by the same person or
22		entity that holds the medical cannabis cultivation center
23		registration;
24		(4) Certification that the applicant will comply with
25		the requirements of Section 20-30;
26		(5) The legal name of the cultivation center;

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1		(6) The physical address of the cultivation center;
2		(7) The name, address, social security number, and date
3		of birth of each principal officer and board member of the
4		cultivation center; each of those individuals shall be at
5		least 21 years of age;
6		(8) A nonrefundable Cannabis Business Development Fee
7		equal to 5% of the cultivation center's total sales between
8		June 1, 2018 to June 1, 2019 or $750,000, whichever is
9		less, but at not less than $250,000, to be deposited into
10		the Cannabis Business Development Fund; and
11		(9) A commitment to completing one of the following
12		Social Equity Inclusion Plans provided for in this
13		subsection (b) before the expiration of the Early Approval
14		Adult Use Cultivation Center License:
15		(A) A contribution of 5% of the cultivation
16		center's total sales from June 1, 2018 to June 1, 2019,
17		or $100,000, whichever is less, to one of the
18		following:
19		(i) the Cannabis Business Development Fund.
20		This is in addition to the fee required by item (8)
21		of this subsection (b);
22		(ii) a cannabis industry training or education
23		program at an Illinois community college as
24		defined in the Public Community College Act;
25		(iii) a program that provides job training
26		services to persons recently incarcerated or that

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1		operates in a Disproportionately Impacted Area.
2		(B) Participate as a host in a cannabis business
3		incubator program for at least one year approved by the
4		Department of Commerce and Economic Opportunity, and
5		in which an Early Approval Adult Use Cultivation Center
6		License holder agrees to provide a loan of at least
7		$100,000 and mentorship to incubate a licensee that
8		qualifies as a Social Equity Applicant. As used in this
9		Section, "incubate" means providing direct financial
10		assistance and training necessary to engage in
11		licensed cannabis industry activity similar to that of
12		the host licensee. The Early Approval Adult Use
13		Cultivation Center License holder or the same entity
14		holding any other licenses issued pursuant to this Act
15		shall not take an ownership stake of greater than 10%
16		in any business receiving incubation services to
17		comply with this subsection. If an Early Approval Adult
18		Use Cultivation Center License holder fails to find a
19		business to incubate to comply with this subsection
20		before its Early Approval Adult Use Cultivation Center
21		License expires, it may opt to meet the requirement of
22		this subsection by completing another item from this
23		subsection prior to the expiration of its Early
24		Approval Adult Use Cultivation Center License to avoid
25		a penalty.
26		(c) An Early Approval Adult Use Cultivation Center License

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1		is valid until March 31, 2021. A cultivation center that
2		obtains an Early Approval Adult Use Cultivation Center License
3		shall receive written or electronic notice 90 days before the
4		expiration of the license that the license will expire, and
5		inform the license holder that it may renew its Early Approval
6		Adult Use Cultivation Center License. The Department of
7		Agriculture shall grant a renewal of an Early Approval Adult
8		Use Cultivation Center License within 60 days of submission of
9		an application if:
10		(1) the cultivation center submits an application and
11		the required renewal fee of $100,000 for an Early Approval
12		Adult Use Cultivation Center License;
13		(2) the Department of Agriculture has not suspended the
14		license of the cultivation center or suspended or revoked
15		the license for violating this Act or rules adopted under
16		this Act; and
17		(3) the cultivation center has completed a Social
18		Equity Inclusion Plan as required by item (9) of subsection
19		(b) of this Section.
20		(c-5) The Early Approval Adult Use Cultivation Center
21		License renewed pursuant to subsection (c) of this Section
22		shall expire March 31, 2022. The Early Approval Adult Use
23		Cultivation Center Licensee shall receive written or
24		electronic notice 90 days before the expiration of the license
25		that the license will expire, and inform the license holder
26		that it may apply for an Adult Use Cultivation Center License.

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1		The Department of Agriculture shall grant an Adult Use
2		Dispensing Organization License within 60 days of an
3		application being deemed complete if the applicant meets all of
4		the criteria in Section 20-21.
5		(d) The license fee required by paragraph (1) of subsection
6		(c) of this Section shall be in addition to any license fee
7		required for the renewal of a registered medical cannabis
8		cultivation center license that expires during the effective
9		period of the Early Approval Adult Use Cultivation Center
10		License.
11		(e) Applicants must submit all required information,
12		including the requirements in subsection (b) of this Section,
13		to the Department of Agriculture. Failure by an applicant to
14		submit all required information may result in the application
15		being disqualified.
16		(f) If the Department of Agriculture receives an
17		application with missing information, the Department may issue
18		a deficiency notice to the applicant. The applicant shall have
19		10 calendar days from the date of the deficiency notice to
20		submit complete information. Applications that are still
21		incomplete after this opportunity to cure may be disqualified.
22		(g) If an applicant meets all the requirements of
23		subsection (b) of this Section, the Department of Agriculture
24		shall issue the Early Approval Adult Use Cultivation Center
25		License within 14 days of receiving the application unless:
26		(1) The licensee; principal officer, board member, or

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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;
5		(2) The Director of Agriculture determines there is
6		reason, based on an inordinate number of documented
7		compliance violations, the licensee is not entitled to an
8		Early Approval Adult Use Cultivation Center License; or
9		(3) The licensee fails to commit to the Social Equity
10		Inclusion Plan.
11		(h) A cultivation center may begin producing cannabis and
12		cannabis-infused products once the Early Approval Adult Use
13		Cultivation Center License is approved. A cultivation center
14		that obtains an Early Approval Adult Use Cultivation Center
15		License may begin selling cannabis and cannabis-infused
16		products on December 1, 2019.
17		(i) An Early Approval Adult Use Cultivation Center License
18		holder must continue to produce and provide an adequate supply
19		of cannabis and cannabis-infused products for purchase by
20		qualifying patients and caregivers. For the purposes of this
21		subsection, "adequate supply" means a monthly production level
22		that is comparable in type and quantity to those medical
23		cannabis products produced for patients and caregivers on an
24		average monthly basis for the 6 months before the effective
25		date of this Act.
26		(j) If there is a shortage of cannabis or cannabis-infused

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1		products, a license holder shall prioritize patients
2		registered under the Compassionate Use of Medical Cannabis
3		Pilot Program Act over adult use purchasers.
4		(k) If an Early Approval Adult Use Cultivation Center
5		licensee fails to submit an application for an Adult Use
6		Cultivation Center License before the expiration of the Early
7		Approval Adult Use Cultivation Center License pursuant to
8		subsection (c-5) of this Section, the cultivation center shall
9		cease adult use cultivation until it receives an Adult Use
10		Cultivation Center License.
11		(l) 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		(m) If the Department of Agriculture suspends or revokes
19		the Early Approval Adult Use Cultivation Center License of a
20		cultivation center that also holds a medical cannabis
21		cultivation center license issued under the Compassionate Use
22		of Medical Cannabis Pilot Program Act, the Department of
23		Agriculture may suspend or revoke the medical cannabis
24		cultivation center license concurrently with the Early
25		Approval Adult Use Cultivation Center License.
26		(n) All fees or fines collected from an Early Approval

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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. Conditional Adult Use Cultivation Center
5		application.
6		(a) If the Department of Agriculture makes available
7		additional cultivation center licenses pursuant to Section
8		20-5, applicants for a Conditional Adult Use Cultivation Center
9		License shall electronically submit the following in such form
10		as the Department of Agriculture may direct:
11		(1) the nonrefundable application fee set by rule by
12		the Department of Agriculture, to be deposited into the
13		Cannabis Regulation Fund;
14		(2) the legal name of the cultivation center;
15		(3) the proposed physical address of the cultivation
16		center;
17		(4) the name, address, social security number, and date
18		of birth of each principal officer and board member of the
19		cultivation center; each principal officer and board
20		member shall be at least 21 years of age;
21		(5) the details of any administrative or judicial
22		proceeding in which any of the principal officers or board
23		members of the cultivation center (i) pled guilty, were
24		convicted, fined, or had a registration or license
25		suspended or revoked, or (ii) managed or served on the

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1		board of a business or non-profit organization that pled
2		guilty, was convicted, fined, or had a registration or
3		license suspended or revoked;
4		(6) proposed operating bylaws that include procedures
5		for the oversight of the cultivation center, including the
6		development and implementation of a plant monitoring
7		system, accurate recordkeeping, staffing plan, and
8		security plan approved by the Department of State Police
9		that are in accordance with the rules issued by the
10		Department of Agriculture under this Act. A physical
11		inventory shall be performed of all plants and cannabis on
12		a weekly basis by the cultivation center;
13		(7) verification from the Department of State Police
14		that all background checks of the prospective principal
15		officers, board members, and agents of the cannabis
16		business establishment have been conducted;
17		(8) a copy of the current local zoning ordinance or
18		permit and verification that the proposed cultivation
19		center is in compliance with the local zoning rules and
20		distance limitations established by the local
21		jurisdiction;
22		(9) proposed employment practices, in which the
23		applicant must demonstrate a plan of action to inform,
24		hire, and educate minorities, women, veterans, and persons
25		with disabilities, engage in fair labor practices, and
26		provide worker protections;

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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) a description of the enclosed, locked facility
8		where cannabis will be grown, harvested, manufactured,
9		processed, packaged, or otherwise prepared for
10		distribution to a dispensing organization;
11		(13) a survey of the enclosed, locked facility,
12		including the space used for cultivation;
13		(14) cultivation, processing, inventory, and packaging
14		plans;
15		(15) a description of the applicant's experience with
16		agricultural cultivation techniques and industry
17		standards;
18		(16) a list of any academic degrees, certifications, or
19		relevant experience of all prospective principal officers,
20		board members, and agents of the related business;
21		(17) the identity of every person having a financial or
22		voting interest of 5% or greater in the cultivation center
23		operation with respect to which the license is sought,
24		whether a trust, corporation, partnership, limited
25		liability company, or sole proprietorship, including the
26		name and address of each person;

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1		(18) a plan describing how the cultivation center will
2		address each of the following:
3		(i) energy needs, including estimates of monthly
4		electricity and gas usage, to what extent it will
5		procure energy from a local utility or from on-site
6		generation, and if it has or will adopt a sustainable
7		energy use and energy conservation policy;
8		(ii) water needs, including estimated water draw
9		and if it has or will adopt a sustainable water use and
10		water conservation policy; and
11		(iii) waste management, including if it has or will
12		adopt a waste reduction policy;
13		(19) a diversity plan that includes a narrative of not
14		more than 2,500 words that establishes a goal of diversity
15		in ownership, management, employment, and contracting to
16		ensure that diverse participants and groups are afforded
17		equality of opportunity;
18		(20) any other information required by rule;
19		(21) a recycling plan:
20		(A) Purchaser packaging, including cartridges,
21		shall be accepted by the applicant and recycled.
22		(B) Any recyclable waste generated by the cannabis
23		cultivation facility shall be recycled per applicable
24		State and local laws, ordinances, and rules.
25		(C) Any cannabis waste, liquid waste, or hazardous
26		waste shall be disposed of in accordance with 8 Ill.

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1		Adm. Code 1000.460, except, to the greatest extent
2		feasible, all cannabis plant waste will be rendered
3		unusable by grinding and incorporating the cannabis
4		plant waste with compostable mixed waste to be disposed
5		of in accordance with 8 Ill Adm. Code 1000.460(g)(1);
6		(22) commitment to comply with local waste provisions:
7		a cultivation facility must remain in compliance with
8		applicable State and federal environmental requirements,
9		including, but not limited to:
10		(A) storing, securing, and managing all
11		recyclables and waste, including organic waste
12		composed of or containing finished cannabis and
13		cannabis products, in accordance with applicable State
14		and local laws, ordinances, and rules; and
15		(B) Disposing liquid waste containing cannabis or
16		byproducts of cannabis processing in compliance with
17		all applicable State and federal requirements,
18		including, but not limited to, the cannabis
19		cultivation facility's permits under Title X of the
20		Environmental Protection Act; and
21		(23) a commitment to a technology standard for resource
22		efficiency of the cultivation center facility.
23		(A) A cannabis cultivation facility commits to use
24		resources efficiently, including energy and water. For
25		the following, a cannabis cultivation facility commits
26		to meet or exceed the technology standard identified in

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1		items (i), (ii), (iii), and (iv), which may be modified
2		by rule:
3		(i) lighting systems, including light bulbs;
4		(ii) HVAC system;
5		(iii) water application system to the crop;
6		and
7		(iv) filtration system for removing
8		contaminants from wastewater.
9		(B) Lighting. The Lighting Power Densities (LPD)
10		for cultivation space commits to not exceed an average
11		of 36 watts per gross square foot of active and growing
12		space canopy, or all installed lighting technology
13		shall meet a photosynthetic photon efficacy (PPE) of no
14		less than 2.2 micromoles per joule fixture and shall be
15		featured on the DesignLights Consortium (DLC)
16		Horticultural Specification Qualified Products List
17		(QPL). In the event that DLC requirement for minimum
18		efficacy exceeds 2.2 micromoles per joule fixture,
19		that PPE shall become the new standard.
20		(C) HVAC.
21		(i) For cannabis grow operations with less
22		than 6,000 square feet of canopy, the licensee
23		commits that all HVAC units will be
24		high-efficiency ductless split HVAC units, or
25		other more energy efficient equipment.
26		(ii) For cannabis grow operations with 6,000

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1		square feet of canopy or more, the licensee commits
2		that all HVAC units will be variable refrigerant
3		flow HVAC units, or other more energy efficient
4		equipment.
5		(D) Water application.
6		(i) The cannabis cultivation facility commits
7		to use automated watering systems, including, but
8		not limited to, drip irrigation and flood tables,
9		to irrigate cannabis crop.
10		(ii) The cannabis cultivation facility commits
11		to measure runoff from watering events and report
12		this volume in its water usage plan, and that on
13		average, watering events shall have no more than
14		20% of runoff of water.
15		(E) Filtration. The cultivator commits that HVAC
16		condensate, dehumidification water, excess runoff, and
17		other wastewater produced by the cannabis cultivation
18		facility shall be captured and filtered to the best of
19		the facility's ability to achieve the quality needed to
20		be reused in subsequent watering rounds.
21		(F) Reporting energy use and efficiency as
22		required by rule.
23		(b) Applicants must submit all required information,
24		including the information required in Section 20-10, to the
25		Department of Agriculture. Failure by an applicant to submit
26		all required information may result in the application being

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1		disqualified.
2		(c) If the Department of Agriculture receives an
3		application with missing information, the Department of
4		Agriculture may issue a deficiency notice to the applicant. The
5		applicant shall have 10 calendar days from the date of the
6		deficiency notice to resubmit the incomplete information.
7		Applications that are still incomplete after this opportunity
8		to cure will not be scored and will be disqualified.
9		(e) A cultivation center that is awarded a Conditional
10		Adult Use Cultivation Center License pursuant to the criteria
11		in Section 20-20 shall not grow, purchase, possess, or sell
12		cannabis or cannabis-infused products until the person has
13		received an Adult Use Cultivation Center License issued by the
14		Department of Agriculture pursuant to Section 20-21 of this
15		Act.
16		Section 20-20. Conditional Adult Use License scoring
17		applications.
18		(a) The Department of Agriculture shall by rule develop a
19		system to score cultivation center applications to
20		administratively rank applications based on the clarity,
21		organization, and quality of the applicant's responses to
22		required information. Applicants shall be awarded points based
23		on the following categories:
24		(1) Suitability of the proposed facility;
25		(2) Suitability of employee training plan;

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1		(3) Security and recordkeeping;
2		(4) Cultivation plan;
3		(5) Product safety and labeling plan;
4		(6) Business plan;
5		(7) The applicant's status as a Social Equity
6		Applicant, which shall constitute no less than 20% of total
7		available points;
8		(8) Labor and employment practices, which shall
9		constitute no less than 2% of total available points;
10		(9) Environmental plan as described in paragraphs
11		(18), (21), (22), and (23) of subsection (a) of Section
12		20-15;
13		(10) The applicant is 51% or more owned and controlled
14		by an individual or individuals who have been an Illinois
15		resident for the past 5 years as proved by tax records;
16		(11) The applicant is 51% or more controlled and owned
17		by an individual or individuals who meet the qualifications
18		of a veteran as defined by Section 45-57 of the Illinois
19		Procurement Code;
20		(12) a diversity plan that includes a narrative of not
21		more than 2,500 words that establishes a goal of diversity
22		in ownership, management, employment, and contracting to
23		ensure that diverse participants and groups are afforded
24		equality of opportunity; and
25		(13) Any other criteria the Department of Agriculture
26		may set by rule for points.

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1		(b) The Department may also award bonus points for the
2		applicant's plan to engage with the community. Bonus points
3		will only be awarded if the Department receives applications
4		that receive an equal score for a particular region.
5		(c) 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		(d) 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 20-21. Adult Use Cultivation Center License.
18		(a) A person or entity is only eligible to receive an Adult
19		Use Cultivation Center License if the person or entity has
20		first been awarded a Conditional Adult Use Cultivation Center
21		License pursuant to this Act or the person or entity has
22		renewed its Early Approval Cultivation Center License pursuant
23		to subsection (c) of Section 20-10.
24		(b) The Department of Agriculture shall not issue an Adult
25		Use Cultivation Center License until:

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1		(1) the Department of Agriculture has inspected the
2		cultivation center site and proposed operations and
3		verified that they are in compliance with this Act and
4		local zoning laws;
5		(2) the Conditional Adult Use Cultivation Center
6		License holder has paid a registration fee of $100,000 or a
7		prorated amount accounting for the difference of time
8		between when the Adult Use Cultivation Center License is
9		issued and March 31 of the next even-numbered year; and
10		(3) The Conditional Adult Use Cultivation Center
11		License holder has met all the requirements in the Act and
12		rules.
13		Section 20-25. Denial of application. An application for a
14		cultivation center license must be denied if any of the
15		following conditions are met:
16		(1) the applicant failed to submit the materials
17		required by this Article;
18		(2) the applicant would not be in compliance with local
19		zoning rules;
20		(3) one or more of the prospective principal officers
21		or board members causes a violation of Section 20-30;
22		(4) one or more of the principal officers or board
23		members is under 21 years of age;
24		(5) the person has submitted an application for a
25		permit under this Act that contains false information; or

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1		(6) the licensee, principal officer, board member, or
2		person having a financial or voting interest of 5% or
3		greater in the licensee, or the agent is delinquent in
4		filing any required tax returns or paying any amounts owed
5		to the State of Illinois.
6		Section 20-30. Cultivation center requirements;
7		prohibitions.
8		(a) The operating documents of a cultivation center shall
9		include procedures for the oversight of the cultivation center
10		a cannabis plant monitoring system including a physical
11		inventory recorded weekly, accurate recordkeeping, and a
12		staffing plan.
13		(b) A cultivation center shall implement a security plan
14		reviewed by the Department of State Police that includes, but
15		is not limited to: facility access controls, perimeter
16		intrusion detection systems, personnel identification systems,
17		24-hour surveillance system to monitor the interior and
18		exterior of the cultivation center facility and accessibility
19		to authorized law enforcement, the Department of Public Health
20		where processing takes place, and the Department of Agriculture
21		in real time.
22		(c) All cultivation of cannabis by a cultivation center
23		must take place in an enclosed, locked facility at the physical
24		address provided to the Department of Agriculture during the
25		licensing process. The cultivation center location shall only

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1		be accessed by the agents working for the cultivation center,
2		the Department of Agriculture staff performing inspections,
3		the Department of Public Health staff performing inspections,
4		local and State law enforcement or other emergency personnel,
5		contractors working on jobs unrelated to cannabis, such as
6		installing or maintaining security devices or performing
7		electrical wiring, transporting organization agents as
8		provided in this Act, individuals in a mentoring or educational
9		program approved by the State, or other individuals as provided
10		by rule.
11		(d) A cultivation center may not sell or distribute any
12		cannabis or cannabis-infused products to any person other than
13		a dispensing organization, craft grower, infusing
14		organization, transporter, or as otherwise authorized by rule.
15		(e) A cultivation center may not either directly or
16		indirectly discriminate in price between different dispensing
17		organizations, craft growers, or infuser organizations that
18		are purchasing a like grade, strain, brand, and quality of
19		cannabis or cannabis-infused product. Nothing in this
20		subsection (e) prevents a cultivation centers from pricing
21		cannabis differently based on differences in the cost of
22		manufacturing or processing, the quantities sold, such as
23		volume discounts, or the way the products are delivered.
24		(f) All cannabis harvested by a cultivation center and
25		intended for distribution to a dispensing organization must be
26		entered into a data collection system, packaged and labeled

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1		under Section 55-21, and placed into a cannabis container for
2		transport. All cannabis harvested by a cultivation center and
3		intended for distribution to a craft grower or infuser
4		organization must be packaged in a labeled cannabis container
5		and entered into a data collection system before transport.
6		(g) Cultivation centers are subject to random inspections
7		by the Department of Agriculture, the Department of Public
8		Health, local safety or health inspectors, and the Department
9		of State Police.
10		(h) A cultivation center agent shall notify local law
11		enforcement, the Department of State Police, and the Department
12		of Agriculture within 24 hours of the discovery of any loss or
13		theft. Notification shall be made by phone or in person, or by
14		written or electronic communication.
15		(i) A cultivation center shall comply with all State and
16		any applicable federal rules and regulations regarding the use
17		of pesticides on cannabis plants.
18		(j) No person or entity shall hold any legal, equitable,
19		ownership, or beneficial interest, directly or indirectly, of
20		more than 3 cultivation centers licensed under this Article.
21		Further, no person or entity that is employed by, an agent of,
22		has a contract to receive payment in any form from a
23		cultivation center, is a principal officer of a cultivation
24		center, or entity controlled by or affiliated with a principal
25		officer of a cultivation shall hold any legal, equitable,
26		ownership, or beneficial interest, directly or indirectly, in a

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1		cultivation that would result in the person or entity owning or
2		controlling in combination with any cultivation center,
3		principal officer of a cultivation center, or entity controlled
4		or affiliated with a principal officer of a cultivation center
5		by which he, she, or it is employed, is an agent of, or
6		participates in the management of, more than 3 cultivation
7		center licenses.
8		(k) A cultivation center may not contain more than 210,000
9		square feet of canopy space for plants in the flowering stage
10		for cultivation of adult use cannabis as provided in this Act.
11		(l) A cultivation center may process cannabis, cannabis
12		concentrates, and cannabis-infused products.
13		(m) Beginning July 1, 2020, a cultivation center shall not
14		transport cannabis to a craft grower, dispensing organization,
15		infuser organization, or laboratory licensed under this Act,
16		unless it has obtained a transporting organization license.
17		(n) It is unlawful for any person having a cultivation
18		center license or any officer, associate, member,
19		representative, or agent of such licensee to offer or deliver
20		money, or anything else of value, directly or indirectly to any
21		person having an Early Approval Adult Use Dispensing
22		Organization License, a Conditional Adult Use Dispensing
23		Organization License, an Adult Use Dispensing Organization
24		License, or a medical cannabis dispensing organization license
25		issued under the Compassionate Use of Medical Cannabis Pilot
26		Program Act, or to any person connected with or in any way

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1		representing, or to any member of the family of, such person
2		holding an Early Approval Adult Use Dispensing Organization
3		License, a Conditional Adult Use Dispensing Organization
4		License, an Adult Use Dispensing Organization License, or a
5		medical cannabis dispensing organization license issued under
6		the Compassionate Use of Medical Cannabis Pilot Program Act, or
7		to any stockholders in any corporation engaged in the retail
8		sale of cannabis, or to any officer, manager, agent, or
9		representative of the Early Approval Adult Use Dispensing
10		Organization License, a Conditional Adult Use Dispensing
11		Organization License, an Adult Use Dispensing Organization
12		License, or a medical cannabis dispensing organization license
13		issued under the Compassionate Use of Medical Cannabis Pilot
14		Program Act to obtain preferential placement within the
15		dispensing organization, including, without limitation, on
16		shelves and in display cases where purchasers can view
17		products, or on the dispensing organization's website.
18		(o) A cultivation center must comply with any other
19		requirements or prohibitions set by administrative rule of the
20		Department of Agriculture.
21		Section 20-35. Cultivation center agent identification
22		card.
23		(a) The Department of Agriculture shall:
24		(1) establish by rule the information required in an
25		initial application or renewal application for an agent

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1		identification card submitted under this Act and the
2		nonrefundable fee to accompany the initial application or
3		renewal application;
4		(2) verify the information contained in an initial
5		application or renewal application for an agent
6		identification card submitted under this Act, and approve
7		or deny an application within 30 days of receiving a
8		completed initial application or renewal application and
9		all supporting documentation required by rule;
10		(3) issue an agent identification card to a qualifying
11		agent within 15 business days of approving the initial
12		application or renewal application;
13		(4) enter the license number of the cultivation center
14		where the agent works; and
15		(5) allow for an electronic initial application and
16		renewal application process, and provide a confirmation by
17		electronic or other methods that an application has been
18		submitted. The Department of Agriculture may by rule
19		require prospective agents to file their applications by
20		electronic means and provide notices to the agents by
21		electronic means.
22		(b) An agent must keep his or her identification card
23		visible at all times when on the property of the cultivation
24		center at which the agent is employed.
25		(c) The agent identification cards shall contain the
26		following:

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1		(1) the name of the cardholder;
2		(2) the date of issuance and expiration date of the
3		identification card;
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 holder;
7		(4) a photograph of the cardholder; and
8		(5) the legal name of the cultivation center employing
9		the agent.
10		(d) An agent identification card shall be immediately
11		returned to the cultivation center of the agent upon
12		termination of his or her employment.
13		(e) Any agent identification card lost by a cultivation
14		center agent shall be reported to the Department of State
15		Police and the Department of Agriculture immediately upon
16		discovery of the loss.
17		(f) The Department of Agriculture shall not issue an agent
18		identification card if the applicant is delinquent in filing
19		any required tax returns or paying any amounts owed to the
20		State of Illinois.
21		Section 20-40. Cultivation center background checks.
22		(a) Through the Department of State Police, the Department
23		of Agriculture shall conduct a background check of the
24		prospective principal officers, board members, and agents of a
25		cultivation center applying for a license or identification

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1		card under this Act. The Department of State Police shall
2		charge a fee set by rule for conducting the criminal history
3		record check, which shall be deposited into the State Police
4		Services Fund and shall not exceed the actual cost of the
5		record check. In order to carry out this provision, each
6		cultivation center prospective principal officer, board
7		member, or agent shall submit a full set of fingerprints to the
8		Department of State Police for the purpose of obtaining a State
9		and federal criminal records check. These fingerprints shall be
10		checked against the fingerprint records now and hereafter, to
11		the extent allowed by law, filed in the Department of State
12		Police and Federal Bureau of Investigation criminal history
13		records databases. The Department of State Police shall
14		furnish, following positive identification, all conviction
15		information to the Department of Agriculture.
16		(b) When applying for the initial license or identification
17		card, the background checks for all prospective principal
18		officers, board members, and agents shall be completed before
19		submitting the application to the licensing or issuing agency.
20		Section 20-45. Renewal of cultivation center licenses and
21		agent identification cards.
22		(a) Licenses and identification cards issued under this Act
23		shall be renewed annually. A cultivation center shall receive
24		written or electronic notice 90 days before the expiration of
25		its current license that the license will expire. The

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1		Department of Agriculture shall grant a renewal within 45 days
2		of submission of a renewal application if:
3		(1) the cultivation center submits a renewal
4		application and the required nonrefundable renewal fee of
5		$100,000, or another amount as the Department of
6		Agriculture may set by rule after January 1, 2021, to be
7		deposited into the Cannabis Regulation Fund.
8		(2) the Department of Agriculture has not suspended the
9		license of the cultivation center or suspended or revoked
10		the license for violating this Act or rules adopted under
11		this Act;
12		(3) the cultivation center has continued to operate in
13		accordance with all plans submitted as part of its
14		application and approved by the Department of Agriculture
15		or any amendments thereto that have been approved by the
16		Department of Agriculture;
17		(4) the cultivation center has submitted an agent,
18		employee, contracting, and subcontracting diversity report
19		as required by the Department; and
20		(5) the cultivation center has submitted an
21		environmental impact report.
22		(b) If a cultivation center fails to renew its license
23		before expiration, it shall cease operations until its license
24		is renewed.
25		(c) If a cultivation center agent fails to renew his or her
26		identification card before its expiration, he or she shall

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1		cease to work as an agent of the cultivation center until his
2		or her identification card is renewed.
3		(d) Any cultivation center that continues to operate, or
4		any cultivation center agent who continues to work as an agent,
5		after the applicable license or identification card has expired
6		without renewal is subject to the penalties provided under
7		Section 45-5.
8		Section 20-50. Cultivator taxes; returns.
9		(a) A tax is imposed upon the privilege of cultivating and
10		processing adult use cannabis at the rate of 7% of the gross
11		receipts from the sale of cannabis by a cultivator to a
12		dispensing organization. The sale of any adult use product that
13		contains any amount of cannabis or any derivative thereof is
14		subject to the tax under this Section on the full selling price
15		of the product. The proceeds from this tax shall be deposited
16		into the Cannabis Regulation Fund. This tax shall be paid by
17		the cultivator who makes the first sale and is not the
18		responsibility of a dispensing organization, qualifying
19		patient, or purchaser.
20		(b)In the administration of and compliance with this
21		Section, the Department of Revenue and persons who are subject
22		to this Section: (i) have the same rights, remedies,
23		privileges, immunities, powers, and duties, (ii) are subject to
24		the same conditions, restrictions, limitations, penalties, and
25		definitions of terms, and (iii) shall employ the same modes of

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1		procedure as are set forth in the Cannabis Cultivation
2		Privilege Tax Law and the Uniform Penalty and Interest Act as
3		if those provisions were set forth in this Section.
4		(c)The tax imposed under this Act shall be in addition to
5		all other occupation or privilege taxes imposed by the State of
6		Illinois or by any municipal corporation or political
7		subdivision thereof.
8		ARTICLE 25.
9		COMMUNITY COLLEGE CANNABIS VOCATIONAL PILOT PROGRAM
10		Section 25-1. Definitions In this Article:
11		"Board" means the Illinois Community College Board.
12		"Career in Cannabis Certificate" or "Certificate" means
13		the certification awarded to a community college student who
14		completes a prescribed course of study in cannabis and cannabis
15		business industry related classes and curriculum at a community
16		college awarded a Community College Cannabis Vocational Pilot
17		Program license.
18		"Community college" means a public community college
19		organized under the Public Community College Act.
20		"Department" means the Department of Agriculture.
21		"Licensee" means a community college awarded a Community
22		College Cannabis Vocational Pilot Program license under this
23		Article.
24		"Program" means the Community College Cannabis Vocational

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1		Pilot Program.
2		"Program license" means a Community College Cannabis
3		Vocational Pilot Program license issued to a community college
4		under this Article.
5		Section 25-5. Administration.
6		(a) The Department shall establish and administer the
7		Program in coordination with the Illinois Community College
8		Board. The Department may issue up to 8 Program licenses by
9		September 1, 2020.
10		(b) Beginning with the 2021-2022 academic year, and subject
11		to subsection (h) of Section 2-12 of the Public Community
12		College Act, community colleges awarded Program licenses may
13		offer qualifying students a Career in Cannabis Certificate,
14		which includes, but is not limited to, courses that allow
15		participating students to work with, study, and grow live
16		cannabis plants so as to prepare students for a career in the
17		legal cannabis industry, and to instruct participating
18		students on the best business practices, professional
19		responsibility, and legal compliance of the cannabis business
20		industry.
21		(c) The Board may issue rules pertaining to the provisions
22		in this Act.
23		(d) Notwithstanding any other provision of this Act,
24		students shall be at least 18 years old in order to enroll in a
25		licensee's Career in Cannabis Certificate's prescribed course

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1		of study.
2		Section 25-10. Issuance of Community College Cannabis
3		Vocational Pilot Program licenses.
4		(a) The Department shall issue rules regulating the
5		selection criteria for applicants by January 1, 2020. The
6		Department shall make the application for a Program license
7		available no later than February 1, 2020, and shall require
8		that applicants submit the completed application no later than
9		July 1, 2020.
10		(b) The Department shall by rule develop a system to score
11		Program licenses to administratively rank applications based
12		on the clarity, organization, and quality of the applicant's
13		responses to required information. Applicants shall be awarded
14		points that are based on or that meet the following categories:
15		(1) Geographic diversity of the applicants;
16		(2) Experience and credentials of the applicant's
17		faculty;
18		(3) At least 5 Program license awardees must have a
19		student population that is more than 50% low-income in each
20		of the past 4 years;
21		(4) Security plan, including a requirement that all
22		cannabis plants be in an enclosed, locked facility;
23		(5) Curriculum plan, including processing and testing
24		curriculum for the Career in Cannabis Certificate;
25		(6) Career advising and placement plan for

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1		participating students; and
2		(7) Any other criteria the Department may set by rule.
3		Section 25-15. Community College Cannabis Vocational Pilot
4		Program requirements and prohibitions.
5		(a) Licensees shall not have more than 50 flowering
6		cannabis plants at any one time.
7		(b) The agent-in-charge shall keep a vault log of the
8		licensee's enclosed, locked facility or facilities, including
9		but not limited to, the person entering the site location, the
10		time of entrance, the time of exit, and any other information
11		the Department may set by rule.
12		(c) Cannabis shall not be removed from the licensee's
13		facility, except for the limited purpose of shipping a sample
14		to a laboratory registered under this Act.
15		(d) The licensee shall limit keys, access cards, or an
16		access code to the licensee's enclosed, locked facility, or
17		facilities, to cannabis curriculum faculty and college
18		security personnel with a bona fide need to access the facility
19		for emergency purposes.
20		(e) A transporting organization may transport cannabis
21		produced pursuant to this Article to a laboratory registered
22		under this Act. All other cannabis produced by the licensee
23		that was not shipped to a registered laboratory shall be
24		destroyed within 5 weeks of being harvested.
25		(f) Licensees shall subscribe to the Department of

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1		Agriculture's cannabis plant monitoring system.
2		(g) Licensees shall maintain a weekly inventory system.
3		(h) No student participating in the cannabis curriculum
4		necessary to obtain a Certificate may be in the licensee's
5		facility unless a faculty agent-in-charge is also physically
6		present in the facility.
7		(i) Licensees shall conduct post-certificate follow up
8		surveys and record participating students' job placements
9		within the cannabis business industry within a year of the
10		student's completion.
11		(j) The Illinois Community College Board shall report
12		annually to the Department on the race, ethnicity, and gender
13		of all students participating in the cannabis curriculum
14		necessary to obtain a Certificate, and of those students who
15		obtain a Certificate.
16		Section 25-20. Faculty.
17		(a) All faculty members shall be required to maintain
18		registration as an agent-in-charge and have a valid agent
19		identification card prior to teaching or participating in the
20		licensee's cannabis curriculum that involves instruction
21		offered in the enclosed, locked facility or facilities.
22		(b) All faculty receiving an agent-in-charge or agent
23		identification card must successfully pass a background check
24		required by Section 5-20 prior to participating in a licensee's
25		cannabis curriculum that involves instruction offered in the

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1		enclosed, locked facility.
2		Section 25-25. Enforcement.
3		(a) The Department has the authority to suspend or revoke
4		any faculty agent-in-charge or agent identification card for
5		any violation found under this Article.
6		(b) The Department has the authority to suspend or revoke
7		any Program license for any violation found under this Article.
8		(c) The Board shall revoke the authority to offer the
9		Certificate of any community college that has had its license
10		revoked by the Department.
11		Section 25-30. Inspection rights.
12		(a) A licensee's enclosed, locked facilities are subject to
13		random inspections by the Department and the Department of
14		State Police.
15		(b) Nothing in this Section shall be construed to give the
16		Department or the Department of State Police a right of
17		inspection or access to any location on the licensee's premises
18		beyond the facilities licensed under this Article.
19		Section 25-35. Community College Cannabis Vocational
20		Training Pilot Program faculty participant agent
21		identification card.
22		(a) The Department shall:
23		(1) establish by rule the information required in an

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1		initial application or renewal application for an agent
2		identification card submitted under this Article and the
3		nonrefundable fee to accompany the initial application or
4		renewal application;
5		(2) verify the information contained in an initial
6		application or renewal application for an agent
7		identification card submitted under this Article, and
8		approve or deny an application within 30 days of receiving
9		a completed initial application or renewal application and
10		all supporting documentation required by rule;
11		(3) issue an agent identification card to a qualifying
12		agent within 15 business days of approving the initial
13		application or renewal application;
14		(4) enter the license number of the community college
15		where the agent works; and
16		(5) allow for an electronic initial application and
17		renewal application process, and provide a confirmation by
18		electronic or other methods that an application has been
19		submitted. Each Department may by rule require prospective
20		agents to file their applications by electronic means and
21		to provide notices to the agents by electronic means.
22		(b) An agent must keep his or her identification card
23		visible at all times when in the enclosed, locked facility, or
24		facilities for which he or she is an agent.
25		(c) The agent identification cards shall contain the
26		following:

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1		(1) the name of the cardholder;
2		(2) the date of issuance and expiration date of the
3		identification card;
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 holder;
7		(4) a photograph of the cardholder; and
8		(5) the legal name of the community college employing
9		the agent.
10		(d) An agent identification card shall be immediately
11		returned to the community college of the agent upon termination
12		of his or her employment.
13		(e) Any agent identification card lost shall be reported to
14		the Department of State Police and the Department of
15		Agriculture immediately upon discovery of the loss.
16		Section 25-40. Study. By December 31, 2025, the Illinois
17		Cannabis Regulation Oversight Officer, in coordination with
18		the Board, must issue a report to the Governor and the General
19		Assembly which includes, but is not limited to, the following:
20		(1) Number of security incidents or infractions at each
21		licensee and any action taken or not taken;
22		(2) Statistics, based on race, ethnicity, gender, and
23		participating community college of:
24		(A) students enrolled in career in cannabis
25		classes;

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1		(B) successful completion rates by community
2		college students for the Certificate;
3		(C) postgraduate job placement of students who
4		obtained a Certificate, including both cannabis
5		business establishment jobs and non-cannabis business
6		establishment jobs; and
7		(3) Any other relevant information.
8		Section 25-45. Repeal. This Article is repealed on July 1,
9		2026.
10		ARTICLE 30.
11		CRAFT GROWERS
12		Section 30-3. Definition. In this Article, "Department"
13		means the Department of Agriculture.
14		Section 30-5. Issuance of licenses.
15		(a) The Department of Agriculture shall issue up to 40
16		craft grower licenses by July 1, 2020. Any person or entity
17		awarded a license pursuant to this subsection shall only hold
18		one craft grower license and may not sell that license until
19		after December 21, 2021.
20		(b) By December 21, 2021, the Department of Agriculture
21		shall issue up to 60 additional craft grower licenses. Any
22		person or entity awarded a license pursuant to this subsection

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1		shall not hold more than 2 craft grower licenses. The person or
2		entity awarded a license pursuant to this subsection or
3		subsection (a) of this Section may sell its craft grower
4		license subject to the restrictions of this Act or as
5		determined by administrative rule. Prior to issuing such
6		licenses, the Department may adopt rules through emergency
7		rulemaking in accordance with subsection (gg) of Section 5-45
8		of the Illinois Administrative Procedure Act, to modify or
9		raise the number of craft grower licenses assigned to each
10		region and modify or change the licensing application process
11		to reduce or eliminate barriers. The General Assembly finds
12		that the adoption of rules to regulate cannabis use is deemed
13		an emergency and necessary for the public interest, safety, and
14		welfare. In determining whether to exercise the authority
15		granted by this subsection, the Department of Agriculture must
16		consider the following factors:
17		(1) The percentage of cannabis sales occurring in
18		Illinois not in the regulated market using data from the
19		Substance Abuse and Mental Health Services Administration,
20		National Survey on Drug Use and Health, Illinois Behavioral
21		Risk Factor Surveillance System, and tourism data from the
22		Illinois Office of Tourism to ascertain total cannabis
23		consumption in Illinois compared to the amount of sales in
24		licensed dispensing organizations;
25		(2) Whether there is an adequate supply of cannabis and
26		cannabis-infused products to serve registered medical

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1		cannabis patients;
2		(3) Whether there is an adequate supply of cannabis and
3		cannabis-infused products to serve purchasers;
4		(4) Whether there is an oversupply of cannabis in
5		Illinois leading to trafficking of cannabis to states where
6		the sale of cannabis is not permitted by law;
7		(5) Population increases or shifts;
8		(6) The density of craft growers in any area of the
9		State;
10		(7) Perceived security risks of increasing the number
11		or location of craft growers;
12		(8) The past safety record of craft growers;
13		(9) The Department of Agriculture's capacity to
14		appropriately regulate additional licensees;
15		(10) The findings and recommendations from the
16		disparity and availability study commissioned by the
17		Illinois Cannabis Regulation Oversight Officer to reduce
18		or eliminate any identified barriers to entry in the
19		cannabis industry; and
20		(11) Any other criteria the Department of Agriculture
21		deems relevant.
22		(c) After January 1, 2022, the Department of Agriculture
23		may by rule modify or raise the number of craft grower licenses
24		assigned to each region, and modify or change the licensing
25		application process to reduce or eliminate barriers based on
26		the criteria in subsection (b). At no time may the number of

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1		craft grower licenses exceed 150. Any person or entity awarded
2		a license pursuant to this subsection shall not hold more than
3		3 craft grower licenses. A person or entity awarded a license
4		pursuant to this subsection or subsection (a) or subsection (b)
5		of this Section may sell its craft grower license or licenses
6		subject to the restrictions of this Act or as determined by
7		administrative rule.
8		Section 30-10. Application.
9		(a) When applying for a license, the applicant shall
10		electronically submit the following in such form as the
11		Department of Agriculture may direct:
12		(1) the nonrefundable application fee of $5,000 to be
13		deposited into the Cannabis Regulation Fund, or another
14		amount as the Department of Agriculture may set by rule
15		after January 1, 2021;
16		(2) the legal name of the craft grower;
17		(3) the proposed physical address of the craft grower;
18		(4) the name, address, social security number, and date
19		of birth of each principal officer and board member of the
20		craft grower; each principal officer and board member shall
21		be at least 21 years of age;
22		(5) the details of any administrative or judicial
23		proceeding in which any of the principal officers or board
24		members of the craft grower (i) pled guilty, were
25		convicted, fined, or had a registration or license

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1		suspended or revoked or (ii) managed or served on the board
2		of a business or non-profit organization that pled guilty,
3		was convicted, fined, or had a registration or license
4		suspended or revoked;
5		(6) proposed operating bylaws that include procedures
6		for the oversight of the craft grower, including the
7		development and implementation of a plant monitoring
8		system, accurate recordkeeping, staffing plan, and
9		security plan approved by the Department of State Police
10		that are in accordance with the rules issued by the
11		Department of Agriculture under this Act; a physical
12		inventory shall be performed of all plants and on a weekly
13		basis by the craft grower;
14		(7) verification from the Department of State Police
15		that all background checks of the prospective principal
16		officers, board members, and agents of the cannabis
17		business establishment have been conducted;
18		(8) a copy of the current local zoning ordinance or
19		permit and verification that the proposed craft grower is
20		in compliance with the local zoning rules and distance
21		limitations established by the local jurisdiction;
22		(9) proposed employment practices, in which the
23		applicant must demonstrate a plan of action to inform,
24		hire, and educate minorities, women, veterans, and persons
25		with disabilities, engage in fair labor practices, and
26		provide worker protections;

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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) a description of the enclosed, locked facility
8		where cannabis will be grown, harvested, manufactured,
9		packaged, or otherwise prepared for distribution to a
10		dispensing organization or other cannabis business
11		establishment;
12		(13) a survey of the enclosed, locked facility,
13		including the space used for cultivation;
14		(14) cultivation, processing, inventory, and packaging
15		plans;
16		(15) a description of the applicant's experience with
17		agricultural cultivation techniques and industry
18		standards;
19		(16) a list of any academic degrees, certifications, or
20		relevant experience of all prospective principal officers,
21		board members, and agents of the related business;
22		(17) the identity of every person having a financial or
23		voting interest of 5% or greater in the craft grower
24		operation, whether a trust, corporation, partnership,
25		limited liability company, or sole proprietorship,
26		including the name and address of each person;

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1		(18) a plan describing how the craft grower will
2		address each of the following:
3		(i) energy needs, including estimates of monthly
4		electricity and gas usage, to what extent it will
5		procure energy from a local utility or from on-site
6		generation, and if it has or will adopt a sustainable
7		energy use and energy conservation policy;
8		(ii) water needs, including estimated water draw
9		and if it has or will adopt a sustainable water use and
10		water conservation policy; and
11		(iii) waste management, including if it has or will
12		adopt a waste reduction policy;
13		(19) a recycling plan:
14		(A) Purchaser packaging, including cartridges,
15		shall be accepted by the applicant and recycled.
16		(B) Any recyclable waste generated by the craft
17		grower facility shall be recycled per applicable State
18		and local laws, ordinances, and rules.
19		(C) Any cannabis waste, liquid waste, or hazardous
20		waste shall be disposed of in accordance with 8 Ill.
21		Adm. Code 1000.460, except, to the greatest extent
22		feasible, all cannabis plant waste will be rendered
23		unusable by grinding and incorporating the cannabis
24		plant waste with compostable mixed waste to be disposed
25		of in accordance with 8 Ill Adm. Code 1000.460(g)(1).
26		(20) a commitment to comply with local waste

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1		provisions: a craft grower facility must remain in
2		compliance with applicable State and federal environmental
3		requirements, including, but not limited to:
4		(A) storing, securing, and managing all
5		recyclables and waste, including organic waste
6		composed of or containing finished cannabis and
7		cannabis products, in accordance with applicable State
8		and local laws, ordinances, and rules; and
9		(B) Disposing liquid waste containing cannabis or
10		byproducts of cannabis processing in compliance with
11		all applicable State and federal requirements,
12		including, but not limited to, the cannabis
13		cultivation facility's permits under Title X of the
14		Environmental Protection Act.
15		(21) a commitment to a technology standard for resource
16		efficiency of the craft grower facility.
17		(A) A craft grower facility commits to use
18		resources efficiently, including energy and water. For
19		the following, a cannabis cultivation facility commits
20		to meet or exceed the technology standard identified in
21		paragraphs (i), (ii), (iii), and (iv), which may be
22		modified by rule:
23		(i) lighting systems, including light bulbs;
24		(ii) HVAC system;
25		(iii) water application system to the crop;
26		and

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1		(iv) filtration system for removing
2		contaminants from wastewater.
3		(B) Lighting. The Lighting Power Densities (LPD)
4		for cultivation space commits to not exceed an average
5		of 36 watts per gross square foot of active and growing
6		space canopy, or all installed lighting technology
7		shall meet a photosynthetic photon efficacy (PPE) of no
8		less than 2.2 micromoles per joule fixture and shall be
9		featured on the DesignLights Consortium (DLC)
10		Horticultural Specification Qualified Products List
11		(QPL). In the event that DLC requirement for minimum
12		efficacy exceeds 2.2 micromoles per joule fixture,
13		that PPE shall become the new standard.
14		(C) HVAC.
15		(i) For cannabis grow operations with less
16		than 6,000 square feet of canopy, the licensee
17		commits that all HVAC units will be
18		high-efficiency ductless split HVAC units, or
19		other more energy efficient equipment.
20		(ii) For cannabis grow operations with 6,000
21		square feet of canopy or more, the licensee commits
22		that all HVAC units will be variable refrigerant
23		flow HVAC units, or other more energy efficient
24		equipment.
25		(D) Water application.
26		(i) The craft grower facility commits to use

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1		automated watering systems, including, but not
2		limited to, drip irrigation and flood tables, to
3		irrigate cannabis crop.
4		(ii) The craft grower facility commits to
5		measure runoff from watering events and report
6		this volume in its water usage plan, and that on
7		average, watering events shall have no more than
8		20% of runoff of water.
9		(E) Filtration. The craft grower commits that HVAC
10		condensate, dehumidification water, excess runoff, and
11		other wastewater produced by the craft grower facility
12		shall be captured and filtered to the best of the
13		facility's ability to achieve the quality needed to be
14		reused in subsequent watering rounds.
15		(F) Reporting energy use and efficiency as
16		required by rule; and
17		(22) any other information required by rule.
18		(b) Applicants must submit all required information,
19		including the information required in Section 30-15, to the
20		Department of Agriculture. Failure by an applicant to submit
21		all required information may result in the application being
22		disqualified.
23		(c) If the Department of Agriculture receives an
24		application with missing information, the Department of
25		Agriculture may issue a deficiency notice to the applicant. The
26		applicant shall have 10 calendar days from the date of the

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1		deficiency notice to resubmit the incomplete information.
2		Applications that are still incomplete after this opportunity
3		to cure will not be scored and will be disqualified.
4		Section 30-15. Scoring applications.
5		(a) The Department of Agriculture shall by rule develop a
6		system to score craft grower applications to administratively
7		rank applications based on the clarity, organization, and
8		quality of the applicant's responses to required information.
9		Applicants shall be awarded points based on the following
10		categories:
11		(1) Suitability of the proposed facility;
12		(2) Suitability of the employee training plan;
13		(3) Security and recordkeeping;
14		(4) Cultivation plan;
15		(5) Product safety and labeling plan;
16		(6) Business plan;
17		(7) The applicant's status as a Social Equity
18		Applicant, which shall constitute no less than 20% of total
19		available points;
20		(8) Labor and employment practices, which shall
21		constitute no less than 2% of total available points;
22		(9) Environmental plan as described in paragraphs
23		(18), (19), (20), and (21) of subsection (a) of Section
24		30-10;
25		(10) The applicant is 51% or more owned and controlled

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1		by an individual or individuals who have been an Illinois
2		resident for the past 5 years as proved by tax records;
3		(11) The applicant is 51% or more controlled and owned
4		by an individual or individuals who meet the qualifications
5		of a veteran as defined in Section 45-57 of the Illinois
6		Procurement Code;
7		(12) A diversity plan that includes a narrative of not
8		more than 2,500 words that establishes a goal of diversity
9		in ownership, management, employment, and contracting to
10		ensure that diverse participants and groups are afforded
11		equality of opportunity; and
12		(13) Any other criteria the Department of Agriculture
13		may set by rule for points.
14		(b) The Department may also award up to 2 bonus points for
15		the applicant's plan to engage with the community. The
16		applicant may demonstrate a desire to engage with its community
17		by participating in one or more of, but not limited to, the
18		following actions: (i) establishment of an incubator program
19		designed to increase participation in the cannabis industry by
20		persons who would qualify as Social Equity Applicants; (ii)
21		providing financial assistance to substance abuse treatment
22		centers; (iii) educating children and teens about the potential
23		harms of cannabis use; or (iv) other measures demonstrating a
24		commitment to the applicant's community. Bonus points will only
25		be awarded if the Department receives applications that receive
26		an equal score for a particular region.

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1		(c) Should the applicant be awarded a craft grower license,
2		the information and plans that an applicant provided in its
3		application, including any plans submitted for the acquiring of
4		bonus points, shall be a mandatory condition of the license.
5		Any variation from or failure to perform such plans may result
6		in discipline, including the revocation or nonrenewal of a
7		license.
8		(d) Should the applicant be awarded a craft grower license,
9		the applicant shall pay a prorated fee of $40,000 prior to
10		receiving the license, to be deposited into the Cannabis
11		Regulation Fund. The Department of Agriculture may by rule
12		adjust the fee in this Section after January 1, 2021.
13		Section 30-20. Issuance of license to certain persons
14		prohibited.
15		(a) No craft grower license issued by the Department of
16		Agriculture shall be issued to a person who is licensed by any
17		licensing authority as a cultivation center, or to any
18		partnership, corporation, limited liability company, or trust
19		or any subsidiary, affiliate, or any other form of business
20		enterprise having more than 10% legal, equitable, or beneficial
21		interest, directly or indirectly, in a person licensed in this
22		State as a cultivation center, or to any principal officer,
23		agent, employee, or human being with any form of ownership or
24		control over a cultivation center except for a person who owns
25		no more than 5% of the outstanding shares of a cultivation

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1		center whose shares are publicly traded on an exchange within
2		the meaning of the Securities Exchange Act of 1934.
3		(b) A person who is licensed in this State as a craft
4		grower, or any partnership, corporation, limited liability
5		company, or trust or any subsidiary, affiliate, or agent
6		thereof, or any other form of business enterprise licensed in
7		this State as a craft grower shall not have more than 10%
8		legal, equitable, or beneficial interest, directly or
9		indirectly, in a person licensed as a cultivation center, nor
10		shall any partnership, corporation, limited liability company,
11		or trust or any subsidiary, affiliate, or any other form of
12		business enterprise having any legal, equitable, or beneficial
13		interest, directly or indirectly, in a person licensed in this
14		State as a craft grower or a craft grower agent be a principal
15		officer, agent, employee, or human being with any form of
16		ownership or control over a cultivation center except for a
17		person who owns no more than 5% of the outstanding shares of a
18		cultivation center whose shares are publicly traded on an
19		exchange within the meaning of the Securities Exchange Act of
20		1934.
21		Section 30-25. Denial of application. An application for a
22		craft grower license must be denied if any of the following
23		conditions are met:
24		(1) the applicant failed to submit the materials
25		required by this Article;

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1		(2) the applicant would not be in compliance with local
2		zoning rules;
3		(3) one or more of the prospective principal officers
4		or board members causes a violation of Section 30-20 of
5		this Article;
6		(4) one or more of the principal officers or board
7		members is under 21 years of age;
8		(5) the person has submitted an application for a
9		license under this Act that contains false information; or
10		(6) the licensee; principal officer, board member, or
11		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 30-30. Craft grower requirements; prohibitions.
16		(a) The operating documents of a craft grower shall include
17		procedures for the oversight of the craft grower, a cannabis
18		plant monitoring system including a physical inventory
19		recorded weekly, accurate recordkeeping, and a staffing plan.
20		(b) A craft grower shall implement a security plan reviewed
21		by the Department of State Police that includes, but is not
22		limited to: facility access controls, perimeter intrusion
23		detection systems, personnel identification systems, and a
24		24-hour surveillance system to monitor the interior and
25		exterior of the craft grower facility and that is accessible to

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1		authorized law enforcement and the Department of Agriculture in
2		real time.
3		(c) All cultivation of cannabis by a craft grower must take
4		place in an enclosed, locked facility at the physical address
5		provided to the Department of Agriculture during the licensing
6		process. The craft grower location shall only be accessed by
7		the agents working for the craft grower, the Department of
8		Agriculture staff performing inspections, the Department of
9		Public Health staff performing inspections, State and local law
10		enforcement or other emergency personnel, contractors working
11		on jobs unrelated to cannabis, such as installing or
12		maintaining security devices or performing electrical wiring,
13		transporting organization agents as provided in this Act, or
14		participants in the incubator program, individuals in a
15		mentoring or educational program approved by the State, or
16		other individuals as provided by rule. However, if a craft
17		grower shares a premises with an infuser or dispensing
18		organization, agents from those other licensees may access the
19		craft grower portion of the premises if that is the location of
20		common bathrooms, lunchrooms, locker rooms, or other areas of
21		the building where work or cultivation of cannabis is not
22		performed. At no time may an infuser or dispensing organization
23		agent perform work at a craft grower without being a registered
24		agent of the craft grower.
25		(d) A craft grower may not sell or distribute any cannabis
26		to any person other than a cultivation center, a craft grower,

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1		an infuser organization, a dispensing organization, or as
2		otherwise authorized by rule.
3		(e) A craft grower may not be located in an area zoned for
4		residential use.
5		(f) A craft grower may not either directly or indirectly
6		discriminate in price between different cannabis business
7		establishments that are purchasing a like grade, strain, brand,
8		and quality of cannabis or cannabis-infused product. Nothing in
9		this subsection (f) prevents a craft grower from pricing
10		cannabis differently based on differences in the cost of
11		manufacturing or processing, the quantities sold, such as
12		volume discounts, or the way the products are delivered.
13		(g) All cannabis harvested by a craft grower and intended
14		for distribution to a dispensing organization must be entered
15		into a data collection system, packaged and labeled under
16		Section 55-21, and, if distribution is to a dispensing
17		organization that does not share a premises with the dispensing
18		organization receiving the cannabis, placed into a cannabis
19		container for transport. All cannabis harvested by a craft
20		grower and intended for distribution to a cultivation center,
21		to an infuser organization, or to a craft grower with which it
22		does not share a premises, must be packaged in a labeled
23		cannabis container and entered into a data collection system
24		before transport.
25		(h) Craft growers are subject to random inspections by the
26		Department of Agriculture, local safety or health inspectors,

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1		and the Department of State Police.
2		(i) A craft grower agent shall notify local law
3		enforcement, the Department of State Police, and the Department
4		of Agriculture within 24 hours of the discovery of any loss or
5		theft. Notification shall be made by phone, in person, or
6		written or electronic communication.
7		(j) A craft grower shall comply with all State and any
8		applicable federal rules and regulations regarding the use of
9		pesticides.
10		(k) A craft grower or craft grower agent shall not
11		transport cannabis or cannabis-infused products to any other
12		cannabis business establishment without a transport
13		organization license unless:
14		(i) If the craft grower is located in a county with a
15		population of 3,000,000 or more, the cannabis business
16		establishment receiving the cannabis is within 2,000 feet
17		of the property line of the craft grower;
18		(ii) If the craft grower is located in a county with a
19		population of more than 700,000 but fewer than 3,000,000,
20		the cannabis business establishment receiving the cannabis
21		is within 2 miles of the craft grower; or
22		(iii) If the craft grower is located in a county with a
23		population of fewer the 700,000, the cannabis business
24		establishment receiving the cannabis is within 15 miles of
25		the craft grower.
26		(l) A craft grower may enter into a contract with a

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1		transporting organization to transport cannabis to a
2		cultivation center, a craft grower, an infuser organization, a
3		dispensing organization, or a laboratory.
4		(m) No person or entity shall hold any legal, equitable,
5		ownership, or beneficial interest, directly or indirectly, of
6		more than 3 craft grower licenses. Further, no person or entity
7		that is employed by, an agent of, or has a contract to receive
8		payment from or participate in the management of a craft
9		grower, is a principal officer of a craft grower, or entity
10		controlled by or affiliated with a principal officer of a craft
11		grower shall hold any legal, equitable, ownership, or
12		beneficial interest, directly or indirectly, in a craft grower
13		license that would result in the person or entity owning or
14		controlling in combination with any craft grower, principal
15		officer of a craft grower, or entity controlled or affiliated
16		with a principal officer of a craft grower by which he, she, or
17		it is employed, is an agent of, or participates in the
18		management of more than 3 craft grower licenses.
19		(n) It is unlawful for any person having a craft grower
20		license or any officer, associate, member, representative, or
21		agent of the licensee to offer or deliver money, or anything
22		else of value, directly or indirectly, to any person having an
23		Early Approval Adult Use Dispensing Organization License, a
24		Conditional Adult Use Dispensing Organization License, an
25		Adult Use Dispensing Organization License, or a medical
26		cannabis dispensing organization license issued under the

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1		Compassionate Use of Medical Cannabis Pilot Program Act, or to
2		any person connected with or in any way representing, or to any
3		member of the family of, the person holding an Early Approval
4		Adult Use Dispensing Organization License, a Conditional Adult
5		Use Dispensing Organization License, an Adult Use Dispensing
6		Organization License, or a medical cannabis dispensing
7		organization license issued under the Compassionate Use of
8		Medical Cannabis Pilot Program Act, or to any stockholders in
9		any corporation engaged in the retail sale of cannabis, or to
10		any officer, manager, agent, or representative of the Early
11		Approval Adult Use Dispensing Organization License, a
12		Conditional Adult Use Dispensing Organization License, an
13		Adult Use Dispensing Organization License, or a medical
14		cannabis dispensing organization license issued under the
15		Compassionate Use of Medical Cannabis Pilot Program Act to
16		obtain preferential placement within the dispensing
17		organization, including, without limitation, on shelves and in
18		display cases where purchasers can view products, or on the
19		dispensing organization's website.
20		(o) A craft grower shall not be located within 1,500 feet
21		of another craft grower or a cultivation center.
22		(p) A graft grower may process cannabis, cannabis
23		concentrates, and cannabis-infused products.
24		(q) A craft grower must comply with any other requirements
25		or prohibitions set by administrative rule of the Department of
26		Agriculture.

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1		Section 30-35. Craft grower agent identification card.
2		(a) The Department of Agriculture shall:
3		(1) establish by rule the information required in an
4		initial application or renewal application for an agent
5		identification card submitted under this Act and the
6		nonrefundable fee to accompany the initial application or
7		renewal application;
8		(2) verify the information contained in an initial
9		application or renewal application for an agent
10		identification card submitted under this Act and approve or
11		deny an application within 30 days of receiving a completed
12		initial application or renewal application and all
13		supporting documentation required by rule;
14		(3) issue an agent identification card to a qualifying
15		agent within 15 business days of approving the initial
16		application or renewal application;
17		(4) enter the license number of the craft grower where
18		the agent works; and
19		(5) allow for an electronic initial application and
20		renewal application process, and provide a confirmation by
21		electronic or other methods that an application has been
22		submitted. The Department of Agriculture may by rule
23		require prospective agents to file their applications by
24		electronic means and provide notices to the agents by
25		electronic means.

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1		(b) An agent must keep his or her identification card
2		visible at all times when on the property of a cannabis
3		business establishment, including the craft grower
4		organization for which he or she is an agent.
5		(c) The agent identification cards shall contain the
6		following:
7		(1) the name of the cardholder;
8		(2) the date of issuance and expiration date of the
9		identification card;
10		(3) a random 10-digit alphanumeric identification
11		number containing at least 4 numbers and at least 4 letters
12		that is unique to the holder;
13		(4) a photograph of the cardholder; and
14		(5) the legal name of the craft grower organization
15		employing the agent.
16		(d) An agent identification card shall be immediately
17		returned to the cannabis business establishment of the agent
18		upon termination of his or her employment.
19		(e) Any agent identification card lost by a craft grower
20		agent shall be reported to the Department of State Police and
21		the Department of Agriculture immediately upon discovery of the
22		loss.
23		Section 30-40. Craft grower background checks.
24		(a) Through the Department of State Police, the Department
25		of Agriculture shall conduct a background check of the

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1		prospective principal officers, board members, and agents of a
2		craft grower applying for a license or identification card
3		under this Act. The Department of State Police shall charge a
4		fee set by rule for conducting the criminal history record
5		check, which shall be deposited into the State Police Services
6		Fund and shall not exceed the actual cost of the record check.
7		In order to carry out this Section, each craft grower
8		organization's prospective principal officer, board member, or
9		agent shall submit a full set of fingerprints to the Department
10		of State Police for the purpose of obtaining a State and
11		federal criminal records check. These fingerprints shall be
12		checked against the fingerprint records now and hereafter, to
13		the extent allowed by law, filed in the Department of State
14		Police and Federal Bureau of Investigation criminal history
15		records databases. The Department of State Police shall
16		furnish, following positive identification, all conviction
17		information to the Department of Agriculture.
18		(b) When applying for the initial license or identification
19		card, the background checks for all prospective principal
20		officers, board members, and agents shall be completed before
21		submitting the application to the licensing or issuing agency.
22		Section 30-45. Renewal of craft grower licenses and agent
23		identification cards.
24		(a) Licenses and identification cards issued under this Act
25		shall be renewed annually. A craft grower shall receive written

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1		or electronic notice 90 days before the expiration of its
2		current license that the license will expire. The Department of
3		Agriculture shall grant a renewal within 45 days of submission
4		of a renewal application if:
5		(1) the craft grower submits a renewal application and
6		the required nonrefundable renewal fee of $40,000, or
7		another amount as the Department of Agriculture may set by
8		rule after January 1, 2021;
9		(2) the Department of Agriculture has not suspended the
10		license of the craft grower or suspended or revoked the
11		license for violating this Act or rules adopted under this
12		Act;
13		(3) the craft grower has continued to operate in
14		accordance with all plans submitted as part of its
15		application and approved by the Department of Agriculture
16		or any amendments thereto that have been approved by the
17		Department of Agriculture;
18		(4) the craft grower has submitted an agent, employee,
19		contracting, and subcontracting diversity report as
20		required by the Department; and
21		(5) the craft grower has submitted an environmental
22		impact report.
23		(b) If a craft grower fails to renew its license before
24		expiration, it shall cease operations until its license is
25		renewed.
26		(c) If a craft grower agent fails to renew his or her

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1		identification card before its expiration, he or she shall
2		cease to work as an agent of the craft grower organization
3		until his or her identification card is renewed.
4		(d) Any craft grower that continues to operate, or any
5		craft grower agent who continues to work as an agent, after the
6		applicable license or identification card has expired without
7		renewal is subject to the penalties provided under Section
8		45-5.
9		(e) All fees or fines collected from the renewal of a craft
10		grower license shall be deposited into the Cannabis Regulation
11		Fund.
12		Section 30-50. Craft grower taxes; returns.
13		(a) A tax is imposed upon the privilege of cultivating and
14		processing adult use cannabis at the rate of 7% of the gross
15		receipts from the sale of cannabis by a craft grower to a
16		dispensing organization. The sale of any adult use product that
17		contains any amount of cannabis or any derivative thereof is
18		subject to the tax under this Section on the full selling price
19		of the product. The proceeds from this tax shall be deposited
20		into the Cannabis Regulation Fund. This tax shall be paid by
21		the craft grower who makes the first sale and is not the
22		responsibility of a dispensing organization, qualifying
23		patient, or purchaser.
24		(b)In the administration of and compliance with this
25		Section, the Department of Revenue and persons who are subject

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1		to this Section: (i) have the same rights, remedies,
2		privileges, immunities, powers, and duties, (ii) are subject to
3		the same conditions, restrictions, limitations, penalties, and
4		definitions of terms, and (iii) shall employ the same modes of
5		procedure as are set forth in the Cannabis Cultivation
6		Privilege Tax Law and the Uniform Penalty and Interest Act as
7		if those provisions were set forth in this Section.
8		(c)The tax imposed under this Act shall be in addition to
9		all other occupation or privilege taxes imposed by the State of
10		Illinois or by any municipal corporation or political
11		subdivision thereof.
12		ARTICLE 35.
13		INFUSER ORGANIZATIONS
14		Section 35-3. Definitions. In this Article:
15		"Department" means the Department of Agriculture.
16		Section 35-5. Issuance of licenses.
17		(a) The Department of Agriculture shall issue up to 40
18		infuser licenses through a process provided for in this Article
19		no later than July 1, 2020.
20		(b) The Department of Agriculture shall make the
21		application for infuser licenses available on January 7, 2020,
22		or if that date falls on a weekend or holiday, the business day
23		immediately succeeding the weekend or holiday and every January

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1		7 or succeeding business day thereafter, and shall receive such
2		applications no later than March 15, 2020, or, if that date
3		falls on a weekend or holiday, the business day immediately
4		succeeding the weekend or holiday and every March 15 or
5		succeeding business day thereafter.
6		(c) By December 21, 2021, the Department of Agriculture may
7		issue up to 60 additional infuser licenses. Prior to issuing
8		such licenses, the Department may adopt rules through emergency
9		rulemaking in accordance with subsection (gg) of Section 5-45
10		of the Illinois Administrative Procedure Act, to modify or
11		raise the number of infuser licenses and modify or change the
12		licensing application process to reduce or eliminate barriers.
13		The General Assembly finds that the adoption of rules to
14		regulate cannabis use is deemed an emergency and necessary for
15		the public interest, safety, and welfare.
16		In determining whether to exercise the authority granted by
17		this subsection, the Department of Agriculture must consider
18		the following factors:
19		(1) the percentage of cannabis sales occurring in
20		Illinois not in the regulated market using data from the
21		Substance Abuse and Mental Health Services Administration,
22		National Survey on Drug Use and Health, Illinois Behavioral
23		Risk Factor Surveillance System, and tourism data from the
24		Illinois Office of Tourism to ascertain total cannabis
25		consumption in Illinois compared to the amount of sales in
26		licensed dispensing organizations;

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1		(2) whether there is an adequate supply of cannabis and
2		cannabis-infused products to serve registered medical
3		cannabis patients;
4		(3) whether there is an adequate supply of cannabis and
5		cannabis-infused products to sere purchasers:
6		(4) whether there is an oversupply of cannabis in
7		Illinois leading to trafficking of cannabis to any other
8		state;
9		(5) population increases or shifts;
10		(6) changes to federal law;
11		(7) perceived security risks of increasing the number
12		or location of infuser organizations;
13		(8) the past security records of infuser
14		organizations;
15		(9) the Department of Agriculture's capacity to
16		appropriately regulate additional licenses;
17		(10) the findings and recommendations from the
18		disparity and availability study commissioned by the
19		Illinois Cannabis Regulation Oversight Officer to reduce
20		or eliminate any identified barriers to entry in the
21		cannabis industry; and
22		(11) any other criteria the Department of Agriculture
23		deems relevant.
24		(d) After January 1, 2022, the Department of Agriculture
25		may by rule modify or raise the number of infuser licenses, and
26		modify or change the licensing application process to reduce or

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1		eliminate barriers based on the criteria in subsection (c).
2		Section 35-10. Application.
3		(a) When applying for a license, the applicant shall
4		electronically submit the following in such form as the
5		Department of Agriculture may direct:
6		(1) the nonrefundable application fee of $5,000 or,
7		after January 1, 2021, another amount as set by rule by the
8		Department of Agriculture, to be deposited into the
9		Cannabis Regulation Fund;
10		(2) the legal name of the infuser;
11		(3) the proposed physical address of the infuser;
12		(4) the name, address, social security number, and date
13		of birth of each principal officer and board member of the
14		infuser; each principal officer and board member shall be
15		at least 21 years of age;
16		(5) the details of any administrative or judicial
17		proceeding in which any of the principal officers or board
18		members of the infuser (i) pled guilty, were convicted,
19		fined, or had a registration or license suspended or
20		revoked, or (ii) managed or served on the board of a
21		business or non-profit organization that pled guilty, was
22		convicted, fined, or had a registration or license
23		suspended or revoked;
24		(6) proposed operating bylaws that include procedures
25		for the oversight of the infuser, including the development

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1		and implementation of a plant monitoring system, accurate
2		recordkeeping, staffing plan, and security plan approved
3		by the Department of State Police that are in accordance
4		with the rules issued by the Department of Agriculture
5		under this Act; a physical inventory of all cannabis shall
6		be performed on a weekly basis by the infuser;
7		(7) verification from the Department of State Police
8		that all background checks of the prospective principal
9		officers, board members, and agents of the infuser
10		organization have been conducted;
11		(8) a copy of the current local zoning ordinance and
12		verification that the proposed infuser is in compliance
13		with the local zoning rules and distance limitations
14		established by the local jurisdiction;
15		(9) proposed employment practices, in which the
16		applicant must demonstrate a plan of action to inform,
17		hire, and educate minorities, women, veterans, and persons
18		with disabilities, engage in fair labor practices, and
19		provide worker protections;
20		(10) whether an applicant can demonstrate experience
21		in or business practices that promote economic empowerment
22		in Disproportionately Impacted Areas;
23		(11) experience with infusing products with cannabis
24		concentrate;
25		(12) a description of the enclosed, locked facility
26		where cannabis will be infused, packaged, or otherwise

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1		prepared for distribution to a dispensing organization or
2		other infuser;
3		(13) processing, inventory, and packaging plans;
4		(14) a description of the applicant's experience with
5		operating a commercial kitchen or laboratory preparing
6		products for human consumption;
7		(15) a list of any academic degrees, certifications, or
8		relevant experience of all prospective principal officers,
9		board members, and agents of the related business;
10		(16) the identity of every person having a financial or
11		voting interest of 5% or greater in the infuser operation
12		with respect to which the license is sought, whether a
13		trust, corporation, partnership, limited liability
14		company, or sole proprietorship, including the name and
15		address of each person;
16		(17) a plan describing how the infuser will address
17		each of the following:
18		(i) energy needs, including estimates of monthly
19		electricity and gas usage, to what extent it will
20		procure energy from a local utility or from on-site
21		generation, and if it has or will adopt a sustainable
22		energy use and energy conservation policy;
23		(ii) water needs, including estimated water draw,
24		and if it has or will adopt a sustainable water use and
25		water conservation policy; and
26		(iii) waste management, including if it has or will

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1		adopt a waste reduction policy;
2		(18) a recycling plan:
3		(A) a commitment that any recyclable waste
4		generated by the infuser shall be recycled per
5		applicable State and local laws, ordinances, and
6		rules; and
7		(B) a commitment to comply with local waste
8		provisions. An infuser commits to remain in compliance
9		with applicable State and federal environmental
10		requirements, including, but not limited to, storing,
11		securing, and managing all recyclables and waste,
12		including organic waste composed of or containing
13		finished cannabis and cannabis products, in accordance
14		with applicable State and local laws, ordinances, and
15		rules; and
16		(19) any other information required by rule.
17		(b) Applicants must submit all required information,
18		including the information required in Section 35-15, to the
19		Department of Agriculture. Failure by an applicant to submit
20		all required information may result in the application being
21		disqualified.
22		(c) If the Department of Agriculture receives an
23		application with missing information, the Department of
24		Agriculture may issue a deficiency notice to the applicant. The
25		applicant shall have 10 calendar days from the date of the
26		deficiency notice to resubmit the incomplete information.

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1		Applications that are still incomplete after this opportunity
2		to cure will not be scored and will be disqualified.
3		Section 35-15. Issuing licenses.
4		(a) The Department of Agriculture shall by rule develop a
5		system to score infuser applications to administratively rank
6		applications based on the clarity, organization, and quality of
7		the applicant's responses to required information. Applicants
8		shall be awarded points based on the following categories:
9		(1) Suitability of the proposed facility;
10		(2) Suitability of the employee training plan;
11		(3) Security and recordkeeping plan;
12		(4) Infusing plan;
13		(5) Product safety and labeling plan;
14		(6) Business plan;
15		(7) The applicant's status as a Social Equity
16		Applicant, which shall constitute no less than 20% of total
17		available points;
18		(8) Labor and employment practices, which shall
19		constitute no less than 2% of total available points;
20		(9) Environmental plan as described in paragraphs (17)
21		and (18) of subsection (a) of Section 35-10;
22		(10) The applicant is 51% or more owned and controlled
23		by an individual or individuals who have been an Illinois
24		resident for the past 5 years as proved by tax records;
25		(11) The applicant is 51% or more controlled and owned

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1		by an individual or individuals who meet the qualifications
2		of a veteran as defined by Section 45-57 of the Illinois
3		Procurement Code; and
4		(12) A diversity plan that includes a narrative of not
5		more than 2,500 words that establishes a goal of diversity
6		in ownership, management, employment, and contracting to
7		ensure that diverse participants and groups are afforded
8		equality of opportunity; and
9		(13) Any other criteria the Department of Agriculture
10		may set by rule for points.
11		(b) The Department may also award up to 2 bonus points for
12		the applicant's plan to engage with the community. The
13		applicant may demonstrate a desire to engage with its community
14		by participating in one or more of, but not limited to, the
15		following actions: (i) establishment of an incubator program
16		designed to increase participation in the cannabis industry by
17		persons who would qualify as Social Equity Applicants; (ii)
18		providing financial assistance to substance abuse treatment
19		centers; (iii) educating children and teens about the potential
20		harms of cannabis use; or (iv) other measures demonstrating a
21		commitment to the applicant's community. Bonus points will only
22		be awarded if the Department receives applications that receive
23		an equal score for a particular region.
24		(c) Should the applicant be awarded an infuser license, the
25		information and plans that an applicant provided in its
26		application, including any plans submitted for the acquiring of

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1		bonus points, becomes a mandatory condition of the permit. Any
2		variation from or failure to perform such plans may result in
3		discipline, including the revocation or nonrenewal of a
4		license.
5		(d) Should the applicant be awarded an infuser organization
6		license, it shall pay a fee of $5,000 prior to receiving the
7		license, to be deposited into the Cannabis Regulation Fund. The
8		Department of Agriculture may by rule adjust the fee in this
9		Section after January 1, 2021.
10		Section 35-20. Denial of application. An application for an
11		infuser license shall be denied if any of the following
12		conditions are met:
13		(1) the applicant failed to submit the materials
14		required by this Article;
15		(2) the applicant would not be in compliance with local
16		zoning rules or permit requirements;
17		(3) one or more of the prospective principal officers
18		or board members causes a violation of Section 35-25.
19		(4) one or more of the principal officers or board
20		members is under 21 years of age;
21		(5) the person has submitted an application for a
22		license under this Act or this Article that contains false
23		information; or
24		(6) if the licensee; principal officer, board member,
25		or person having a financial or voting interest of 5% or

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1		greater in the licensee; or agent is delinquent in filing
2		any required tax returns or paying any amounts owed to the
3		State of Illinois.
4		Section 35-25. Infuser organization requirements;
5		prohibitions.
6		(a) The operating documents of an infuser shall include
7		procedures for the oversight of the infuser, an inventory
8		monitoring system including a physical inventory recorded
9		weekly, accurate recordkeeping, and a staffing plan.
10		(b) An infuser shall implement a security plan reviewed by
11		the Department of State Police that includes, but is not
12		limited to: facility access controls, perimeter intrusion
13		detection systems, personnel identification systems, and a
14		24-hour surveillance system to monitor the interior and
15		exterior of the infuser facility and that is accessible to
16		authorized law enforcement, the Department of Public Health,
17		and the Department of Agriculture in real time.
18		(c) All processing of cannabis by an infuser must take
19		place in an enclosed, locked facility at the physical address
20		provided to the Department of Agriculture during the licensing
21		process. The infuser location shall only be accessed by the
22		agents working for the infuser, the Department of Agriculture
23		staff performing inspections, the Department of Public Health
24		staff performing inspections, State and local law enforcement
25		or other emergency personnel, contractors working on jobs

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1		unrelated to cannabis, such as installing or maintaining
2		security devices or performing electrical wiring, transporting
3		organization agents as provided in this Act, participants in
4		the incubator program, individuals in a mentoring or
5		educational program approved by the State, local safety or
6		health inspectors, or other individuals as provided by rule.
7		However, if an infuser shares a premises with a craft grower or
8		dispensing organization, agents from these other licensees may
9		access the infuser portion of the premises if that is the
10		location of common bathrooms, lunchrooms, locker rooms, or
11		other areas of the building where processing of cannabis is not
12		performed. At no time may a craft grower or dispensing
13		organization agent perform work at an infuser without being a
14		registered agent of the infuser.
15		(d) An infuser may not sell or distribute any cannabis to
16		any person other than a dispensing organization, or as
17		otherwise authorized by rule.
18		(e) An infuser may not either directly or indirectly
19		discriminate in price between different cannabis business
20		establishments that are purchasing a like grade, strain, brand,
21		and quality of cannabis or cannabis-infused product. Nothing in
22		this subsection (e) prevents an infuser from pricing cannabis
23		differently based on differences in the cost of manufacturing
24		or processing, the quantities sold, such volume discounts, or
25		the way the products are delivered.
26		(f) All cannabis infused by an infuser and intended for

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1		distribution to a dispensing organization must be entered into
2		a data collection system, packaged and labeled under Section
3		55-21, and, if distribution is to a dispensing organization
4		that does not share a premises with the infuser, placed into a
5		cannabis container for transport. All cannabis produced by an
6		infuser and intended for distribution to a cultivation center,
7		infuser organization, or craft grower with which it does not
8		share a premises, must be packaged in a labeled cannabis
9		container and entered into a data collection system before
10		transport.
11		(g) Infusers are subject to random inspections by the
12		Department of Agriculture, the Department of Public Health, the
13		Department of State Police, and local law enforcement.
14		(h) An infuser agent shall notify local law enforcement,
15		the Department of State Police, and the Department of
16		Agriculture within 24 hours of the discovery of any loss or
17		theft. Notification shall be made by phone, in person, or by
18		written or electronic communication.
19		(i) An infuser organization may not be located in an area
20		zoned for residential use.
21		(j) An infuser or infuser agent shall not transport
22		cannabis or cannabis-infused products to any other cannabis
23		business establishment without a transport organization
24		license unless:
25		(i) If the infuser is located in a county with a
26		population of 3,000,000 or more, the cannabis business

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1		establishment receiving the cannabis or cannabis-infused
2		product is within 2,000 feet of the property line of the
3		infuser;
4		(ii) If the infuser is located in a county with a
5		population of more than 700,000 but fewer than 3,000,000,
6		the cannabis business establishment receiving the cannabis
7		or cannabis-infused product is within 2 miles of the
8		infuser; or
9		(iii) If the infuser is located in a county with a
10		population of fewer than 700,000, the cannabis business
11		establishment receiving the cannabis or cannabis-infused
12		product is within 15 miles of the infuser.
13		(k) An infuser may enter into a contract with a
14		transporting organization to transport cannabis to a
15		dispensing organization or a laboratory.
16		(l) An infuser organization may share premises with a craft
17		grower or a dispensing organization, or both, provided each
18		licensee stores currency and cannabis or cannabis-infused
19		products in a separate secured vault to which the other
20		licensee does not have access or all licensees sharing a vault
21		share more than 50% of the same ownership.
22		(m) It is unlawful for any person or entity having an
23		infuser organization license or any officer, associate,
24		member, representative or agent of such licensee to offer or
25		deliver money, or anything else of value, directly or
26		indirectly to any person having an Early Approval Adult Use

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1		Dispensing Organization License, a Conditional Adult Use
2		Dispensing Organization License, an Adult Use Dispensing
3		Organization License, or a medical cannabis dispensing
4		organization license issued under the Compassionate Use of
5		Medical Cannabis Pilot Program Act, or to any person connected
6		with or in any way representing, or to any member of the family
7		of, such person holding an Early Approval Adult Use Dispensing
8		Organization License, a Conditional Adult Use Dispensing
9		Organization License, an Adult Use Dispensing Organization
10		License, or a medical cannabis dispensing organization license
11		issued under the Compassionate Use of Medical Cannabis Pilot
12		Program Act, or to any stockholders in any corporation engaged
13		the retail sales of cannabis, or to any officer, manager,
14		agent, or representative of the Early Approval Adult Use
15		Dispensing Organization License, a Conditional Adult Use
16		Dispensing Organization License, an Adult Use Dispensing
17		Organization License, or a medical cannabis dispensing
18		organization license issued under the Compassionate Use of
19		Medical Cannabis Pilot Program Act to obtain preferential
20		placement within the dispensing organization, including,
21		without limitation, on shelves and in display cases where
22		purchasers can view products, or on the dispensing
23		organization's website.
24		(n) At no time shall an infuser organization or an infuser
25		agent perform the extraction of cannabis concentrate from
26		cannabis flower.

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1		Section 35-30. Infuser agent identification card.
2		(a) The Department of Agriculture shall:
3		(1) establish by rule the information required in an
4		initial application or renewal application for an agent
5		identification card submitted under this Act and the
6		nonrefundable fee to accompany the initial application or
7		renewal application;
8		(2) verify the information contained in an initial
9		application or renewal application for an agent
10		identification card submitted under this Act, and approve
11		or deny an application within 30 days of receiving a
12		completed initial application or renewal application and
13		all supporting documentation required by rule;
14		(3) issue an agent identification card to a qualifying
15		agent within 15 business days of approving the initial
16		application or renewal application;
17		(4) enter the license number of the infuser where the
18		agent works; and
19		(5) allow for an electronic initial application and
20		renewal application process, and provide a confirmation by
21		electronic or other methods that an application has been
22		submitted. The Department of Agriculture may by rule
23		require prospective agents to file their applications by
24		electronic means and provide notices to the agents by
25		electronic means.

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1		(b) An agent must keep his or her identification card
2		visible at all times when on the property of a cannabis
3		business establishment including the cannabis business
4		establishment for which he or she is an agent.
5		(c) The agent identification cards shall contain the
6		following:
7		(1) the name of the cardholder;
8		(2) the date of issuance and expiration date of the
9		identification card;
10		(3) a random 10-digit alphanumeric identification
11		number containing at least 4 numbers and at least 4 letters
12		that is unique to the holder;
13		(4) a photograph of the cardholder; and
14		(5) the legal name of the infuser organization
15		employing the agent.
16		(d) An agent identification card shall be immediately
17		returned to the infuser organization of the agent upon
18		termination of his or her employment.
19		(e) Any agent identification card lost by a transporting
20		agent shall be reported to the Department of State Police and
21		the Department of Agriculture immediately upon discovery of the
22		loss.
23		Section 35-31. Ensuring an adequate supply of raw materials
24		to serve infusers.
25		(a) As used in this Section, "raw materials" includes, but

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1		is not limited to, CO2 hash oil, "crude", "distillate", or any
2		other cannabis concentrate extracted from cannabis flower by
3		use of a solvent or a mechanical process.
4		(b) The Department of Agriculture may by rule design a
5		method for assessing whether licensed infusers have access to
6		an adequate supply of reasonably affordable raw materials,
7		which may include but not be limited to: (i) a survey of
8		infusers; (ii) a market study on the sales trends of
9		cannabis-infused products manufactured by infusers; and (iii)
10		the costs cultivation centers and craft growers assume for the
11		raw materials they use in any cannabis-infused products they
12		manufacture.
13		(c) The Department of Agriculture shall perform an
14		assessment of whether infusers have access to an adequate
15		supply of reasonably affordable raw materials that shall start
16		no sooner than January 1, 2022 and shall conclude no later than
17		April 1, 2022. The Department of Agriculture may rely on data
18		from the Illinois Cannabis Regulation Oversight Officer as part
19		of this assessment.
20		(d) The Department of Agriculture shall perform an
21		assessment of whether infusers have access to an adequate
22		supply of reasonably affordable raw materials that shall start
23		no sooner than January 1, 2023 and shall conclude no later than
24		April 1, 2023. The Department of Agriculture may rely on data
25		from the Cannabis Regulation Oversight Officer as part of this
26		assessment.

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1		(e) The Department of Agriculture may by rule adopt
2		measures to ensure infusers have access to an adequate supply
3		of reasonably affordable raw materials necessary for the
4		manufacture of cannabis-infused products. Such measures may
5		include, but not be limited to (i) requiring cultivation
6		centers and craft growers to set aside a minimum amount of raw
7		materials for the wholesale market or (ii) enabling infusers to
8		apply for a processor license to extract raw materials from
9		cannabis flower.
10		(f) If the Department of Agriculture determines processor
11		licenses may be available to infusing organizations based upon
12		findings made pursuant to subsection (e), infuser
13		organizations may submit to the Department of Agriculture on
14		forms provided by the Department of Agriculture the following
15		information as part of an application to receive a processor
16		license:
17		(1) experience with the extraction, processing, or
18		infusing of oils similar to those derived from cannabis, or
19		other business practices to be performed by the infuser;
20		(2) a description of the applicant's experience with
21		manufacturing equipment and chemicals to be used in
22		processing;
23		(3) expertise in relevant scientific fields;
24		(4) a commitment that any cannabis waste, liquid waste,
25		or hazardous waste shall be disposed of in accordance with
26		8 Ill. Adm. Code 1000.460, except, to the greatest extent

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1		feasible, all cannabis plant waste will be rendered
2		unusable by grinding and incorporating the cannabis plant
3		waste with compostable mixed waste to be disposed of in
4		accordance with Ill. Adm. Code 1000.460(g)(1); and
5		(5) any other information the Department of
6		Agriculture deems relevant.
7		(g) The Department of Agriculture may only issue an
8		infusing organization a processor license if, based on the
9		information pursuant to subsection (f) and any other criteria
10		set by the Department of Agriculture, which may include but not
11		be limited an inspection of the site where processing would
12		occur, the Department of Agriculture is reasonably certain the
13		infusing organization will process cannabis in a safe and
14		compliant manner.
15		Section 35-35. Infuser organization background checks.
16		(a) Through the Department of State Police, the Department
17		of Agriculture shall conduct a background check of the
18		prospective principal officers, board members, and agents of an
19		infuser applying for a license or identification card under
20		this Act. The Department of State Police shall charge a fee set
21		by rule for conducting the criminal history record check, which
22		shall be deposited into the State Police Services Fund and
23		shall not exceed the actual cost of the record check. In order
24		to carry out this provision, each infuser organization's
25		prospective principal officer, board member, or agent shall

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1		submit a full set of fingerprints to the Department of State
2		Police for the purpose of obtaining a State and federal
3		criminal records check. These fingerprints shall be checked
4		against the fingerprint records now and hereafter, to the
5		extent allowed by law, filed in the Department of State Police
6		and Federal Bureau of Investigation criminal history records
7		databases. The Department of State Police shall furnish,
8		following positive identification, all conviction information
9		to the Department of Agriculture.
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		Section 35-40. Renewal of infuser organization licenses
15		and agent identification cards.
16		(a) Licenses and identification cards issued under this Act
17		shall be renewed annually. An infuser organization shall
18		receive written or electronic notice 90 days before the
19		expiration of its current license that the license will expire.
20		The Department of Agriculture shall grant a renewal within 45
21		days of submission of a renewal application if:
22		(1) the infuser organization submits a renewal
23		application and the required nonrefundable renewal fee of
24		$20,000, or, after January 1, 2021, another amount set by
25		rule by the Department of Agriculture, to be deposited into

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1		the Cannabis Regulation Fund;
2		(2) the Department of Agriculture has not suspended or
3		revoked the license of the infuser organization for
4		violating this Act or rules adopted under this Act;
5		(3) the infuser organization has continued to operate
6		in accordance with all plans submitted as part of its
7		application and approved by the Department of Agriculture
8		or any amendments thereto that have been approved by the
9		Department of Agriculture;
10		(4) The infuser has submitted an agent, employee,
11		contracting, and subcontracting diversity report as
12		required by the Department; and
13		(5) The infuser has submitted an environmental impact
14		report.
15		(b) If an infuser organization fails to renew its license
16		before expiration, it shall cease operations until its license
17		is renewed.
18		(c) If an infuser organization agent fails to renew his or
19		her identification card before its expiration, he or she shall
20		cease to work as an agent of the infuser organization until his
21		or her identification card is renewed.
22		(d) Any infuser organization that continues to operate, or
23		any infuser organization agent who continues to work as an
24		agent, after the applicable license or identification card has
25		expired without renewal is subject to the penalties provided
26		under Section 35-25.

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1		(e) The Department shall not renew a license or an agent
2		identification card if the applicant is delinquent in filing
3		any required tax returns or paying any amounts owed to the
4		State of Illinois.
5		ARTICLE 40.
6		TRANSPORTING ORGANIZATIONS
7		Section 40-1. Definition. In this Article, "Department"
8		means the Department of Agriculture.
9		Section 40-5. Issuance of licenses.
10		(a) The Department shall issue transporting licenses
11		through a process provided for in this Article no later than
12		July 1, 2020.
13		(b) The Department shall make the application for
14		transporting organization licenses available on January 7,
15		2020 and shall receive such applications no later than March
16		15, 2020. Thereafter, the Department of Agriculture shall make
17		available such applications on every January 7 thereafter or if
18		that date falls on a weekend or holiday, the business day
19		immediately succeeding the weekend or holiday and shall receive
20		such applications no later than March 15 or the succeeding
21		business day thereafter.
22		Section 40-10. Application.

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1		(a) When applying for a transporting organization license,
2		the applicant shall electronically submit the following in such
3		form as the Department of Agriculture may direct:
4		(1) the nonrefundable application fee of $5,000 or,
5		after January 1, 2021, another amount as set by rule by the
6		Department of Agriculture, to be deposited into the
7		Cannabis Regulation Fund;
8		(2) the legal name of the transporting organization;
9		(3) the proposed physical address of the transporting
10		organization, if one is proposed;
11		(4) the name, address, social security number, and date
12		of birth of each principal officer and board member of the
13		transporting organization; each principal officer and
14		board member shall be at least 21 years of age;
15		(5) the details of any administrative or judicial
16		proceeding in which any of the principal officers or board
17		members of the transporting organization (i) pled guilty,
18		were convicted, fined, or had a registration or license
19		suspended or revoked, or (ii) managed or served on the
20		board of a business or non-profit organization that pled
21		guilty, was convicted, fined, or had a registration or
22		license suspended or revoked;
23		(6) proposed operating bylaws that include procedures
24		for the oversight of the transporting organization,
25		including the development and implementation of an
26		accurate recordkeeping plan, staffing plan, and security

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1		plan approved by the Department of State Police that are in
2		accordance with the rules issued by the Department of
3		Agriculture under this Act; a physical inventory shall be
4		performed of all cannabis on a weekly basis by the
5		transporting organization;
6		(7) verification from the Department of State Police
7		that all background checks of the prospective principal
8		officers, board members, and agents of the transporting
9		organization have been conducted;
10		(8) a copy of the current local zoning ordinance or
11		permit and verification that the proposed transporting
12		organization is in compliance with the local zoning rules
13		and distance limitations established by the local
14		jurisdiction, if the transporting organization has a
15		business address;
16		(9) proposed employment practices, in which the
17		applicant must demonstrate a plan of action to inform,
18		hire, and educate minorities, women, veterans, and persons
19		with disabilities, engage in fair labor practices, and
20		provide worker protections;
21		(10) whether an applicant can demonstrate experience
22		in or business practices that promote economic empowerment
23		in Disproportionately Impacted Areas;
24		(11) the number and type of equipment the transporting
25		organization will use to transport cannabis and
26		cannabis-infused products;

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1		(12) loading, transporting, and unloading plans;
2		(13) a description of the applicant's experience in the
3		distribution or security business;
4		(14) the identity of every person having a financial or
5		voting interest of 5% or more in the transporting
6		organization with respect to which the license is sought,
7		whether a trust, corporation, partnership, limited
8		liability company, or sole proprietorship, including the
9		name and address of each person; and
10		(15) any other information required by rule.
11		(b) Applicants must submit all required information,
12		including the information required in Section 40-35 to the
13		Department. Failure by an applicant to submit all required
14		information may result in the application being disqualified.
15		(c) If the Department receives an application with missing
16		information, the Department of Agriculture may issue a
17		deficiency notice to the applicant. The applicant shall have 10
18		calendar days from the date of the deficiency notice to
19		resubmit the incomplete information. Applications that are
20		still incomplete after this opportunity to cure will not be
21		scored and will be disqualified.
22		Section 40-15. Issuing licenses.
23		(a) The Department of Agriculture shall by rule develop a
24		system to score transporter applications to administratively
25		rank applications based on the clarity, organization, and

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1		quality of the applicant's responses to required information.
2		Applicants shall be awarded points based on the following
3		categories:
4		(1) Suitability of employee training plan;
5		(2) Security and recordkeeping plan;
6		(3) Business plan;
7		(4) The applicant's status as a Social Equity
8		Applicant, which shall constitute no less than 20% of total
9		available points;
10		(5) Labor and employment practices, which shall
11		constitute no less than 2% of total available points;
12		(6) Environmental plan that demonstrates an
13		environmental plan of action to minimize the carbon
14		footprint, environmental impact, and resource needs for
15		the transporter, which may include, without limitation,
16		recycling cannabis product packaging;
17		(7) the applicant is 51% or more owned and controlled
18		by an individual or individuals who have been an Illinois
19		resident for the past 5 years as proved by tax records;
20		(8) The applicant is 51% or more controlled and owned
21		by an individual or individuals who meet the qualifications
22		of a veteran as defined by Section 45-57 of the Illinois
23		Procurement Code;
24		(9) a diversity plan that includes a narrative of not
25		more than 2,500 words that establishes a goal of diversity
26		in ownership, management, employment, and contracting to

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1		ensure that diverse participants and groups are afforded
2		equality of opportunity; and
3		(10) Any other criteria the Department of Agriculture
4		may set by rule for points.
5		(b) The Department may also award up to 2 bonus points for
6		the applicant's plan to engage with the community. The
7		applicant may demonstrate a desire to engage with its community
8		by participating in one or more of, but not limited to, the
9		following actions: (i) establishment of an incubator program
10		designed to increase participation in the cannabis industry by
11		persons who would qualify as Social Equity Applicants; (ii)
12		providing financial assistance to substance abuse treatment
13		centers; (iii) educating children and teens about the potential
14		harms of cannabis use; or (iv) other measures demonstrating a
15		commitment to the applicant's community. Bonus points will only
16		be awarded if the Department receives applications that receive
17		an equal score for a particular region.
18		(c) Applicants for transportation organization licenses
19		that score at least 85% of available points according to the
20		system developed by rule and meet all other requirements for a
21		transporter license shall be issued a license by the Department
22		of Agriculture within 60 days of receiving the application.
23		Applicants that were registered as medical cannabis
24		cultivation centers prior to January 1, 2020 and who meet all
25		other requirements for a transporter license shall be issued a
26		license by the Department of Agriculture within 60 days of

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1		receiving the application.
2		(d) Should the applicant be awarded a transportation
3		organization license, the information and plans that an
4		applicant provided in its application, including any plans
5		submitted for the acquiring of bonus points, shall be a
6		mandatory condition of the permit. Any variation from or
7		failure to perform such plans may result in discipline,
8		including the revocation or nonrenewal of a license.
9		(e) Should the applicant be awarded a transporting
10		organization license, the applicant shall pay a prorated fee of
11		$10,000 prior to receiving the license, to be deposited into
12		the Cannabis Regulation Fund. The Department of Agriculture may
13		by rule adjust the fee in this Section after January 1, 2021.
14		Section 40-20. Denial of application. An application for a
15		transportation organization license shall be denied if any of
16		the following conditions are met:
17		(1) the applicant failed to submit the materials
18		required by this Article;
19		(2) the applicant would not be in compliance with local
20		zoning rules or permit requirements;
21		(3) one or more of the prospective principal officers
22		or board members causes a violation of Section 40-25;
23		(4) one or more of the principal officers or board
24		members is under 21 years of age;
25		(5) the person has submitted an application for a

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1		license under this Act that contains false information; or
2		(6) the licensee, principal officer, board member, or
3		person having a financial or voting interest of 5% or
4		greater in the licensee is delinquent in filing any
5		required tax returns or paying any amounts owed to the
6		State of Illinois.
7		Section 40-25. Transporting organization requirements;
8		prohibitions.
9		(a) The operating documents of a transporting organization
10		shall include procedures for the oversight of the transporter,
11		an inventory monitoring system including a physical inventory
12		recorded weekly, accurate recordkeeping, and a staffing plan.
13		(b) A transporting organization may not transport cannabis
14		or cannabis-infused products to any person other than a
15		cultivation center, a craft grower, an infuser organization, a
16		dispensing organization, a testing facility, or as otherwise
17		authorized by rule.
18		(c) All cannabis transported by a transporting
19		organization must be entered into a data collection system and
20		placed into a cannabis container for transport.
21		(d) Transporters are subject to random inspections by the
22		Department of Agriculture, the Department of Public Health, and
23		the Department of State Police.
24		(e) A transporting organization agent shall notify local
25		law enforcement, the Department of State Police, and the

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1		Department of Agriculture within 24 hours of the discovery of
2		any loss or theft. Notification shall be made by phone, in
3		person, or by written or electronic communication.
4		(f) No person under the age of 21 years shall be in a
5		commercial vehicle or trailer transporting cannabis goods.
6		(g) No person or individual who is not a transporting
7		organization agent shall be in a vehicle while transporting
8		cannabis goods.
9		(h) Transporters may not use commercial motor vehicles with
10		a weight rating of over 10,001 pounds.
11		(i) It is unlawful for any person to offer or deliver
12		money, or anything else of value, directly or indirectly, to
13		any of the following persons to obtain preferential placement
14		within the dispensing organization, including, without
15		limitation, on shelves and in display cases where purchasers
16		can view products, or on the dispensing organization's website:
17		(1) a person having a transporting organization
18		license, or any officer, associate, member,
19		representative, or agent of the licensee;
20		(2) a person having an Early Applicant Adult Use
21		Dispensing Organization License, an Adult Use Dispensing
22		Organization License, or a medical cannabis dispensing
23		organization license issued under the Compassionate Use of
24		Medical Cannabis Pilot Program Act;
25		(3) a person connected with or in any way representing,
26		or a member of the family of, a person holding an Early

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1		Applicant Adult Use Dispensing Organization License, an
2		Adult Use Dispensing Organization License, or a medical
3		cannabis dispensing organization license issued under the
4		Compassionate Use of Medical Cannabis Pilot Program Act; or
5		(4) a stockholder, officer, manager, agent, or
6		representative of a corporation engaged in the retail sale
7		of cannabis, an Early Applicant Adult Use Dispensing
8		Organization License, an Adult Use Dispensing Organization
9		License, or a medical cannabis dispensing organization
10		license issued under the Compassionate Use of Medical
11		Cannabis Pilot Program Act.
12		(j) A transportation organization agent must keep his or
13		her identification card visible at all times when on the
14		property of a cannabis business establishment and during the
15		transportation of cannabis when acting under his or her duties
16		as a transportation organization agent. During these times, the
17		transporter organization agent must also provide the
18		identification card upon request of any law enforcement officer
19		engaged in his or her official duties.
20		(k) A copy of the transporting organization's registration
21		and a manifest for the delivery shall be present in any vehicle
22		transporting cannabis.
23		(l) Cannabis shall be transported so it is not visible or
24		recognizable from outside the vehicle.
25		(m) A vehicle transporting cannabis must not bear any
26		markings to indicate the vehicle contains cannabis or bear the

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1		name or logo of the cannabis business establishment.
2		(n) Cannabis must be transported in an enclosed, locked
3		storage compartment that is secured or affixed to the vehicle.
4		(o) The Department of Agriculture may, by rule, impose any
5		other requirements or prohibitions on the transportation of
6		cannabis.
7		Section 40-30. Transporting agent identification card.
8		(a) The Department of Agriculture shall:
9		(1) establish by rule the information required in an
10		initial application or renewal application for an agent
11		identification card submitted under this Act and the
12		nonrefundable fee to accompany the initial application or
13		renewal application;
14		(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 or
17		deny an application within 30 days of receiving a completed
18		initial application or renewal application and all
19		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		(4) enter the license number of the transporting
24		organization where the agent works; and
25		(5) allow for an electronic initial application and

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1		renewal application process, and provide a confirmation by
2		electronic or other methods that an application has been
3		submitted. The Department of Agriculture may by rule
4		require prospective agents to file their applications by
5		electronic means and provide notices to the agents by
6		electronic means.
7		(b) An agent must keep his or her identification card
8		visible at all times when on the property of a cannabis
9		business establishment, including the cannabis business
10		establishment for which he or she is an agent.
11		(c) The agent identification cards shall contain the
12		following:
13		(1) the name of the cardholder;
14		(2) the date of issuance and expiration date of the
15		identification card;
16		(3) a random 10-digit alphanumeric identification
17		number containing at least 4 numbers and at least 4 letters
18		that is unique to the holder;
19		(4) a photograph of the cardholder; and
20		(5) the legal name of the transporter organization
21		employing the agent.
22		(d) An agent identification card shall be immediately
23		returned to the transporter organization of the agent upon
24		termination of his or her employment.
25		(e) Any agent identification card lost by a transporting
26		agent shall be reported to the Department of State Police and

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1		the Department of Agriculture immediately upon discovery of the
2		loss.
3		(f) An application for an agent identification card shall
4		be denied if the applicant is delinquent in filing any required
5		tax returns or paying any amounts owed to the State of
6		Illinois.
7		Section 40-35. Transporting organization background
8		checks.
9		(a) Through the Department of State Police, the Department
10		of Agriculture shall conduct a background check of the
11		prospective principal officers, board members, and agents of a
12		transporter applying for a license or identification card under
13		this Act. The Department of State Police shall charge a fee set
14		by rule for conducting the criminal history record check, which
15		shall be deposited into the State Police Services Fund and
16		shall not exceed the actual cost of the record check. In order
17		to carry out this provision, each transporter organization's
18		prospective principal officer, board member, or agent shall
19		submit a full set of fingerprints to the Department of State
20		Police for the purpose of obtaining a State and federal
21		criminal records check. These fingerprints shall be checked
22		against the fingerprint records now and hereafter, to the
23		extent allowed by law, filed in the Department of State Police
24		and Federal Bureau of Investigation criminal history records
25		databases. The Department of State Police shall furnish,

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1		following positive identification, all conviction information
2		to the Department of Agriculture.
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 Department of Agriculture.
7		Section 40-40. Renewal of transporting organization
8		licenses and agent identification cards.
9		(a) Licenses and identification cards issued under this Act
10		shall be renewed annually. A transporting organization shall
11		receive written or electronic notice 90 days before the
12		expiration of its current license that the license will expire.
13		The Department of Agriculture shall grant a renewal within 45
14		days of submission of a renewal application if:
15		(1) the transporting organization submits a renewal
16		application and the required nonrefundable renewal fee of
17		$10,000, or after January 1, 2021, another amount set by
18		rule by the Department of Agriculture, to be deposited into
19		the Cannabis Regulation Fund;
20		(2) the Department of Agriculture has not suspended or
21		revoked the license of the transporting organization for
22		violating this Act or rules adopted under this Act;
23		(3) the transporting organization has continued to
24		operate in accordance with all plans submitted as part of
25		its application and approved by the Department of

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1		Agriculture or any amendments thereto that have been
2		approved by the Department of Agriculture; and
3		(4) the transporter has submitted an agent, employee,
4		contracting, and subcontracting diversity report as
5		required by the Department.
6		(b) If a transporting organization fails to renew its
7		license before expiration, it shall cease operations until its
8		license is renewed.
9		(c) If a transporting organization agent fails to renew his
10		or her identification card before its expiration, he or she
11		shall cease to work as an agent of the transporter organization
12		until his or her identification card is renewed.
13		(d) Any transporting organization that continues to
14		operate, or any transporting organization agent who continues
15		to work as an agent, after the applicable license or
16		identification card has expired without renewal is subject to
17		the penalties provided under Section 45-5.
18		(e) The Department shall not renew a license or an agent
19		identification card if the applicant is delinquent in filing
20		any required tax returns or paying any amounts owed to the
21		State of Illinois.
22		ARTICLE 45.
23		ENFORCEMENT AND IMMUNITIES
24		Section 45-5. License suspension; revocation; other

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1		penalties.
2		(a) Notwithstanding any other criminal penalties related
3		to the unlawful possession of cannabis, the Department of
4		Financial and Professional Regulation and the Department of
5		Agriculture may revoke, suspend, place on probation,
6		reprimand, issue cease and desist orders, refuse to issue or
7		renew a license, or take any other disciplinary or
8		nondisciplinary action as each department may deem proper with
9		regard to a cannabis business establishment or cannabis
10		business establishment agent, including fines not to exceed:
11		(1) $50,000 for each violation of this Act or rules
12		adopted under this Act by a cultivation center or
13		cultivation center agent;
14		(2) $10,000 for each violation of this Act or rules
15		adopted under this Act by a dispensing organization or
16		dispensing organization agent;
17		(3) $15,000 for each violation of this Act or rules
18		adopted under this Act by a craft grower or craft grower
19		agent;
20		(4) $10,000 for each violation of this Act or rules
21		adopted under this Act by an infuser organization or
22		infuser organization agent; and
23		(5) $10,000 for each violation of this Act or rules
24		adopted under this Act by a transporting organization or
25		transporting organization agent.
26		(b) The Department of Financial and Professional

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1		Regulation and the Department of Agriculture, as the case may
2		be, shall consider licensee cooperation in any agency or other
3		investigation in its determination of penalties imposed under
4		this Section.
5		(c) The procedures for disciplining a cannabis business
6		establishment or cannabis business establishment agent and for
7		administrative hearings shall be determined by rule, and shall
8		provide for the review of final decisions under the
9		Administrative Review Law.
10		(d) The Attorney General may also enforce a violation of
11		Section 55-20, Section 55-21, and Section 15-155 as an unlawful
12		practice under the Consumer Fraud and Deceptive Business
13		Practices Act.
14		Section 45-10. Immunities and presumptions related to the
15		handling of cannabis by cannabis business establishments and
16		their agents.
17		(a) A cultivation center, craft grower, infuser
18		organization, or transporting organization is not subject to:
19		(i) prosecution; (ii) search or inspection, except by the
20		Department of Agriculture, the Department of Public Health, or
21		State or local law enforcement under this Act; (iii) seizure;
22		(iv) penalty in any manner, including, but not limited to,
23		civil penalty; (v) denial of any right or privilege; or (vi)
24		disciplinary action by a business licensing board or entity for
25		acting under this Act and rules adopted under this Act to

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1		acquire, possess, cultivate, manufacture, process, deliver,
2		transfer, transport, supply, or sell cannabis or cannabis
3		paraphernalia under this Act.
4		(b) A licensed cultivation center agent, licensed craft
5		grower agent, licensed infuser organization agent, or licensed
6		transporting organization agent is not subject to: (i)
7		prosecution; (ii) search; (iii) penalty in any manner,
8		including, but not limited to, civil penalty; (iv) denial of
9		any right or privilege; or (v) disciplinary action by a
10		business licensing board or entity, for engaging in
11		cannabis-related activities authorized under this Act and
12		rules adopted under this Act.
13		(c) A dispensing organization is not subject to: (i)
14		prosecution; (ii) search or inspection, except by the
15		Department of Financial and Professional Regulation, or State
16		or local law enforcement under this Act; (iii) seizure; (iv)
17		penalty in any manner, including, but not limited to, civil
18		penalty; (v) denial of any right or privilege; or (vi)
19		disciplinary action by a business licensing board or entity,
20		for acting under this Act and rules adopted under this Act to
21		acquire, possess, or dispense cannabis, cannabis-infused
22		products, cannabis paraphernalia, or related supplies, and
23		educational materials under this Act.
24		(d) A licensed dispensing organization agent is not subject
25		to: (i) prosecution; (ii) search; or (iii) penalty in any
26		manner, or denial of any right or privilege, including, but not

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1		limited to, civil penalty or disciplinary action by a business
2		licensing board or entity, for working for a dispensing
3		organization under this Act and rules adopted under this Act.
4		(e) Any cannabis, cannabis-infused product, cannabis
5		paraphernalia, legal property, or interest in legal property
6		that is possessed, owned, or used in connection with the use of
7		cannabis as allowed under this Act, or acts incidental to that
8		use, may not be seized or forfeited. This Act does not prevent
9		the seizure or forfeiture of cannabis exceeding the amounts
10		allowed under this Act, nor does it prevent seizure or
11		forfeiture if the basis for the action is unrelated to the
12		cannabis that is possessed, manufactured, transferred, or used
13		under this Act.
14		(f) Nothing in this Act shall preclude local or State law
15		enforcement agencies from searching a cultivation center,
16		craft grower, infuser organization, transporting organization,
17		or dispensing organization if there is probable cause to
18		believe that the criminal laws of this State have been violated
19		and the search is conducted in conformity with the Illinois
20		Constitution, the Constitution of the United States, and
21		applicable law.
22		(g) Nothing in this Act shall preclude the Attorney General
23		or other authorized government agency from investigating or
24		bringing a civil action against a cannabis business
25		establishment, or an agent thereof, for a violation of State
26		law, including, but not limited to, civil rights violations and

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1		violations of the Consumer Fraud and Deceptive Business
2		Practices Act.
3		Section 45-15. State standards and requirements. Any
4		standards, requirements, and rules regarding the health and
5		safety, environmental protection, testing, security, food
6		safety, and worker protections established by the State shall
7		be the minimum standards for all licensees under this Act
8		statewide, where applicable. Knowing violations of any State or
9		local law, ordinance, or rule conferring worker protections or
10		legal rights on the employees of a licensee may be grounds for
11		disciplinary action under this Act, in addition to penalties
12		established elsewhere.
13		Section 45-20. Violation of tax Acts; refusal, revocation,
14		or suspension of license or agent identification card.
15		(a) In addition to other grounds specified in this Act, the
16		Department of Agriculture and Department of Financial and
17		Professional Regulation, upon notification by the Department
18		of Revenue, shall refuse the issuance or renewal of a license
19		or agent identification card, or suspend or revoke the license
20		or agent identification card, of any person, for any of the
21		following violations of any tax Act administered by the
22		Department of Revenue:
23		(1) Failure to file a tax return.
24		(2) The filing of a fraudulent return.

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1		(3) Failure to pay all or part of any tax or penalty
2		finally determined to be due.
3		(4) Failure to keep books and records.
4		(5) Failure to secure and display a certificate or
5		sub-certificate of registration, if required.
6		(6) Willful violation of any rule or regulation of the
7		Department relating to the administration and enforcement
8		of tax liability.
9		(b) After all violations of any of items (1) through (6) of
10		subsection (a) have been corrected or resolved, the Department
11		shall, upon request of the applicant or, if not requested, may
12		notify the entities listed in subsection (a) that the
13		violations have been corrected or resolved. Upon receiving
14		notice from the Department that a violation of any of items (1)
15		through (6) of subsection (a) have been corrected or otherwise
16		resolved to the Department of Revenue's satisfaction, the
17		Department of Agriculture and the Department of Financial and
18		Professional Regulation may issue or renew the license or agent
19		identification card, or vacate an order of suspension or
20		revocation.
21		ARTICLE 50.
22		LABORATORY TESTING
23		Section 50-5. Laboratory testing.
24		(a) Notwithstanding any other provision of law, the

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1		following acts, when performed by a cannabis testing facility
2		with a current, valid registration, or a person 21 years of age
3		or older who is acting in his or her capacity as an owner,
4		employee, or agent of a cannabis testing facility, are not
5		unlawful and shall not be an offense under Illinois law or be a
6		basis for seizure or forfeiture of assets under Illinois law:
7		(1) possessing, repackaging, transporting, storing, or
8		displaying cannabis or cannabis-infused products;
9		(2) receiving or transporting cannabis or
10		cannabis-infused products from a cannabis business
11		establishment, a community college licensed under the
12		Community College Cannabis Vocational Training Pilot
13		Program, or a person 21 years of age or older; and
14		(3) returning or transporting cannabis or
15		cannabis-infused products to a cannabis business
16		establishment, a community college licensed under the
17		Community College Cannabis Vocational Training Pilot
18		Program, or a person 21 years of age or older.
19		(b)(1) No laboratory shall handle, test, or analyze
20		cannabis unless approved by the Department of Agriculture in
21		accordance with this Section.
22		(2) No laboratory shall be approved to handle, test, or
23		analyze cannabis unless the laboratory:
24		(A) is accredited by a private laboratory accrediting
25		organization;
26		(B) is independent from all other persons involved in

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1		the cannabis industry in Illinois and no person with a
2		direct or indirect interest in the laboratory has a direct
3		or indirect financial, management, or other interest in an
4		Illinois cultivation center, craft grower, dispensary,
5		infuser, transporter, certifying physician, or any other
6		entity in the State that may benefit from the production,
7		manufacture, dispensing, sale, purchase, or use of
8		cannabis; and
9		(C) has employed at least one person to oversee and be
10		responsible for the laboratory testing who has earned, from
11		a college or university accredited by a national or
12		regional certifying authority, at least:
13		(i) a master's level degree in chemical or
14		biological sciences and a minimum of 2 years'
15		post-degree laboratory experience; or
16		(ii) a bachelor's degree in chemical or biological
17		sciences and a minimum of 4 years' post-degree
18		laboratory experience.
19		(3) Each independent testing laboratory that claims to be
20		accredited must provide the Department of Agriculture with a
21		copy of the most recent annual inspection report granting
22		accreditation and every annual report thereafter.
23		(c) Immediately before manufacturing or natural processing
24		of any cannabis or cannabis-infused product or packaging
25		cannabis for sale to a dispensary, each batch shall be made
26		available by the cultivation center, craft grower, or infuser

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1		for an employee of an approved laboratory to select a random
2		sample, which shall be tested by the approved laboratory for:
3		(1) microbiological contaminants;
4		(2) mycotoxins;
5		(3) pesticide active ingredients;
6		(4) residual solvent; and
7		(5) an active ingredient 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 pass the
17		microbiological, mycotoxin, pesticide chemical residue, or
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-based or solvent based extract. After
25		processing, the CO2-based or solvent based extract must
26		still pass all required tests.

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1		(g) The Department of Agriculture shall establish
2		standards for microbial, mycotoxin, pesticide residue, solvent
3		residue, or other standards for the presence of possible
4		contaminants, in addition to labeling requirements for
5		contents and potency.
6		(h) The laboratory shall file with the Department of
7		Agriculture an electronic copy of each laboratory test result
8		for any batch that does not pass the microbiological,
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		(i) A cultivation center, craft grower, and infuser shall
15		provide to a dispensing organization the laboratory test
16		results for each batch of cannabis product purchased by the
17		dispensing organization, if sampled. Each dispensary
18		organization must have those laboratory results available upon
19		request to purchasers.
20		(j) The Department of Agriculture may adopt rules related
21		to testing in furtherance of this Act.
22		ARTICLE 55.
23		GENERAL PROVISIONS
24		Section 55-5. Preparation of cannabis-infused products.

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1		(a) The Department of Agriculture may regulate the
2		production of cannabis-infused products by a cultivation
3		center, a craft grower, an infuser organization, or a
4		dispensing organization and establish rules related to
5		refrigeration, hot-holding, and handling of cannabis-infused
6		products. All cannabis-infused products shall meet the
7		packaging and labeling requirements contained in Section
8		55-21.
9		(b) Cannabis-infused products for sale or distribution at a
10		dispensing organization must be prepared by an approved agent
11		of a cultivation center or infuser organization.
12		(c) A cultivation center or infuser organization that
13		prepares cannabis-infused products for sale or distribution by
14		a dispensing organization shall be under the operational
15		supervision of a Department of Public Health certified food
16		service sanitation manager.
17		(d) Dispensing organizations may not manufacture, process,
18		or produce cannabis-infused products.
19		(e) The Department of Public Health shall adopt and enforce
20		rules for the manufacture and processing of cannabis-infused
21		products, and for that purpose it may at all times enter every
22		building, room, basement, enclosure, or premises occupied or
23		used, or suspected of being occupied or used, for the
24		production, preparation, manufacture for sale, storage, sale,
25		processing, distribution, or transportation of
26		cannabis-infused products, and to inspect the premises

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1		together with all utensils, fixtures, furniture, and machinery
2		used for the preparation of these products.
3		(f) The Department of Agriculture shall by rule establish a
4		maximum level of THC that may be contained in each serving of
5		cannabis-infused product, and within the product package.
6		(g) If a local public health agency has a reasonable belief
7		that a cannabis-infused product poses a public health hazard,
8		it may refer the cultivation center, craft grower, or infuser
9		that manufactured or processed the cannabis-infused product to
10		the Department of Public Health. If the Department of Public
11		Health finds that a cannabis-infused product poses a health
12		hazard, it may bring an action for immediate injunctive relief
13		to require that action be taken as the court may deem necessary
14		to meet the hazard of the cultivation facility or seek other
15		relief as 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.

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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 destroyed and disposed of under rules adopted by the
5		Department of Agriculture under this Act. Documentation of
6		destruction and disposal shall be retained at the cultivation
7		center, craft grower, infuser organization, transporter, or
8		testing facility as applicable for a period of not less than 5
9		years.
10		(b) A cultivation center, craft grower, or infuser
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, infuser
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

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1		the dispensing organization for a period of not less than 5
2		years.
3		Section 55-20. Advertising and promotions.
4		(a) No cannabis business establishment nor any other person
5		or entity shall engage in advertising that contains any
6		statement or illustration that:
7		(1) is false or misleading;
8		(2) promotes overconsumption of cannabis or cannabis
9		products;
10		(3) depicts the actual consumption of cannabis or
11		cannabis products;
12		(4) depicts a person under 21 years of age consuming
13		cannabis;
14		(5) makes any health, medicinal, or therapeutic claims
15		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 that
20		is designed in any manner to be appealing to or encourage
21		consumption of persons under 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:

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1		(1) within 1,000 feet of the perimeter of school
2		grounds, a playground, a recreation center or facility, a
3		child care center, a public park or public library, or a
4		game arcade to which admission is not restricted to persons
5		21 years of age or older;
6		(2) on or in a public transit vehicle or public transit
7		shelter;
8		(3) on or in publicly owned or publicly operated
9		property; or
10		(4) that contains information that:
11		(A) is false or misleading;
12		(B) promotes excessive consumption;
13		(C) depicts a person under 21 years of age
14		consuming cannabis;
15		(D) includes the image of a cannabis leaf; or
16		(E) includes any image designed or likely to appeal
17		to minors, including cartoons, toys, animals, or
18		children, or any other likeness to images, characters,
19		or phrases that are popularly used to advertise to
20		children, or any imitation of candy packaging or
21		labeling, or that promotes consumption of cannabis.
22		(c) Subsections (a) and (b) do not apply to an educational
23		message.
24		(d) Sales promotions. No cannabis business establishment
25		nor any other person or entity may encourage the sale of
26		cannabis or cannabis products by giving away cannabis or

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1		cannabis products, by conducting games or competitions related
2		to the consumption of cannabis or cannabis products, or by
3		providing promotional materials or activities of a manner or
4		type that would be appealing to children.
5		Section 55-21. Cannabis product packaging and labeling.
6		(a) Each cannabis product produced for sale shall be
7		registered with the Department of Agriculture on forms provided
8		by the Department of Agriculture. Each product registration
9		shall include a label and the required registration fee at the
10		rate established by the Department of Agriculture for a
11		comparable medical cannabis product, or as established by rule.
12		The registration fee is for the name of the product offered for
13		sale and one fee shall be sufficient for all package sizes.
14		(b) All harvested cannabis intended for distribution to a
15		cannabis enterprise must be packaged in a sealed, labeled
16		container.
17		(c) Any product containing cannabis shall be packaged in a
18		sealed, odor-proof, and child-resistant cannabis container
19		consistent with current standards, including the Consumer
20		Product Safety Commission standards referenced by the Poison
21		Prevention Act.
22		(d) All cannabis-infused products shall be individually
23		wrapped or packaged at the original point of preparation. The
24		packaging of the cannabis-infused product shall conform to the
25		labeling requirements of the Illinois Food, Drug and Cosmetic

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1		Act, in addition to the other requirements set forth in this
2		Section.
3		(e) Each cannabis product shall be labeled before sale and
4		each label shall be securely affixed to the package and shall
5		state in legible English and any languages required by the
6		Department of Agriculture:
7		(1) The name and post office box of the registered
8		cultivation center or craft grower where the item was
9		manufactured;
10		(2) The common or usual name of the item and the
11		registered name of the cannabis product that was registered
12		with the Department of Agriculture under subsection (a);
13		(3) A unique serial number that will match the product
14		with a cultivation center or craft grower batch and lot
15		number to facilitate any warnings or recalls the Department
16		of Agriculture, cultivation center, or craft grower deems
17		appropriate;
18		(4) The date of final testing and packaging, if
19		sampled, and the identification of the independent testing
20		laboratory;
21		(5) The date of harvest and "use by" date;
22		(6) The quantity (in ounces or grams) of cannabis
23		contained in the product;
24		(7) A pass/fail rating based on the laboratory's
25		microbiological, mycotoxins, and pesticide and solvent
26		residue analyses, if sampled.

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1		(8) Content list.
2		(A) A list of the following, including the minimum
3		and maximum percentage content by weight for
4		subdivisions (d)(8)(A)(i) through (iv):
5		(i) delta-9-tetrahydrocannabinol (THC);
6		(ii) tetrahydrocannabinolic acid (THCA);
7		(iii) cannabidiol (CBD);
8		(iv) cannabidiolic acid (CBDA); and
9		(v) all other ingredients of the item,
10		including any colors, artificial flavors, and
11		preservatives, listed in descending order by
12		predominance of weight shown with common or usual
13		names.
14		(B) The acceptable tolerances for the minimum
15		percentage printed on the label for any of subdivisions
16		(d)(8)(A)(i) through (iv) shall not be below 85% or
17		above 115% of the labeled amount;
18		(f) Packaging must not contain information that:
19		(1) is false or misleading;
20		(2) promotes excessive consumption;
21		(3) depicts a person under 21 years of age consuming
22		cannabis;
23		(4) includes the image of a cannabis leaf;
24		(5) includes any image designed or likely to appeal to
25		minors, including cartoons, toys, animals, or children, or
26		any other likeness to images, characters, or phrases that

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1		are popularly used to advertise to children, or any
2		packaging or labeling that bears reasonable resemblance to
3		any product available for consumption as a commercially
4		available candy, or that promotes consumption of cannabis;
5		(6) contains any seal, flag, crest, coat of arms, or
6		other insignia likely to mislead the purchaser to believe
7		that the product has been endorsed, made, or used by the
8		State of Illinois or any of its representatives except
9		where authorized by this Act.
10		(g) Cannabis products produced by concentrating or
11		extracting ingredients from the cannabis plant shall contain
12		the following information, where applicable:
13		(1) If solvents were used to create the concentrate or
14		extract, a statement that discloses the type of extraction
15		method, including any solvents or gases used to create the
16		concentrate or extract; and
17		(2) Any other chemicals or compounds used to produce or
18		were added to the concentrate or extract.
19		(h) All cannabis products must contain warning statements
20		established for purchasers, of a size that is legible and
21		readily visible to a consumer inspecting a package, which may
22		not be covered or obscured in any way. The Department of Public
23		Health shall define and update appropriate health warnings for
24		packages including specific labeling or warning requirements
25		for specific cannabis products.
26		(i) Unless modified by rule to strengthen or respond to new

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1		evidence and science, the following warnings shall apply to all
2		cannabis products unless modified by rule: "This product
3		contains cannabis and is intended for use by adults 21 and
4		over. Its use can impair cognition and may be habit forming.
5		This product should not be used by pregnant or breastfeeding
6		women. It is unlawful to sell or provide this item to any
7		individual, and it may not be transported outside the State of
8		Illinois. It is illegal to operate a motor vehicle while under
9		the influence of cannabis. Possession or use of this product
10		may carry significant legal penalties in some jurisdictions and
11		under federal law.".
12		(j) Warnings for each of the following product types must
13		be present on labels when offered for sale to a purchaser:
14		(1) Cannabis that may be smoked must contain a
15		statement that "Smoking is hazardous to your health.".
16		(2) Cannabis-infused products (other than those
17		intended for topical application) must contain a statement
18		"CAUTION: This product contains cannabis, and intoxication
19		following use may be delayed 2 or more hours. This product
20		was produced in a facility that cultivates cannabis, and
21		that may also process common food allergens.".
22		(3) Cannabis-infused products intended for topical
23		application must contain a statement "DO NOT EAT" in bold,
24		capital letters.
25		(k) Each cannabis-infused product intended for consumption
26		must be individually packaged, must include the total milligram

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1		content of THC and CBD, and may not include more than a total
2		of 100 milligrams of THC per package. A package may contain
3		multiple servings of 10 milligrams of THC, and indicated by
4		scoring, wrapping, or by other indicators designating
5		individual serving sizes. The Department of Agriculture may
6		change the total amount of THC allowed for each package, or the
7		total amount of THC allowed for each serving size, by rule.
8		(l) No individual other than the purchaser may alter or
9		destroy any labeling affixed to the primary packaging of
10		cannabis or cannabis-infused products.
11		(m) For each commercial weighing and measuring device used
12		at a facility, the cultivation center or craft grower must:
13		(1) Ensure that the commercial device is licensed under
14		the Weights and Measures Act and the associated
15		administrative rules (8 Ill. Adm. Code 600);
16		(2) Maintain documentation of the licensure of the
17		commercial device; and
18		(3) Provide a copy of the license of the commercial
19		device to the Department of Agriculture for review upon
20		request.
21		(n) It is the responsibility of the Department to ensure
22		that packaging and labeling requirements, including product
23		warnings, are enforced at all times for products provided to
24		purchasers. Product registration requirements and container
25		requirements may be modified by rule by the Department of
26		Agriculture.

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1		(o) Labeling, including warning labels, may be modified by
2		rule by the Department of Agriculture.
3		Section 55-25. Local ordinances. Unless otherwise provided
4		under this Act or otherwise in accordance with State law:
5		(1) 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 reasonable zoning
8		ordinances or resolutions, not in conflict with this Act or
9		rules adopted pursuant to this Act, regulating cannabis
10		business establishments. No unit of local government,
11		including a home rule unit or any non-home rule county
12		within the unincorporated territory of the county, may
13		prohibit home cultivation or unreasonably prohibit use of
14		cannabis authorized by this Act.
15		(2) A unit of local government, including a home rule
16		unit or any non-home rule county within the unincorporated
17		territory of the county, may enact ordinances or rules not
18		in conflict with this Act or with rules adopted pursuant to
19		this Act governing the time, place, manner, and number of
20		cannabis business establishment operations, including
21		minimum distance limitations between cannabis business
22		establishments and locations it deems sensitive, including
23		colleges and universities, through the use of conditional
24		use permits. A unit of local government, including a home
25		rule unit, may establish civil penalties for violation of

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1		an ordinance or rules governing the time, place, and manner
2		of operation of a cannabis business establishment or a
3		conditional use permit in the jurisdiction of the unit of
4		local government. No unit of local government, including a
5		home rule unit or non-home rule county within an
6		unincorporated territory of the county, may unreasonably
7		restrict the time, place, manner, and number of cannabis
8		business establishment operations authorized by this Act.
9		(3) A unit of local government, including a home rule
10		unit, or any non-home rule county within the unincorporated
11		territory of the county may regulate the on-premises
12		consumption of cannabis at or in a cannabis business
13		establishment within its jurisdiction in a manner
14		consistent with this Act. A cannabis business
15		establishment or other entity authorized or permitted by a
16		unit of local government to allow on-site consumption shall
17		not be deemed a public place within the meaning of the
18		Smoke Free Illinois Act.
19		(4) 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 not regulate the activities
22		described in paragraph (1), (2), or (3) in a manner more
23		restrictive than the regulation of those activities by the
24		State under this Act. This Section is a limitation under
25		subsection (i) of Section 6 of Article VII of the Illinois
26		Constitution on the concurrent exercise by home rule units

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1		of powers and functions exercised by the State.
2		(5) A unit of local government, including a home rule
3		unit or any non-home rule county within the unincorporated
4		territory of the county, may enact ordinances to prohibit
5		or significantly limit a cannabis business establishment's
6		location.
7		Section 55-28. Restricted cannabis zones.
8		(a) As used in this Section:
9		"Legal voter" means a person:
10		(1) who is duly registered to vote in a municipality
11		with a population of over 500,000;
12		(2) whose name appears on a poll list compiled by the
13		city board of election commissioners since the last
14		preceding election, regardless of whether the election was
15		a primary, general, or special election;
16		(3) who, at the relevant time, is a resident of the
17		address at which he or she is registered to vote; and
18		(4) whose address, at the relevant time, is located in
19		the precinct where such person seeks to circulate or sign a
20		petition under this Section.
21		As used in the definition of "legal voter", "relevant time"
22		means any time that:
23		(i) a notice of intent is filed, pursuant to subsection
24		(c) of this Section, to initiate the petition process under
25		this Section;

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1		(ii) the petition is circulated for signature in the
2		applicable precinct; or
3		(iii) the petition is signed by registered voters in
4		the applicable precinct.
5		"Petition" means the petition described in this Section.
6		"Precinct" means the smallest constituent territory within
7		a municipality with a population of over 500,000 in which
8		electors vote as a unit at the same polling place in any
9		election governed by the Election Code.
10		"Restricted cannabis zone" means a precinct within which
11		home cultivation, one or more types of cannabis business
12		establishments, or both has been prohibited pursuant to an
13		ordinance initiated by a petition under this Section.
14		(b) The legal voters of any precinct within a municipality
15		with a population of over 500,000 may petition their local
16		alderman, using a petition form made available online by the
17		city clerk, to introduce an ordinance establishing the precinct
18		as a restricted zone. Such petition shall specify whether it
19		seeks an ordinance to prohibit, within the precinct: (i) home
20		cultivation; (ii) one or more types of cannabis business
21		establishments; or (iii) home cultivation and one or more types
22		of cannabis business establishments.
23		Upon receiving a petition containing the signatures of at
24		least 25% of the registered voters of the precinct, and
25		concluding that the petition is legally sufficient following
26		the posting and review process in subsection (c) of this

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1		Section, the city clerk shall notify the local alderman of the
2		ward in which the precinct is located. Upon being notified,
3		that alderman, following an assessment of relevant factors
4		within the precinct, including but not limited to, its
5		geography, density and character, the prevalence of
6		residentially zoned property, current licensed cannabis
7		business establishments in the precinct, the current amount of
8		home cultivation in the precinct, and the prevailing viewpoint
9		with regard to the issue raised in the petition, may introduce
10		an ordinance to the municipality's governing body creating a
11		restricted cannabis zone in that precinct.
12		(c) A person seeking to initiate the petition process
13		described in this Section shall first submit to the city clerk
14		notice of intent to do so, on a form made available online by
15		the city clerk. That notice shall include a description of the
16		potentially affected area and the scope of the restriction
17		sought. The city clerk shall publicly post the submitted notice
18		online.
19		To be legally sufficient, a petition must contain the
20		requisite number of valid signatures and all such signatures
21		must be obtained within 90 days of the date that the city clerk
22		publicly posts the notice of intent. Upon receipt, the city
23		clerk shall post the petition on the municipality's website for
24		a 30-day comment period. The city clerk is authorized to take
25		all necessary and appropriate steps to verify the legal
26		sufficiency of a submitted petition. Following the petition

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1		review and comment period, the city clerk shall publicly post
2		online the status of the petition as accepted or rejected, and
3		if rejected, the reasons therefor. If the city clerk rejects a
4		petition as legally insufficient, a minimum of 12 months must
5		elapse from the time the city clerk posts the rejection notice
6		before a new notice of intent for that same precinct may be
7		submitted.
8		(d) Notwithstanding any law to the contrary, the
9		municipality may enact an ordinance creating a restricted
10		cannabis zone. The ordinance shall:
11		(1) identify the applicable precinct boundaries as of
12		the date of the petition;
13		(2) state whether the ordinance prohibits within the
14		defined boundaries of the precinct, and in what
15		combination: (A) one or more types of cannabis business
16		establishments; or (B) home cultivation;
17		(3) be in effect for 4 years, unless repealed earlier;
18		and
19		(4) once in effect, be subject to renewal by ordinance
20		at the expiration of the 4-year period without the need for
21		another supporting petition.
22		Section 55-30. Confidentiality.
23		(a) Information provided by the cannabis business
24		establishment licensees or applicants to the Department of
25		Agriculture, the Department of Public Health, the Department of

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1		Financial and Professional Regulation, the Department of
2		Commerce and Economic Opportunity, or other agency shall be
3		limited to information necessary for the purposes of
4		administering this Act. The information is subject to the
5		provisions and limitations contained in the Freedom of
6		Information Act and may be disclosed in accordance with Section
7		55-65.
8		(b) The following information received and records kept by
9		the Department of Agriculture, the Department of Public Health,
10		the Department of State Police, and the Department of Financial
11		and Professional Regulation for purposes of administering this
12		Article are subject to all applicable federal privacy laws, are
13		confidential and exempt from disclosure under the Freedom of
14		Information Act, except as provided in this Act, and not
15		subject to disclosure to any individual or public or private
16		entity, except to the Department of Financial and Professional
17		Regulation, the Department of Agriculture, the Department of
18		Public Health, and the Department of State Police as necessary
19		to perform official duties under this Article. The following
20		information received and kept by the Department of Financial
21		and Professional Regulation or the Department of Agriculture,
22		excluding any existing or non-existing Illinois or national
23		criminal history record information, may be disclosed to the
24		Department of Public Health, the Department of Agriculture, the
25		Department of Revenue, or the Department of State Police upon
26		request:

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1		(1) Applications and renewals, their contents, and
2		supporting information submitted by or on behalf of
3		dispensing organizations in compliance with this Article,
4		including their physical addresses;
5		(2) Any plans, procedures, policies, or other records
6		relating to dispensing organization security;
7		(3) Information otherwise exempt from disclosure by
8		State or federal law.
9		(c) The name and address of a dispensing organization
10		licensed under this Act shall be subject to disclosure under
11		the Freedom of Information Act. The name and cannabis business
12		establishment address of the person or entity holding each
13		cannabis business establishment license shall be subject to
14		disclosure.
15		(d) All information collected by the Department of
16		Financial and Professional Regulation in the course of an
17		examination, inspection, or investigation of a licensee or
18		applicant, including, but not limited to, any complaint against
19		a licensee or applicant filed with the Department and
20		information collected to investigate any such complaint, shall
21		be maintained for the confidential use of the Department and
22		shall not be disclosed, except as otherwise provided in the
23		Act. A formal complaint against a licensee by the Department or
24		any disciplinary order issued by the Department against a
25		licensee or applicant shall be a public record, except as
26		otherwise prohibited by law, as required by law, or as

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1		necessary to enforce the provisions of this Act. Complaints
2		from consumers or members of the general public received
3		regarding a specific, named licensee or complaints regarding
4		conduct by unlicensed entities shall be subject to disclosure
5		under the Freedom of Information Act
6		(e) The Department of Agriculture, the Department of State
7		Police, and the Department of Financial and Professional
8		Regulation shall not share or disclose any existing or
9		non-existing Illinois or national criminal history record
10		information to any person or entity not expressly authorized by
11		this Act. As used in this Section, "any existing or
12		non-existing Illinois or national criminal history record
13		information" means any Illinois or national criminal history
14		record information, including but not limited to the lack of or
15		non-existence of these records.
16		(f) Each Department responsible for licensure under this
17		Act shall publish on the Department's website a list of the
18		ownership information of cannabis business establishment
19		licensees under the Department's jurisdiction. The list shall
20		include, but is not limited to: the name of the person or
21		entity holding each cannabis business establishment license;
22		and the address at which the entity is operating under this
23		Act. This list shall be published and updated monthly.
24		Section 55-35. Administrative rulemaking.
25		(a) No later than 180 days after the effective date of this

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1		Act, the Department of Agriculture, the Department of State
2		Police, the Department of Financial and Professional
3		Regulation, the Department of Revenue, the Department of
4		Commerce and Economic Opportunity, and the Treasurer's Office
5		shall adopt permanent rules in accordance with their
6		responsibilities under this Act. The Department of
7		Agriculture, the Department of State Police, the Department of
8		Financial and Professional Regulation, the Department of
9		Revenue, and the Department of Commerce and Economic
10		Opportunity may adopt rules necessary to regulate personal
11		cannabis use through the use of emergency rulemaking in
12		accordance with subsection (gg) of Section 5-45 of the Illinois
13		Administrative Procedure Act. The General Assembly finds that
14		the adoption of rules to regulate cannabis use is deemed an
15		emergency and necessary for the public interest, safety, and
16		welfare.
17		(b) The Department of Agriculture rules may address, but
18		are not limited to, the following matters related to
19		cultivation centers, craft growers, infuser organizations, and
20		transporting organizations with the goal of protecting against
21		diversion and theft, without imposing an undue burden on the
22		cultivation centers, craft growers, infuser organizations, or
23		transporting organizations:
24		(1) oversight requirements for cultivation centers,
25		craft growers, infuser organizations, and transporting
26		organizations;

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1		(2) recordkeeping requirements for cultivation
2		centers, craft growers, infuser organizations, and
3		transporting organizations;
4		(3) security requirements for cultivation centers,
5		craft growers, infuser organizations, and transporting
6		organizations, which shall include that each cultivation
7		center, craft grower, infuser organization, and
8		transporting organization location must be protected by a
9		fully operational security alarm system;
10		(4) standards for enclosed, locked facilities under
11		this Act;
12		(5) procedures for suspending or revoking the
13		identification cards of agents of cultivation centers,
14		craft growers, infuser organizations, and transporting
15		organizations that commit violations of this Act or the
16		rules adopted under this Section;
17		(6) rules concerning the intrastate transportation of
18		cannabis from a cultivation center, craft grower, infuser
19		organization, and transporting organization to a
20		dispensing organization;
21		(7) standards concerning the testing, quality,
22		cultivation, and processing of cannabis; and
23		(8) any other matters under oversight by the Department
24		of Agriculture as are necessary for the fair, impartial,
25		stringent, and comprehensive administration of this Act.
26		(c) The Department of Financial and Professional

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1		Regulation rules may address, but are not limited to, the
2		following matters related to dispensing organizations, with
3		the goal of protecting against diversion and theft, without
4		imposing an undue burden on the dispensing organizations:
5		(1) oversight requirements for dispensing
6		organizations;
7		(2) recordkeeping requirements for dispensing
8		organizations;
9		(3) security requirements for dispensing
10		organizations, which shall include that each dispensing
11		organization location must be protected by a fully
12		operational security alarm system;
13		(4) procedures for suspending or revoking the licenses
14		of dispensing organization agents that commit violations
15		of this Act or the rules adopted under this Act;
16		(5) any other matters under oversight by the Department
17		of Financial and Professional Regulation that are
18		necessary for the fair, impartial, stringent, and
19		comprehensive administration of this Act.
20		(d) The Department of Revenue rules may address, but are
21		not limited to, the following matters related to the payment of
22		taxes by cannabis business establishments:
23		(1) recording of sales;
24		(2) documentation of taxable income and expenses;
25		(3) transfer of funds for the payment of taxes; or
26		(4) any other matter under the oversight of the

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1		Department of Revenue.
2		(e) The Department of Commerce and Economic Opportunity
3		rules may address, but are not limited to, a loan program or
4		grant program to assist Social Equity Applicants access the
5		capital needed to start a cannabis business establishment. The
6		names of recipients and the amounts of any moneys received
7		through a loan program or grant program shall be a public
8		record.
9		(f) The Department of State Police rules may address
10		enforcement of its authority under this Act. The Department of
11		State Police shall not make rules that infringe on the
12		exclusive authority of the Department of Financial and
13		Professional Regulation or the Department of Agriculture over
14		licensees under this Act.
15		(g) The Department of Public Health shall develop and
16		disseminate:
17		(1) educational information about the health risks
18		associated with the use of cannabis; and
19		(2) one or more public education campaigns in
20		coordination with local health departments and community
21		organizations, including one or more prevention campaigns
22		directed at children, adolescents, parents, and pregnant
23		or breastfeeding women, to inform them of the potential
24		health risks associated with intentional or unintentional
25		cannabis use.

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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 55-35.
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 in response to a valid initial
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 within 30 days of its submission, the agent
15		identification card is deemed granted and a copy of the agent
16		identification initial application or renewal application
17		shall be deemed a valid agent identification card.
18		(c) Authorized employees of State or local law enforcement
19		agencies shall immediately notify the Department of
20		Agriculture and the Department of Financial and Professional
21		Regulation when any person in possession of an agent
22		identification card has been convicted of or pled guilty to
23		violating this Act.
24		Section 55-45. Administrative hearings.
25		(a) Administrative hearings related to the duties and

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1		responsibilities assigned to the Department of Public Health
2		shall be conducted under the Department of Public Health's
3		rules governing administrative hearings.
4		(b) Administrative hearings related to the duties and
5		responsibilities assigned to the Department of Financial and
6		Professional Regulation and dispensing organization agents
7		shall be conducted under the Department of Financial and
8		Professional Regulation's rules governing administrative
9		hearings.
10		(c) Administrative hearings related to the duties and
11		responsibilities assigned to the Department of Agriculture,
12		cultivation centers, or cultivation center agents shall be
13		conducted under the Department of Agriculture's rules
14		governing administrative hearings.
15		Section 55-50. Petition for rehearing. Within 20 days after
16		the service of any order or decision of the Department of
17		Public Health, the Department of Agriculture, the Department of
18		Financial and Professional Regulation, or the Department of
19		State Police upon any party to the proceeding, the party may
20		apply for a rehearing in respect to any matters determined by
21		them under this Act, except for decisions made under the
22		Cannabis Cultivation Privilege Tax Law, the Cannabis Purchaser
23		Excise Tax Law, the County Cannabis Retailers' Occupation Tax
24		Law, and the Municipal Cannabis Retailers' Occupation Tax Law,
25		which shall be governed by the provisions of those Laws. If a

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1		rehearing is granted, an agency shall hold the rehearing and
2		render a decision within 30 days from the filing of the
3		application for rehearing with the agency. The time for holding
4		such rehearing and rendering a decision may be extended for a
5		period not to exceed 30 days, for good cause shown, and by
6		notice in writing to all parties of interest. If an agency
7		fails to act on the application for rehearing within 30 days,
8		or the date the time for rendering a decision was extended for
9		good cause shown, the order or decision of the agency is final.
10		No action for the judicial review of any order or decision of
11		an agency shall be allowed unless the party commencing such
12		action has first filed an application for a rehearing and the
13		agency has acted or failed to act upon the application. Only
14		one rehearing may be granted by an agency on application of any
15		one party.
16		Section 55-55. Review of administrative decisions. All
17		final administrative decisions of the Department of Public
18		Health, the Department of Agriculture, the Department of
19		Financial and Professional Regulation, and the Department of
20		State Police are subject to judicial review under the
21		Administrative Review Law and the rules adopted under that Law.
22		The term "administrative decision" is defined as in Section
23		3-101 of the Code of Civil Procedure.
24		Section 55-60. Suspension or revocation of a license.

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1		(a) The Department of Financial and Professional
2		Regulation or the Department of Agriculture may suspend or
3		revoke a license for a violation of this Act or a rule adopted
4		in accordance with this Act by the Department of Agriculture
5		and the Department of Financial and Professional Regulation.
6		(b) The Department of Agriculture and the Department of
7		Financial and Professional Regulation may suspend or revoke an
8		agent identification card for a violation of this Act or a rule
9		adopted in accordance with this Act.
10		Section 55-65. Financial institutions.
11		(a) A financial institution that provides financial
12		services customarily provided by financial institutions to a
13		cannabis business establishment authorized under this Act or
14		the Compassionate Use of Medical Cannabis Pilot Program Act, or
15		to a person that is affiliated with such cannabis business
16		establishment, is exempt from any criminal law of this State as
17		it relates to cannabis-related conduct authorized under State
18		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 business establishment with
24		which the financial institution is doing or is considering
25		doing business holds a license under this Act or the

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1		Compassionate Use of Medical Cannabis Pilot Program Act;
2		(2) The name of any other business or individual
3		affiliate with the cannabis business establishment;
4		(3) A copy of the application, and any supporting
5		documentation submitted with the application, for a
6		license or a permit submitted on behalf of the proposed
7		cannabis business establishment;
8		(4) If applicable, data relating to sales and the
9		volume of product sold by the cannabis business
10		establishment;
11		(5) Any past or pending violation by the person of this
12		Act, the Compassionate Use of Medical Cannabis Pilot
13		Program Act, or the rules adopted under these Acts where
14		applicable; and
15		(6) Any penalty imposed upon the person for violating
16		this Act, the Compassionate Use of Medical Cannabis Pilot
17		Program Act, or the rules adopted under these Acts.
18		(c) (Blank).
19		(d) (Blank).
20		(e) Information received by a financial institution under
21		this Section is confidential. Except as otherwise required or
22		permitted by this Act, State law or rule, or federal law or
23		regulation, a financial institution may not make the
24		information available to any person other than:
25		(1) the customer to whom the information applies;
26		(2) a trustee, conservator, guardian, personal

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1		representative, or agent of the customer to whom the
2		information applies; a federal or State regulator when
3		requested in connection with an examination of the
4		financial institution or if otherwise necessary for
5		complying with federal or State law;
6		(3) a federal or State regulator when requested in
7		connection with an examination of the financial
8		institution or if otherwise necessary for complying with
9		federal or State law; and
10		(4) a third party performing services for the financial
11		institution, provided the third party is performing such
12		services under a written agreement that expressly or by
13		operation of law prohibits the third party's sharing and
14		use of such confidential information for any purpose other
15		than as provided in its agreement to provide services to
16		the financial institution.
17		Section 55-75. Contracts enforceable. It is the public
18		policy of this State that contracts related to the operation of
19		a lawful cannabis business establishment under this Act are
20		enforceable. It is the public policy of this State that no
21		contract entered into by a lawful cannabis business
22		establishment or its agents on behalf of a cannabis business
23		establishment, or by those who allow property to be used by a
24		cannabis business establishment, shall be unenforceable on the
25		basis that cultivating, obtaining, manufacturing, processing,

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1		distributing, dispensing, transporting, selling, possessing,
2		or using cannabis or hemp is prohibited by federal law.
3		Section 55-80. Annual reports.
4		(a) The Department of Financial and Professional
5		Regulation shall submit to the General Assembly and Governor a
6		report, by September 30 of each year, that does not disclose
7		any information identifying information about cultivation
8		centers, craft growers, infuser organizations, transporting
9		organizations, or dispensing organizations, but does contain,
10		at a minimum, all of the following information for the previous
11		fiscal year:
12		(1) The number of licenses issued to dispensing
13		organizations by county, or, in counties with greater than
14		3,000,000 residents, by zip code;
15		(2) The total number of dispensing organization owners
16		that are Social Equity Applicants or minority persons,
17		women, or persons with disabilities as those terms are
18		defined in the Business Enterprise for Minorities, Women,
19		and Persons with Disabilities Act;
20		(3) The total number of revenues received from
21		dispensing organizations, segregated from revenues
22		received from dispensing organizations under the
23		Compassionate Use of Medical Cannabis Pilot Program Act by
24		county, separated by source of revenue;
25		(4) The total amount of revenue received from

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1		dispensing organizations that share a premises or majority
2		ownership with a craft grower;
3		(5) The total amount of revenue received from
4		dispensing organizations that share a premises or majority
5		ownership with an infuser; and
6		(6) An analysis of revenue generated from taxation,
7		licensing, and other fees for the State, including
8		recommendations to change the tax rate applied.
9		(b) The Department of Agriculture shall submit to the
10		General Assembly and Governor a report, by September 30 of each
11		year, that does not disclose any information identifying
12		information about cultivation centers, craft growers, infuser
13		organizations, transporting organizations, or dispensing
14		organizations, but does contain, at a minimum, all of the
15		following information for the previous fiscal year:
16		(1) The number of licenses issued to cultivation
17		centers, craft growers, infusers, and transporters by
18		license type, and, in counties with more than 3,000,000
19		residents, by zip code;
20		(2) The total number of cultivation centers, craft
21		growers, infusers, and transporters by license type that
22		are Social Equity Applicants or minority persons, women, or
23		persons with disabilities as those terms are defined in the
24		Business Enterprise for Minorities, Women, and Persons
25		with Disabilities Act;
26		(3) The total amount of revenue received from

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1		cultivation centers, craft growers, infusers, and
2		transporters, separated by license types and source of
3		revenue;
4		(4) The total amount of revenue received from craft
5		growers and infusers that share a premises or majority
6		ownership with a dispensing organization;
7		(5) The total amount of revenue received from craft
8		growers that share a premises or majority ownership with an
9		infuser, but do not share a premises or ownership with a
10		dispensary;
11		(6) The total amount of revenue received from infusers
12		that share a premises or majority ownership with a craft
13		grower, but do not share a premises or ownership with a
14		dispensary;
15		(7) The total amount of revenue received from craft
16		growers that share a premises or majority ownership with a
17		dispensing organization, but do not share a premises or
18		ownership with an infuser;
19		(8) The total amount of revenue received from infusers
20		that share a premises or majority ownership with a
21		dispensing organization, but do not share a premises or
22		ownership with a craft grower;
23		(9) The total amount of revenue received from
24		transporters; and
25		(10) An analysis of revenue generated from taxation,
26		licensing, and other fees for the State, including

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1		recommendations to change the tax rate applied.
2		(c) The Department of State Police shall submit to the
3		General Assembly and Governor a report, by September 30 of each
4		year that contains, at a minimum, all of the following
5		information for the previous fiscal year:
6		(1) The effect of regulation and taxation of cannabis
7		on law enforcement resources;
8		(2) The impact of regulation and taxation of cannabis
9		on highway safety and rates of impaired driving, where
10		impairment was determined based on failure of a field
11		sobriety test;
12		(3) The available and emerging methods for detecting
13		the metabolites for delta-9-tetrahydrocannabinol in bodily
14		fluids, including, without limitation, blood and saliva;
15		(4) The effectiveness of current DUI laws and
16		recommendations for improvements to policy to better
17		ensure safe highways and fair laws.
18		(d) The Adult Use Cannabis Health Advisory Committee shall
19		submit to the General Assembly and Governor a report, by
20		September 30 of each year, that does not disclose any
21		identifying information about any individuals, but does
22		contain, at a minimum:
23		(1) Self-reported youth cannabis use, as published in
24		the most recent Illinois Youth Survey available;
25		(2) Self-reported adult cannabis use, as published in
26		the most recent Behavioral Risk Factor Surveillance Survey

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1		available;
2		(3) Hospital room admissions and hospital utilization
3		rates caused by cannabis consumption, including the
4		presence or detection of other drugs;
5		(4) Overdoses of cannabis and poison control data,
6		including the presence of other drugs that may have
7		contributed;
8		(5) Incidents of impaired driving caused by the
9		consumption of cannabis or cannabis products, including
10		the presence of other drugs or alcohol that may have
11		contributed to the impaired driving;
12		(6) Prevalence of infants born testing positive for
13		cannabis or delta-9-tetrahydrocannabinol, including
14		demographic and racial information on which infants are
15		tested;
16		(7) Public perceptions of use and risk of harm;
17		(8) Revenue collected from cannabis taxation and how
18		that revenue was used;
19		(9) Cannabis retail licenses granted and locations;
20		(10) Cannabis-related arrests; and
21		(11) The number of individuals completing required bud
22		tender training.
23		(e) Each agency or committee submitting reports under this
24		Section may consult with one another in the preparation of each
25		report.

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1		Section 55-85. Medical cannabis.
2		(a) Nothing in this Act shall be construed to limit any
3		privileges or rights of a medical cannabis patient including
4		minor patients, primary caregiver, medical cannabis
5		cultivation center, or medical cannabis dispensing
6		organization under the Compassionate Use of Medical Cannabis
7		Pilot Program Act, and where there is conflict between this Act
8		and the Compassionate Use of Medical Cannabis Pilot Program Act
9		as they relate to medical cannabis patients, the Compassionate
10		Use of Medical Cannabis Pilot Program Act shall prevail.
11		(b) Dispensary locations that obtain an Early Approval
12		Adult Use Dispensary Organization License or an Adult Use
13		Dispensary Organization License in accordance with this Act at
14		the same location as a medical cannabis dispensing organization
15		registered under the Compassionate Use of Medical Cannabis
16		Pilot Program Act shall maintain an inventory of medical
17		cannabis and medical cannabis products on a monthly basis that
18		is substantially similar in variety and quantity to the
19		products offered at the dispensary during the 6-month period
20		immediately before the effective date of this Act.
21		(c) Beginning June 30, 2020, the Department of Agriculture
22		shall make a quarterly determination whether inventory
23		requirements established for dispensaries in subsection (b)
24		should be adjusted due to changing patient need.
25		Section 55-90. Home rule preemption. Except as otherwise

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1		provided in this Act, the regulation and licensing of the
2		activities described in this Act are exclusive powers and
3		functions of the State. Except as otherwise provided in this
4		Act, a unit of local government, including a home rule unit,
5		may not regulate or license the activities described in this
6		Act. This Section is a denial and limitation of home rule
7		powers and functions under subsection (h) of Section 6 of
8		Article VII of the Illinois Constitution.
9		Section 55-95. Conflict of interest. A person is ineligible
10		to apply for, hold, or own financial or voting interest in any
11		cannabis business license under this Act if, within a 2-year
12		period from the effective date of this Act, the person or his
13		or her spouse or immediately family member was a member of the
14		General Assembly or a State employee at an agency that
15		regulates cannabis business establishment license holders who
16		participated personally and substantially in the award of
17		licenses under this Act. A person who violates this Section
18		shall be guilty under subsection (b) of Section 50-5 of the
19		State Officials and Employees Ethics Act.
20		ARTICLE 60.
21		CANNABIS CULTIVATION PRIVILEGE TAX
22		Section 60-1. Short title. This Article may be referred to
23		as the Cannabis Cultivation Privilege Tax Law.

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1		Section 60-5. Definitions. In this Article:
2		"Cannabis" has the meaning given to that term in Article 1
3		of this Act, except that it does not include cannabis that is
4		subject to tax under the Compassionate Use of Medical Cannabis
5		Pilot Program Act.
6		"Craft grower" has the meaning given to that term in
7		Article 1 of this Act.
8		"Cultivation center" has the meaning given to that term in
9		Article 1 of this Act.
10		"Cultivator" or "taxpayer" means a cultivation center or
11		craft grower who is subject to tax under this Article.
12		"Department" means the Department of Revenue.
13		"Director" means the Director of Revenue.
14		"Dispensing organization" or "dispensary" has the meaning
15		given to that term in Article 1 of this Act.
16		"Gross receipts" from the sales of cannabis by a cultivator
17		means the total selling price or the amount of such sales, as
18		defined in this Article. In the case of charges and time sales,
19		the amount thereof shall be included only when payments are
20		received by the cultivator.
21		"Person" means a natural individual, firm, partnership,
22		association, joint stock company, joint adventure, public or
23		private corporation, limited liability company, or a receiver,
24		executor, trustee, guardian, or other representative appointed
25		by order of any court.

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1		"Infuser" means "infuser organization" or "infuser" as
2		defined in Article 1 of this Act.
3		"Selling price" or "amount of sale" means the consideration
4		for a sale valued in money whether received in money or
5		otherwise, including cash, credits, property, and services,
6		and shall be determined without any deduction on account of the
7		cost of the property sold, the cost of materials used, labor or
8		service cost, or any other expense whatsoever, but does not
9		include separately stated charges identified on the invoice by
10		cultivators to reimburse themselves for their tax liability
11		under this Article.
12		Section 60-10. Tax imposed.
13		(a) Beginning September 1, 2019, a tax is imposed upon the
14		privilege of cultivating cannabis at the rate of 7% of the
15		gross receipts from the first sale of cannabis by a cultivator.
16		The sale of any product that contains any amount of cannabis or
17		any derivative thereof is subject to the tax under this Section
18		on the full selling price of the product. The Department may
19		determine the selling price of the cannabis when the seller and
20		purchaser are affiliated persons, when the sale and purchase of
21		cannabis is not an arm's length transaction, or when cannabis
22		is transferred by a craft grower to the craft grower's
23		dispensing organization or infuser or processing organization
24		and a value is not established for the cannabis. The value
25		determined by the Department shall be commensurate with the

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1		actual price received for products of like quality, character,
2		and use in the area. If there are no sales of cannabis of like
3		quality, character, and use in the same area, then the
4		Department shall establish a reasonable value based on sales of
5		products of like quality, character, and use in other areas of
6		the State, taking into consideration any other relevant
7		factors.
8		(b) The Cannabis Cultivation Privilege Tax imposed under
9		this Article is solely the responsibility of the cultivator who
10		makes the first sale and is not the responsibility of a
11		subsequent purchaser, a dispensing organization, or an
12		infuser. Persons subject to the tax imposed under this Article
13		may, however, reimburse themselves for their tax liability
14		hereunder by separately stating reimbursement for their tax
15		liability as an additional charge.
16		(c) The tax imposed under this Article shall be in addition
17		to all other occupation, privilege, or excise taxes imposed by
18		the State of Illinois or by any unit of local government.
19		Section 60-15. Registration of cultivators. Every
20		cultivator and craft grower subject to the tax under this
21		Article shall apply to the Department of Revenue for a
22		certificate of registration under this Article. All
23		applications for registration under this Article shall be made
24		by electronic means in the form and manner required by the
25		Department. For that purpose, the provisions of Section 2a of

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1		the Retailers' Occupation Tax Act are incorporated into this
2		Article to the extent not inconsistent with this Article. In
3		addition, no certificate of registration shall be issued under
4		this Article unless the applicant is licensed under this Act.
5		Section 60-20. Return and payment of cannabis cultivation
6		privilege tax. Each person who is required to pay the tax
7		imposed by this Article shall make a return to the Department
8		on or before the 20th day of each month for the preceding
9		calendar month stating the following:
10		(1) the taxpayer's name;
11		(2) the address of the taxpayer's principal place of
12		business and the address of the principal place of business
13		(if that is a different address) from which the taxpayer is
14		engaged in the business of cultivating cannabis subject to
15		tax under this Article;
16		(3) the total amount of receipts received by the
17		taxpayer during the preceding calendar month from sales of
18		cannabis subject to tax under this Article by the taxpayer
19		during the preceding calendar month;
20		(4) the total amount received by the taxpayer during
21		the preceding calendar month on charge and time sales of
22		cannabis subject to tax imposed under this Article by the
23		taxpayer before the month for which the return is filed;
24		(5) deductions allowed by law;
25		(6) gross receipts that were received by the taxpayer

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1		during the preceding calendar month and upon the basis of
2		which the tax is imposed;
3		(7) the amount of tax due;
4		(8) the signature of the taxpayer; and
5		(9) any other information as the Department may
6		reasonably require.
7		All returns required to be filed and payments required to
8		be made under this Article shall be by electronic means.
9		Taxpayers who demonstrate hardship in paying electronically
10		may petition the Department to waive the electronic payment
11		requirement. The Department may require a separate return for
12		the tax under this Article or combine the return for the tax
13		under this Article with the return for the tax under the
14		Compassionate Use of Medical Cannabis Pilot Program Act. If the
15		return for the tax under this Article is combined with the
16		return for tax under the Compassionate Use of Medical Cannabis
17		Pilot Program Act, then the vendor's discount allowed under
18		this Section and any cap on that discount shall apply to the
19		combined return. The taxpayer making the return provided for in
20		this Section shall also pay to the Department, in accordance
21		with this Section, the amount of tax imposed by this Article,
22		less a discount of 1.75%, but not to exceed $1,000 per return
23		period, which is allowed to reimburse the taxpayer for the
24		expenses incurred in keeping records, collecting tax,
25		preparing and filing returns, remitting the tax, and supplying
26		data to the Department upon request. No discount may be claimed

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1		by a taxpayer on returns not timely filed and for taxes not
2		timely remitted. No discount may be claimed by a taxpayer for
3		any return that is not filed electronically. No discount may be
4		claimed by a taxpayer for any payment that is not made
5		electronically, unless a waiver has been granted under this
6		Section. Any amount that is required to be shown or reported on
7		any return or other document under this Article shall, if the
8		amount is not a whole-dollar amount, be increased to the
9		nearest whole-dollar amount if the fractional part of a dollar
10		is $0.50 or more and decreased to the nearest whole-dollar
11		amount if the fractional part of a dollar is less than $0.50.
12		If a total amount of less than $1 is payable, refundable, or
13		creditable, the amount shall be disregarded if it is less than
14		$0.50 and shall be increased to $1 if it is $0.50 or more.
15		Notwithstanding any other provision of this Article concerning
16		the time within which a taxpayer may file a return, any such
17		taxpayer who ceases to engage in the kind of business that
18		makes the person responsible for filing returns under this
19		Article shall file a final return under this Article with the
20		Department within one month after discontinuing such business.
21		Each taxpayer under this Article shall make estimated
22		payments to the Department on or before the 7th, 15th, 22nd,
23		and last day of the month during which tax liability to the
24		Department is incurred. The payments shall be in an amount not
25		less than the lower of either 22.5% of the taxpayer's actual
26		tax liability for the month or 25% of the taxpayer's actual tax

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1		liability for the same calendar month of the preceding year.
2		The amount of the quarter-monthly payments shall be credited
3		against the final tax liability of the taxpayer's return for
4		that month. If any quarter-monthly payment is not paid at the
5		time or in the amount required by this Section, then the
6		taxpayer shall be liable for penalties and interest on the
7		difference between the minimum amount due as a payment and the
8		amount of the quarter-monthly payment actually and timely paid,
9		except insofar as the taxpayer has previously made payments for
10		that month to the Department in excess of the minimum payments
11		previously due as provided in this Section.
12		If any payment provided for in this Section exceeds the
13		taxpayer's liabilities under this Article, as shown on an
14		original monthly return, the Department shall, if requested by
15		the taxpayer, issue to the taxpayer a credit memorandum no
16		later than 30 days after the date of payment. The credit
17		evidenced by the credit memorandum may be assigned by the
18		taxpayer to a similar taxpayer under this Act, in accordance
19		with reasonable rules to be prescribed by the Department. If no
20		such request is made, the taxpayer may credit the excess
21		payment against tax liability subsequently to be remitted to
22		the Department under this Act, in accordance with reasonable
23		rules prescribed by the Department. If the Department
24		subsequently determines that all or any part of the credit
25		taken was not actually due to the taxpayer, the taxpayer's
26		discount shall be reduced, if necessary, to reflect the

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1		difference between the credit taken and that actually due, and
2		that taxpayer shall be liable for penalties and interest on the
3		difference.
4		If a taxpayer fails to sign a return within 30 days after
5		the proper notice and demand for signature by the Department is
6		received by the taxpayer, the return shall be considered valid
7		and any amount shown to be due on the return shall be deemed
8		assessed.
9		Section 60-25. Infuser information returns. If it is deemed
10		necessary for the administration of this Article, the
11		Department may adopt rules that require infusers to file
12		information returns regarding the sale of cannabis by infusers
13		to dispensaries. The Department may require infusers to file
14		all information returns by electronic means.
15		Section 60-30. Deposit of proceeds. All moneys received by
16		the Department under this Article shall be deposited into the
17		Cannabis Regulation Fund.
18		Section 60-35. Department administration and enforcement.
19		The Department shall have full power to administer and enforce
20		this Article, to collect all taxes, penalties, and interest due
21		hereunder, to dispose of taxes, penalties and interest so
22		collected in the manner hereinafter provided, and to determine
23		all rights to credit memoranda, arising on account of the

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1		erroneous payment of tax, penalty, or interest hereunder. In
2		the administration of, and compliance with, this Article, the
3		Department and persons who are subject to this Article shall
4		have the same rights, remedies, privileges, immunities,
5		powers, and duties, and be subject to the same conditions,
6		restrictions, limitations, penalties, and definitions of
7		terms, and employ the same modes of procedure, as are
8		prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4, 5, 5a, 5b, 5c,
9		5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a,
10		12, and 13 of the Retailers' Occupation Tax Act and all of the
11		provisions of the Uniform Penalty and Interest Act, which are
12		not inconsistent with this Article, as fully as if those
13		provisions were set forth herein. For purposes of this Section,
14		references in the Retailers' Occupation Tax Act to a "sale of
15		tangible personal property at retail" mean the "sale of
16		cannabis by a cultivator".
17		Section 60-40. Invoices. Every sales invoice for cannabis
18		issued by a cultivator to a cannabis business establishment
19		shall contain the cultivator's certificate of registration
20		number assigned under this Article, date, invoice number,
21		purchaser's name and address, selling price, amount of
22		cannabis, concentrate, or cannabis-infused product, and any
23		other reasonable information as the Department may provide by
24		rule is necessary for the administration of this Article.
25		Cultivators shall retain the invoices for inspection by the

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1		Department.
2		Section 60-45. Rules. The Department may adopt rules
3		related to the enforcement of this Article.
4		ARTICLE 65.
5		CANNABIS PURCHASER EXCISE TAX
6		Section 65-1. Short title. This Article may be referred to
7		as the Cannabis Purchaser Excise Tax Law.
8		Section 65-5. Definitions. In this Article:
9		"Adjusted delta-9-tetrahydrocannabinol level" means, for a
10		delta-9-tetrahydrocannabinol dominant product, the sum of the
11		percentage of delta-9-tetrahydrocannabinol plus .877
12		multiplied by the percentage of tetrahydrocannabinolic acid.
13		"Cannabis" has the meaning given to that term in Article 1
14		of this Act, except that it does not include cannabis that is
15		subject to tax under the Compassionate Use of Medical Cannabis
16		Pilot Program Act.
17		"Cannabis-infused product" means beverage food, oils,
18		ointments, tincture, topical formulation, or another product
19		containing cannabis that is not intended to be smoked.
20		"Cannabis retailer" means a dispensing organization that
21		sells cannabis for use and not for resale.
22		"Craft grower" has the meaning given to that term in

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1		Article 1 of this Act.
2		"Department" means the Department of Revenue.
3		"Director" means the Director of Revenue.
4		"Dispensing organization" or "dispensary" has the meaning
5		given to that term in Article 1 of this Act.
6		"Person" means a natural individual, firm, partnership,
7		association, joint stock company, joint adventure, public or
8		private corporation, limited liability company, or a receiver,
9		executor, trustee, guardian, or other representative appointed
10		by order of any court.
11		"Infuser organization" or "infuser" means a facility
12		operated by an organization or business that is licensed by the
13		Department of Agriculture to directly incorporate cannabis or
14		cannabis concentrate into a product formulation to produce a
15		cannabis-infused product.
16		"Purchase price" means the consideration paid for a
17		purchase of cannabis, valued in money, whether received in
18		money or otherwise, including cash, gift cards, credits, and
19		property and shall be determined without any deduction on
20		account of the cost of materials used, labor or service costs,
21		or any other expense whatsoever. However, "purchase price" does
22		not include consideration paid for:
23		(1) any charge for a payment that is not honored by a
24		financial institution;
25		(2) any finance or credit charge, penalty or charge for
26		delayed payment, or discount for prompt payment; and

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1		(3) any amounts added to a purchaser's bill because of
2		charges made under the tax imposed by this Article, the
3		Municipal Cannabis Retailers' Occupation Tax Law, the
4		County Cannabis Retailers' Occupation Tax Law, the
5		Retailers' Occupation Tax Act, the Use Tax Act, the Service
6		Occupation Tax Act, the Service Use Tax Act, or any locally
7		imposed occupation or use tax.
8		"Purchaser" means a person who acquires cannabis for a
9		valuable consideration.
10		"Taxpayer" means a cannabis retailer who is required to
11		collect the tax imposed under this Article.
12		Section 65-10. Tax imposed.
13		(a) Beginning January 1, 2020, a tax is imposed upon
14		purchasers for the privilege of using cannabis at the following
15		rates:
16		(1) Any cannabis, other than a cannabis-infused
17		product, with an adjusted delta-9-tetrahydrocannabinol
18		level at or below 35% shall be taxed at a rate of 10% of the
19		purchase price;
20		(2) Any cannabis, other than a cannabis-infused
21		product, with an adjusted delta-9-tetrahydrocannabinol
22		level above 35% shall be taxed at a rate of 25% of the
23		purchase price; and
24		(3) A cannabis-infused product shall be taxed at a rate
25		of 20% of the purchase price.

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1		(b) The purchase of any product that contains any amount of
2		cannabis or any derivative thereof is subject to the tax under
3		subsection (a) of this Section on the full purchase price of
4		the product.
5		(c) The tax imposed under this Section is not imposed on
6		cannabis that is subject to tax under the Compassionate Use of
7		Medical Cannabis Pilot Program Act. The tax imposed by this
8		Section is not imposed with respect to any transaction in
9		interstate commerce, to the extent the transaction may not,
10		under the Constitution and statutes of the United States, be
11		made the subject of taxation by this State.
12		(d) The tax imposed under this Article shall be in addition
13		to all other occupation, privilege, or excise taxes imposed by
14		the State of Illinois or by any municipal corporation or
15		political subdivision thereof.
16		(e) The tax imposed under this Article shall not be imposed
17		on any purchase by a purchaser if the cannabis retailer is
18		prohibited by federal or State Constitution, treaty,
19		convention, statute, or court decision from collecting the tax
20		from the purchaser.
21		Section 65-11. Bundling of taxable and nontaxable items;
22		prohibition; taxation. If a cannabis retailer sells cannabis,
23		concentrate, or cannabis-infused products in combination or
24		bundled with items that are not subject to tax under this Act
25		for one price in violation of the prohibition on this activity

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1		under Section 15-70, then the tax under this Act is imposed on
2		the purchase price of the entire bundled product.
3		Section 65-15. Collection of tax.
4		(a) The tax imposed by this Article shall be collected from
5		the purchaser by the cannabis retailer at the rate stated in
6		Section 65-10 with respect to cannabis sold by the cannabis
7		retailer to the purchaser, and shall be remitted to the
8		Department as provided in Section 65-30. All sales to a
9		purchaser who is not a cardholder under the Compassionate Use
10		of Medical Cannabis Pilot Program Act are presumed subject to
11		tax collection. Cannabis retailers shall collect the tax from
12		purchasers by adding the tax to the amount of the purchase
13		price received from the purchaser for selling cannabis to the
14		purchaser. The tax imposed by this Article shall, when
15		collected, be stated as a distinct item separate and apart from
16		the purchase price of the cannabis.
17		(b) If a cannabis retailer collects Cannabis Purchaser
18		Excise Tax measured by a purchase price that is not subject to
19		Cannabis Purchaser Excise Tax, or if a cannabis retailer, in
20		collecting Cannabis Purchaser Excise Tax measured by a purchase
21		price that is subject to tax under this Act, collects more from
22		the purchaser than the required amount of the Cannabis
23		Purchaser Excise Tax on the transaction, the purchaser shall
24		have a legal right to claim a refund of that amount from the
25		cannabis retailer. If, however, that amount is not refunded to

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1		the purchaser for any reason, the cannabis retailer is liable
2		to pay that amount to the Department.
3		(c) Any person purchasing cannabis subject to tax under
4		this Article as to which there has been no charge made to him
5		or her of the tax imposed by Section 65-10 shall make payment
6		of the tax imposed by Section 65-10 in the form and manner
7		provided by the Department not later than the 20th day of the
8		month following the month of purchase of the cannabis.
9		Section 65-20. Registration of cannabis retailers. Every
10		cannabis retailer required to collect the tax under this
11		Article shall apply to the Department for a certificate of
12		registration under this Article. All applications for
13		registration under this Article shall be made by electronic
14		means in the form and manner required by the Department. For
15		that purpose, the provisions of Section 2a of the Retailers'
16		Occupation Tax Act are incorporated into this Article to the
17		extent not inconsistent with this Article. In addition, no
18		certificate of registration shall be issued under this Article
19		unless the applicant is licensed under this Act.
20		Section 65-25. Tax collected as debt owed to State. Any
21		cannabis retailer required to collect the tax imposed by this
22		Article shall be liable to the Department for the tax, whether
23		or not the tax has been collected by the cannabis retailer, and
24		any such tax shall constitute a debt owed by the cannabis

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1		retailer to this State. To the extent that a cannabis retailer
2		required to collect the tax imposed by this Act has actually
3		collected that tax, the tax is held in trust for the benefit of
4		the Department.
5		Section 65-30. Return and payment of tax by cannabis
6		retailer. Each cannabis retailer that is required or authorized
7		to collect the tax imposed by this Article shall make a return
8		to the Department, by electronic means, on or before the 20th
9		day of each month for the preceding calendar month stating the
10		following:
11		(1) the cannabis retailer's name;
12		(2) the address of the cannabis retailer's principal
13		place of business and the address of the principal place of
14		business (if that is a different address) from which the
15		cannabis retailer engaged in the business of selling
16		cannabis subject to tax under this Article;
17		(3) the total purchase price received by the cannabis
18		retailer for cannabis subject to tax under this Article;
19		(4) the amount of tax due at each rate;
20		(5) the signature of the cannabis retailer; and
21		(6) any other information as the Department may
22		reasonably require.
23		All returns required to be filed and payments required to
24		be made under this Article shall be by electronic means.
25		Cannabis retailers who demonstrate hardship in paying

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1		electronically may petition the Department to waive the
2		electronic payment requirement.
3		Any amount that is required to be shown or reported on any
4		return or other document under this Article shall, if the
5		amount is not a whole-dollar amount, be increased to the
6		nearest whole-dollar amount if the fractional part of a dollar
7		is $0.50 or more and decreased to the nearest whole-dollar
8		amount if the fractional part of a dollar is less than $0.50.
9		If a total amount of less than $1 is payable, refundable, or
10		creditable, the amount shall be disregarded if it is less than
11		$0.50 and shall be increased to $1 if it is $0.50 or more.
12		The cannabis retailer making the return provided for in
13		this Section shall also pay to the Department, in accordance
14		with this Section, the amount of tax imposed by this Article,
15		less a discount of 1.75%, but not to exceed $1,000 per return
16		period, which is allowed to reimburse the cannabis retailer for
17		the expenses incurred in keeping records, collecting tax,
18		preparing and filing returns, remitting the tax, and supplying
19		data to the Department upon request. No discount may be claimed
20		by a cannabis retailer on returns not timely filed and for
21		taxes not timely remitted. No discount may be claimed by a
22		taxpayer for any return that is not filed electronically. No
23		discount may be claimed by a taxpayer for any payment that is
24		not made electronically, unless a waiver has been granted under
25		this Section.
26		Notwithstanding any other provision of this Article

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1		concerning the time within which a cannabis retailer may file a
2		return, any such cannabis retailer who ceases to engage in the
3		kind of business that makes the person responsible for filing
4		returns under this Article shall file a final return under this
5		Article with the Department within one month after
6		discontinuing the business.
7		Each cannabis retailer shall make estimated payments to the
8		Department on or before the 7th, 15th, 22nd, and last day of
9		the month during which tax liability to the Department is
10		incurred. The payments shall be in an amount not less than the
11		lower of either 22.5% of the cannabis retailer's actual tax
12		liability for the month or 25% of the cannabis retailer's
13		actual tax liability for the same calendar month of the
14		preceding year. The amount of the quarter-monthly payments
15		shall be credited against the final tax liability of the
16		cannabis retailer's return for that month. If any such
17		quarter-monthly payment is not paid at the time or in the
18		amount required by this Section, then the cannabis retailer
19		shall be liable for penalties and interest on the difference
20		between the minimum amount due as a payment and the amount of
21		the quarter-monthly payment actually and timely paid, except
22		insofar as the cannabis retailer has previously made payments
23		for that month to the Department in excess of the minimum
24		payments previously due as provided in this Section.
25		If any payment provided for in this Section exceeds the
26		taxpayer's liabilities under this Article, as shown on an

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1		original monthly return, the Department shall, if requested by
2		the taxpayer, issue to the taxpayer a credit memorandum no
3		later than 30 days after the date of payment. The credit
4		evidenced by the credit memorandum may be assigned by the
5		taxpayer to a similar taxpayer under this Article, in
6		accordance with reasonable rules to be prescribed by the
7		Department. If no such request is made, the taxpayer may credit
8		the excess payment against tax liability subsequently to be
9		remitted to the Department under this Article, in accordance
10		with reasonable rules prescribed by the Department. If the
11		Department subsequently determines that all or any part of the
12		credit taken was not actually due to the taxpayer, the
13		taxpayer's discount shall be reduced, if necessary, to reflect
14		the difference between the credit taken and that actually due,
15		and that taxpayer shall be liable for penalties and interest on
16		the difference. If a cannabis retailer fails to sign a return
17		within 30 days after the proper notice and demand for signature
18		by the Department is received by the cannabis retailer, the
19		return shall be considered valid and any amount shown to be due
20		on the return shall be deemed assessed.
21		Section 65-35. Deposit of proceeds. All moneys received by
22		the Department under this Article shall be paid into the
23		Cannabis Regulation Fund.
24		Section 65-36. Recordkeeping; books and records.

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1		(a) Every retailer of cannabis, whether or not the retailer
2		has obtained a certificate of registration under Section 65-20,
3		shall keep complete and accurate records of cannabis held,
4		purchased, sold, or otherwise disposed of, and shall preserve
5		and keep all invoices, bills of lading, sales records, and
6		copies of bills of sale, returns, and other pertinent papers
7		and documents relating to the purchase, sale, or disposition of
8		cannabis. Such records need not be maintained on the licensed
9		premises but must be maintained in the State of Illinois.
10		However, all original invoices or copies thereof covering
11		purchases of cannabis must be retained on the licensed premises
12		for a period of 90 days after such purchase, unless the
13		Department has granted a waiver in response to a written
14		request in cases where records are kept at a central business
15		location within the State of Illinois. The Department shall
16		adopt rules regarding the eligibility for a waiver, revocation
17		of a waiver, and requirements and standards for maintenance and
18		accessibility of records located at a central location under a
19		waiver provided under this Section.
20		(b) Books, records, papers, and documents that are required
21		by this Article to be kept shall, at all times during the usual
22		business hours of the day, be subject to inspection by the
23		Department or its duly authorized agents and employees. The
24		books, records, papers, and documents for any period with
25		respect to which the Department is authorized to issue a notice
26		of tax liability shall be preserved until the expiration of

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1		that period.
2		Section 65-38. Violations and penalties.
3		(a) When the amount due is under $300, any retailer of
4		cannabis who fails to file a return, willfully fails or refuses
5		to make any payment to the Department of the tax imposed by
6		this Article, or files a fraudulent return, or any officer or
7		agent of a corporation engaged in the business of selling
8		cannabis to purchasers located in this State who signs a
9		fraudulent return filed on behalf of the corporation, or any
10		accountant or other agent who knowingly enters false
11		information on the return of any taxpayer under this Article is
12		guilty of a Class 4 felony.
13		(b) When the amount due is $300 or more, any retailer of
14		cannabis who files, or causes to be filed, a fraudulent return,
15		or any officer or agent of a corporation engaged in the
16		business of selling cannabis to purchasers located in this
17		State who files or causes to be filed or signs or causes to be
18		signed a fraudulent return filed on behalf of the corporation,
19		or any accountant or other agent who knowingly enters false
20		information on the return of any taxpayer under this Article is
21		guilty of a Class 3 felony.
22		(c) Any person who violates any provision of Section 65-20,
23		fails to keep books and records as required under this Article,
24		or willfully violates a rule of the Department for the
25		administration and enforcement of this Article is guilty of a

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1		Class 4 felony. A person commits a separate offense on each day
2		that he or she engages in business in violation of Section
3		65-20 or a rule of the Department for the administration and
4		enforcement of this Article. If a person fails to produce the
5		books and records for inspection by the Department upon
6		request, a prima facie presumption shall arise that the person
7		has failed to keep books and records as required under this
8		Article. A person who is unable to rebut this presumption is in
9		violation of this Article and is subject to the penalties
10		provided in this Section.
11		(d) Any person who violates any provision of Sections
12		65-20, fails to keep books and records as required under this
13		Article, or willfully violates a rule of the Department for the
14		administration and enforcement of this Article, is guilty of a
15		business offense and may be fined up to $5,000. If a person
16		fails to produce books and records for inspection by the
17		Department upon request, a prima facie presumption shall arise
18		that the person has failed to keep books and records as
19		required under this Article. A person who is unable to rebut
20		this presumption is in violation of this Article and is subject
21		to the penalties provided in this Section. A person commits a
22		separate offense on each day that he or she engages in business
23		in violation of Section 65-20.
24		(e) Any taxpayer or agent of a taxpayer who with the intent
25		to defraud purports to make a payment due to the Department by
26		issuing or delivering a check or other order upon a real or

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1		fictitious depository for the payment of money, knowing that it
2		will not be paid by the depository, is guilty of a deceptive
3		practice in violation of Section 17-1 of the Criminal Code of
4		2012.
5		(f) Any person who fails to keep books and records or fails
6		to produce books and records for inspection, as required by
7		Section 65-36, is liable to pay to the Department, for deposit
8		in the Tax Compliance and Administration Fund, a penalty of
9		$1,000 for the first failure to keep books and records or
10		failure to produce books and records for inspection, as
11		required by Section 65-36, and $3,000 for each subsequent
12		failure to keep books and records or failure to produce books
13		and records for inspection, as required by Section 65-36.
14		(g) Any person who knowingly acts as a retailer of cannabis
15		in this State without first having obtained a certificate of
16		registration to do so in compliance with Section 65-20 of this
17		Article shall be guilty of a Class 4 felony.
18		(h) A person commits the offense of tax evasion under this
19		Article when he or she knowingly attempts in any manner to
20		evade or defeat the tax imposed on him or her or on any other
21		person, or the payment thereof, and he or she commits an
22		affirmative act in furtherance of the evasion. As used in this
23		Section, "affirmative act in furtherance of the evasion" means
24		an act designed in whole or in part to (i) conceal,
25		misrepresent, falsify, or manipulate any material fact or (ii)
26		tamper with or destroy documents or materials related to a

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1		person's tax liability under this Article. Two or more acts of
2		sales tax evasion may be charged as a single count in any
3		indictment, information, or complaint and the amount of tax
4		deficiency may be aggregated for purposes of determining the
5		amount of tax that is attempted to be or is evaded and the
6		period between the first and last acts may be alleged as the
7		date of the offense.
8		(1) When the amount of tax, the assessment or payment
9		of which is attempted to be or is evaded is less than $500,
10		a person is guilty of a Class 4 felony.
11		(2) When the amount of tax, the assessment or payment
12		of which is attempted to be or is evaded is $500 or more
13		but less than $10,000, a person is guilty of a Class 3
14		felony.
15		(3) When the amount of tax, the assessment or payment
16		of which is attempted to be or is evaded is $10,000 or more
17		but less than $100,000, a person is guilty of a Class 2
18		felony.
19		(4) When the amount of tax, the assessment or payment
20		of which is attempted to be or is evaded is $100,000 or
21		more, a person is guilty of a Class 1 felony.
22		Any person who knowingly sells, purchases, installs,
23		transfers, possesses, uses, or accesses any automated sales
24		suppression device, zapper, or phantom-ware in this State is
25		guilty of a Class 3 felony.
26		As used in this Section:

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1		"Automated sales suppression device" or "zapper" means a
2		software program that falsifies the electronic records of an
3		electronic cash register or other point-of-sale system,
4		including, but not limited to, transaction data and transaction
5		reports. The term includes the software program, any device
6		that carries the software program, or an Internet link to the
7		software program.
8		"Phantom-ware" means a hidden programming option embedded
9		in the operating system of an electronic cash register or
10		hardwired into an electronic cash register that can be used to
11		create a second set of records or that can eliminate or
12		manipulate transaction records in an electronic cash register.
13		"Electronic cash register" means a device that keeps a
14		register or supporting documents through the use of an
15		electronic device or computer system designed to record
16		transaction data for the purpose of computing, compiling, or
17		processing retail sales transaction data in any manner.
18		"Transaction data" includes: items purchased by a
19		purchaser; the price of each item; a taxability determination
20		for each item; a segregated tax amount for each taxed item; the
21		amount of cash or credit tendered; the net amount returned to
22		the customer in change; the date and time of the purchase; the
23		name, address, and identification number of the vendor; and the
24		receipt or invoice number of the transaction.
25		"Transaction report" means a report that documents,
26		without limitation, the sales, taxes, or fees collected, media

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1		totals, and discount voids at an electronic cash register and
2		that is printed on a cash register tape at the end of a day or
3		shift, or a report that documents every action at an electronic
4		cash register and is stored electronically.
5		A prosecution for any act in violation of this Section may
6		be commenced at any time within 5 years of the commission of
7		that act.
8		(i) The Department may adopt rules to administer the
9		penalties under this Section.
10		(j) Any person whose principal place of business is in this
11		State and who is charged with a violation under this Section
12		shall be tried in the county where his or her principal place
13		of business is located unless he or she asserts a right to be
14		tried in another venue.
15		(k) Except as otherwise provided in subsection (h), a
16		prosecution for a violation described in this Section may be
17		commenced within 3 years after the commission of the act
18		constituting the violation.
19		Section 65-40. Department administration and enforcement.
20		The Department shall have full power to administer and enforce
21		this Article, to collect all taxes and penalties due hereunder,
22		to dispose of taxes and penalties so collected in the manner
23		hereinafter provided, and to determine all rights to credit
24		memoranda, arising on account of the erroneous payment of tax
25		or penalty hereunder.

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1		In the administration of, and compliance with, this
2		Article, the Department and persons who are subject to this
3		Article shall have the same rights, remedies, privileges,
4		immunities, powers, and duties, and be subject to the same
5		conditions, restrictions, limitations, penalties, and
6		definitions of terms, and employ the same modes of procedure,
7		as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,
8		12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and
9		Sections 1, 2-12, 2b, 4 (except that the time limitation
10		provisions shall run from the date when the tax is due rather
11		than from the date when gross receipts are received), 5 (except
12		that the time limitation provisions on the issuance of notices
13		of tax liability shall run from the date when the tax is due
14		rather than from the date when gross receipts are received and
15		except that in the case of a failure to file a return required
16		by this Act, no notice of tax liability shall be issued on and
17		after each July 1 and January 1 covering tax due with that
18		return during any month or period more than 6 years before that
19		July 1 or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g,
20		5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers'
21		Occupation Tax Act and all of the provisions of the Uniform
22		Penalty and Interest Act, which are not inconsistent with this
23		Article, as fully as if those provisions were set forth herein.
24		References in the incorporated Sections of the Retailers'
25		Occupation Tax Act and the Use Tax Act to retailers, to
26		sellers, or to persons engaged in the business of selling

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1		tangible personal property mean cannabis retailers when used in
2		this Article. References in the incorporated Sections to sales
3		of tangible personal property mean sales of cannabis subject to
4		tax under this Article when used in this Article.
5		Section 65-41. Arrest; search and seizure without warrant.
6		Any duly authorized employee of the Department: (i) may arrest
7		without warrant any person committing in his or her presence a
8		violation of any of the provisions of this Article; (ii) may
9		without a search warrant inspect all cannabis located in any
10		place of business; (iii) may seize any cannabis in the
11		possession of the retailer in violation of this Act; and (iv)
12		may seize any cannabis on which the tax imposed by Article 60
13		of this Act has not been paid. The cannabis so seized is
14		subject to confiscation and forfeiture as provided in Sections
15		65-42 and 65-43.
16		Section 65-42. Seizure and forfeiture. After seizing any
17		cannabis as provided in Section 65-41, the Department must hold
18		a hearing and determine whether the retailer was properly
19		registered to sell the cannabis at the time of its seizure by
20		the Department. The Department shall give not less than 20
21		days' notice of the time and place of the hearing to the owner
22		of the cannabis, if the owner is known, and also to the person
23		in whose possession the cannabis was found, if that person is
24		known and if the person in possession is not the owner of the

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1		cannabis. If neither the owner nor the person in possession of
2		the cannabis is known, the Department must cause publication of
3		the time and place of the hearing to be made at least once in
4		each week for 3 weeks successively in a newspaper of general
5		circulation in the county where the hearing is to be held.
6		If, as the result of the hearing, the Department determines
7		that the retailer was not properly registered at the time the
8		cannabis was seized, the Department must enter an order
9		declaring the cannabis confiscated and forfeited to the State,
10		to be held by the Department for disposal by it as provided in
11		Section 65-43. The Department must give notice of the order to
12		the owner of the cannabis, if the owner is known, and also to
13		the person in whose possession the cannabis was found, if that
14		person is known and if the person in possession is not the
15		owner of the cannabis. If neither the owner nor the person in
16		possession of the cannabis is known, the Department must cause
17		publication of the order to be made at least once in each week
18		for 3 weeks successively in a newspaper of general circulation
19		in the county where the hearing was held.
20		Section 65-43. Search warrant; issuance and return;
21		process; confiscation of cannabis; forfeitures.
22		(a) If a peace officer of this State or any duly authorized
23		officer or employee of the Department has reason to believe
24		that any violation of this Article or a rule of the Department
25		for the administration and enforcement of this Article has

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1		occurred and that the person violating this Article or rule has
2		in that person's possession any cannabis in violation of this
3		Article or a rule of the Department for the administration and
4		enforcement of this Article, that peace officer or officer or
5		employee of the Department may file or cause to be filed his or
6		her complaint in writing, verified by affidavit, with any court
7		within whose jurisdiction the premises to be searched are
8		situated, stating the facts upon which the belief is founded,
9		the premises to be searched, and the property to be seized, and
10		procure a search warrant and execute that warrant. Upon the
11		execution of the search warrant, the peace officer, or officer
12		or employee of the Department, executing the search warrant
13		shall make due return of the warrant to the court issuing the
14		warrant, together with an inventory of the property taken under
15		the warrant. The court must then issue process against the
16		owner of the property if the owner is known; otherwise, process
17		must be issued against the person in whose possession the
18		property is found, if that person is known. In case of
19		inability to serve process upon the owner or the person in
20		possession of the property at the time of its seizure, notice
21		of the proceedings before the court must be given in the same
22		manner as required by the law governing cases of attachment.
23		Upon the return of the process duly served or upon the posting
24		or publishing of notice made, as appropriate, the court or
25		jury, if a jury is demanded, shall proceed to determine whether
26		the property so seized was held or possessed in violation of

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1		this Article or a rule of the Department for the administration
2		and enforcement of this Article. If a violation is found,
3		judgment shall be entered confiscating the property and
4		forfeiting it to the State and ordering its delivery to the
5		Department. In addition, the court may tax and assess the costs
6		of the proceedings.
7		(b) When any cannabis has been declared forfeited to the
8		State by the Department, as provided in Section 65-42 and this
9		Section, and when all proceedings for the judicial review of
10		the Department's decision have terminated, the Department
11		shall, to the extent that its decision is sustained on review,
12		destroy or maintain and use such cannabis in an undercover
13		capacity.
14		(c) The Department may, before any destruction of cannabis,
15		permit the true holder of trademark rights in the cannabis to
16		inspect such cannabis in order to assist the Department in any
17		investigation regarding such cannabis.
18		Section 65-45. Cannabis retailers; purchase and possession
19		of cannabis. Cannabis retailers shall purchase cannabis for
20		resale only from cannabis business establishments as
21		authorized by this Act.
22		Section 65-50. Rulemaking. The Department may adopt rules
23		in accordance with the Illinois Administrative Procedure Act
24		and prescribe forms relating to the administration and

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1		enforcement of this Article as it deems appropriate.
2		ARTICLE 900.
3		AMENDATORY PROVISIONS
4		Section 900-5. The Illinois Administrative Procedure Act
5		is amended by changing Section 5-45 as follows:
6		(5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
7		Sec. 5-45. Emergency rulemaking.
8		(a) "Emergency" means the existence of any situation that
9		any agency finds reasonably constitutes a threat to the public
10		interest, safety, or welfare.
11		(b) If any agency finds that an emergency exists that
12		requires adoption of a rule upon fewer days than is required by
13		Section 5-40 and states in writing its reasons for that
14		finding, the agency may adopt an emergency rule without prior
15		notice or hearing upon filing a notice of emergency rulemaking
16		with the Secretary of State under Section 5-70. The notice
17		shall include the text of the emergency rule and shall be
18		published in the Illinois Register. Consent orders or other
19		court orders adopting settlements negotiated by an agency may
20		be adopted under this Section. Subject to applicable
21		constitutional or statutory provisions, an emergency rule
22		becomes effective immediately upon filing under Section 5-65 or
23		at a stated date less than 10 days thereafter. The agency's

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1		finding and a statement of the specific reasons for the finding
2		shall be filed with the rule. The agency shall take reasonable
3		and appropriate measures to make emergency rules known to the
4		persons who may be affected by them.
5		(c) An emergency rule may be effective for a period of not
6		longer than 150 days, but the agency's authority to adopt an
7		identical rule under Section 5-40 is not precluded. No
8		emergency rule may be adopted more than once in any 24-month
9		period, except that this limitation on the number of emergency
10		rules that may be adopted in a 24-month period does not apply
11		to (i) emergency rules that make additions to and deletions
12		from the Drug Manual under Section 5-5.16 of the Illinois
13		Public Aid Code or the generic drug formulary under Section
14		3.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
15		emergency rules adopted by the Pollution Control Board before
16		July 1, 1997 to implement portions of the Livestock Management
17		Facilities Act, (iii) emergency rules adopted by the Illinois
18		Department of Public Health under subsections (a) through (i)
19		of Section 2 of the Department of Public Health Act when
20		necessary to protect the public's health, (iv) emergency rules
21		adopted pursuant to subsection (n) of this Section, (v)
22		emergency rules adopted pursuant to subsection (o) of this
23		Section, or (vi) emergency rules adopted pursuant to subsection
24		(c-5) of this Section. Two or more emergency rules having
25		substantially the same purpose and effect shall be deemed to be
26		a single rule for purposes of this Section.

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1		(c-5) To facilitate the maintenance of the program of group
2		health benefits provided to annuitants, survivors, and retired
3		employees under the State Employees Group Insurance Act of
4		1971, rules to alter the contributions to be paid by the State,
5		annuitants, survivors, retired employees, or any combination
6		of those entities, for that program of group health benefits,
7		shall be adopted as emergency rules. The adoption of those
8		rules shall be considered an emergency and necessary for the
9		public interest, safety, and welfare.
10		(d) In order to provide for the expeditious and timely
11		implementation of the State's fiscal year 1999 budget,
12		emergency rules to implement any provision of Public Act 90-587
13		or 90-588 or any other budget initiative for fiscal year 1999
14		may be adopted in accordance with this Section by the agency
15		charged with administering that provision or initiative,
16		except that the 24-month limitation on the adoption of
17		emergency rules and the provisions of Sections 5-115 and 5-125
18		do not apply to rules adopted under this subsection (d). The
19		adoption of emergency rules authorized by this subsection (d)
20		shall be deemed to be necessary for the public interest,
21		safety, and welfare.
22		(e) In order to provide for the expeditious and timely
23		implementation of the State's fiscal year 2000 budget,
24		emergency rules to implement any provision of Public Act 91-24
25		or any other budget initiative for fiscal year 2000 may be
26		adopted in accordance with this Section by the agency charged

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1		with administering that provision or initiative, except that
2		the 24-month limitation on the adoption of emergency rules and
3		the provisions of Sections 5-115 and 5-125 do not apply to
4		rules adopted under this subsection (e). The adoption of
5		emergency rules authorized by this subsection (e) shall be
6		deemed to be necessary for the public interest, safety, and
7		welfare.
8		(f) In order to provide for the expeditious and timely
9		implementation of the State's fiscal year 2001 budget,
10		emergency rules to implement any provision of Public Act 91-712
11		or any other budget initiative for fiscal year 2001 may be
12		adopted in accordance with this Section by the agency charged
13		with administering that provision or initiative, except that
14		the 24-month limitation on the adoption of emergency rules and
15		the provisions of Sections 5-115 and 5-125 do not apply to
16		rules adopted under this subsection (f). The adoption of
17		emergency rules authorized by this subsection (f) shall be
18		deemed to be necessary for the public interest, safety, and
19		welfare.
20		(g) In order to provide for the expeditious and timely
21		implementation of the State's fiscal year 2002 budget,
22		emergency rules to implement any provision of Public Act 92-10
23		or any other budget initiative for fiscal year 2002 may be
24		adopted in accordance with this Section by the agency charged
25		with administering that provision or initiative, except that
26		the 24-month limitation on the adoption of emergency rules and

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1		the provisions of Sections 5-115 and 5-125 do not apply to
2		rules adopted under this subsection (g). The adoption of
3		emergency rules authorized by this subsection (g) shall be
4		deemed to be necessary for the public interest, safety, and
5		welfare.
6		(h) In order to provide for the expeditious and timely
7		implementation of the State's fiscal year 2003 budget,
8		emergency rules to implement any provision of Public Act 92-597
9		or any other budget initiative for fiscal year 2003 may be
10		adopted in accordance with this Section by the agency charged
11		with administering that provision or initiative, except that
12		the 24-month limitation on the adoption of emergency rules and
13		the provisions of Sections 5-115 and 5-125 do not apply to
14		rules adopted under this subsection (h). The adoption of
15		emergency rules authorized by this subsection (h) shall be
16		deemed to be necessary for the public interest, safety, and
17		welfare.
18		(i) In order to provide for the expeditious and timely
19		implementation of the State's fiscal year 2004 budget,
20		emergency rules to implement any provision of Public Act 93-20
21		or any other budget initiative for fiscal year 2004 may be
22		adopted in accordance with this Section by the agency charged
23		with administering that provision or initiative, except that
24		the 24-month limitation on the adoption of emergency rules and
25		the provisions of Sections 5-115 and 5-125 do not apply to
26		rules adopted under this subsection (i). The adoption of

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1		emergency rules authorized by this subsection (i) shall be
2		deemed to be necessary for the public interest, safety, and
3		welfare.
4		(j) In order to provide for the expeditious and timely
5		implementation of the provisions of the State's fiscal year
6		2005 budget as provided under the Fiscal Year 2005 Budget
7		Implementation (Human Services) Act, emergency rules to
8		implement any provision of the Fiscal Year 2005 Budget
9		Implementation (Human Services) Act may be adopted in
10		accordance with this Section by the agency charged with
11		administering that provision, except that the 24-month
12		limitation on the adoption of emergency rules and the
13		provisions of Sections 5-115 and 5-125 do not apply to rules
14		adopted under this subsection (j). The Department of Public Aid
15		may also adopt rules under this subsection (j) necessary to
16		administer the Illinois Public Aid Code and the Children's
17		Health Insurance Program Act. The adoption of emergency rules
18		authorized by this subsection (j) shall be deemed to be
19		necessary for the public interest, safety, and welfare.
20		(k) In order to provide for the expeditious and timely
21		implementation of the provisions of the State's fiscal year
22		2006 budget, emergency rules to implement any provision of
23		Public Act 94-48 or any other budget initiative for fiscal year
24		2006 may be adopted in accordance with this Section by the
25		agency charged with administering that provision or
26		initiative, except that the 24-month limitation on the adoption

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1		of emergency rules and the provisions of Sections 5-115 and
2		5-125 do not apply to rules adopted under this subsection (k).
3		The Department of Healthcare and Family Services may also adopt
4		rules under this subsection (k) necessary to administer the
5		Illinois Public Aid Code, the Senior Citizens and Persons with
6		Disabilities Property Tax Relief Act, the Senior Citizens and
7		Disabled Persons Prescription Drug Discount Program Act (now
8		the Illinois Prescription Drug Discount Program Act), and the
9		Children's Health Insurance Program Act. The adoption of
10		emergency rules authorized by this subsection (k) shall be
11		deemed to be necessary for the public interest, safety, and
12		welfare.
13		(l) In order to provide for the expeditious and timely
14		implementation of the provisions of the State's fiscal year
15		2007 budget, the Department of Healthcare and Family Services
16		may adopt emergency rules during fiscal year 2007, including
17		rules effective July 1, 2007, in accordance with this
18		subsection to the extent necessary to administer the
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 (l) shall be deemed to be necessary for the
25		public interest, safety, and welfare.
26		(m) In order to provide for the expeditious and timely

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1		implementation of the provisions of the State's fiscal year
2		2008 budget, the Department of Healthcare and Family Services
3		may adopt emergency rules during fiscal year 2008, including
4		rules effective July 1, 2008, in accordance with this
5		subsection to the extent necessary to administer the
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 (m) shall be deemed to be necessary for the
12		public interest, safety, and welfare.
13		(n) In order to provide for the expeditious and timely
14		implementation of the provisions of the State's fiscal year
15		2010 budget, emergency rules to implement any provision of
16		Public Act 96-45 or any other budget initiative authorized by
17		the 96th General Assembly for fiscal year 2010 may be adopted
18		in accordance with this Section by the agency charged with
19		administering that provision or initiative. The adoption of
20		emergency rules authorized by this subsection (n) shall be
21		deemed to be necessary for the public interest, safety, and
22		welfare. The rulemaking authority granted in this subsection
23		(n) shall apply only to rules promulgated during Fiscal Year
24		2010.
25		(o) In order to provide for the expeditious and timely
26		implementation of the provisions of the State's fiscal year

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1		2011 budget, emergency rules to implement any provision of
2		Public Act 96-958 or any other budget initiative authorized by
3		the 96th General Assembly for fiscal year 2011 may be adopted
4		in accordance with this Section by the agency charged with
5		administering that provision or initiative. The adoption of
6		emergency rules authorized by this subsection (o) is deemed to
7		be necessary for the public interest, safety, and welfare. The
8		rulemaking authority granted in this subsection (o) applies
9		only to rules promulgated on or after July 1, 2010 (the
10		effective date of Public Act 96-958) through June 30, 2011.
11		(p) In order to provide for the expeditious and timely
12		implementation of the provisions of Public Act 97-689,
13		emergency rules to implement any provision of Public Act 97-689
14		may be adopted in accordance with this subsection (p) by the
15		agency charged with administering that provision or
16		initiative. The 150-day limitation of the effective period of
17		emergency rules does not apply to rules adopted under this
18		subsection (p), and the effective period may continue through
19		June 30, 2013. The 24-month limitation on the adoption of
20		emergency rules does not apply to rules adopted under this
21		subsection (p). The adoption of emergency rules authorized by
22		this subsection (p) is deemed to be necessary for the public
23		interest, safety, and welfare.
24		(q) In order to provide for the expeditious and timely
25		implementation of the provisions of Articles 7, 8, 9, 11, and
26		12 of Public Act 98-104, emergency rules to implement any

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1		provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
2		may be adopted in accordance with this subsection (q) by the
3		agency charged with administering that provision or
4		initiative. The 24-month limitation on the adoption of
5		emergency rules does not apply to rules adopted under this
6		subsection (q). The adoption of emergency rules authorized by
7		this subsection (q) is deemed to be necessary for the public
8		interest, safety, and welfare.
9		(r) In order to provide for the expeditious and timely
10		implementation of the provisions of Public Act 98-651,
11		emergency rules to implement Public Act 98-651 may be adopted
12		in accordance with this subsection (r) by the Department of
13		Healthcare and Family Services. The 24-month limitation on the
14		adoption of emergency rules does not apply to rules adopted
15		under this subsection (r). The adoption of emergency rules
16		authorized by this subsection (r) is deemed to be necessary for
17		the public interest, safety, and welfare.
18		(s) In order to provide for the expeditious and timely
19		implementation of the provisions of Sections 5-5b.1 and 5A-2 of
20		the Illinois Public Aid Code, emergency rules to implement any
21		provision of Section 5-5b.1 or Section 5A-2 of the Illinois
22		Public Aid Code may be adopted in accordance with this
23		subsection (s) by the Department of Healthcare and Family
24		Services. The rulemaking authority granted in this subsection
25		(s) shall apply only to those rules adopted prior to July 1,
26		2015. Notwithstanding any other provision of this Section, any

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1		emergency rule adopted under this subsection (s) shall only
2		apply to payments made for State fiscal year 2015. The adoption
3		of emergency rules authorized by this subsection (s) is deemed
4		to be necessary for the public interest, safety, and welfare.
5		(t) In order to provide for the expeditious and timely
6		implementation of the provisions of Article II of Public Act
7		99-6, emergency rules to implement the changes made by Article
8		II of Public Act 99-6 to the Emergency Telephone System Act may
9		be adopted in accordance with this subsection (t) by the
10		Department of State Police. The rulemaking authority granted in
11		this subsection (t) shall apply only to those rules adopted
12		prior to July 1, 2016. The 24-month limitation on the adoption
13		of emergency rules does not apply to rules adopted under this
14		subsection (t). The adoption of emergency rules authorized by
15		this subsection (t) is deemed to be necessary for the public
16		interest, safety, and welfare.
17		(u) In order to provide for the expeditious and timely
18		implementation of the provisions of the Burn Victims Relief
19		Act, emergency rules to implement any provision of the Act may
20		be adopted in accordance with this subsection (u) by the
21		Department of Insurance. The rulemaking authority granted in
22		this subsection (u) shall apply only to those rules adopted
23		prior to December 31, 2015. The adoption of emergency rules
24		authorized by this subsection (u) is deemed to be necessary for
25		the public interest, safety, and welfare.
26		(v) In order to provide for the expeditious and timely

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1		implementation of the provisions of Public Act 99-516,
2		emergency rules to implement Public Act 99-516 may be adopted
3		in accordance with this subsection (v) by the Department of
4		Healthcare and Family Services. The 24-month limitation on the
5		adoption of emergency rules does not apply to rules adopted
6		under this subsection (v). The adoption of emergency rules
7		authorized by this subsection (v) is deemed to be necessary for
8		the public interest, safety, and welfare.
9		(w) In order to provide for the expeditious and timely
10		implementation of the provisions of Public Act 99-796,
11		emergency rules to implement the changes made by Public Act
12		99-796 may be adopted in accordance with this subsection (w) by
13		the Adjutant General. The adoption of emergency rules
14		authorized by this subsection (w) is deemed to be necessary for
15		the public interest, safety, and welfare.
16		(x) In order to provide for the expeditious and timely
17		implementation of the provisions of Public Act 99-906,
18		emergency rules to implement subsection (i) of Section 16-115D,
19		subsection (g) of Section 16-128A, and subsection (a) of
20		Section 16-128B of the Public Utilities Act may be adopted in
21		accordance with this subsection (x) by the Illinois Commerce
22		Commission. The rulemaking authority granted in this
23		subsection (x) shall apply only to those rules adopted within
24		180 days after June 1, 2017 (the effective date of Public Act
25		99-906). The adoption of emergency rules authorized by this
26		subsection (x) is deemed to be necessary for the public

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1		interest, safety, and welfare.
2		(y) In order to provide for the expeditious and timely
3		implementation of the provisions of Public Act 100-23,
4		emergency rules to implement the changes made by Public Act
5		100-23 to Section 4.02 of the Illinois Act on the Aging,
6		Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
7		Section 55-30 of the Alcoholism and Other Drug Abuse and
8		Dependency Act, and Sections 74 and 75 of the Mental Health and
9		Developmental Disabilities Administrative Act may be adopted
10		in accordance with this subsection (y) by the respective
11		Department. The adoption of emergency rules authorized by this
12		subsection (y) is deemed to be necessary for the public
13		interest, safety, and welfare.
14		(z) In order to provide for the expeditious and timely
15		implementation of the provisions of Public Act 100-554,
16		emergency rules to implement the changes made by Public Act
17		100-554 to Section 4.7 of the Lobbyist Registration Act may be
18		adopted in accordance with this subsection (z) by the Secretary
19		of State. The adoption of emergency rules authorized by this
20		subsection (z) is deemed to be necessary for the public
21		interest, safety, and welfare.
22		(aa) In order to provide for the expeditious and timely
23		initial implementation of the changes made to Articles 5, 5A,
24		12, and 14 of the Illinois Public Aid Code under the provisions
25		of Public Act 100-581, the Department of Healthcare and Family
26		Services may adopt emergency rules in accordance with this

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1		subsection (aa). The 24-month limitation on the adoption of
2		emergency rules does not apply to rules to initially implement
3		the changes made to Articles 5, 5A, 12, and 14 of the Illinois
4		Public Aid Code adopted under this subsection (aa). The
5		adoption of emergency rules authorized by this subsection (aa)
6		is deemed to be necessary for the public interest, safety, and
7		welfare.
8		(bb) In order to provide for the expeditious and timely
9		implementation of the provisions of Public Act 100-587,
10		emergency rules to implement the changes made by Public Act
11		100-587 to Section 4.02 of the Illinois Act on the Aging,
12		Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
13		subsection (b) of Section 55-30 of the Alcoholism and Other
14		Drug Abuse and Dependency Act, Section 5-104 of the Specialized
15		Mental Health Rehabilitation Act of 2013, and Section 75 and
16		subsection (b) of Section 74 of the Mental Health and
17		Developmental Disabilities Administrative Act may be adopted
18		in accordance with this subsection (bb) by the respective
19		Department. The adoption of emergency rules authorized by this
20		subsection (bb) is deemed to be necessary for the public
21		interest, safety, and welfare.
22		(cc) In order to provide for the expeditious and timely
23		implementation of the provisions of Public Act 100-587,
24		emergency rules may be adopted in accordance with this
25		subsection (cc) to implement the changes made by Public Act
26		100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois

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1		Pension Code by the Board created under Article 14 of the Code;
2		Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
3		the Board created under Article 15 of the Code; and Sections
4		16-190.5 and 16-190.6 of the Illinois Pension Code by the Board
5		created under Article 16 of the Code. The adoption of emergency
6		rules authorized by this subsection (cc) is deemed to be
7		necessary for the public interest, safety, and welfare.
8		(dd) In order to provide for the expeditious and timely
9		implementation of the provisions of Public Act 100-864,
10		emergency rules to implement the changes made by Public Act
11		100-864 to Section 3.35 of the Newborn Metabolic Screening Act
12		may be adopted in accordance with this subsection (dd) by the
13		Secretary of State. The adoption of emergency rules authorized
14		by this subsection (dd) is deemed to be necessary for the
15		public interest, safety, and welfare.
16		(ee) In order to provide for the expeditious and timely
17		implementation of the provisions of this amendatory Act of the
18		100th General Assembly, emergency rules implementing the
19		Illinois Underground Natural Gas Storage Safety Act may be
20		adopted in accordance with this subsection by the Department of
21		Natural Resources. The adoption of emergency rules authorized
22		by this subsection is deemed to be necessary for the public
23		interest, safety, and welfare.
24		(ff) In order to provide for the expeditious and timely
25		implementation of the provisions of this amendatory Act of the
26		101st General Assembly, emergency rules may be adopted by the

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1		Department of Labor in accordance with this subsection (ff) to
2		implement the changes made by this amendatory Act of the 101st
3		General Assembly to the Minimum Wage Law. The adoption of
4		emergency rules authorized by this subsection (ff) is deemed to
5		be necessary for the public interest, safety, and welfare.
6		(gg) In order to provide for the expeditious and timely
7		implementation of the Cannabis Regulation and Tax Act and this
8		amendatory Act of the 101st General Assembly, the Department of
9		Revenue, the Department of Public Health, the Department of
10		Agriculture, the Department of State Police, and the Department
11		of Financial and Professional Regulation may adopt emergency
12		rules in accordance with this subsection (gg). The rulemaking
13		authority granted in this subsection (gg) shall apply only to
14		rules adopted before December 31, 2021. Notwithstanding the
15		provisions of subsection (c), emergency rules adopted under
16		this subsection (gg) shall be effective for 180 days. The
17		adoption of emergency rules authorized by this subsection (gg)
18		is deemed to be necessary for the public interest, safety, and
19		welfare.
20		(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
21		100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.
22		6-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
23		100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 101-1, eff.
24		2-19-19.)
25		Section 900-8. The Freedom of Information Act is amended by

HB1438 Enrolled - 356 - LRB101 04919 JRG 49928 b
1		changing Section 7.5 as follows:
2		(5 ILCS 140/7.5)
3		Sec. 7.5. Statutory exemptions. To the extent provided for
4		by the statutes referenced below, the following shall be exempt
5		from inspection and copying:
6		(a) All information determined to be confidential
7		under Section 4002 of the Technology Advancement and
8		Development Act.
9		(b) Library circulation and order records identifying
10		library users with specific materials under the Library
11		Records Confidentiality Act.
12		(c) Applications, related documents, and medical
13		records received by the Experimental Organ Transplantation
14		Procedures Board and any and all documents or other records
15		prepared by the Experimental Organ Transplantation
16		Procedures Board or its staff relating to applications it
17		has received.
18		(d) Information and records held by the Department of
19		Public Health and its authorized representatives relating
20		to known or suspected cases of sexually transmissible
21		disease or any information the disclosure of which is
22		restricted under the Illinois Sexually Transmissible
23		Disease Control Act.
24		(e) Information the disclosure of which is exempted
25		under Section 30 of the Radon Industry Licensing Act.

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1		(f) Firm performance evaluations under Section 55 of
2		the Architectural, Engineering, and Land Surveying
3		Qualifications Based Selection Act.
4		(g) Information the disclosure of which is restricted
5		and exempted under Section 50 of the Illinois Prepaid
6		Tuition Act.
7		(h) Information the disclosure of which is exempted
8		under the State Officials and Employees Ethics Act, and
9		records of any lawfully created State or local inspector
10		general's office that would be exempt if created or
11		obtained by an Executive Inspector General's office under
12		that Act.
13		(i) Information contained in a local emergency energy
14		plan submitted to a municipality in accordance with a local
15		emergency energy plan ordinance that is adopted under
16		Section 11-21.5-5 of the Illinois Municipal Code.
17		(j) Information and data concerning the distribution
18		of surcharge moneys collected and remitted by carriers
19		under the Emergency Telephone System Act.
20		(k) Law enforcement officer identification information
21		or driver identification information compiled by a law
22		enforcement agency or the Department of Transportation
23		under Section 11-212 of the Illinois Vehicle Code.
24		(l) Records and information provided to a residential
25		health care facility resident sexual assault and death
26		review team or the Executive Council under the Abuse

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1		Prevention Review Team Act.
2		(m) Information provided to the predatory lending
3		database created pursuant to Article 3 of the Residential
4		Real Property Disclosure Act, except to the extent
5		authorized under that Article.
6		(n) Defense budgets and petitions for certification of
7		compensation and expenses for court appointed trial
8		counsel as provided under Sections 10 and 15 of the Capital
9		Crimes Litigation Act. This subsection (n) shall apply
10		until the conclusion of the trial of the case, even if the
11		prosecution chooses not to pursue the death penalty prior
12		to trial or sentencing.
13		(o) Information that is prohibited from being
14		disclosed under Section 4 of the Illinois Health and
15		Hazardous Substances Registry Act.
16		(p) Security portions of system safety program plans,
17		investigation reports, surveys, schedules, lists, data, or
18		information compiled, collected, or prepared by or for the
19		Regional Transportation Authority under Section 2.11 of
20		the Regional Transportation Authority Act or the St. Clair
21		County Transit District under the Bi-State Transit Safety
22		Act.
23		(q) Information prohibited from being disclosed by the
24		Personnel Record Records Review Act.
25		(r) Information prohibited from being disclosed by the
26		Illinois School Student Records Act.

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1		(s) Information the disclosure of which is restricted
2		under Section 5-108 of the Public Utilities Act.
3		(t) All identified or deidentified health information
4		in the form of health data or medical records contained in,
5		stored in, submitted to, transferred by, or released from
6		the Illinois Health Information Exchange, and identified
7		or deidentified health information in the form of health
8		data and medical records of the Illinois Health Information
9		Exchange in the possession of the Illinois Health
10		Information Exchange Authority due to its administration
11		of the Illinois Health Information Exchange. The terms
12		"identified" and "deidentified" shall be given the same
13		meaning as in the Health Insurance Portability and
14		Accountability Act of 1996, Public Law 104-191, or any
15		subsequent amendments thereto, and any regulations
16		promulgated thereunder.
17		(u) Records and information provided to an independent
18		team of experts under the Developmental Disability and
19		Mental Health Safety Act (also known as Brian's Law).
20		(v) Names and information of people who have applied
21		for or received Firearm Owner's Identification Cards under
22		the Firearm Owners Identification Card Act or applied for
23		or received a concealed carry license under the Firearm
24		Concealed Carry Act, unless otherwise authorized by the
25		Firearm Concealed Carry Act; and databases under the
26		Firearm Concealed Carry Act, records of the Concealed Carry

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1		Licensing Review Board under the Firearm Concealed Carry
2		Act, and law enforcement agency objections under the
3		Firearm Concealed Carry Act.
4		(w) Personally identifiable information which is
5		exempted from disclosure under subsection (g) of Section
6		19.1 of the Toll Highway Act.
7		(x) Information which is exempted from disclosure
8		under Section 5-1014.3 of the Counties Code or Section
9		8-11-21 of the Illinois Municipal Code.
10		(y) Confidential information under the Adult
11		Protective Services Act and its predecessor enabling
12		statute, the Elder Abuse and Neglect Act, including
13		information about the identity and administrative finding
14		against any caregiver of a verified and substantiated
15		decision of abuse, neglect, or financial exploitation of an
16		eligible adult maintained in the Registry established
17		under Section 7.5 of the Adult Protective Services Act.
18		(z) Records and information provided to a fatality
19		review team or the Illinois Fatality Review Team Advisory
20		Council under Section 15 of the Adult Protective Services
21		Act.
22		(aa) Information which is exempted from disclosure
23		under Section 2.37 of the Wildlife Code.
24		(bb) Information which is or was prohibited from
25		disclosure by the Juvenile Court Act of 1987.
26		(cc) Recordings made under the Law Enforcement

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1		Officer-Worn Body Camera Act, except to the extent
2		authorized under that Act.
3		(dd) Information that is prohibited from being
4		disclosed under Section 45 of the Condominium and Common
5		Interest Community Ombudsperson Act.
6		(ee) Information that is exempted from disclosure
7		under Section 30.1 of the Pharmacy Practice Act.
8		(ff) Information that is exempted from disclosure
9		under the Revised Uniform Unclaimed Property Act.
10		(gg) Information that is prohibited from being
11		disclosed under Section 7-603.5 of the Illinois Vehicle
12		Code.
13		(hh) Records that are exempt from disclosure under
14		Section 1A-16.7 of the Election Code.
15		(ii) Information which is exempted from disclosure
16		under Section 2505-800 of the Department of Revenue Law of
17		the Civil Administrative Code of Illinois.
18		(jj) Information and reports that are required to be
19		submitted to the Department of Labor by registering day and
20		temporary labor service agencies but are exempt from
21		disclosure under subsection (a-1) of Section 45 of the Day
22		and Temporary Labor Services Act.
23		(kk) Information prohibited from disclosure under the
24		Seizure and Forfeiture Reporting Act.
25		(ll) Information the disclosure of which is restricted
26		and exempted under Section 5-30.8 of the Illinois Public

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1		Aid Code.
2		(mm) (ll) Records that are exempt from disclosure under
3		Section 4.2 of the Crime Victims Compensation Act.
4		(nn) (ll) Information that is exempt from disclosure
5		under Section 70 of the Higher Education Student Assistance
6		Act.
7		(oo) Information that is exempt from disclosure under
8		the Cannabis Regulation and Tax Act.
9		(Source: P.A. 99-78, eff. 7-20-15; 99-298, eff. 8-6-15; 99-352,
10		eff. 1-1-16; 99-642, eff. 7-28-16; 99-776, eff. 8-12-16;
11		99-863, eff. 8-19-16; 100-20, eff. 7-1-17; 100-22, eff. 1-1-18;
12		100-201, eff. 8-18-17; 100-373, eff. 1-1-18; 100-464, eff.
13		8-28-17; 100-465, eff. 8-31-17; 100-512, eff. 7-1-18; 100-517,
14		eff. 6-1-18; 100-646, eff. 7-27-18; 100-690, eff. 1-1-19;
15		100-863, eff. 8-14-18; 100-887, eff. 8-14-18; revised
16		10-12-18.)
17		Section 900-10. The Department of Revenue Law of the Civil
18		Administrative Code of Illinois is amended by changing Section
19		2505-210 as follows:
20		(20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)
21		Sec. 2505-210. Electronic funds transfer.
22		(a) The Department may provide means by which persons
23		having a tax liability under any Act administered by the
24		Department may use electronic funds transfer to pay the tax

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1		liability.
2		(b) Mandatory payment by electronic funds transfer. Except
3		as otherwise provided in a tax Act administered by the
4		Department Beginning on October 1, 2002, and through September
5		30, 2010, a taxpayer who has an annual tax liability of
6		$200,000 or more shall make all payments of that tax to the
7		Department by electronic funds transfer. Beginning October 1,
8		2010, a taxpayer (other than an individual taxpayer) who has an
9		annual tax liability of $20,000 or more and an individual
10		taxpayer who has an annual tax liability of $200,000 or more
11		shall make all payments of that tax to the Department by
12		electronic funds transfer. Before August 1 of each year,
13		beginning in 2002, the Department shall notify all taxpayers
14		required to make payments by electronic funds transfer. All
15		taxpayers required to make payments by electronic funds
16		transfer shall make those payments for a minimum of one year
17		beginning on October 1. For purposes of this subsection (b),
18		the term "annual tax liability" means, except as provided in
19		subsections (c) and (d) of this Section, the sum of the
20		taxpayer's liabilities under a tax Act administered by the
21		Department for the immediately preceding calendar year.
22		(c) For purposes of subsection (b), the term "annual tax
23		liability" means, for a taxpayer that incurs a tax liability
24		under the Retailers' Occupation Tax Act, Service Occupation Tax
25		Act, Use Tax Act, Service Use Tax Act, or any other State or
26		local occupation or use tax law that is administered by the

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1		Department, the sum of the taxpayer's liabilities under the
2		Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
3		Tax Act, Service Use Tax Act, and all other State and local
4		occupation and use tax laws administered by the Department for
5		the immediately preceding calendar year.
6		(d) For purposes of subsection (b), the term "annual tax
7		liability" means, for a taxpayer that incurs an Illinois income
8		tax liability, the greater of:
9		(1) the amount of the taxpayer's tax liability under
10		Article 7 of the Illinois Income Tax Act for the
11		immediately preceding calendar year; or
12		(2) the taxpayer's estimated tax payment obligation
13		under Article 8 of the Illinois Income Tax Act for the
14		immediately preceding calendar year.
15		(e) The Department shall adopt such rules as are necessary
16		to effectuate a program of electronic funds transfer and the
17		requirements of this Section.
18		(Source: P.A. 100-1171, eff. 1-4-19.)
19		Section 900-12. The Criminal Identification Act is amended
20		by changing Section 5.2 as follows:
21		(20 ILCS 2630/5.2)
22		Sec. 5.2. Expungement, sealing, and immediate sealing.
23		(a) General Provisions.
24		(1) Definitions. In this Act, words and phrases have

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1		the meanings set forth in this subsection, except when a
2		particular context clearly requires a different meaning.
3		(A) The following terms shall have the meanings
4		ascribed to them in the Unified Code of Corrections,
5		730 ILCS 5/5-1-2 through 5/5-1-22:
6		(i) Business Offense (730 ILCS 5/5-1-2),
7		(ii) Charge (730 ILCS 5/5-1-3),
8		(iii) Court (730 ILCS 5/5-1-6),
9		(iv) Defendant (730 ILCS 5/5-1-7),
10		(v) Felony (730 ILCS 5/5-1-9),
11		(vi) Imprisonment (730 ILCS 5/5-1-10),
12		(vii) Judgment (730 ILCS 5/5-1-12),
13		(viii) Misdemeanor (730 ILCS 5/5-1-14),
14		(ix) Offense (730 ILCS 5/5-1-15),
15		(x) Parole (730 ILCS 5/5-1-16),
16		(xi) Petty Offense (730 ILCS 5/5-1-17),
17		(xii) Probation (730 ILCS 5/5-1-18),
18		(xiii) Sentence (730 ILCS 5/5-1-19),
19		(xiv) Supervision (730 ILCS 5/5-1-21), and
20		(xv) Victim (730 ILCS 5/5-1-22).
21		(B) As used in this Section, "charge not initiated
22		by arrest" means a charge (as defined by 730 ILCS
23		5/5-1-3) brought against a defendant where the
24		defendant is not arrested prior to or as a direct
25		result of the charge.
26		(C) "Conviction" means a judgment of conviction or

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1		sentence entered upon a plea of guilty or upon a
2		verdict or finding of guilty of an offense, rendered by
3		a legally constituted jury or by a court of competent
4		jurisdiction authorized to try the case without a jury.
5		An order of supervision successfully completed by the
6		petitioner is not a conviction. An order of qualified
7		probation (as defined in subsection (a)(1)(J))
8		successfully completed by the petitioner is not a
9		conviction. An order of supervision or an order of
10		qualified probation that is terminated
11		unsatisfactorily is a conviction, unless the
12		unsatisfactory termination is reversed, vacated, or
13		modified and the judgment of conviction, if any, is
14		reversed or vacated.
15		(D) "Criminal offense" means a petty offense,
16		business offense, misdemeanor, felony, or municipal
17		ordinance violation (as defined in subsection
18		(a)(1)(H)). As used in this Section, a minor traffic
19		offense (as defined in subsection (a)(1)(G)) shall not
20		be considered a criminal offense.
21		(E) "Expunge" means to physically destroy the
22		records or return them to the petitioner and to
23		obliterate the petitioner's name from any official
24		index or public record, or both. Nothing in this Act
25		shall require the physical destruction of the circuit
26		court file, but such records relating to arrests or

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1		charges, or both, ordered expunged shall be impounded
2		as required by subsections (d)(9)(A)(ii) and
3		(d)(9)(B)(ii).
4		(F) As used in this Section, "last sentence" means
5		the sentence, order of supervision, or order of
6		qualified probation (as defined by subsection
7		(a)(1)(J)), for a criminal offense (as defined by
8		subsection (a)(1)(D)) that terminates last in time in
9		any jurisdiction, regardless of whether the petitioner
10		has included the criminal offense for which the
11		sentence or order of supervision or qualified
12		probation was imposed in his or her petition. If
13		multiple sentences, orders of supervision, or orders
14		of qualified probation terminate on the same day and
15		are last in time, they shall be collectively considered
16		the "last sentence" regardless of whether they were
17		ordered to run concurrently.
18		(G) "Minor traffic offense" means a petty offense,
19		business offense, or Class C misdemeanor under the
20		Illinois Vehicle Code or a similar provision of a
21		municipal or local ordinance.
22		(G-5) "Minor Cannabis Offense" means a violation
23		of Section 4 or 5 of the Cannabis Control Act
24		concerning not more than 30 grams of any substance
25		containing cannabis, provided the violation did not
26		include a penalty enhancement under Section 7 of the

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1		Cannabis Control Act and is not associated with an
2		arrest, conviction or other disposition for a violent
3		crime as defined in subsection (c) of Section 3 of the
4		Rights of Crime Victims and Witnesses Act.
5		(H) "Municipal ordinance violation" means an
6		offense defined by a municipal or local ordinance that
7		is criminal in nature and with which the petitioner was
8		charged or for which the petitioner was arrested and
9		released without charging.
10		(I) "Petitioner" means an adult or a minor
11		prosecuted as an adult who has applied for relief under
12		this Section.
13		(J) "Qualified probation" means an order of
14		probation under Section 10 of the Cannabis Control Act,
15		Section 410 of the Illinois Controlled Substances Act,
16		Section 70 of the Methamphetamine Control and
17		Community Protection Act, Section 5-6-3.3 or 5-6-3.4
18		of the Unified Code of Corrections, Section
19		12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as
20		those provisions existed before their deletion by
21		Public Act 89-313), Section 10-102 of the Illinois
22		Alcoholism and Other Drug Dependency Act, Section
23		40-10 of the Substance Use Disorder Act, or Section 10
24		of the Steroid Control Act. For the purpose of this
25		Section, "successful completion" of an order of
26		qualified probation under Section 10-102 of the

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1		Illinois Alcoholism and Other Drug Dependency Act and
2		Section 40-10 of the Substance Use Disorder Act means
3		that the probation was terminated satisfactorily and
4		the judgment of conviction was vacated.
5		(K) "Seal" means to physically and electronically
6		maintain the records, unless the records would
7		otherwise be destroyed due to age, but to make the
8		records unavailable without a court order, subject to
9		the exceptions in Sections 12 and 13 of this Act. The
10		petitioner's name shall also be obliterated from the
11		official index required to be kept by the circuit court
12		clerk under Section 16 of the Clerks of Courts Act, but
13		any index issued by the circuit court clerk before the
14		entry of the order to seal shall not be affected.
15		(L) "Sexual offense committed against a minor"
16		includes but is not limited to the offenses of indecent
17		solicitation of a child or criminal sexual abuse when
18		the victim of such offense is under 18 years of age.
19		(M) "Terminate" as it relates to a sentence or
20		order of supervision or qualified probation includes
21		either satisfactory or unsatisfactory termination of
22		the sentence, unless otherwise specified in this
23		Section. A sentence is terminated notwithstanding any
24		outstanding financial legal obligation.
25		(2) Minor Traffic Offenses. Orders of supervision or
26		convictions for minor traffic offenses shall not affect a

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1		petitioner's eligibility to expunge or seal records
2		pursuant to this Section.
3		(2.5) Commencing 180 days after July 29, 2016 (the
4		effective date of Public Act 99-697), the law enforcement
5		agency issuing the citation shall automatically expunge,
6		on or before January 1 and July 1 of each year, the law
7		enforcement records of a person found to have committed a
8		civil law violation of subsection (a) of Section 4 of the
9		Cannabis Control Act or subsection (c) of Section 3.5 of
10		the Drug Paraphernalia Control Act in the law enforcement
11		agency's possession or control and which contains the final
12		satisfactory disposition which pertain to the person
13		issued a citation for that offense. The law enforcement
14		agency shall provide by rule the process for access,
15		review, and to confirm the automatic expungement by the law
16		enforcement agency issuing the citation. Commencing 180
17		days after July 29, 2016 (the effective date of Public Act
18		99-697), the clerk of the circuit court shall expunge, upon
19		order of the court, or in the absence of a court order on
20		or before January 1 and July 1 of each year, the court
21		records of a person found in the circuit court to have
22		committed a civil law violation of subsection (a) of
23		Section 4 of the Cannabis Control Act or subsection (c) of
24		Section 3.5 of the Drug Paraphernalia Control Act in the
25		clerk's possession or control and which contains the final
26		satisfactory disposition which pertain to the person

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1		issued a citation for any of those offenses.
2		(3) Exclusions. Except as otherwise provided in
3		subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)
4		of this Section, the court shall not order:
5		(A) the sealing or expungement of the records of
6		arrests or charges not initiated by arrest that result
7		in an order of supervision for or conviction of: (i)
8		any sexual offense committed against a minor; (ii)
9		Section 11-501 of the Illinois Vehicle Code or a
10		similar provision of a local ordinance; or (iii)
11		Section 11-503 of the Illinois Vehicle Code or a
12		similar provision of a local ordinance, unless the
13		arrest or charge is for a misdemeanor violation of
14		subsection (a) of Section 11-503 or a similar provision
15		of a local ordinance, that occurred prior to the
16		offender reaching the age of 25 years and the offender
17		has no other conviction for violating Section 11-501 or
18		11-503 of the Illinois Vehicle Code or a similar
19		provision of a local ordinance.
20		(B) the sealing or expungement of records of minor
21		traffic offenses (as defined in subsection (a)(1)(G)),
22		unless the petitioner was arrested and released
23		without charging.
24		(C) the sealing of the records of arrests or
25		charges not initiated by arrest which result in an
26		order of supervision or a conviction for the following

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1		offenses:
2		(i) offenses included in Article 11 of the
3		Criminal Code of 1961 or the Criminal Code of 2012
4		or a similar provision of a local ordinance, except
5		Section 11-14 and a misdemeanor violation of
6		Section 11-30 of the Criminal Code of 1961 or the
7		Criminal Code of 2012, or a similar provision of a
8		local ordinance;
9		(ii) Section 11-1.50, 12-3.4, 12-15, 12-30,
10		26-5, or 48-1 of the Criminal Code of 1961 or the
11		Criminal Code of 2012, or a similar provision of a
12		local ordinance;
13		(iii) Sections 12-3.1 or 12-3.2 of the
14		Criminal Code of 1961 or the Criminal Code of 2012,
15		or Section 125 of the Stalking No Contact Order
16		Act, or Section 219 of the Civil No Contact Order
17		Act, or a similar provision of a local ordinance;
18		(iv) Class A misdemeanors or felony offenses
19		under the Humane Care for Animals Act; or
20		(v) any offense or attempted offense that
21		would subject a person to registration under the
22		Sex Offender Registration Act.
23		(D) (blank).
24		(b) Expungement.
25		(1) A petitioner may petition the circuit court to
26		expunge the records of his or her arrests and charges not

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1		initiated by arrest when each arrest or charge not
2		initiated by arrest sought to be expunged resulted in: (i)
3		acquittal, dismissal, or the petitioner's release without
4		charging, unless excluded by subsection (a)(3)(B); (ii) a
5		conviction which was vacated or reversed, unless excluded
6		by subsection (a)(3)(B); (iii) an order of supervision and
7		such supervision was successfully completed by the
8		petitioner, unless excluded by subsection (a)(3)(A) or
9		(a)(3)(B); or (iv) an order of qualified probation (as
10		defined in subsection (a)(1)(J)) and such probation was
11		successfully completed by the petitioner.
12		(1.5) When a petitioner seeks to have a record of
13		arrest expunged under this Section, and the offender has
14		been convicted of a criminal offense, the State's Attorney
15		may object to the expungement on the grounds that the
16		records contain specific relevant information aside from
17		the mere fact of the arrest.
18		(2) Time frame for filing a petition to expunge.
19		(A) When the arrest or charge not initiated by
20		arrest sought to be expunged resulted in an acquittal,
21		dismissal, the petitioner's release without charging,
22		or the reversal or vacation of a conviction, there is
23		no waiting period to petition for the expungement of
24		such records.
25		(B) When the arrest or charge not initiated by
26		arrest sought to be expunged resulted in an order of

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1		supervision, successfully completed by the petitioner,
2		the following time frames will apply:
3		(i) Those arrests or charges that resulted in
4		orders of supervision under Section 3-707, 3-708,
5		3-710, or 5-401.3 of the Illinois Vehicle Code or a
6		similar provision of a local ordinance, or under
7		Section 11-1.50, 12-3.2, or 12-15 of the Criminal
8		Code of 1961 or the Criminal Code of 2012, or a
9		similar provision of a local ordinance, shall not
10		be eligible for expungement until 5 years have
11		passed following the satisfactory termination of
12		the supervision.
13		(i-5) Those arrests or charges that resulted
14		in orders of supervision for a misdemeanor
15		violation of subsection (a) of Section 11-503 of
16		the Illinois Vehicle Code or a similar provision of
17		a local ordinance, that occurred prior to the
18		offender reaching the age of 25 years and the
19		offender has no other conviction for violating
20		Section 11-501 or 11-503 of the Illinois Vehicle
21		Code or a similar provision of a local ordinance
22		shall not be eligible for expungement until the
23		petitioner has reached the age of 25 years.
24		(ii) Those arrests or charges that resulted in
25		orders of supervision for any other offenses shall
26		not be eligible for expungement until 2 years have

HB1438 Enrolled - 375 - LRB101 04919 JRG 49928 b
1		passed following the satisfactory termination of
2		the supervision.
3		(C) When the arrest or charge not initiated by
4		arrest sought to be expunged resulted in an order of
5		qualified probation, successfully completed by the
6		petitioner, such records shall not be eligible for
7		expungement until 5 years have passed following the
8		satisfactory termination of the probation.
9		(3) Those records maintained by the Department for
10		persons arrested prior to their 17th birthday shall be
11		expunged as provided in Section 5-915 of the Juvenile Court
12		Act of 1987.
13		(4) Whenever a person has been arrested for or
14		convicted of any offense, in the name of a person whose
15		identity he or she has stolen or otherwise come into
16		possession of, the aggrieved person from whom the identity
17		was stolen or otherwise obtained without authorization,
18		upon learning of the person having been arrested using his
19		or her identity, may, upon verified petition to the chief
20		judge of the circuit wherein the arrest was made, have a
21		court order entered nunc pro tunc by the Chief Judge to
22		correct the arrest record, conviction record, if any, and
23		all official records of the arresting authority, the
24		Department, other criminal justice agencies, the
25		prosecutor, and the trial court concerning such arrest, if
26		any, by removing his or her name from all such records in

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1		connection with the arrest and conviction, if any, and by
2		inserting in the records the name of the offender, if known
3		or ascertainable, in lieu of the aggrieved's name. The
4		records of the circuit court clerk shall be sealed until
5		further order of the court upon good cause shown and the
6		name of the aggrieved person obliterated on the official
7		index required to be kept by the circuit court clerk under
8		Section 16 of the Clerks of Courts Act, but the order shall
9		not affect any index issued by the circuit court clerk
10		before the entry of the order. Nothing in this Section
11		shall limit the Department of State Police or other
12		criminal justice agencies or prosecutors from listing
13		under an offender's name the false names he or she has
14		used.
15		(5) Whenever a person has been convicted of criminal
16		sexual assault, aggravated criminal sexual assault,
17		predatory criminal sexual assault of a child, criminal
18		sexual abuse, or aggravated criminal sexual abuse, the
19		victim of that offense may request that the State's
20		Attorney of the county in which the conviction occurred
21		file a verified petition with the presiding trial judge at
22		the petitioner's trial to have a court order entered to
23		seal the records of the circuit court clerk in connection
24		with the proceedings of the trial court concerning that
25		offense. However, the records of the arresting authority
26		and the Department of State Police concerning the offense

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1		shall not be sealed. The court, upon good cause shown,
2		shall make the records of the circuit court clerk in
3		connection with the proceedings of the trial court
4		concerning the offense available for public inspection.
5		(6) If a conviction has been set aside on direct review
6		or on collateral attack and the court determines by clear
7		and convincing evidence that the petitioner was factually
8		innocent of the charge, the court that finds the petitioner
9		factually innocent of the charge shall enter an expungement
10		order for the conviction for which the petitioner has been
11		determined to be innocent as provided in subsection (b) of
12		Section 5-5-4 of the Unified Code of Corrections.
13		(7) Nothing in this Section shall prevent the
14		Department of State Police from maintaining all records of
15		any person who is admitted to probation upon terms and
16		conditions and who fulfills those terms and conditions
17		pursuant to Section 10 of the Cannabis Control Act, Section
18		410 of the Illinois Controlled Substances Act, Section 70
19		of the Methamphetamine Control and Community Protection
20		Act, Section 5-6-3.3 or 5-6-3.4 of the Unified Code of
21		Corrections, Section 12-4.3 or subdivision (b)(1) of
22		Section 12-3.05 of the Criminal Code of 1961 or the
23		Criminal Code of 2012, Section 10-102 of the Illinois
24		Alcoholism and Other Drug Dependency Act, Section 40-10 of
25		the Substance Use Disorder Act, or Section 10 of the
26		Steroid Control Act.

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1		(8) If the petitioner has been granted a certificate of
2		innocence under Section 2-702 of the Code of Civil
3		Procedure, the court that grants the certificate of
4		innocence shall also enter an order expunging the
5		conviction for which the petitioner has been determined to
6		be innocent as provided in subsection (h) of Section 2-702
7		of the Code of Civil Procedure.
8		(c) Sealing.
9		(1) Applicability. Notwithstanding any other provision
10		of this Act to the contrary, and cumulative with any rights
11		to expungement of criminal records, this subsection
12		authorizes the sealing of criminal records of adults and of
13		minors prosecuted as adults. Subsection (g) of this Section
14		provides for immediate sealing of certain records.
15		(2) Eligible Records. The following records may be
16		sealed:
17		(A) All arrests resulting in release without
18		charging;
19		(B) Arrests or charges not initiated by arrest
20		resulting in acquittal, dismissal, or conviction when
21		the conviction was reversed or vacated, except as
22		excluded by subsection (a)(3)(B);
23		(C) Arrests or charges not initiated by arrest
24		resulting in orders of supervision, including orders
25		of supervision for municipal ordinance violations,
26		successfully completed by the petitioner, unless

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1		excluded by subsection (a)(3);
2		(D) Arrests or charges not initiated by arrest
3		resulting in convictions, including convictions on
4		municipal ordinance violations, unless excluded by
5		subsection (a)(3);
6		(E) Arrests or charges not initiated by arrest
7		resulting in orders of first offender probation under
8		Section 10 of the Cannabis Control Act, Section 410 of
9		the Illinois Controlled Substances Act, Section 70 of
10		the Methamphetamine Control and Community Protection
11		Act, or Section 5-6-3.3 of the Unified Code of
12		Corrections; and
13		(F) Arrests or charges not initiated by arrest
14		resulting in felony convictions unless otherwise
15		excluded by subsection (a) paragraph (3) of this
16		Section.
17		(3) When Records Are Eligible to Be Sealed. Records
18		identified as eligible under subsection (c)(2) may be
19		sealed as follows:
20		(A) Records identified as eligible under
21		subsection (c)(2)(A) and (c)(2)(B) may be sealed at any
22		time.
23		(B) Except as otherwise provided in subparagraph
24		(E) of this paragraph (3), records identified as
25		eligible under subsection (c)(2)(C) may be sealed 2
26		years after the termination of petitioner's last

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1		sentence (as defined in subsection (a)(1)(F)).
2		(C) Except as otherwise provided in subparagraph
3		(E) of this paragraph (3), records identified as
4		eligible under subsections (c)(2)(D), (c)(2)(E), and
5		(c)(2)(F) may be sealed 3 years after the termination
6		of the petitioner's last sentence (as defined in
7		subsection (a)(1)(F)). Convictions requiring public
8		registration under the Arsonist Registration Act, the
9		Sex Offender Registration Act, or the Murderer and
10		Violent Offender Against Youth Registration Act may
11		not be sealed until the petitioner is no longer
12		required to register under that relevant Act.
13		(D) Records identified in subsection
14		(a)(3)(A)(iii) may be sealed after the petitioner has
15		reached the age of 25 years.
16		(E) Records identified as eligible under
17		subsections (c)(2)(C), (c)(2)(D), (c)(2)(E), or
18		(c)(2)(F) may be sealed upon termination of the
19		petitioner's last sentence if the petitioner earned a
20		high school diploma, associate's degree, career
21		certificate, vocational technical certification, or
22		bachelor's degree, or passed the high school level Test
23		of General Educational Development, during the period
24		of his or her sentence, aftercare release, or mandatory
25		supervised release. This subparagraph shall apply only
26		to a petitioner who has not completed the same

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1		educational goal prior to the period of his or her
2		sentence, aftercare release, or mandatory supervised
3		release. If a petition for sealing eligible records
4		filed under this subparagraph is denied by the court,
5		the time periods under subparagraph (B) or (C) shall
6		apply to any subsequent petition for sealing filed by
7		the petitioner.
8		(4) Subsequent felony convictions. A person may not
9		have subsequent felony conviction records sealed as
10		provided in this subsection (c) if he or she is convicted
11		of any felony offense after the date of the sealing of
12		prior felony convictions as provided in this subsection
13		(c). The court may, upon conviction for a subsequent felony
14		offense, order the unsealing of prior felony conviction
15		records previously ordered sealed by the court.
16		(5) Notice of eligibility for sealing. Upon entry of a
17		disposition for an eligible record under this subsection
18		(c), the petitioner shall be informed by the court of the
19		right to have the records sealed and the procedures for the
20		sealing of the records.
21		(d) Procedure. The following procedures apply to
22		expungement under subsections (b), (e), and (e-6) and sealing
23		under subsections (c) and (e-5):
24		(1) Filing the petition. Upon becoming eligible to
25		petition for the expungement or sealing of records under
26		this Section, the petitioner shall file a petition

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1		requesting the expungement or sealing of records with the
2		clerk of the court where the arrests occurred or the
3		charges were brought, or both. If arrests occurred or
4		charges were brought in multiple jurisdictions, a petition
5		must be filed in each such jurisdiction. The petitioner
6		shall pay the applicable fee, except no fee shall be
7		required if the petitioner has obtained a court order
8		waiving fees under Supreme Court Rule 298 or it is
9		otherwise waived.
10		(1.5) County fee waiver pilot program. In a county of
11		3,000,000 or more inhabitants, no fee shall be required to
12		be paid by a petitioner if the records sought to be
13		expunged or sealed were arrests resulting in release
14		without charging or arrests or charges not initiated by
15		arrest resulting in acquittal, dismissal, or conviction
16		when the conviction was reversed or vacated, unless
17		excluded by subsection (a)(3)(B). The provisions of this
18		paragraph (1.5), other than this sentence, are inoperative
19		on and after January 1, 2019.
20		(2) Contents of petition. The petition shall be
21		verified and shall contain the petitioner's name, date of
22		birth, current address and, for each arrest or charge not
23		initiated by arrest sought to be sealed or expunged, the
24		case number, the date of arrest (if any), the identity of
25		the arresting authority, and such other information as the
26		court may require. During the pendency of the proceeding,

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1		the petitioner shall promptly notify the circuit court
2		clerk of any change of his or her address. If the
3		petitioner has received a certificate of eligibility for
4		sealing from the Prisoner Review Board under paragraph (10)
5		of subsection (a) of Section 3-3-2 of the Unified Code of
6		Corrections, the certificate shall be attached to the
7		petition.
8		(3) Drug test. The petitioner must attach to the
9		petition proof that the petitioner has passed a test taken
10		within 30 days before the filing of the petition showing
11		the absence within his or her body of all illegal
12		substances as defined by the Illinois Controlled
13		Substances Act, the Methamphetamine Control and Community
14		Protection Act, and the Cannabis Control Act if he or she
15		is petitioning to:
16		(A) seal felony records under clause (c)(2)(E);
17		(B) seal felony records for a violation of the
18		Illinois Controlled Substances Act, the
19		Methamphetamine Control and Community Protection Act,
20		or the Cannabis Control Act under clause (c)(2)(F);
21		(C) seal felony records under subsection (e-5); or
22		(D) expunge felony records of a qualified
23		probation under clause (b)(1)(iv).
24		(4) Service of petition. The circuit court clerk shall
25		promptly serve a copy of the petition and documentation to
26		support the petition under subsection (e-5) or (e-6) on the

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1		State's Attorney or prosecutor charged with the duty of
2		prosecuting the offense, the Department of State Police,
3		the arresting agency and the chief legal officer of the
4		unit of local government effecting the arrest.
5		(5) Objections.
6		(A) Any party entitled to notice of the petition
7		may file an objection to the petition. All objections
8		shall be in writing, shall be filed with the circuit
9		court clerk, and shall state with specificity the basis
10		of the objection. Whenever a person who has been
11		convicted of an offense is granted a pardon by the
12		Governor which specifically authorizes expungement, an
13		objection to the petition may not be filed.
14		(B) Objections to a petition to expunge or seal
15		must be filed within 60 days of the date of service of
16		the petition.
17		(6) Entry of order.
18		(A) The Chief Judge of the circuit wherein the
19		charge was brought, any judge of that circuit
20		designated by the Chief Judge, or in counties of less
21		than 3,000,000 inhabitants, the presiding trial judge
22		at the petitioner's trial, if any, shall rule on the
23		petition to expunge or seal as set forth in this
24		subsection (d)(6).
25		(B) Unless the State's Attorney or prosecutor, the
26		Department of State Police, the arresting agency, or

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1		the chief legal officer files an objection to the
2		petition to expunge or seal within 60 days from the
3		date of service of the petition, the court shall enter
4		an order granting or denying the petition.
5		(C) Notwithstanding any other provision of law,
6		the court shall not deny a petition for sealing under
7		this Section because the petitioner has not satisfied
8		an outstanding legal financial obligation established,
9		imposed, or originated by a court, law enforcement
10		agency, or a municipal, State, county, or other unit of
11		local government, including, but not limited to, any
12		cost, assessment, fine, or fee. An outstanding legal
13		financial obligation does not include any court
14		ordered restitution to a victim under Section 5-5-6 of
15		the Unified Code of Corrections, unless the
16		restitution has been converted to a civil judgment.
17		Nothing in this subparagraph (C) waives, rescinds, or
18		abrogates a legal financial obligation or otherwise
19		eliminates or affects the right of the holder of any
20		financial obligation to pursue collection under
21		applicable federal, State, or local law.
22		(7) Hearings. If an objection is filed, the court shall
23		set a date for a hearing and notify the petitioner and all
24		parties entitled to notice of the petition of the hearing
25		date at least 30 days prior to the hearing. Prior to the
26		hearing, the State's Attorney shall consult with the

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1		Department as to the appropriateness of the relief sought
2		in the petition to expunge or seal. At the hearing, the
3		court shall hear evidence on whether the petition should or
4		should not be granted, and shall grant or deny the petition
5		to expunge or seal the records based on the evidence
6		presented at the hearing. The court may consider the
7		following:
8		(A) the strength of the evidence supporting the
9		defendant's conviction;
10		(B) the reasons for retention of the conviction
11		records by the State;
12		(C) the petitioner's age, criminal record history,
13		and employment history;
14		(D) the period of time between the petitioner's
15		arrest on the charge resulting in the conviction and
16		the filing of the petition under this Section; and
17		(E) the specific adverse consequences the
18		petitioner may be subject to if the petition is denied.
19		(8) Service of order. After entering an order to
20		expunge or seal records, the court must provide copies of
21		the order to the Department, in a form and manner
22		prescribed by the Department, to the petitioner, to the
23		State's Attorney or prosecutor charged with the duty of
24		prosecuting the offense, to the arresting agency, to the
25		chief legal officer of the unit of local government
26		effecting the arrest, and to such other criminal justice

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1		agencies as may be ordered by the court.
2		(9) Implementation of order.
3		(A) Upon entry of an order to expunge records
4		pursuant to (b)(2)(A) or (b)(2)(B)(ii), or both:
5		(i) the records shall be expunged (as defined
6		in subsection (a)(1)(E)) by the arresting agency,
7		the Department, and any other agency as ordered by
8		the court, within 60 days of the date of service of
9		the order, unless a motion to vacate, modify, or
10		reconsider the order is filed pursuant to
11		paragraph (12) of subsection (d) of this Section;
12		(ii) the records of the circuit court clerk
13		shall be impounded until further order of the court
14		upon good cause shown and the name of the
15		petitioner obliterated on the official index
16		required to be kept by the circuit court clerk
17		under Section 16 of the Clerks of Courts Act, but
18		the order shall not affect any index issued by the
19		circuit court clerk before the entry of the order;
20		and
21		(iii) in response to an inquiry for expunged
22		records, the court, the Department, or the agency
23		receiving such inquiry, shall reply as it does in
24		response to inquiries when no records ever
25		existed.
26		(B) Upon entry of an order to expunge records

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1		pursuant to (b)(2)(B)(i) or (b)(2)(C), or both:
2		(i) the records shall be expunged (as defined
3		in subsection (a)(1)(E)) by the arresting agency
4		and any other agency as ordered by the court,
5		within 60 days of the date of service of the order,
6		unless a motion to vacate, modify, or reconsider
7		the order is filed pursuant to paragraph (12) of
8		subsection (d) of this Section;
9		(ii) the records of the circuit court clerk
10		shall be impounded until further order of the court
11		upon good cause shown and the name of the
12		petitioner obliterated on the official index
13		required to be kept by the circuit court clerk
14		under Section 16 of the Clerks of Courts Act, but
15		the order shall not affect any index issued by the
16		circuit court clerk before the entry of the order;
17		(iii) the records shall be impounded by the
18		Department within 60 days of the date of service of
19		the order as ordered by the court, unless a motion
20		to vacate, modify, or reconsider the order is filed
21		pursuant to paragraph (12) of subsection (d) of
22		this Section;
23		(iv) records impounded by the Department may
24		be disseminated by the Department only as required
25		by law or to the arresting authority, the State's
26		Attorney, and the court upon a later arrest for the

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1		same or a similar offense or for the purpose of
2		sentencing for any subsequent felony, and to the
3		Department of Corrections upon conviction for any
4		offense; and
5		(v) in response to an inquiry for such records
6		from anyone not authorized by law to access such
7		records, the court, the Department, or the agency
8		receiving such inquiry shall reply as it does in
9		response to inquiries when no records ever
10		existed.
11		(B-5) Upon entry of an order to expunge records
12		under subsection (e-6):
13		(i) the records shall be expunged (as defined
14		in subsection (a)(1)(E)) by the arresting agency
15		and any other agency as ordered by the court,
16		within 60 days of the date of service of the order,
17		unless a motion to vacate, modify, or reconsider
18		the order is filed under paragraph (12) of
19		subsection (d) of this Section;
20		(ii) the records of the circuit court clerk
21		shall be impounded until further order of the court
22		upon good cause shown and the name of the
23		petitioner obliterated on the official index
24		required to be kept by the circuit court clerk
25		under Section 16 of the Clerks of Courts Act, but
26		the order shall not affect any index issued by the

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1		circuit court clerk before the entry of the order;
2		(iii) the records shall be impounded by the
3		Department within 60 days of the date of service of
4		the order as ordered by the court, unless a motion
5		to vacate, modify, or reconsider the order is filed
6		under paragraph (12) of subsection (d) of this
7		Section;
8		(iv) records impounded by the Department may
9		be disseminated by the Department only as required
10		by law or to the arresting authority, the State's
11		Attorney, and the court upon a later arrest for the
12		same or a similar offense or for the purpose of
13		sentencing for any subsequent felony, and to the
14		Department of Corrections upon conviction for any
15		offense; and
16		(v) in response to an inquiry for these records
17		from anyone not authorized by law to access the
18		records, the court, the Department, or the agency
19		receiving the inquiry shall reply as it does in
20		response to inquiries when no records ever
21		existed.
22		(C) Upon entry of an order to seal records under
23		subsection (c), the arresting agency, any other agency
24		as ordered by the court, the Department, and the court
25		shall seal the records (as defined in subsection
26		(a)(1)(K)). In response to an inquiry for such records,

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1		from anyone not authorized by law to access such
2		records, the court, the Department, or the agency
3		receiving such inquiry shall reply as it does in
4		response to inquiries when no records ever existed.
5		(D) The Department shall send written notice to the
6		petitioner of its compliance with each order to expunge
7		or seal records within 60 days of the date of service
8		of that order or, if a motion to vacate, modify, or
9		reconsider is filed, within 60 days of service of the
10		order resolving the motion, if that order requires the
11		Department to expunge or seal records. In the event of
12		an appeal from the circuit court order, the Department
13		shall send written notice to the petitioner of its
14		compliance with an Appellate Court or Supreme Court
15		judgment to expunge or seal records within 60 days of
16		the issuance of the court's mandate. The notice is not
17		required while any motion to vacate, modify, or
18		reconsider, or any appeal or petition for
19		discretionary appellate review, is pending.
20		(E) Upon motion, the court may order that a sealed
21		judgment or other court record necessary to
22		demonstrate the amount of any legal financial
23		obligation due and owing be made available for the
24		limited purpose of collecting any legal financial
25		obligations owed by the petitioner that were
26		established, imposed, or originated in the criminal

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1		proceeding for which those records have been sealed.
2		The records made available under this subparagraph (E)
3		shall not be entered into the official index required
4		to be kept by the circuit court clerk under Section 16
5		of the Clerks of Courts Act and shall be immediately
6		re-impounded upon the collection of the outstanding
7		financial obligations.
8		(F) Notwithstanding any other provision of this
9		Section, a circuit court clerk may access a sealed
10		record for the limited purpose of collecting payment
11		for any legal financial obligations that were
12		established, imposed, or originated in the criminal
13		proceedings for which those records have been sealed.
14		(10) Fees. The Department may charge the petitioner a
15		fee equivalent to the cost of processing any order to
16		expunge or seal records. Notwithstanding any provision of
17		the Clerks of Courts Act to the contrary, the circuit court
18		clerk may charge a fee equivalent to the cost associated
19		with the sealing or expungement of records by the circuit
20		court clerk. From the total filing fee collected for the
21		petition to seal or expunge, the circuit court clerk shall
22		deposit $10 into the Circuit Court Clerk Operation and
23		Administrative Fund, to be used to offset the costs
24		incurred by the circuit court clerk in performing the
25		additional duties required to serve the petition to seal or
26		expunge on all parties. The circuit court clerk shall

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1		collect and forward the Department of State Police portion
2		of the fee to the Department and it shall be deposited in
3		the State Police Services Fund. If the record brought under
4		an expungement petition was previously sealed under this
5		Section, the fee for the expungement petition for that same
6		record shall be waived.
7		(11) Final Order. No court order issued under the
8		expungement or sealing provisions of this Section shall
9		become final for purposes of appeal until 30 days after
10		service of the order on the petitioner and all parties
11		entitled to notice of the petition.
12		(12) Motion to Vacate, Modify, or Reconsider. Under
13		Section 2-1203 of the Code of Civil Procedure, the
14		petitioner or any party entitled to notice may file a
15		motion to vacate, modify, or reconsider the order granting
16		or denying the petition to expunge or seal within 60 days
17		of service of the order. If filed more than 60 days after
18		service of the order, a petition to vacate, modify, or
19		reconsider shall comply with subsection (c) of Section
20		2-1401 of the Code of Civil Procedure. Upon filing of a
21		motion to vacate, modify, or reconsider, notice of the
22		motion shall be served upon the petitioner and all parties
23		entitled to notice of the petition.
24		(13) Effect of Order. An order granting a petition
25		under the expungement or sealing provisions of this Section
26		shall not be considered void because it fails to comply

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1		with the provisions of this Section or because of any error
2		asserted in a motion to vacate, modify, or reconsider. The
3		circuit court retains jurisdiction to determine whether
4		the order is voidable and to vacate, modify, or reconsider
5		its terms based on a motion filed under paragraph (12) of
6		this subsection (d).
7		(14) Compliance with Order Granting Petition to Seal
8		Records. Unless a court has entered a stay of an order
9		granting a petition to seal, all parties entitled to notice
10		of the petition must fully comply with the terms of the
11		order within 60 days of service of the order even if a
12		party is seeking relief from the order through a motion
13		filed under paragraph (12) of this subsection (d) or is
14		appealing the order.
15		(15) Compliance with Order Granting Petition to
16		Expunge Records. While a party is seeking relief from the
17		order granting the petition to expunge through a motion
18		filed under paragraph (12) of this subsection (d) or is
19		appealing the order, and unless a court has entered a stay
20		of that order, the parties entitled to notice of the
21		petition must seal, but need not expunge, the records until
22		there is a final order on the motion for relief or, in the
23		case of an appeal, the issuance of that court's mandate.
24		(16) The changes to this subsection (d) made by Public
25		Act 98-163 apply to all petitions pending on August 5, 2013
26		(the effective date of Public Act 98-163) and to all orders

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1		ruling on a petition to expunge or seal on or after August
2		5, 2013 (the effective date of Public Act 98-163).
3		(e) Whenever a person who has been convicted of an offense
4		is granted a pardon by the Governor which specifically
5		authorizes expungement, he or she may, upon verified petition
6		to the Chief Judge of the circuit where the person had been
7		convicted, any judge of the circuit designated by the Chief
8		Judge, or in counties of less than 3,000,000 inhabitants, the
9		presiding trial judge at the defendant's trial, have a court
10		order entered expunging the record of arrest from the official
11		records of the arresting authority and order that the records
12		of the circuit court clerk and the Department be sealed until
13		further order of the court upon good cause shown or as
14		otherwise provided herein, and the name of the defendant
15		obliterated from the official index requested to be kept by the
16		circuit court clerk under Section 16 of the Clerks of Courts
17		Act in connection with the arrest and conviction for the
18		offense for which he or she had been pardoned but the order
19		shall not affect any index issued by the circuit court clerk
20		before the entry of the order. All records sealed by the
21		Department may be disseminated by the Department only to the
22		arresting authority, the State's Attorney, and the court upon a
23		later arrest for the same or similar offense or for the purpose
24		of sentencing for any subsequent felony. Upon conviction for
25		any subsequent offense, the Department of Corrections shall
26		have access to all sealed records of the Department pertaining

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1		to that individual. Upon entry of the order of expungement, the
2		circuit court clerk shall promptly mail a copy of the order to
3		the person who was pardoned.
4		(e-5) Whenever a person who has been convicted of an
5		offense is granted a certificate of eligibility for sealing by
6		the Prisoner Review Board which specifically authorizes
7		sealing, he or she may, upon verified petition to the Chief
8		Judge of the circuit where the person had been convicted, any
9		judge of the circuit designated by the Chief Judge, or in
10		counties of less than 3,000,000 inhabitants, the presiding
11		trial judge at the petitioner's trial, have a court order
12		entered sealing the record of arrest from the official records
13		of the arresting authority and order that the records of the
14		circuit court clerk and the Department be sealed until further
15		order of the court upon good cause shown or as otherwise
16		provided herein, and the name of the petitioner obliterated
17		from the official index requested to be kept by the circuit
18		court clerk under Section 16 of the Clerks of Courts Act in
19		connection with the arrest and conviction for the offense for
20		which he or she had been granted the certificate but the order
21		shall not affect any index issued by the circuit court clerk
22		before the entry of the order. All records sealed by the
23		Department may be disseminated by the Department only as
24		required by this Act or to the arresting authority, a law
25		enforcement agency, the State's Attorney, and the court upon a
26		later arrest for the same or similar offense or for the purpose

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1		of sentencing for any subsequent felony. Upon conviction for
2		any subsequent offense, the Department of Corrections shall
3		have access to all sealed records of the Department pertaining
4		to that individual. Upon entry of the order of sealing, the
5		circuit court clerk shall promptly mail a copy of the order to
6		the person who was granted the certificate of eligibility for
7		sealing.
8		(e-6) Whenever a person who has been convicted of an
9		offense is granted a certificate of eligibility for expungement
10		by the Prisoner Review Board which specifically authorizes
11		expungement, he or she may, upon verified petition to the Chief
12		Judge of the circuit where the person had been convicted, any
13		judge of the circuit designated by the Chief Judge, or in
14		counties of less than 3,000,000 inhabitants, the presiding
15		trial judge at the petitioner's trial, have a court order
16		entered expunging the record of arrest from the official
17		records of the arresting authority and order that the records
18		of the circuit court clerk and the Department be sealed until
19		further order of the court upon good cause shown or as
20		otherwise provided herein, and the name of the petitioner
21		obliterated from the official index requested to be kept by the
22		circuit court clerk under Section 16 of the Clerks of Courts
23		Act in connection with the arrest and conviction for the
24		offense for which he or she had been granted the certificate
25		but the order shall not affect any index issued by the circuit
26		court clerk before the entry of the order. All records sealed

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1		by the Department may be disseminated by the Department only as
2		required by this Act or to the arresting authority, a law
3		enforcement agency, the State's Attorney, and the court upon a
4		later arrest for the same or similar offense or for the purpose
5		of sentencing for any subsequent felony. Upon conviction for
6		any subsequent offense, the Department of Corrections shall
7		have access to all expunged records of the Department
8		pertaining to that individual. Upon entry of the order of
9		expungement, the circuit court clerk shall promptly mail a copy
10		of the order to the person who was granted the certificate of
11		eligibility for expungement.
12		(f) Subject to available funding, the Illinois Department
13		of Corrections shall conduct a study of the impact of sealing,
14		especially on employment and recidivism rates, utilizing a
15		random sample of those who apply for the sealing of their
16		criminal records under Public Act 93-211. At the request of the
17		Illinois Department of Corrections, records of the Illinois
18		Department of Employment Security shall be utilized as
19		appropriate to assist in the study. The study shall not
20		disclose any data in a manner that would allow the
21		identification of any particular individual or employing unit.
22		The study shall be made available to the General Assembly no
23		later than September 1, 2010.
24		(g) Immediate Sealing.
25		(1) Applicability. Notwithstanding any other provision
26		of this Act to the contrary, and cumulative with any rights

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1		to expungement or sealing of criminal records, this
2		subsection authorizes the immediate sealing of criminal
3		records of adults and of minors prosecuted as adults.
4		(2) Eligible Records. Arrests or charges not initiated
5		by arrest resulting in acquittal or dismissal with
6		prejudice, except as excluded by subsection (a)(3)(B),
7		that occur on or after January 1, 2018 (the effective date
8		of Public Act 100-282), may be sealed immediately if the
9		petition is filed with the circuit court clerk on the same
10		day and during the same hearing in which the case is
11		disposed.
12		(3) When Records are Eligible to be Immediately Sealed.
13		Eligible records under paragraph (2) of this subsection (g)
14		may be sealed immediately after entry of the final
15		disposition of a case, notwithstanding the disposition of
16		other charges in the same case.
17		(4) Notice of Eligibility for Immediate Sealing. Upon
18		entry of a disposition for an eligible record under this
19		subsection (g), the defendant shall be informed by the
20		court of his or her right to have eligible records
21		immediately sealed and the procedure for the immediate
22		sealing of these records.
23		(5) Procedure. The following procedures apply to
24		immediate sealing under this subsection (g).
25		(A) Filing the Petition. Upon entry of the final
26		disposition of the case, the defendant's attorney may

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1		immediately petition the court, on behalf of the
2		defendant, for immediate sealing of eligible records
3		under paragraph (2) of this subsection (g) that are
4		entered on or after January 1, 2018 (the effective date
5		of Public Act 100-282). The immediate sealing petition
6		may be filed with the circuit court clerk during the
7		hearing in which the final disposition of the case is
8		entered. If the defendant's attorney does not file the
9		petition for immediate sealing during the hearing, the
10		defendant may file a petition for sealing at any time
11		as authorized under subsection (c)(3)(A).
12		(B) Contents of Petition. The immediate sealing
13		petition shall be verified and shall contain the
14		petitioner's name, date of birth, current address, and
15		for each eligible record, the case number, the date of
16		arrest if applicable, the identity of the arresting
17		authority if applicable, and other information as the
18		court may require.
19		(C) Drug Test. The petitioner shall not be required
20		to attach proof that he or she has passed a drug test.
21		(D) Service of Petition. A copy of the petition
22		shall be served on the State's Attorney in open court.
23		The petitioner shall not be required to serve a copy of
24		the petition on any other agency.
25		(E) Entry of Order. The presiding trial judge shall
26		enter an order granting or denying the petition for

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1		immediate sealing during the hearing in which it is
2		filed. Petitions for immediate sealing shall be ruled
3		on in the same hearing in which the final disposition
4		of the case is entered.
5		(F) Hearings. The court shall hear the petition for
6		immediate sealing on the same day and during the same
7		hearing in which the disposition is rendered.
8		(G) Service of Order. An order to immediately seal
9		eligible records shall be served in conformance with
10		subsection (d)(8).
11		(H) Implementation of Order. An order to
12		immediately seal records shall be implemented in
13		conformance with subsections (d)(9)(C) and (d)(9)(D).
14		(I) Fees. The fee imposed by the circuit court
15		clerk and the Department of State Police shall comply
16		with paragraph (1) of subsection (d) of this Section.
17		(J) Final Order. No court order issued under this
18		subsection (g) shall become final for purposes of
19		appeal until 30 days after service of the order on the
20		petitioner and all parties entitled to service of the
21		order in conformance with subsection (d)(8).
22		(K) Motion to Vacate, Modify, or Reconsider. Under
23		Section 2-1203 of the Code of Civil Procedure, the
24		petitioner, State's Attorney, or the Department of
25		State Police may file a motion to vacate, modify, or
26		reconsider the order denying the petition to

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1		immediately seal within 60 days of service of the
2		order. If filed more than 60 days after service of the
3		order, a petition to vacate, modify, or reconsider
4		shall comply with subsection (c) of Section 2-1401 of
5		the Code of Civil Procedure.
6		(L) Effect of Order. An order granting an immediate
7		sealing petition shall not be considered void because
8		it fails to comply with the provisions of this Section
9		or because of an error asserted in a motion to vacate,
10		modify, or reconsider. The circuit court retains
11		jurisdiction to determine whether the order is
12		voidable, and to vacate, modify, or reconsider its
13		terms based on a motion filed under subparagraph (L) of
14		this subsection (g).
15		(M) Compliance with Order Granting Petition to
16		Seal Records. Unless a court has entered a stay of an
17		order granting a petition to immediately seal, all
18		parties entitled to service of the order must fully
19		comply with the terms of the order within 60 days of
20		service of the order.
21		(h) Sealing; trafficking victims.
22		(1) A trafficking victim as defined by paragraph (10)
23		of subsection (a) of Section 10-9 of the Criminal Code of
24		2012 shall be eligible to petition for immediate sealing of
25		his or her criminal record upon the completion of his or
26		her last sentence if his or her participation in the

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1		underlying offense was a direct result of human trafficking
2		under Section 10-9 of the Criminal Code of 2012 or a severe
3		form of trafficking under the federal Trafficking Victims
4		Protection Act.
5		(2) A petitioner under this subsection (h), in addition
6		to the requirements provided under paragraph (4) of
7		subsection (d) of this Section, shall include in his or her
8		petition a clear and concise statement that: (A) he or she
9		was a victim of human trafficking at the time of the
10		offense; and (B) that his or her participation in the
11		offense was a direct result of human trafficking under
12		Section 10-9 of the Criminal Code of 2012 or a severe form
13		of trafficking under the federal Trafficking Victims
14		Protection Act.
15		(3) If an objection is filed alleging that the
16		petitioner is not entitled to immediate sealing under this
17		subsection (h), the court shall conduct a hearing under
18		paragraph (7) of subsection (d) of this Section and the
19		court shall determine whether the petitioner is entitled to
20		immediate sealing under this subsection (h). A petitioner
21		is eligible for immediate relief under this subsection (h)
22		if he or she shows, by a preponderance of the evidence,
23		that: (A) he or she was a victim of human trafficking at
24		the time of the offense; and (B) that his or her
25		participation in the offense was a direct result of human
26		trafficking under Section 10-9 of the Criminal Code of 2012

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1		or a severe form of trafficking under the federal
2		Trafficking Victims Protection Act.
3		(i) Minor Cannabis Offenses under the Cannabis Control Act.
4		(1) Expungement of Arrest Records of Minor Cannabis
5		Offenses.
6		(A) The Department of State Police and all law
7		enforcement agencies within the State shall
8		automatically expunge all criminal history records of
9		an arrest, charge not initiated by arrest, order of
10		supervision, or order of qualified probation for a
11		Minor Cannabis Offense committed prior to the
12		effective date of this amendatory Act of the 101st
13		General Assembly if:
14		(i) One year or more has elapsed since the date
15		of the arrest or law enforcement interaction
16		documented in the records; and
17		(ii) No criminal charges were filed relating
18		to the arrest or law enforcement interaction or
19		criminal charges were filed and subsequently
20		dismissed or vacated or the arrestee was
21		acquitted.
22		(B) If the law enforcement agency is unable to
23		verify satisfaction of condition (ii) in paragraph
24		(A), records that satisfy condition (i) in paragraph
25		(A) shall be automatically expunged.
26		(C) Records shall be expunged pursuant to the

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1		procedures set forth in subdivision (d)(9)(A) under
2		the following timelines:
3		(i) Records created prior to the effective
4		date of this amendatory Act of the 101st General
5		Assembly, but on or after January 1, 2013, shall be
6		automatically expunged prior to January 1, 2021;
7		(ii) Records created prior to January 1, 2013,
8		but on or after January 1, 2000, shall be
9		automatically expunged prior to January 1, 2023;
10		(iii) Records created prior to January 1, 2000
11		shall be automatically expunged prior to January
12		1, 2025.
13		(D) Nothing in this Section shall be construed to
14		restrict or modify an individual's right to have that
15		individual's records expunged except as otherwise may
16		be provided in this Act, or diminish or abrogate any
17		rights or remedies otherwise available to the
18		individual.
19		(2) Pardons Authorizing Expungement of Minor Cannabis
20		Offenses.
21		(A) Upon the effective date of this amendatory Act
22		of the 101st General Assembly, the Department of State
23		Police shall review all criminal history record
24		information and identify all records that meet all of
25		the following criteria:
26		(i) one or more convictions for a Minor

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1		Cannabis Offense;
2		(ii) the conviction identified in paragraph
3		(2)(A)(i) did not include a penalty enhancement
4		under Section 7 of the Cannabis Control Act; and
5		(iii) The conviction identified in paragraph
6		(2)(A)(i) is not associated with an arrest,
7		conviction or other disposition for a violent
8		crime as defined in subsection (c) of Section 3 of
9		the Rights of Crime Victims and Witnesses Act.
10		(B) Within 180 days after the effective date of
11		this amendatory Act of the 101st General Assembly, the
12		Department of State Police shall notify the Prisoner
13		Review Board of all such records that meet the criteria
14		established in paragraph (2)(A).
15		(i) The Prisoner Review Board shall notify the
16		State's Attorney of the county of conviction of
17		each record identified by State Police in
18		paragraph (2)(A) that is classified as a Class 4
19		felony. The State's Attorney may provide a written
20		objection to the Prisoner Review Board on the sole
21		basis that the record identified does not meet the
22		criteria established in paragraph (2)(A). Such an
23		objection must be filed within 60 days or by such
24		later date set by Prisoner Review Board in the
25		notice after the State's Attorney received notice
26		from the Prisoner Review Board.

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1		(ii) In response to a written objection from a
2		State's Attorney, the Prisoner Review Board is
3		authorized to conduct a non-public hearing to
4		evaluate the information provided in the
5		objection.
6		(iii) The Prisoner Review Board shall make a
7		confidential and privileged recommendation to the
8		Governor as to whether to grant a pardon
9		authorizing expungement for each of the records
10		identified by the Department of State Police as
11		described in paragraph (2)(A).
12		(C) If an individual has been granted a pardon
13		authorizing expungement as described in this Section,
14		the Prisoner Review Board, through the Attorney
15		General, shall file a petition for expungement with the
16		Chief Judge of the circuit or any judge of the circuit
17		designated by the Chief Judge where the individual had
18		been convicted. Such petition may include more than one
19		individual. Whenever an individual who has been
20		convicted of an offense is granted a pardon by the
21		Governor that specifically authorizes expungement, an
22		objection to the petition may not be filed. Petitions
23		to expunge under this subsection (i) may include more
24		than one individual. Within 90 days of the filing of
25		such a petition, the court shall enter an order
26		expunging the records of arrest from the official

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1		records of the arresting authority and order that the
2		records of the circuit court clerk and the Department
3		of State Police be expunged and the name of the
4		defendant obliterated from the official index
5		requested to be kept by the circuit court clerk under
6		Section 16 of the Clerks of Courts Act in connection
7		with the arrest and conviction for the offense for
8		which the individual had received a pardon but the
9		order shall not affect any index issued by the circuit
10		court clerk before the entry of the order. Upon entry
11		of the order of expungement, the circuit court clerk
12		shall promptly provide a copy of the order to the
13		individual who was pardoned to the individual's last
14		known address or otherwise make available to the
15		individual upon request.
16		(D) Nothing in this Section is intended to diminish
17		or abrogate any rights or remedies otherwise available
18		to the individual.
19		(3) Any individual may file a motion to vacate and
20		expunge a conviction for a misdemeanor or Class 4 felony
21		violation of Section 4 or Section 5 of the Cannabis Control
22		Act. Motions to vacate and expunge under this subsection
23		(i) may be filed with the circuit court, Chief Judge of a
24		judicial circuit or any judge of the circuit designated by
25		the Chief Judge. When considering such a motion to vacate
26		and expunge, a court shall consider the following: the

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1		reasons to retain the records provided by law enforcement,
2		the petitioner's age, the petitioner's age at the time of
3		offense, the time since the conviction, and the specific
4		adverse consequences if denied. An individual may file such
5		a petition after the completion of any sentence or
6		condition imposed by the conviction. Within 60 days of the
7		filing of such motion, a State's Attorney may file an
8		objection to such a petition along with supporting
9		evidence. If a motion to vacate and expunge is granted, the
10		records shall be expunged in accordance with subparagraph
11		(d)(9)(A) of this Section. An agency providing civil legal
12		aid, as defined by Section 15 of the Public Interest
13		Attorney Assistance Act, assisting individuals seeking to
14		file a motion to vacate and expunge under this subsection
15		may file motions to vacate and expunge with the Chief Judge
16		of a judicial circuit or any judge of the circuit
17		designated by the Chief Judge, and the motion may include
18		more than one individual.
19		(4) Any State's Attorney may file a motion to vacate
20		and expunge a conviction for a misdemeanor or Class 4
21		felony violation of Section 4 or Section 5 of the Cannabis
22		Control Act. Motions to vacate and expunge under this
23		subsection (i) may be filed with the circuit court, Chief
24		Judge of a judicial circuit or any judge of the circuit
25		designated by the Chief Judge, and may include more than
26		one individual. When considering such a motion to vacate

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1		and expunge, a court shall consider the following: the
2		reasons to retain the records provided by law enforcement,
3		the individual's age, the individual's age at the time of
4		offense, the time since the conviction, and the specific
5		adverse consequences if denied. If the State's Attorney
6		files a motion to vacate and expunge records for Minor
7		Cannabis Offenses pursuant to this Section, the State's
8		Attorney shall notify the Prisoner Review Board within 30
9		days of such filing. If a motion to vacate and expunge is
10		granted, the records shall be expunged in accordance with
11		subparagraph (d)(9)(A) of this Section.
12		(5) In the public interest, the State's Attorney of a
13		county has standing to file motions to vacate and expunge
14		pursuant to this Section in the circuit court with
15		jurisdiction over the underlying conviction.
16		(6) If a person is arrested for a Minor Cannabis
17		Offense as defined in this Section before the effective
18		date of this amendatory Act of the 101st General Assembly
19		and the person's case is still pending but a sentence has
20		not been imposed, the person may petition the court in
21		which the charges are pending for an order to summarily
22		dismiss those charges against him or her, and expunge all
23		official records of his or her arrest, plea, trial,
24		conviction, incarceration, supervision, or expungement. If
25		the court determines, upon review, that: (A) the person was
26		arrested before the effective date of this amendatory Act

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1		of the 101st General Assembly for an offense that has been
2		made eligible for expungement; (B) the case is pending at
3		the time; and (C) the person has not been sentenced of the
4		minor cannabis violation eligible for expungement under
5		this subsection, the court shall consider the following:
6		the reasons to retain the records provided by law
7		enforcement, the petitioner's age, the petitioner's age at
8		the time of offense, the time since the conviction, and the
9		specific adverse consequences if denied. If a motion to
10		dismiss and expunge is granted, the records shall be
11		expunged in accordance with subparagraph (d)(9)(A) of this
12		Section.
13		(7) A person imprisoned solely as a result of one or
14		more convictions for Minor Cannabis Offenses under this
15		subsection (i) shall be released from incarceration upon
16		the issuance of an order under this subsection.
17		(8) The Department of State Police shall allow a person
18		to use the access and review process, established in the
19		Department of State Police, for verifying that his or her
20		records relating to Minor Cannabis Offenses of the Cannabis
21		Control Act eligible under this Section have been expunged.
22		(9)No conviction vacated pursuant to this Section
23		shall serve as the basis for damages for time unjustly
24		served as provided in the Court of Claims Act.
25		(10) Effect of Expungement. A person's right to expunge
26		an expungeable offense shall not be limited under this

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1		Section. The effect of an order of expungement shall be to
2		restore the person to the status he or she occupied before
3		the arrest, charge, or conviction.
4		(11) Information. The Department of State Police shall
5		post general information on its website about the
6		expungement process described in this subsection (i).
7		(Source: P.A. 99-78, eff. 7-20-15; 99-378, eff. 1-1-16; 99-385,
8		eff. 1-1-16; 99-642, eff. 7-28-16; 99-697, eff. 7-29-16;
9		99-881, eff. 1-1-17; 100-201, eff. 8-18-17; 100-282, eff.
10		1-1-18; 100-284, eff. 8-24-17; 100-287, eff. 8-24-17; 100-692,
11		eff. 8-3-18; 100-759, eff. 1-1-19; 100-776, eff. 8-10-18;
12		100-863, eff. 8-14-18; revised 8-30-18.)
13		Section 900-15. The State Finance Act is amended by adding
14		Sections 5.891, 5.892, 5.893, 5.894, and 6z-107 as follows:
15		(30 ILCS 105/5.891 new)
16		Sec. 5.891. The Cannabis Regulation Fund.
17		(30 ILCS 105/5.892 new)
18		Sec. 5.892. The Cannabis Business Development Fund.
19		(30 ILCS 105/5.893 new)
20		Sec. 5.893. Local Cannabis Consumer Excise Tax Trust Fund.
21		(30 ILCS 105/5.894 new)

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1		Sec. 5.894. Cannabis Expungement Fund.
2		(30 ILCS 105/6z-107 new)
3		Sec. 6z-107. The Cannabis Regulation Fund.
4		(a) There is created the Cannabis Regulation Fund in the
5		State treasury, subject to appropriations unless otherwise
6		provided in this Section. All moneys collected under the
7		Cannabis Regulation and Tax Act shall be deposited into the
8		Cannabis Regulation Fund, consisting of taxes, license fees,
9		other fees, and any other amounts required to be deposited or
10		transferred into the Fund.
11		(b) Whenever the Department of Revenue determines that a
12		refund should be made under the Cannabis Regulation and Tax Act
13		to a claimant, the Department of Revenue shall submit a voucher
14		for payment to the State Comptroller, who shall cause the order
15		to be drawn for the amount specified and to the person named in
16		the notification from the Department of Revenue. This
17		subsection (b) shall constitute an irrevocable and continuing
18		appropriation of all amounts necessary for the payment of
19		refunds out of the Fund as authorized under this subsection
20		(b).
21		(c) On or before the 25th day of each calendar month, the
22		Department of Revenue shall prepare and certify to the State
23		Comptroller the transfer and allocations of stated sums of
24		money from the Cannabis Regulation Fund to other named funds in
25		the State treasury. The amount subject to transfer shall be the

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1		amount of the taxes, license fees, other fees, and any other
2		amounts paid into the Fund during the second preceding calendar
3		month, minus the refunds made under subsection (b) during the
4		second preceding calendar month by the Department. The
5		transfers shall be certified as follows:
6		(1) The Department of Revenue shall first determine the
7		allocations which shall remain in the Cannabis Regulation
8		Fund, subject to appropriations, to pay for the direct and
9		indirect costs associated with the implementation,
10		administration, and enforcement of the Cannabis Regulation
11		and Tax Act by the Department of Revenue, the Department of
12		State Police, the Department of Financial and Professional
13		Regulation, the Department of Agriculture, the Department
14		of Public Health, the Department of Commerce and Economic
15		Opportunity, and the Illinois Criminal Justice Information
16		Authority.
17		(2) After the allocations have been made as provided in
18		paragraph (1) of this subsection (c), of the remainder of
19		the amount subject to transfer for the month as determined
20		in this subsection (c), the Department shall certify the
21		transfer into the Cannabis Expungement Fund 1/12 of the
22		fiscal year amount appropriated from the Cannabis
23		Expungement Fund for payment of costs incurred by State
24		courts, the Attorney General, State's Attorneys, civil
25		legal aid, as defined by Section 15 of the Public Interest
26		Attorney Assistance Act, and the Department of State Police

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1		to facilitate petitions for expungement of Minor Cannabis
2		Offenses pursuant to this amendatory Act of the 101st
3		General Assembly, as adjusted by any supplemental
4		appropriation, plus cumulative deficiencies in such
5		transfers for prior months.
6		(3) After the allocations have been made as provided in
7		paragraphs (1) and (2) of this subsection (c), the
8		Department of Revenue shall certify to the State
9		Comptroller and the State Treasurer shall transfer the
10		amounts that the Department of Revenue determines shall be
11		transferred into the following named funds according to the
12		following:
13		(A) 2% shall be transferred to the Drug Treatment
14		Fund to be used by the Department of Human Services
15		for: (i) developing and administering a scientifically
16		and medically accurate public education campaign
17		educating youth and adults about the health and safety
18		risks of alcohol, tobacco, illegal drug use (including
19		prescription drugs), and cannabis, including use by
20		pregnant women; and (ii) data collection and analysis
21		of the public health impacts of legalizing the
22		recreational use of cannabis. Expenditures for these
23		purposes shall be subject to appropriations.
24		(B) 8% shall be transferred to the Local Government
25		Distributive Fund and allocated as provided in Section
26		2 of the State Revenue Sharing Act. The moneys shall be

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1		used to fund crime prevention programs, training, and
2		interdiction efforts, including detection,
3		enforcement, and prevention efforts, relating to the
4		illegal cannabis market and driving under the
5		influence of cannabis.
6		(C) 25% shall be transferred to the Criminal
7		Justice Information Projects Fund to be used for the
8		purposes of the Restore, Reinvest, and Renew Program to
9		address economic development, violence prevention
10		services, re-entry services, youth development, and
11		civil legal aid, as defined by Section 15 of the Public
12		Interest Attorney Assistance Act. The Restore,
13		Reinvest, and Renew Program shall address these issues
14		through targeted investments and intervention programs
15		and promotion of an employment infrastructure and
16		capacity building related to the social determinants
17		of health in impacted community areas. Expenditures
18		for these purposes shall be subject to appropriations.
19		(D) 20% shall be transferred to the Department of
20		Human Services Community Services Fund, to be used to
21		address substance abuse and prevention and mental
22		health concerns, including treatment, education, and
23		prevention to address the negative impacts of
24		substance abuse and mental health issues, including
25		concentrated poverty, violence, and the historical
26		overuse of criminal justice responses in certain

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1		communities, on the individual, family, and community,
2		including federal, State, and local governments,
3		health care institutions and providers, and
4		correctional facilities. Expenditures for these
5		purposes shall be subject to appropriations.
6		(E) 10% shall be transferred to the Budget
7		Stabilization Fund.
8		(F) 35%, or any remaining balance, shall be
9		transferred to the General Revenue Fund.
10		As soon as may be practical, but no later than 10 days
11		after receipt, by the State Comptroller of the transfer
12		certification provided for in this subsection (c) to be given
13		to the State Comptroller by the Department of Revenue, the
14		State Comptroller shall direct and the State Treasurer shall
15		transfer the respective amounts in accordance with the
16		directions contained in such certification.
17		(d) On July 1, 2019 the Department of Revenue shall certify
18		to the State Comptroller and the State Treasurer shall transfer
19		$5,000,000 from the Compassionate Use of Medical Cannabis Fund
20		to the Cannabis Regulation Fund.
21		(e) Notwithstanding any other law to the contrary and
22		except as otherwise provided in this Section, this Fund is not
23		subject to sweeps, administrative charge-backs, or any other
24		fiscal or budgetary maneuver that would in any way transfer any
25		amounts from this Fund into any other fund of the State.
26		(f) The Cannabis Regulation Fund shall retain a balance of

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1		$1,000,000 for the purposes of administrative costs.
2		(g) In Fiscal Year 2024 the allocations in subsection (c)
3		of this Section shall be reviewed and adjusted if the General
4		Assembly finds there is a greater need for funding for a
5		specific purpose in the State as it relates to this amendatory
6		Act of the 101st General Assembly.
7		Section 900-15.5. The Illinois Procurement Code is amended
8		by changing Section 1-10 as follows:
9		(30 ILCS 500/1-10)
10		Sec. 1-10. Application.
11		(a) This Code applies only to procurements for which
12		bidders, offerors, potential contractors, or contractors were
13		first solicited on or after July 1, 1998. This Code shall not
14		be construed to affect or impair any contract, or any provision
15		of a contract, entered into based on a solicitation prior to
16		the implementation date of this Code as described in Article
17		99, including but not limited to any covenant entered into with
18		respect to any revenue bonds or similar instruments. All
19		procurements for which contracts are solicited between the
20		effective date of Articles 50 and 99 and July 1, 1998 shall be
21		substantially in accordance with this Code and its intent.
22		(b) This Code shall apply regardless of the source of the
23		funds with which the contracts are paid, including federal
24		assistance moneys. This Code shall not apply to:

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1		(1) Contracts between the State and its political
2		subdivisions or other governments, or between State
3		governmental bodies, except as specifically provided in
4		this Code.
5		(2) Grants, except for the filing requirements of
6		Section 20-80.
7		(3) Purchase of care, except as provided in Section
8		5-30.6 of the Illinois Public Aid Code and this Section.
9		(4) Hiring of an individual as employee and not as an
10		independent contractor, whether pursuant to an employment
11		code or policy or by contract directly with that
12		individual.
13		(5) Collective bargaining contracts.
14		(6) Purchase of real estate, except that notice of this
15		type of contract with a value of more than $25,000 must be
16		published in the Procurement Bulletin within 10 calendar
17		days after the deed is recorded in the county of
18		jurisdiction. The notice shall identify the real estate
19		purchased, the names of all parties to the contract, the
20		value of the contract, and the effective date of the
21		contract.
22		(7) Contracts necessary to prepare for anticipated
23		litigation, enforcement actions, or investigations,
24		provided that the chief legal counsel to the Governor shall
25		give his or her prior approval when the procuring agency is
26		one subject to the jurisdiction of the Governor, and

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1		provided that the chief legal counsel of any other
2		procuring entity subject to this Code shall give his or her
3		prior approval when the procuring entity is not one subject
4		to the jurisdiction of the Governor.
5		(8) (Blank).
6		(9) Procurement expenditures by the Illinois
7		Conservation Foundation when only private funds are used.
8		(10) (Blank).
9		(11) Public-private agreements entered into according
10		to the procurement requirements of Section 20 of the
11		Public-Private Partnerships for Transportation Act and
12		design-build agreements entered into according to the
13		procurement requirements of Section 25 of the
14		Public-Private Partnerships for Transportation Act.
15		(12) Contracts for legal, financial, and other
16		professional and artistic services entered into on or
17		before December 31, 2018 by the Illinois Finance Authority
18		in which the State of Illinois is not obligated. Such
19		contracts shall be awarded through a competitive process
20		authorized by the Board of the Illinois Finance Authority
21		and are subject to Sections 5-30, 20-160, 50-13, 50-20,
22		50-35, and 50-37 of this Code, as well as the final
23		approval by the Board of the Illinois Finance Authority of
24		the terms of the contract.
25		(13) Contracts for services, commodities, and
26		equipment to support the delivery of timely forensic

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1		science services in consultation with and subject to the
2		approval of the Chief Procurement Officer as provided in
3		subsection (d) of Section 5-4-3a of the Unified Code of
4		Corrections, except for the requirements of Sections
5		20-60, 20-65, 20-70, and 20-160 and Article 50 of this
6		Code; however, the Chief Procurement Officer may, in
7		writing with justification, waive any certification
8		required under Article 50 of this Code. For any contracts
9		for services which are currently provided by members of a
10		collective bargaining agreement, the applicable terms of
11		the collective bargaining agreement concerning
12		subcontracting shall be followed.
13		On and after January 1, 2019, this paragraph (13),
14		except for this sentence, is inoperative.
15		(14) Contracts for participation expenditures required
16		by a domestic or international trade show or exhibition of
17		an exhibitor, member, or sponsor.
18		(15) Contracts with a railroad or utility that requires
19		the State to reimburse the railroad or utilities for the
20		relocation of utilities for construction or other public
21		purpose. Contracts included within this paragraph (15)
22		shall include, but not be limited to, those associated
23		with: relocations, crossings, installations, and
24		maintenance. For the purposes of this paragraph (15),
25		"railroad" means any form of non-highway ground
26		transportation that runs on rails or electromagnetic

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1		guideways and "utility" means: (1) public utilities as
2		defined in Section 3-105 of the Public Utilities Act, (2)
3		telecommunications carriers as defined in Section 13-202
4		of the Public Utilities Act, (3) electric cooperatives as
5		defined in Section 3.4 of the Electric Supplier Act, (4)
6		telephone or telecommunications cooperatives as defined in
7		Section 13-212 of the Public Utilities Act, (5) rural water
8		or waste water systems with 10,000 connections or less, (6)
9		a holder as defined in Section 21-201 of the Public
10		Utilities Act, and (7) municipalities owning or operating
11		utility systems consisting of public utilities as that term
12		is defined in Section 11-117-2 of the Illinois Municipal
13		Code.
14		(16) Procurement expenditures necessary for the
15		Department of Public Health to provide the delivery of
16		timely newborn screening services in accordance with the
17		Newborn Metabolic Screening Act.
18		(17) (16) Procurement expenditures necessary for the
19		Department of Agriculture, the Department of Financial and
20		Professional Regulation, the Department of Human Services,
21		and the Department of Public Health to implement the
22		Compassionate Use of Medical Cannabis Pilot Program and
23		Opioid Alternative Pilot Program requirements and ensure
24		access to medical cannabis for patients with debilitating
25		medical conditions in accordance with the Compassionate
26		Use of Medical Cannabis Pilot Program Act.

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1		(18) This Code does not apply to any procurements
2		necessary for the Department of Agriculture, the
3		Department of Financial and Professional Regulation, the
4		Department of Human Services, the Department of Commerce
5		and Economic Opportunity, and the Department of Public
6		Health to implement the Cannabis Regulation and Tax Act if
7		the applicable agency has made a good faith determination
8		that it is necessary and appropriate for the expenditure to
9		fall within this exemption and if the process is conducted
10		in a manner substantially in accordance with the
11		requirements of Sections 20-160, 25-60, 30-22, 50-5,
12		50-10, 50-10.5, 50-12, 50-13, 50-15, 50-20, 50-21, 50-35,
13		50-36, 50-37, 50-38, and 50-50 of this Code; however, for
14		Section 50-35, compliance applies only to contracts or
15		subcontracts over $100,000. Notice of each contract
16		entered into under this paragraph (18) that is related to
17		the procurement of goods and services identified in
18		paragraph (1) through (9) of this subsection shall be
19		published in the Procurement Bulletin within 14 calendar
20		days after contract execution. The Chief Procurement
21		Officer shall prescribe the form and content of the notice.
22		Each agency shall provide the Chief Procurement Officer, on
23		a monthly basis, in the form and content prescribed by the
24		Chief Procurement Officer, a report of contracts that are
25		related to the procurement of goods and services identified
26		in this subsection. At a minimum, this report shall include

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1		the name of the contractor, a description of the supply or
2		service provided, the total amount of the contract, the
3		term of the contract, and the exception to this Code
4		utilized. A copy of any or all of these contracts shall be
5		made available to the Chief Procurement Officer
6		immediately upon request. The Chief Procurement Officer
7		shall submit a report to the Governor and General Assembly
8		no later than November 1 of each year that includes, at a
9		minimum, an annual summary of the monthly information
10		reported to the Chief Procurement Officer. This exemption
11		becomes inoperative 5 years after the effective date of
12		this amendatory Act of the 101st General Assembly.
13		Notwithstanding any other provision of law, for contracts
14		entered into on or after October 1, 2017 under an exemption
15		provided in any paragraph of this subsection (b), except
16		paragraph (1), (2), or (5), each State agency shall post to the
17		appropriate procurement bulletin the name of the contractor, a
18		description of the supply or service provided, the total amount
19		of the contract, the term of the contract, and the exception to
20		the Code utilized. The chief procurement officer shall submit a
21		report to the Governor and General Assembly no later than
22		November 1 of each year that shall include, at a minimum, an
23		annual summary of the monthly information reported to the chief
24		procurement officer.
25		(c) This Code does not apply to the electric power
26		procurement process provided for under Section 1-75 of the

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1		Illinois Power Agency Act and Section 16-111.5 of the Public
2		Utilities Act.
3		(d) Except for Section 20-160 and Article 50 of this Code,
4		and as expressly required by Section 9.1 of the Illinois
5		Lottery Law, the provisions of this Code do not apply to the
6		procurement process provided for under Section 9.1 of the
7		Illinois Lottery Law.
8		(e) This Code does not apply to the process used by the
9		Capital Development Board to retain a person or entity to
10		assist the Capital Development Board with its duties related to
11		the determination of costs of a clean coal SNG brownfield
12		facility, as defined by Section 1-10 of the Illinois Power
13		Agency Act, as required in subsection (h-3) of Section 9-220 of
14		the Public Utilities Act, including calculating the range of
15		capital costs, the range of operating and maintenance costs, or
16		the sequestration costs or monitoring the construction of clean
17		coal SNG brownfield facility for the full duration of
18		construction.
19		(f) (Blank).
20		(g) (Blank).
21		(h) This Code does not apply to the process to procure or
22		contracts entered into in accordance with Sections 11-5.2 and
23		11-5.3 of the Illinois Public Aid Code.
24		(i) Each chief procurement officer may access records
25		necessary to review whether a contract, purchase, or other
26		expenditure is or is not subject to the provisions of this

HB1438 Enrolled - 426 - LRB101 04919 JRG 49928 b
1		Code, unless such records would be subject to attorney-client
2		privilege.
3		(j) This Code does not apply to the process used by the
4		Capital Development Board to retain an artist or work or works
5		of art as required in Section 14 of the Capital Development
6		Board Act.
7		(k) This Code does not apply to the process to procure
8		contracts, or contracts entered into, by the State Board of
9		Elections or the State Electoral Board for hearing officers
10		appointed pursuant to the Election Code.
11		(l) This Code does not apply to the processes used by the
12		Illinois Student Assistance Commission to procure supplies and
13		services paid for from the private funds of the Illinois
14		Prepaid Tuition Fund. As used in this subsection (l), "private
15		funds" means funds derived from deposits paid into the Illinois
16		Prepaid Tuition Trust Fund and the earnings thereon.
17		(Source: P.A. 99-801, eff. 1-1-17; 100-43, eff. 8-9-17;
18		100-580, eff. 3-12-18; 100-757, eff. 8-10-18; 100-1114, eff.
19		8-28-18; revised 10-18-18.)
20		Section 900-16. The Use Tax Act is amended by changing
21		Section 9 as follows:
22		(35 ILCS 105/9) (from Ch. 120, par. 439.9)
23		Sec. 9. Except as to motor vehicles, watercraft, aircraft,
24		and trailers that are required to be registered with an agency

HB1438 Enrolled - 427 - LRB101 04919 JRG 49928 b
1		of this State, each retailer required or authorized to collect
2		the tax imposed by this Act shall pay to the Department the
3		amount of such tax (except as otherwise provided) at the time
4		when he is required to file his return for the period during
5		which such tax was collected, less a discount of 2.1% prior to
6		January 1, 1990, and 1.75% on and after January 1, 1990, or $5
7		per calendar year, whichever is greater, which is allowed to
8		reimburse the retailer for expenses incurred in collecting the
9		tax, keeping records, preparing and filing returns, remitting
10		the tax and supplying data to the Department on request. In the
11		case of retailers who report and pay the tax on a transaction
12		by transaction basis, as provided in this Section, such
13		discount shall be taken with each such tax remittance instead
14		of when such retailer files his periodic return. The discount
15		allowed under this Section is allowed only for returns that are
16		filed in the manner required by this Act. The Department may
17		disallow the discount for retailers whose certificate of
18		registration is revoked at the time the return is filed, but
19		only if the Department's decision to revoke the certificate of
20		registration has become final. A retailer need not remit that
21		part of any tax collected by him to the extent that he is
22		required to remit and does remit the tax imposed by the
23		Retailers' Occupation Tax Act, with respect to the sale of the
24		same property.
25		Where such tangible personal property is sold under a
26		conditional sales contract, or under any other form of sale

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1		wherein the payment of the principal sum, or a part thereof, is
2		extended beyond the close of the period for which the return is
3		filed, the retailer, in collecting the tax (except as to motor
4		vehicles, watercraft, aircraft, and trailers that are required
5		to be registered with an agency of this State), may collect for
6		each tax return period, only the tax applicable to that part of
7		the selling price actually received during such tax return
8		period.
9		Except as provided in this Section, on or before the
10		twentieth day of each calendar month, such retailer shall file
11		a return for the preceding calendar month. Such return shall be
12		filed on forms prescribed by the Department and shall furnish
13		such information as the Department may reasonably require. On
14		and after January 1, 2018, except for returns for motor
15		vehicles, watercraft, aircraft, and trailers that are required
16		to be registered with an agency of this State, with respect to
17		retailers whose annual gross receipts average $20,000 or more,
18		all returns required to be filed pursuant to this Act shall be
19		filed electronically. Retailers who demonstrate that they do
20		not have access to the Internet or demonstrate hardship in
21		filing electronically may petition the Department to waive the
22		electronic filing requirement.
23		The Department may require returns to be filed on a
24		quarterly basis. If so required, a return for each calendar
25		quarter shall be filed on or before the twentieth day of the
26		calendar month following the end of such calendar quarter. The

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1		taxpayer shall also file a return with the Department for each
2		of the first two months of each calendar quarter, on or before
3		the twentieth day of the following calendar month, stating:
4		1. The name of the seller;
5		2. The address of the principal place of business from
6		which he engages in the business of selling tangible
7		personal property at retail in this State;
8		3. The total amount of taxable receipts received by him
9		during the preceding calendar month from sales of tangible
10		personal property by him during such preceding calendar
11		month, including receipts from charge and time sales, but
12		less all deductions allowed by law;
13		4. The amount of credit provided in Section 2d of this
14		Act;
15		5. The amount of tax due;
16		5-5. The signature of the taxpayer; and
17		6. Such other reasonable information as the Department
18		may require.
19		If a taxpayer fails to sign a return within 30 days after
20		the proper notice and demand for signature by the Department,
21		the return shall be considered valid and any amount shown to be
22		due on the return shall be deemed assessed.
23		Notwithstanding any other provision of this Act to the
24		contrary, retailers subject to tax on cannabis shall file all
25		cannabis tax returns and shall make all cannabis tax payments
26		by electronic means in the manner and form required by the

HB1438 Enrolled - 430 - LRB101 04919 JRG 49928 b
1		Department.
2		Beginning October 1, 1993, a taxpayer who has an average
3		monthly tax liability of $150,000 or more shall make all
4		payments required by rules of the Department by electronic
5		funds transfer. Beginning October 1, 1994, a taxpayer who has
6		an average monthly tax liability of $100,000 or more shall make
7		all payments required by rules of the Department by electronic
8		funds transfer. Beginning October 1, 1995, a taxpayer who has
9		an average monthly tax liability of $50,000 or more shall make
10		all payments required by rules of the Department by electronic
11		funds transfer. Beginning October 1, 2000, a taxpayer who has
12		an annual tax liability of $200,000 or more shall make all
13		payments required by rules of the Department by electronic
14		funds transfer. The term "annual tax liability" shall be the
15		sum of the taxpayer's liabilities under this Act, and under all
16		other State and local occupation and use tax laws administered
17		by the Department, for the immediately preceding calendar year.
18		The term "average monthly tax liability" means the sum of the
19		taxpayer's liabilities under this Act, and under all other
20		State and local occupation and use tax laws administered by the
21		Department, for the immediately preceding calendar year
22		divided by 12. Beginning on October 1, 2002, a taxpayer who has
23		a tax liability in the amount set forth in subsection (b) of
24		Section 2505-210 of the Department of Revenue Law shall make
25		all payments required by rules of the Department by electronic
26		funds transfer.

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1		Before August 1 of each year beginning in 1993, the
2		Department shall notify all taxpayers required to make payments
3		by electronic funds transfer. All taxpayers required to make
4		payments by electronic funds transfer shall make those payments
5		for a minimum of one year beginning on October 1.
6		Any taxpayer not required to make payments by electronic
7		funds transfer may make payments by electronic funds transfer
8		with the permission of the Department.
9		All taxpayers required to make payment by electronic funds
10		transfer and any taxpayers authorized to voluntarily make
11		payments by electronic funds transfer shall make those payments
12		in the manner authorized by the Department.
13		The Department shall adopt such rules as are necessary to
14		effectuate a program of electronic funds transfer and the
15		requirements of this Section.
16		Before October 1, 2000, if the taxpayer's average monthly
17		tax liability to the Department under this Act, the Retailers'
18		Occupation Tax Act, the Service Occupation Tax Act, the Service
19		Use Tax Act was $10,000 or more during the preceding 4 complete
20		calendar quarters, he shall file a return with the Department
21		each month by the 20th day of the month next following the
22		month during which such tax liability is incurred and shall
23		make payments to the Department on or before the 7th, 15th,
24		22nd and last day of the month during which such liability is
25		incurred. On and after October 1, 2000, if the taxpayer's
26		average monthly tax liability to the Department under this Act,

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1		the Retailers' Occupation Tax Act, the Service Occupation Tax
2		Act, and the Service Use Tax Act was $20,000 or more during the
3		preceding 4 complete calendar quarters, he shall file a return
4		with the Department each month by the 20th day of the month
5		next following the month during which such tax liability is
6		incurred and shall make payment to the Department on or before
7		the 7th, 15th, 22nd and last day of the month during which such
8		liability is incurred. If the month during which such tax
9		liability is incurred began prior to January 1, 1985, each
10		payment shall be in an amount equal to 1/4 of the taxpayer's
11		actual liability for the month or an amount set by the
12		Department not to exceed 1/4 of the average monthly liability
13		of the taxpayer to the Department for the preceding 4 complete
14		calendar quarters (excluding the month of highest liability and
15		the month of lowest liability in such 4 quarter period). If the
16		month during which such tax liability is incurred begins on or
17		after January 1, 1985, and prior to January 1, 1987, each
18		payment shall be in an amount equal to 22.5% of the taxpayer's
19		actual liability for the month or 27.5% of the taxpayer's
20		liability for the same calendar month of the preceding year. If
21		the month during which such tax liability is incurred begins on
22		or after January 1, 1987, and prior to January 1, 1988, each
23		payment shall be in an amount equal to 22.5% of the taxpayer's
24		actual liability for the month or 26.25% of the taxpayer's
25		liability for the same calendar month of the preceding year. If
26		the month during which such tax liability is incurred begins on

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1		or after January 1, 1988, and prior to January 1, 1989, or
2		begins on or after January 1, 1996, each payment shall be in an
3		amount equal to 22.5% of the taxpayer's actual liability for
4		the month or 25% of the taxpayer's liability for the same
5		calendar month of the preceding year. If the month during which
6		such tax liability is incurred begins on or after January 1,
7		1989, and prior to January 1, 1996, each payment shall be in an
8		amount equal to 22.5% of the taxpayer's actual liability for
9		the month or 25% of the taxpayer's liability for the same
10		calendar month of the preceding year or 100% of the taxpayer's
11		actual liability for the quarter monthly reporting period. The
12		amount of such quarter monthly payments shall be credited
13		against the final tax liability of the taxpayer's return for
14		that month. Before October 1, 2000, once applicable, the
15		requirement of the making of quarter monthly payments to the
16		Department shall continue until such taxpayer's average
17		monthly liability to the Department during the preceding 4
18		complete calendar quarters (excluding the month of highest
19		liability and the month of lowest liability) is less than
20		$9,000, or until such taxpayer's average monthly liability to
21		the Department as computed for each calendar quarter of the 4
22		preceding complete calendar quarter period is less than
23		$10,000. However, if a taxpayer can show the Department that a
24		substantial change in the taxpayer's business has occurred
25		which causes the taxpayer to anticipate that his average
26		monthly tax liability for the reasonably foreseeable future

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1		will fall below the $10,000 threshold stated above, then such
2		taxpayer may petition the Department for change in such
3		taxpayer's reporting status. On and after October 1, 2000, once
4		applicable, the requirement of the making of quarter monthly
5		payments to the Department shall continue until such taxpayer's
6		average monthly liability to the Department during the
7		preceding 4 complete calendar quarters (excluding the month of
8		highest liability and the month of lowest liability) is less
9		than $19,000 or until such taxpayer's average monthly liability
10		to the Department as computed for each calendar quarter of the
11		4 preceding complete calendar quarter period is less than
12		$20,000. However, if a taxpayer can show the Department that a
13		substantial change in the taxpayer's business has occurred
14		which causes the taxpayer to anticipate that his average
15		monthly tax liability for the reasonably foreseeable future
16		will fall below the $20,000 threshold stated above, then such
17		taxpayer may petition the Department for a change in such
18		taxpayer's reporting status. The Department shall change such
19		taxpayer's reporting status unless it finds that such change is
20		seasonal in nature and not likely to be long term. If any such
21		quarter monthly payment is not paid at the time or in the
22		amount required by this Section, then the taxpayer shall be
23		liable for penalties and interest on the difference between the
24		minimum amount due and the amount of such quarter monthly
25		payment actually and timely paid, except insofar as the
26		taxpayer has previously made payments for that month to the

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1		Department in excess of the minimum payments previously due as
2		provided in this Section. The Department shall make reasonable
3		rules and regulations to govern the quarter monthly payment
4		amount and quarter monthly payment dates for taxpayers who file
5		on other than a calendar monthly basis.
6		If any such payment provided for in this Section exceeds
7		the taxpayer's liabilities under this Act, the Retailers'
8		Occupation Tax Act, the Service Occupation Tax Act and the
9		Service Use Tax Act, as shown by an original monthly return,
10		the Department shall issue to the taxpayer a credit memorandum
11		no later than 30 days after the date of payment, which
12		memorandum may be submitted by the taxpayer to the Department
13		in payment of tax liability subsequently to be remitted by the
14		taxpayer to the Department or be assigned by the taxpayer to a
15		similar taxpayer under this Act, the Retailers' Occupation Tax
16		Act, the Service Occupation Tax Act or the Service Use Tax Act,
17		in accordance with reasonable rules and regulations to be
18		prescribed by the Department, except that if such excess
19		payment is shown on an original monthly return and is made
20		after December 31, 1986, no credit memorandum shall be issued,
21		unless requested by the taxpayer. If no such request is made,
22		the taxpayer may credit such excess payment against tax
23		liability subsequently to be remitted by the taxpayer to the
24		Department under this Act, the Retailers' Occupation Tax Act,
25		the Service Occupation Tax Act or the Service Use Tax Act, in
26		accordance with reasonable rules and regulations prescribed by

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1		the Department. If the Department subsequently determines that
2		all or any part of the credit taken was not actually due to the
3		taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
4		be reduced by 2.1% or 1.75% of the difference between the
5		credit taken and that actually due, and the taxpayer shall be
6		liable for penalties and interest on such difference.
7		If the retailer is otherwise required to file a monthly
8		return and if the retailer's average monthly tax liability to
9		the Department does not exceed $200, the Department may
10		authorize his returns to be filed on a quarter annual basis,
11		with the return for January, February, and March of a given
12		year being due by April 20 of such year; with the return for
13		April, May and June of a given year being due by July 20 of such
14		year; with the return for July, August and September of a given
15		year being due by October 20 of such year, and with the return
16		for October, November and December of a given year being due by
17		January 20 of the following year.
18		If the retailer is otherwise required to file a monthly or
19		quarterly return and if the retailer's average monthly tax
20		liability to the Department does not exceed $50, the Department
21		may authorize his returns to be filed on an annual basis, with
22		the return for a given year being due by January 20 of the
23		following year.
24		Such quarter annual and annual returns, as to form and
25		substance, shall be subject to the same requirements as monthly
26		returns.

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1		Notwithstanding any other provision in this Act concerning
2		the time within which a retailer may file his return, in the
3		case of any retailer who ceases to engage in a kind of business
4		which makes him responsible for filing returns under this Act,
5		such retailer shall file a final return under this Act with the
6		Department not more than one month after discontinuing such
7		business.
8		In addition, with respect to motor vehicles, watercraft,
9		aircraft, and trailers that are required to be registered with
10		an agency of this State, except as otherwise provided in this
11		Section, every retailer selling this kind of tangible personal
12		property shall file, with the Department, upon a form to be
13		prescribed and supplied by the Department, a separate return
14		for each such item of tangible personal property which the
15		retailer sells, except that if, in the same transaction, (i) a
16		retailer of aircraft, watercraft, motor vehicles or trailers
17		transfers more than one aircraft, watercraft, motor vehicle or
18		trailer to another aircraft, watercraft, motor vehicle or
19		trailer retailer for the purpose of resale or (ii) a retailer
20		of aircraft, watercraft, motor vehicles, or trailers transfers
21		more than one aircraft, watercraft, motor vehicle, or trailer
22		to a purchaser for use as a qualifying rolling stock as
23		provided in Section 3-55 of this Act, then that seller may
24		report the transfer of all the aircraft, watercraft, motor
25		vehicles or trailers involved in that transaction to the
26		Department on the same uniform invoice-transaction reporting

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1		return form. For purposes of this Section, "watercraft" means a
2		Class 2, Class 3, or Class 4 watercraft as defined in Section
3		3-2 of the Boat Registration and Safety Act, a personal
4		watercraft, or any boat equipped with an inboard motor.
5		In addition, with respect to motor vehicles, watercraft,
6		aircraft, and trailers that are required to be registered with
7		an agency of this State, every person who is engaged in the
8		business of leasing or renting such items and who, in
9		connection with such business, sells any such item to a
10		retailer for the purpose of resale is, notwithstanding any
11		other provision of this Section to the contrary, authorized to
12		meet the return-filing requirement of this Act by reporting the
13		transfer of all the aircraft, watercraft, motor vehicles, or
14		trailers transferred for resale during a month to the
15		Department on the same uniform invoice-transaction reporting
16		return form on or before the 20th of the month following the
17		month in which the transfer takes place. Notwithstanding any
18		other provision of this Act to the contrary, all returns filed
19		under this paragraph must be filed by electronic means in the
20		manner and form as required by the Department.
21		The transaction reporting return in the case of motor
22		vehicles or trailers that are required to be registered with an
23		agency of this State, shall be the same document as the Uniform
24		Invoice referred to in Section 5-402 of the Illinois Vehicle
25		Code and must show the name and address of the seller; the name
26		and address of the purchaser; the amount of the selling price

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1		including the amount allowed by the retailer for traded-in
2		property, if any; the amount allowed by the retailer for the
3		traded-in tangible personal property, if any, to the extent to
4		which Section 2 of this Act allows an exemption for the value
5		of traded-in property; the balance payable after deducting such
6		trade-in allowance from the total selling price; the amount of
7		tax due from the retailer with respect to such transaction; the
8		amount of tax collected from the purchaser by the retailer on
9		such transaction (or satisfactory evidence that such tax is not
10		due in that particular instance, if that is claimed to be the
11		fact); the place and date of the sale; a sufficient
12		identification of the property sold; such other information as
13		is required in Section 5-402 of the Illinois Vehicle Code, and
14		such other information as the Department may reasonably
15		require.
16		The transaction reporting return in the case of watercraft
17		and aircraft must show the name and address of the seller; the
18		name and address of the purchaser; the amount of the selling
19		price including the amount allowed by the retailer for
20		traded-in property, if any; the amount allowed by the retailer
21		for the traded-in tangible personal property, if any, to the
22		extent to which Section 2 of this Act allows an exemption for
23		the value of traded-in property; the balance payable after
24		deducting such trade-in allowance from the total selling price;
25		the amount of tax due from the retailer with respect to such
26		transaction; the amount of tax collected from the purchaser by

HB1438 Enrolled - 440 - LRB101 04919 JRG 49928 b
1		the retailer on such transaction (or satisfactory evidence that
2		such tax is not due in that particular instance, if that is
3		claimed to be the fact); the place and date of the sale, a
4		sufficient identification of the property sold, and such other
5		information as the Department may reasonably require.
6		Such transaction reporting return shall be filed not later
7		than 20 days after the date of delivery of the item that is
8		being sold, but may be filed by the retailer at any time sooner
9		than that if he chooses to do so. The transaction reporting
10		return and tax remittance or proof of exemption from the tax
11		that is imposed by this Act may be transmitted to the
12		Department by way of the State agency with which, or State
13		officer with whom, the tangible personal property must be
14		titled or registered (if titling or registration is required)
15		if the Department and such agency or State officer determine
16		that this procedure will expedite the processing of
17		applications for title or registration.
18		With each such transaction reporting return, the retailer
19		shall remit the proper amount of tax due (or shall submit
20		satisfactory evidence that the sale is not taxable if that is
21		the case), to the Department or its agents, whereupon the
22		Department shall issue, in the purchaser's name, a tax receipt
23		(or a certificate of exemption if the Department is satisfied
24		that the particular sale is tax exempt) which such purchaser
25		may submit to the agency with which, or State officer with
26		whom, he must title or register the tangible personal property

HB1438 Enrolled - 441 - LRB101 04919 JRG 49928 b
1		that is involved (if titling or registration is required) in
2		support of such purchaser's application for an Illinois
3		certificate or other evidence of title or registration to such
4		tangible personal property.
5		No retailer's failure or refusal to remit tax under this
6		Act precludes a user, who has paid the proper tax to the
7		retailer, from obtaining his certificate of title or other
8		evidence of title or registration (if titling or registration
9		is required) upon satisfying the Department that such user has
10		paid the proper tax (if tax is due) to the retailer. The
11		Department shall adopt appropriate rules to carry out the
12		mandate of this paragraph.
13		If the user who would otherwise pay tax to the retailer
14		wants the transaction reporting return filed and the payment of
15		tax or proof of exemption made to the Department before the
16		retailer is willing to take these actions and such user has not
17		paid the tax to the retailer, such user may certify to the fact
18		of such delay by the retailer, and may (upon the Department
19		being satisfied of the truth of such certification) transmit
20		the information required by the transaction reporting return
21		and the remittance for tax or proof of exemption directly to
22		the Department and obtain his tax receipt or exemption
23		determination, in which event the transaction reporting return
24		and tax remittance (if a tax payment was required) shall be
25		credited by the Department to the proper retailer's account
26		with the Department, but without the 2.1% or 1.75% discount

HB1438 Enrolled - 442 - LRB101 04919 JRG 49928 b
1		provided for in this Section being allowed. When the user pays
2		the tax directly to the Department, he shall pay the tax in the
3		same amount and in the same form in which it would be remitted
4		if the tax had been remitted to the Department by the retailer.
5		Where a retailer collects the tax with respect to the
6		selling price of tangible personal property which he sells and
7		the purchaser thereafter returns such tangible personal
8		property and the retailer refunds the selling price thereof to
9		the purchaser, such retailer shall also refund, to the
10		purchaser, the tax so collected from the purchaser. When filing
11		his return for the period in which he refunds such tax to the
12		purchaser, the retailer may deduct the amount of the tax so
13		refunded by him to the purchaser from any other use tax which
14		such retailer may be required to pay or remit to the
15		Department, as shown by such return, if the amount of the tax
16		to be deducted was previously remitted to the Department by
17		such retailer. If the retailer has not previously remitted the
18		amount of such tax to the Department, he is entitled to no
19		deduction under this Act upon refunding such tax to the
20		purchaser.
21		Any retailer filing a return under this Section shall also
22		include (for the purpose of paying tax thereon) the total tax
23		covered by such return upon the selling price of tangible
24		personal property purchased by him at retail from a retailer,
25		but as to which the tax imposed by this Act was not collected
26		from the retailer filing such return, and such retailer shall

HB1438 Enrolled - 443 - LRB101 04919 JRG 49928 b
1		remit the amount of such tax to the Department when filing such
2		return.
3		If experience indicates such action to be practicable, the
4		Department may prescribe and furnish a combination or joint
5		return which will enable retailers, who are required to file
6		returns hereunder and also under the Retailers' Occupation Tax
7		Act, to furnish all the return information required by both
8		Acts on the one form.
9		Where the retailer has more than one business registered
10		with the Department under separate registration under this Act,
11		such retailer may not file each return that is due as a single
12		return covering all such registered businesses, but shall file
13		separate returns for each such registered business.
14		Beginning January 1, 1990, each month the Department shall
15		pay into the State and Local Sales Tax Reform Fund, a special
16		fund in the State Treasury which is hereby created, the net
17		revenue realized for the preceding month from the 1% tax
18		imposed under this Act.
19		Beginning January 1, 1990, each month the Department shall
20		pay into the County and Mass Transit District Fund 4% of the
21		net revenue realized for the preceding month from the 6.25%
22		general rate on the selling price of tangible personal property
23		which is purchased outside Illinois at retail from a retailer
24		and which is titled or registered by an agency of this State's
25		government.
26		Beginning January 1, 1990, each month the Department shall

HB1438 Enrolled - 444 - LRB101 04919 JRG 49928 b
1		pay into the State and Local Sales Tax Reform Fund, a special
2		fund in the State Treasury, 20% of the net revenue realized for
3		the preceding month from the 6.25% general rate on the selling
4		price of tangible personal property, other than tangible
5		personal property which is purchased outside Illinois at retail
6		from a retailer and which is titled or registered by an agency
7		of this State's government.
8		Beginning August 1, 2000, each month the Department shall
9		pay into the State and Local Sales Tax Reform Fund 100% of the
10		net revenue realized for the preceding month from the 1.25%
11		rate on the selling price of motor fuel and gasohol. Beginning
12		September 1, 2010, each month the Department shall pay into the
13		State and Local Sales Tax Reform Fund 100% of the net revenue
14		realized for the preceding month from the 1.25% rate on the
15		selling price of sales tax holiday items.
16		Beginning January 1, 1990, each month the Department shall
17		pay into the Local Government Tax Fund 16% of the net revenue
18		realized for the preceding month from the 6.25% general rate on
19		the selling price of tangible personal property which is
20		purchased outside Illinois at retail from a retailer and which
21		is titled or registered by an agency of this State's
22		government.
23		Beginning October 1, 2009, each month the Department shall
24		pay into the Capital Projects Fund an amount that is equal to
25		an amount estimated by the Department to represent 80% of the
26		net revenue realized for the preceding month from the sale of

HB1438 Enrolled - 445 - LRB101 04919 JRG 49928 b
1		candy, grooming and hygiene products, and soft drinks that had
2		been taxed at a rate of 1% prior to September 1, 2009 but that
3		are now taxed at 6.25%.
4		Beginning July 1, 2011, each month the Department shall pay
5		into the Clean Air Act Permit Fund 80% of the net revenue
6		realized for the preceding month from the 6.25% general rate on
7		the selling price of sorbents used in Illinois in the process
8		of sorbent injection as used to comply with the Environmental
9		Protection Act or the federal Clean Air Act, but the total
10		payment into the Clean Air Act Permit Fund under this Act and
11		the Retailers' Occupation Tax Act shall not exceed $2,000,000
12		in any fiscal year.
13		Beginning July 1, 2013, each month the Department shall pay
14		into the Underground Storage Tank Fund from the proceeds
15		collected under this Act, the Service Use Tax Act, the Service
16		Occupation Tax Act, and the Retailers' Occupation Tax Act an
17		amount equal to the average monthly deficit in the Underground
18		Storage Tank Fund during the prior year, as certified annually
19		by the Illinois Environmental Protection Agency, but the total
20		payment into the Underground Storage Tank Fund under this Act,
21		the Service Use Tax Act, the Service Occupation Tax Act, and
22		the Retailers' Occupation Tax Act shall not exceed $18,000,000
23		in any State fiscal year. As used in this paragraph, the
24		"average monthly deficit" shall be equal to the difference
25		between the average monthly claims for payment by the fund and
26		the average monthly revenues deposited into the fund, excluding

HB1438 Enrolled - 446 - LRB101 04919 JRG 49928 b
1		payments made pursuant to this paragraph.
2		Beginning July 1, 2015, of the remainder of the moneys
3		received by the Department under this Act, the Service Use Tax
4		Act, the Service Occupation Tax Act, and the Retailers'
5		Occupation Tax Act, each month the Department shall deposit
6		$500,000 into the State Crime Laboratory Fund.
7		Of the remainder of the moneys received by the Department
8		pursuant to this Act, (a) 1.75% thereof shall be paid into the
9		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10		and after July 1, 1989, 3.8% thereof shall be paid into the
11		Build Illinois Fund; provided, however, that if in any fiscal
12		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13		may be, of the moneys received by the Department and required
14		to be paid into the Build Illinois Fund pursuant to Section 3
15		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17		Service Occupation Tax Act, such Acts being hereinafter called
18		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19		may be, of moneys being hereinafter called the "Tax Act
20		Amount", and (2) the amount transferred to the Build Illinois
21		Fund from the State and Local Sales Tax Reform Fund shall be
22		less than the Annual Specified Amount (as defined in Section 3
23		of the Retailers' Occupation Tax Act), an amount equal to the
24		difference shall be immediately paid into the Build Illinois
25		Fund from other moneys received by the Department pursuant to
26		the Tax Acts; and further provided, that if on the last

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1		business day of any month the sum of (1) the Tax Act Amount
2		required to be deposited into the Build Illinois Bond Account
3		in the Build Illinois Fund during such month and (2) the amount
4		transferred during such month to the Build Illinois Fund from
5		the State and Local Sales Tax Reform Fund shall have been less
6		than 1/12 of the Annual Specified Amount, an amount equal to
7		the difference shall be immediately paid into the Build
8		Illinois Fund from other moneys received by the Department
9		pursuant to the Tax Acts; and, further provided, that in no
10		event shall the payments required under the preceding proviso
11		result in aggregate payments into the Build Illinois Fund
12		pursuant to this clause (b) for any fiscal year in excess of
13		the greater of (i) the Tax Act Amount or (ii) the Annual
14		Specified Amount for such fiscal year; and, further provided,
15		that the amounts payable into the Build Illinois Fund under
16		this clause (b) shall be payable only until such time as the
17		aggregate amount on deposit under each trust indenture securing
18		Bonds issued and outstanding pursuant to the Build Illinois
19		Bond Act is sufficient, taking into account any future
20		investment income, to fully provide, in accordance with such
21		indenture, for the defeasance of or the payment of the
22		principal of, premium, if any, and interest on the Bonds
23		secured by such indenture and on any Bonds expected to be
24		issued thereafter and all fees and costs payable with respect
25		thereto, all as certified by the Director of the Bureau of the
26		Budget (now Governor's Office of Management and Budget). If on

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1		the last business day of any month in which Bonds are
2		outstanding pursuant to the Build Illinois Bond Act, the
3		aggregate of the moneys deposited in the Build Illinois Bond
4		Account in the Build Illinois Fund in such month shall be less
5		than the amount required to be transferred in such month from
6		the Build Illinois Bond Account to the Build Illinois Bond
7		Retirement and Interest Fund pursuant to Section 13 of the
8		Build Illinois Bond Act, an amount equal to such deficiency
9		shall be immediately paid from other moneys received by the
10		Department pursuant to the Tax Acts to the Build Illinois Fund;
11		provided, however, that any amounts paid to the Build Illinois
12		Fund in any fiscal year pursuant to this sentence shall be
13		deemed to constitute payments pursuant to clause (b) of the
14		preceding sentence and shall reduce the amount otherwise
15		payable for such fiscal year pursuant to clause (b) of the
16		preceding sentence. The moneys received by the Department
17		pursuant to this Act and required to be deposited into the
18		Build Illinois Fund are subject to the pledge, claim and charge
19		set forth in Section 12 of the Build Illinois Bond Act.
20		Subject to payment of amounts into the Build Illinois Fund
21		as provided in the preceding paragraph or in any amendment
22		thereto hereafter enacted, the following specified monthly
23		installment of the amount requested in the certificate of the
24		Chairman of the Metropolitan Pier and Exposition Authority
25		provided under Section 8.25f of the State Finance Act, but not
26		in excess of the sums designated as "Total Deposit", shall be

HB1438 Enrolled - 449 - LRB101 04919 JRG 49928 b
1		deposited in the aggregate from collections under Section 9 of
2		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
3		9 of the Service Occupation Tax Act, and Section 3 of the
4		Retailers' Occupation Tax Act into the McCormick Place
5		Expansion Project Fund in the specified fiscal years.
6 Fiscal Year Total Deposit 7 1993 $0 8 1994 53,000,000 9 1995 58,000,000 10 1996 61,000,000 11 1997 64,000,000 12 1998 68,000,000 13 1999 71,000,000 14 2000 75,000,000 15 2001 80,000,000 16 2002 93,000,000 17 2003 99,000,000 18 2004 103,000,000 19 2005 108,000,000 20 2006 113,000,000 21 2007 119,000,000 22 2008 126,000,000 23 2009 132,000,000 24 2010 139,000,000 25 2011 146,000,000 26 2012 153,000,000

HB1438 Enrolled - 450 - LRB101 04919 JRG 49928 b

1 2013 161,000,000 2 2014 170,000,000 3 2015 179,000,000 4 2016 189,000,000 5 2017 199,000,000 6 2018 210,000,000 7 2019 221,000,000 8 2020 233,000,000 9 2021 246,000,000 10 2022 260,000,000 11 2023 275,000,000 12 2024 275,000,000 13 2025 275,000,000 14 2026 279,000,000 15 2027 292,000,000 16 2028 307,000,000 17 2029 322,000,000 18 2030 338,000,000 19 2031 350,000,000 20 2032 350,000,000 21 and 22 each fiscal year 23 thereafter that bonds 24 are outstanding under 25 Section 13.2 of the 26 Metropolitan Pier and

HB1438 Enrolled - 451 - LRB101 04919 JRG 49928 b
1 Exposition Authority Act, 2 but not after fiscal year 2060.
3		Beginning July 20, 1993 and in each month of each fiscal
4		year thereafter, one-eighth of the amount requested in the
5		certificate of the Chairman of the Metropolitan Pier and
6		Exposition Authority for that fiscal year, less the amount
7		deposited into the McCormick Place Expansion Project Fund by
8		the State Treasurer in the respective month under subsection
9		(g) of Section 13 of the Metropolitan Pier and Exposition
10		Authority Act, plus cumulative deficiencies in the deposits
11		required under this Section for previous months and years,
12		shall be deposited into the McCormick Place Expansion Project
13		Fund, until the full amount requested for the fiscal year, but
14		not in excess of the amount specified above as "Total Deposit",
15		has been deposited.
16		Subject to payment of amounts into the Build Illinois Fund
17		and the McCormick Place Expansion Project Fund pursuant to the
18		preceding paragraphs or in any amendments thereto hereafter
19		enacted, beginning July 1, 1993 and ending on September 30,
20		2013, the Department shall each month pay into the Illinois Tax
21		Increment Fund 0.27% of 80% of the net revenue realized for the
22		preceding month from the 6.25% general rate on the selling
23		price of tangible personal property.
24		Subject to payment of amounts into the Build Illinois Fund
25		and the McCormick Place Expansion Project Fund pursuant to the
26		preceding paragraphs or in any amendments thereto hereafter

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1		enacted, beginning with the receipt of the first report of
2		taxes paid by an eligible business and continuing for a 25-year
3		period, the Department shall each month pay into the Energy
4		Infrastructure Fund 80% of the net revenue realized from the
5		6.25% general rate on the selling price of Illinois-mined coal
6		that was sold to an eligible business. For purposes of this
7		paragraph, the term "eligible business" means a new electric
8		generating facility certified pursuant to Section 605-332 of
9		the Department of Commerce and Economic Opportunity Law of the
10		Civil Administrative Code of Illinois.
11		Subject to payment of amounts into the Build Illinois Fund,
12		the McCormick Place Expansion Project Fund, the Illinois Tax
13		Increment Fund, and the Energy Infrastructure Fund pursuant to
14		the preceding paragraphs or in any amendments to this Section
15		hereafter enacted, beginning on the first day of the first
16		calendar month to occur on or after August 26, 2014 (the
17		effective date of Public Act 98-1098), each month, from the
18		collections made under Section 9 of the Use Tax Act, Section 9
19		of the Service Use Tax Act, Section 9 of the Service Occupation
20		Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
21		the Department shall pay into the Tax Compliance and
22		Administration Fund, to be used, subject to appropriation, to
23		fund additional auditors and compliance personnel at the
24		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
25		the cash receipts collected during the preceding fiscal year by
26		the Audit Bureau of the Department under the Use Tax Act, the

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1		Service Use Tax Act, the Service Occupation Tax Act, the
2		Retailers' Occupation Tax Act, and associated local occupation
3		and use taxes administered by the Department.
4		Subject to payments of amounts into the Build Illinois
5		Fund, the McCormick Place Expansion Project Fund, the Illinois
6		Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
7		Compliance and Administration Fund as provided in this Section,
8		beginning on July 1, 2018 the Department shall pay each month
9		into the Downstate Public Transportation Fund the moneys
10		required to be so paid under Section 2-3 of the Downstate
11		Public Transportation Act.
12		Of the remainder of the moneys received by the Department
13		pursuant to this Act, 75% thereof shall be paid into the State
14		Treasury and 25% shall be reserved in a special account and
15		used only for the transfer to the Common School Fund as part of
16		the monthly transfer from the General Revenue Fund in
17		accordance with Section 8a of the State Finance Act.
18		As soon as possible after the first day of each month, upon
19		certification of the Department of Revenue, the Comptroller
20		shall order transferred and the Treasurer shall transfer from
21		the General Revenue Fund to the Motor Fuel Tax Fund an amount
22		equal to 1.7% of 80% of the net revenue realized under this Act
23		for the second preceding month. Beginning April 1, 2000, this
24		transfer is no longer required and shall not be made.
25		Net revenue realized for a month shall be the revenue
26		collected by the State pursuant to this Act, less the amount

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1		paid out during that month as refunds to taxpayers for
2		overpayment of liability.
3		For greater simplicity of administration, manufacturers,
4		importers and wholesalers whose products are sold at retail in
5		Illinois by numerous retailers, and who wish to do so, may
6		assume the responsibility for accounting and paying to the
7		Department all tax accruing under this Act with respect to such
8		sales, if the retailers who are affected do not make written
9		objection to the Department to this arrangement.
10		(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
11		99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
12		7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
13		Section 900-17. The Service Use Tax Act is amended by
14		changing Section 9 as follows:
15		(35 ILCS 110/9) (from Ch. 120, par. 439.39)
16		Sec. 9. Each serviceman required or authorized to collect
17		the tax herein imposed shall pay to the Department the amount
18		of such tax (except as otherwise provided) at the time when he
19		is required to file his return for the period during which such
20		tax was collected, less a discount of 2.1% prior to January 1,
21		1990 and 1.75% on and after January 1, 1990, or $5 per calendar
22		year, whichever is greater, which is allowed to reimburse the
23		serviceman for expenses incurred in collecting the tax, keeping
24		records, preparing and filing returns, remitting the tax and

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1		supplying data to the Department on request. The discount
2		allowed under this Section is allowed only for returns that are
3		filed in the manner required by this Act. The Department may
4		disallow the discount for servicemen whose certificate of
5		registration is revoked at the time the return is filed, but
6		only if the Department's decision to revoke the certificate of
7		registration has become final. A serviceman need not remit that
8		part of any tax collected by him to the extent that he is
9		required to pay and does pay the tax imposed by the Service
10		Occupation Tax Act with respect to his sale of service
11		involving the incidental transfer by him of the same property.
12		Except as provided hereinafter in this Section, on or
13		before the twentieth day of each calendar month, such
14		serviceman shall file a return for the preceding calendar month
15		in accordance with reasonable Rules and Regulations to be
16		promulgated by the Department. Such return shall be filed on a
17		form prescribed by the Department and shall contain such
18		information as the Department may reasonably require. On and
19		after January 1, 2018, with respect to servicemen whose annual
20		gross receipts average $20,000 or more, all returns required to
21		be filed pursuant to this Act shall be filed electronically.
22		Servicemen who demonstrate that they do not have access to the
23		Internet or demonstrate hardship in filing electronically may
24		petition the Department to waive the electronic filing
25		requirement.
26		The Department may require returns to be filed on a

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1		quarterly basis. If so required, a return for each calendar
2		quarter shall be filed on or before the twentieth day of the
3		calendar month following the end of such calendar quarter. The
4		taxpayer shall also file a return with the Department for each
5		of the first two months of each calendar quarter, on or before
6		the twentieth day of the following calendar month, stating:
7		1. The name of the seller;
8		2. The address of the principal place of business from
9		which he engages in business as a serviceman in this State;
10		3. The total amount of taxable receipts received by him
11		during the preceding calendar month, including receipts
12		from charge and time sales, but less all deductions allowed
13		by law;
14		4. The amount of credit provided in Section 2d of this
15		Act;
16		5. The amount of tax due;
17		5-5. The signature of the taxpayer; and
18		6. Such other reasonable information as the Department
19		may require.
20		If a taxpayer fails to sign a return within 30 days after
21		the proper notice and demand for signature by the Department,
22		the return shall be considered valid and any amount shown to be
23		due on the return shall be deemed assessed.
24		Notwithstanding any other provision of this Act to the
25		contrary, servicemen subject to tax on cannabis shall file all
26		cannabis tax returns and shall make all cannabis tax payments

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1		by electronic means in the manner and form required by the
2		Department.
3		Beginning October 1, 1993, a taxpayer who has an average
4		monthly tax liability of $150,000 or more shall make all
5		payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1994, a taxpayer who has
7		an average monthly tax liability of $100,000 or more shall make
8		all payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 1995, a taxpayer who has
10		an average monthly tax liability of $50,000 or more shall make
11		all payments required by rules of the Department by electronic
12		funds transfer. Beginning October 1, 2000, a taxpayer who has
13		an annual tax liability of $200,000 or more shall make all
14		payments required by rules of the Department by electronic
15		funds transfer. The term "annual tax liability" shall be the
16		sum of the taxpayer's liabilities under this Act, and under all
17		other State and local occupation and use tax laws administered
18		by the Department, for the immediately preceding calendar year.
19		The term "average monthly tax liability" means the sum of the
20		taxpayer's liabilities under this Act, and under all other
21		State and local occupation and use tax laws administered by the
22		Department, for the immediately preceding calendar year
23		divided by 12. Beginning on October 1, 2002, a taxpayer who has
24		a tax liability in the amount set forth in subsection (b) of
25		Section 2505-210 of the Department of Revenue Law shall make
26		all payments required by rules of the Department by electronic

HB1438 Enrolled - 458 - LRB101 04919 JRG 49928 b
1		funds transfer.
2		Before August 1 of each year beginning in 1993, the
3		Department shall notify all taxpayers required to make payments
4		by electronic funds transfer. All taxpayers required to make
5		payments by electronic funds transfer shall make those payments
6		for a minimum of one year beginning on October 1.
7		Any taxpayer not required to make payments by electronic
8		funds transfer may make payments by electronic funds transfer
9		with the permission of the Department.
10		All taxpayers required to make payment by electronic funds
11		transfer and any taxpayers authorized to voluntarily make
12		payments by electronic funds transfer shall make those payments
13		in the manner authorized by the Department.
14		The Department shall adopt such rules as are necessary to
15		effectuate a program of electronic funds transfer and the
16		requirements of this Section.
17		If the serviceman is otherwise required to file a monthly
18		return and if the serviceman's average monthly tax liability to
19		the Department does not exceed $200, the Department may
20		authorize his returns to be filed on a quarter annual basis,
21		with the return for January, February and March of a given year
22		being due by April 20 of such year; with the return for April,
23		May and June of a given year being due by July 20 of such year;
24		with the return for July, August and September of a given year
25		being due by October 20 of such year, and with the return for
26		October, November and December of a given year being due by

HB1438 Enrolled - 459 - LRB101 04919 JRG 49928 b
1		January 20 of the following year.
2		If the serviceman is otherwise required to file a monthly
3		or quarterly return and if the serviceman's average monthly tax
4		liability to the Department does not exceed $50, the Department
5		may authorize his returns to be filed on an annual basis, with
6		the return for a given year being due by January 20 of the
7		following year.
8		Such quarter annual and annual returns, as to form and
9		substance, shall be subject to the same requirements as monthly
10		returns.
11		Notwithstanding any other provision in this Act concerning
12		the time within which a serviceman may file his return, in the
13		case of any serviceman who ceases to engage in a kind of
14		business which makes him responsible for filing returns under
15		this Act, such serviceman shall file a final return under this
16		Act with the Department not more than 1 month after
17		discontinuing such business.
18		Where a serviceman collects the tax with respect to the
19		selling price of property which he sells and the purchaser
20		thereafter returns such property and the serviceman refunds the
21		selling price thereof to the purchaser, such serviceman shall
22		also refund, to the purchaser, the tax so collected from the
23		purchaser. When filing his return for the period in which he
24		refunds such tax to the purchaser, the serviceman may deduct
25		the amount of the tax so refunded by him to the purchaser from
26		any other Service Use Tax, Service Occupation Tax, retailers'

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1		occupation tax or use tax which such serviceman may be required
2		to pay or remit to the Department, as shown by such return,
3		provided that the amount of the tax to be deducted shall
4		previously have been remitted to the Department by such
5		serviceman. If the serviceman shall not previously have
6		remitted the amount of such tax to the Department, he shall be
7		entitled to no deduction hereunder upon refunding such tax to
8		the purchaser.
9		Any serviceman filing a return hereunder shall also include
10		the total tax upon the selling price of tangible personal
11		property purchased for use by him as an incident to a sale of
12		service, and such serviceman shall remit the amount of such tax
13		to the Department when filing such return.
14		If experience indicates such action to be practicable, the
15		Department may prescribe and furnish a combination or joint
16		return which will enable servicemen, who are required to file
17		returns hereunder and also under the Service Occupation Tax
18		Act, to furnish all the return information required by both
19		Acts on the one form.
20		Where the serviceman has more than one business registered
21		with the Department under separate registration hereunder,
22		such serviceman shall not file each return that is due as a
23		single return covering all such registered businesses, but
24		shall file separate returns for each such registered business.
25		Beginning January 1, 1990, each month the Department shall
26		pay into the State and Local Tax Reform Fund, a special fund in

HB1438 Enrolled - 461 - LRB101 04919 JRG 49928 b
1		the State Treasury, the net revenue realized for the preceding
2		month from the 1% tax imposed under this Act.
3		Beginning January 1, 1990, each month the Department shall
4		pay into the State and Local Sales Tax Reform Fund 20% of the
5		net revenue realized for the preceding month from the 6.25%
6		general rate on transfers of tangible personal property, other
7		than tangible personal property which is purchased outside
8		Illinois at retail from a retailer and which is titled or
9		registered by an agency of this State's government.
10		Beginning August 1, 2000, each month the Department shall
11		pay into the State and Local Sales Tax Reform Fund 100% of the
12		net revenue realized for the preceding month from the 1.25%
13		rate on the selling price of motor fuel and gasohol.
14		Beginning October 1, 2009, each month the Department shall
15		pay into the Capital Projects Fund an amount that is equal to
16		an amount estimated by the Department to represent 80% of the
17		net revenue realized for the preceding month from the sale of
18		candy, grooming and hygiene products, and soft drinks that had
19		been taxed at a rate of 1% prior to September 1, 2009 but that
20		are now taxed at 6.25%.
21		Beginning July 1, 2013, each month the Department shall pay
22		into the Underground Storage Tank Fund from the proceeds
23		collected under this Act, the Use Tax Act, the Service
24		Occupation Tax Act, and the Retailers' Occupation Tax Act an
25		amount equal to the average monthly deficit in the Underground
26		Storage Tank Fund during the prior year, as certified annually

HB1438 Enrolled - 462 - LRB101 04919 JRG 49928 b
1		by the Illinois Environmental Protection Agency, but the total
2		payment into the Underground Storage Tank Fund under this Act,
3		the Use Tax Act, the Service Occupation Tax Act, and the
4		Retailers' Occupation Tax Act shall not exceed $18,000,000 in
5		any State fiscal year. As used in this paragraph, the "average
6		monthly deficit" shall be equal to the difference between the
7		average monthly claims for payment by the fund and the average
8		monthly revenues deposited into the fund, excluding payments
9		made pursuant to this paragraph.
10		Beginning July 1, 2015, of the remainder of the moneys
11		received by the Department under the Use Tax Act, this Act, the
12		Service Occupation Tax Act, and the Retailers' Occupation Tax
13		Act, each month the Department shall deposit $500,000 into the
14		State Crime Laboratory Fund.
15		Of the remainder of the moneys received by the Department
16		pursuant to this Act, (a) 1.75% thereof shall be paid into the
17		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
18		and after July 1, 1989, 3.8% thereof shall be paid into the
19		Build Illinois Fund; provided, however, that if in any fiscal
20		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
21		may be, of the moneys received by the Department and required
22		to be paid into the Build Illinois Fund pursuant to Section 3
23		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
24		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
25		Service Occupation Tax Act, such Acts being hereinafter called
26		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

HB1438 Enrolled - 463 - LRB101 04919 JRG 49928 b
1		may be, of moneys being hereinafter called the "Tax Act
2		Amount", and (2) the amount transferred to the Build Illinois
3		Fund from the State and Local Sales Tax Reform Fund shall be
4		less than the Annual Specified Amount (as defined in Section 3
5		of the Retailers' Occupation Tax Act), an amount equal to the
6		difference shall be immediately paid into the Build Illinois
7		Fund from other moneys received by the Department pursuant to
8		the Tax Acts; and further provided, that if on the last
9		business day of any month the sum of (1) the Tax Act Amount
10		required to be deposited into the Build Illinois Bond Account
11		in the Build Illinois Fund during such month and (2) the amount
12		transferred during such month to the Build Illinois Fund from
13		the State and Local Sales Tax Reform Fund shall have been less
14		than 1/12 of the Annual Specified Amount, an amount equal to
15		the difference shall be immediately paid into the Build
16		Illinois Fund from other moneys received by the Department
17		pursuant to the Tax Acts; and, further provided, that in no
18		event shall the payments required under the preceding proviso
19		result in aggregate payments into the Build Illinois Fund
20		pursuant to this clause (b) for any fiscal year in excess of
21		the greater of (i) the Tax Act Amount or (ii) the Annual
22		Specified Amount for such fiscal year; and, further provided,
23		that the amounts payable into the Build Illinois Fund under
24		this clause (b) shall be payable only until such time as the
25		aggregate amount on deposit under each trust indenture securing
26		Bonds issued and outstanding pursuant to the Build Illinois

HB1438 Enrolled - 464 - LRB101 04919 JRG 49928 b
1		Bond Act is sufficient, taking into account any future
2		investment income, to fully provide, in accordance with such
3		indenture, for the defeasance of or the payment of the
4		principal of, premium, if any, and interest on the Bonds
5		secured by such indenture and on any Bonds expected to be
6		issued thereafter and all fees and costs payable with respect
7		thereto, all as certified by the Director of the Bureau of the
8		Budget (now Governor's Office of Management and Budget). If on
9		the last business day of any month in which Bonds are
10		outstanding pursuant to the Build Illinois Bond Act, the
11		aggregate of the moneys deposited in the Build Illinois Bond
12		Account in the Build Illinois Fund in such month shall be less
13		than the amount required to be transferred in such month from
14		the Build Illinois Bond Account to the Build Illinois Bond
15		Retirement and Interest Fund pursuant to Section 13 of the
16		Build Illinois Bond Act, an amount equal to such deficiency
17		shall be immediately paid from other moneys received by the
18		Department pursuant to the Tax Acts to the Build Illinois Fund;
19		provided, however, that any amounts paid to the Build Illinois
20		Fund in any fiscal year pursuant to this sentence shall be
21		deemed to constitute payments pursuant to clause (b) of the
22		preceding sentence and shall reduce the amount otherwise
23		payable for such fiscal year pursuant to clause (b) of the
24		preceding sentence. The moneys received by the Department
25		pursuant to this Act and required to be deposited into the
26		Build Illinois Fund are subject to the pledge, claim and charge

HB1438 Enrolled - 465 - LRB101 04919 JRG 49928 b
1		set forth in Section 12 of the Build Illinois Bond Act.
2		Subject to payment of amounts into the Build Illinois Fund
3		as provided in the preceding paragraph or in any amendment
4		thereto hereafter enacted, the following specified monthly
5		installment of the amount requested in the certificate of the
6		Chairman of the Metropolitan Pier and Exposition Authority
7		provided under Section 8.25f of the State Finance Act, but not
8		in excess of the sums designated as "Total Deposit", shall be
9		deposited in the aggregate from collections under Section 9 of
10		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
11		9 of the Service Occupation Tax Act, and Section 3 of the
12		Retailers' Occupation Tax Act into the McCormick Place
13		Expansion Project Fund in the specified fiscal years.
14 Fiscal Year Total Deposit 15 1993 $0 16 1994 53,000,000 17 1995 58,000,000 18 1996 61,000,000 19 1997 64,000,000 20 1998 68,000,000 21 1999 71,000,000 22 2000 75,000,000 23 2001 80,000,000 24 2002 93,000,000 25 2003 99,000,000

HB1438 Enrolled - 466 - LRB101 04919 JRG 49928 b

1 2004 103,000,000 2 2005 108,000,000 3 2006 113,000,000 4 2007 119,000,000 5 2008 126,000,000 6 2009 132,000,000 7 2010 139,000,000 8 2011 146,000,000 9 2012 153,000,000 10 2013 161,000,000 11 2014 170,000,000 12 2015 179,000,000 13 2016 189,000,000 14 2017 199,000,000 15 2018 210,000,000 16 2019 221,000,000 17 2020 233,000,000 18 2021 246,000,000 19 2022 260,000,000 20 2023 275,000,000 21 2024 275,000,000 22 2025 275,000,000 23 2026 279,000,000 24 2027 292,000,000 25 2028 307,000,000 26 2029 322,000,000

HB1438 Enrolled - 467 - LRB101 04919 JRG 49928 b
1 2030 338,000,000 2 2031 350,000,000 3 2032 350,000,000 4 and 5 each fiscal year 6 thereafter that bonds 7 are outstanding under 8 Section 13.2 of the 9 Metropolitan Pier and 10 Exposition Authority Act, 11 but not after fiscal year 2060.
12		Beginning July 20, 1993 and in each month of each fiscal
13		year thereafter, one-eighth of the amount requested in the
14		certificate of the Chairman of the Metropolitan Pier and
15		Exposition Authority for that fiscal year, less the amount
16		deposited into the McCormick Place Expansion Project Fund by
17		the State Treasurer in the respective month under subsection
18		(g) of Section 13 of the Metropolitan Pier and Exposition
19		Authority Act, plus cumulative deficiencies in the deposits
20		required under this Section for previous months and years,
21		shall be deposited into the McCormick Place Expansion Project
22		Fund, until the full amount requested for the fiscal year, but
23		not in excess of the amount specified above as "Total Deposit",
24		has been deposited.
25		Subject to payment of amounts into the Build Illinois Fund
26		and the McCormick Place Expansion Project Fund pursuant to the

HB1438 Enrolled - 468 - LRB101 04919 JRG 49928 b
1		preceding paragraphs or in any amendments thereto hereafter
2		enacted, beginning July 1, 1993 and ending on September 30,
3		2013, the Department shall each month pay into the Illinois Tax
4		Increment Fund 0.27% of 80% of the net revenue realized for the
5		preceding month from the 6.25% general rate on the selling
6		price of tangible personal property.
7		Subject to payment of amounts into the Build Illinois Fund
8		and the McCormick Place Expansion Project Fund pursuant to the
9		preceding paragraphs or in any amendments thereto hereafter
10		enacted, beginning with the receipt of the first report of
11		taxes paid by an eligible business and continuing for a 25-year
12		period, the Department shall each month pay into the Energy
13		Infrastructure Fund 80% of the net revenue realized from the
14		6.25% general rate on the selling price of Illinois-mined coal
15		that was sold to an eligible business. For purposes of this
16		paragraph, the term "eligible business" means a new electric
17		generating facility certified pursuant to Section 605-332 of
18		the Department of Commerce and Economic Opportunity Law of the
19		Civil Administrative Code of Illinois.
20		Subject to payment of amounts into the Build Illinois Fund,
21		the McCormick Place Expansion Project Fund, the Illinois Tax
22		Increment Fund, and the Energy Infrastructure Fund pursuant to
23		the preceding paragraphs or in any amendments to this Section
24		hereafter enacted, beginning on the first day of the first
25		calendar month to occur on or after August 26, 2014 (the
26		effective date of Public Act 98-1098), each month, from the

HB1438 Enrolled - 469 - LRB101 04919 JRG 49928 b
1		collections made under Section 9 of the Use Tax Act, Section 9
2		of the Service Use Tax Act, Section 9 of the Service Occupation
3		Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
4		the Department shall pay into the Tax Compliance and
5		Administration Fund, to be used, subject to appropriation, to
6		fund additional auditors and compliance personnel at the
7		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
8		the cash receipts collected during the preceding fiscal year by
9		the Audit Bureau of the Department under the Use Tax Act, the
10		Service Use Tax Act, the Service Occupation Tax Act, the
11		Retailers' Occupation Tax Act, and associated local occupation
12		and use taxes administered by the Department.
13		Subject to payments of amounts into the Build Illinois
14		Fund, the McCormick Place Expansion Project Fund, the Illinois
15		Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
16		Compliance and Administration Fund as provided in this Section,
17		beginning on July 1, 2018 the Department shall pay each month
18		into the Downstate Public Transportation Fund the moneys
19		required to be so paid under Section 2-3 of the Downstate
20		Public Transportation Act.
21		Of the remainder of the moneys received by the Department
22		pursuant to this Act, 75% thereof shall be paid into the
23		General Revenue Fund of the State Treasury and 25% shall be
24		reserved in a special account and used only for the transfer to
25		the Common School Fund as part of the monthly transfer from the
26		General Revenue Fund in accordance with Section 8a of the State

HB1438 Enrolled - 470 - LRB101 04919 JRG 49928 b
1		Finance Act.
2		As soon as possible after the first day of each month, upon
3		certification of the Department of Revenue, the Comptroller
4		shall order transferred and the Treasurer shall transfer from
5		the General Revenue Fund to the Motor Fuel Tax Fund an amount
6		equal to 1.7% of 80% of the net revenue realized under this Act
7		for the second preceding month. Beginning April 1, 2000, this
8		transfer is no longer required and shall not be made.
9		Net revenue realized for a month shall be the revenue
10		collected by the State pursuant to this Act, less the amount
11		paid out during that month as refunds to taxpayers for
12		overpayment of liability.
13		(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
14		100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
15		8-14-18; 100-1171, eff. 1-4-19.)
16		Section 900-18. The Service Occupation Tax Act is amended
17		by changing Section 9 as follows:
18		(35 ILCS 115/9) (from Ch. 120, par. 439.109)
19		Sec. 9. Each serviceman required or authorized to collect
20		the tax herein imposed shall pay to the Department the amount
21		of such tax at the time when he is required to file his return
22		for the period during which such tax was collectible, less a
23		discount of 2.1% prior to January 1, 1990, and 1.75% on and
24		after January 1, 1990, or $5 per calendar year, whichever is

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1		greater, which is allowed to reimburse the serviceman for
2		expenses incurred in collecting the tax, keeping records,
3		preparing and filing returns, remitting the tax and supplying
4		data to the Department on request. The discount allowed under
5		this Section is allowed only for returns that are filed in the
6		manner required by this Act. The Department may disallow the
7		discount for servicemen whose certificate of registration is
8		revoked at the time the return is filed, but only if the
9		Department's decision to revoke the certificate of
10		registration has become final.
11		Where such tangible personal property is sold under a
12		conditional sales contract, or under any other form of sale
13		wherein the payment of the principal sum, or a part thereof, is
14		extended beyond the close of the period for which the return is
15		filed, the serviceman, in collecting the tax may collect, for
16		each tax return period, only the tax applicable to the part of
17		the selling price actually received during such tax return
18		period.
19		Except as provided hereinafter in this Section, on or
20		before the twentieth day of each calendar month, such
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 of Revenue. Such return shall be
24		filed on a form prescribed by the Department and shall contain
25		such information as the Department may reasonably require. On
26		and after January 1, 2018, with respect to servicemen whose

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1		annual gross receipts average $20,000 or more, all returns
2		required to be filed pursuant to this Act shall be filed
3		electronically. Servicemen who demonstrate that they do not
4		have access to the Internet or demonstrate hardship in filing
5		electronically may petition the Department to waive the
6		electronic filing requirement.
7		The Department may require returns to be filed 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		4. The amount of credit provided in Section 2d of this
22		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.

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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		Prior to October 1, 2003, and on and after September 1,
11		2004 a serviceman may accept a Manufacturer's Purchase Credit
12		certification from a purchaser in satisfaction of Service Use
13		Tax as provided in Section 3-70 of the Service Use Tax Act if
14		the purchaser provides the appropriate documentation as
15		required by Section 3-70 of the Service Use Tax Act. A
16		Manufacturer's Purchase Credit certification, accepted prior
17		to October 1, 2003 or on or after September 1, 2004 by a
18		serviceman as provided in Section 3-70 of the Service Use Tax
19		Act, may be used by that serviceman to satisfy Service
20		Occupation Tax liability in the amount claimed in the
21		certification, not to exceed 6.25% of the receipts subject to
22		tax from a qualifying purchase. A Manufacturer's Purchase
23		Credit reported on any original or amended return filed under
24		this Act after October 20, 2003 for reporting periods prior to
25		September 1, 2004 shall be disallowed. Manufacturer's Purchase
26		Credit reported on annual returns due on or after January 1,

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1		2005 will be disallowed for periods prior to September 1, 2004.
2		No Manufacturer's Purchase Credit may be used after September
3		30, 2003 through August 31, 2004 to satisfy any tax liability
4		imposed under this Act, including any audit liability.
5		If the serviceman's average monthly tax liability to the
6		Department does not exceed $200, the Department may authorize
7		his returns to be filed on a quarter annual basis, with the
8		return for January, February and March of a given year being
9		due by April 20 of such year; with the return for April, May
10		and June of a given year being due by July 20 of such year; with
11		the return for July, August and September of a given year being
12		due by October 20 of such year, and with the return for
13		October, November and December of a given year being due by
14		January 20 of the following year.
15		If the serviceman's average monthly tax liability to the
16		Department does not exceed $50, the Department may authorize
17		his returns to be filed on an annual basis, with the return for
18		a given year being due by January 20 of the following year.
19		Such quarter annual and annual returns, as to form and
20		substance, shall be subject to the same requirements as monthly
21		returns.
22		Notwithstanding any other provision in this Act concerning
23		the time within which a serviceman may file his return, in the
24		case of any serviceman who ceases to engage in a kind of
25		business which makes him responsible for filing returns under
26		this Act, such serviceman shall file a final return under this

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1		Act with the Department not more than 1 month after
2		discontinuing such business.
3		Beginning October 1, 1993, a taxpayer who has an average
4		monthly tax liability of $150,000 or more shall make all
5		payments required by rules of the Department by electronic
6		funds transfer. Beginning October 1, 1994, a taxpayer who has
7		an average monthly tax liability of $100,000 or more shall make
8		all payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 1995, a taxpayer who has
10		an average monthly tax liability of $50,000 or more shall make
11		all payments required by rules of the Department by electronic
12		funds transfer. Beginning October 1, 2000, a taxpayer who has
13		an annual tax liability of $200,000 or more shall make all
14		payments required by rules of the Department by electronic
15		funds transfer. The term "annual tax liability" shall be the
16		sum of the taxpayer's liabilities under this Act, and under all
17		other State and local occupation and use tax laws administered
18		by the Department, for the immediately preceding calendar year.
19		The term "average monthly tax liability" means the sum of the
20		taxpayer's liabilities under this Act, and under all other
21		State and local occupation and use tax laws administered by the
22		Department, for the immediately preceding calendar year
23		divided by 12. Beginning on October 1, 2002, a taxpayer who has
24		a tax liability in the amount set forth in subsection (b) of
25		Section 2505-210 of the Department of Revenue Law shall make
26		all payments required by rules of the Department by electronic

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1		funds transfer.
2		Before August 1 of each year beginning in 1993, the
3		Department shall notify all taxpayers required to make payments
4		by electronic funds transfer. All taxpayers required to make
5		payments by electronic funds transfer shall make those payments
6		for a minimum of one year beginning on October 1.
7		Any taxpayer not required to make payments by electronic
8		funds transfer may make payments by electronic funds transfer
9		with the permission of the Department.
10		All taxpayers required to make payment by electronic funds
11		transfer and any taxpayers authorized to voluntarily make
12		payments by electronic funds transfer shall make those payments
13		in the manner authorized by the Department.
14		The Department shall adopt such rules as are necessary to
15		effectuate a program of electronic funds transfer and the
16		requirements of this Section.
17		Where a serviceman collects the tax with respect to the
18		selling price of tangible personal property which he sells and
19		the purchaser thereafter returns such tangible personal
20		property and the serviceman refunds the selling price thereof
21		to the purchaser, such serviceman shall also refund, to the
22		purchaser, the tax so collected from the purchaser. When filing
23		his return for the period in which he refunds such tax to the
24		purchaser, the serviceman may deduct the amount of the tax so
25		refunded by him to the purchaser from any other Service
26		Occupation Tax, Service Use Tax, Retailers' Occupation Tax or

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1		Use Tax which such serviceman may be required to pay or remit
2		to the Department, as shown by such return, provided that the
3		amount of the tax to be deducted shall previously have been
4		remitted to the Department by such serviceman. If the
5		serviceman shall not previously have remitted the amount of
6		such tax to the Department, he shall be entitled to no
7		deduction hereunder upon refunding such tax to the purchaser.
8		If experience indicates such action to be practicable, the
9		Department may prescribe and furnish a combination or joint
10		return which will enable servicemen, who are required to file
11		returns hereunder and also under the Retailers' Occupation Tax
12		Act, the Use Tax Act or the Service Use Tax Act, to furnish all
13		the return information required by all said Acts on the one
14		form.
15		Where the serviceman has more than one business registered
16		with the Department under separate registrations hereunder,
17		such serviceman shall file separate returns for each registered
18		business.
19		Beginning January 1, 1990, each month the Department shall
20		pay into the Local Government Tax Fund the revenue realized for
21		the preceding month from the 1% tax imposed under this Act.
22		Beginning January 1, 1990, each month the Department shall
23		pay into the County and Mass Transit District Fund 4% of the
24		revenue realized for the preceding month from the 6.25% general
25		rate.
26		Beginning August 1, 2000, each month the Department shall

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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.
4		Beginning January 1, 1990, each month the Department shall
5		pay into the Local Government Tax Fund 16% of the revenue
6		realized for the preceding month from the 6.25% general rate on
7		transfers of tangible personal property.
8		Beginning August 1, 2000, each month the Department shall
9		pay into the Local Government Tax Fund 80% of the net revenue
10		realized for the preceding month from the 1.25% rate on the
11		selling price of motor fuel and gasohol.
12		Beginning October 1, 2009, each month the Department shall
13		pay into the Capital Projects Fund an amount that is equal to
14		an amount estimated by the Department to represent 80% of the
15		net revenue realized for the preceding month from the sale of
16		candy, grooming and hygiene products, and soft drinks that had
17		been taxed at a rate of 1% prior to September 1, 2009 but that
18		are now taxed at 6.25%.
19		Beginning July 1, 2013, each month the Department shall pay
20		into the Underground Storage Tank Fund from the proceeds
21		collected under this Act, the Use Tax Act, the Service Use Tax
22		Act, and the Retailers' Occupation Tax Act an amount equal to
23		the average monthly deficit in the Underground Storage Tank
24		Fund during the prior year, as certified annually by the
25		Illinois Environmental Protection Agency, but the total
26		payment into the Underground Storage Tank Fund under this Act,

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1		the Use Tax Act, the Service Use Tax Act, and the Retailers'
2		Occupation Tax Act shall not exceed $18,000,000 in any State
3		fiscal year. As used in this paragraph, the "average monthly
4		deficit" shall be equal to the difference between the average
5		monthly claims for payment by the fund and the average monthly
6		revenues deposited into the fund, excluding payments made
7		pursuant to this paragraph.
8		Beginning July 1, 2015, of the remainder of the moneys
9		received by the Department under the Use Tax Act, the Service
10		Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
11		each month the Department shall deposit $500,000 into the State
12		Crime Laboratory Fund.
13		Of the remainder of the moneys received by the Department
14		pursuant to this Act, (a) 1.75% thereof shall be paid into the
15		Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
16		and after July 1, 1989, 3.8% thereof shall be paid into the
17		Build Illinois Fund; provided, however, that if in any fiscal
18		year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
19		may be, of the moneys received by the Department and required
20		to be paid into the Build Illinois Fund pursuant to Section 3
21		of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
22		Act, Section 9 of the Service Use Tax Act, and Section 9 of the
23		Service Occupation Tax Act, such Acts being hereinafter called
24		the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
25		may be, of moneys being hereinafter called the "Tax Act
26		Amount", and (2) the amount transferred to the Build Illinois

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1		Fund from the State and Local Sales Tax Reform Fund shall be
2		less than the Annual Specified Amount (as defined in Section 3
3		of the Retailers' Occupation Tax Act), an amount equal to the
4		difference shall be immediately paid into the Build Illinois
5		Fund from other moneys received by the Department pursuant to
6		the Tax Acts; and further provided, that if on the last
7		business day of any month the sum of (1) the Tax Act Amount
8		required to be deposited into the Build Illinois Account in the
9		Build Illinois Fund during such month and (2) the amount
10		transferred during such month to the Build Illinois Fund from
11		the State and Local Sales Tax Reform Fund shall have been less
12		than 1/12 of the Annual Specified Amount, an amount equal to
13		the difference shall be immediately paid into the Build
14		Illinois Fund from other moneys received by the Department
15		pursuant to the Tax Acts; and, further provided, that in no
16		event shall the payments required under the preceding proviso
17		result in aggregate payments into the Build Illinois Fund
18		pursuant to this clause (b) for any fiscal year in excess of
19		the greater of (i) the Tax Act Amount or (ii) the Annual
20		Specified Amount for such fiscal year; and, further provided,
21		that the amounts payable into the Build Illinois Fund under
22		this clause (b) shall be payable only until such time as the
23		aggregate amount on deposit under each trust indenture securing
24		Bonds issued and outstanding pursuant to the Build Illinois
25		Bond Act is sufficient, taking into account any future
26		investment income, to fully provide, in accordance with such

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1		indenture, for the defeasance of or the payment of the
2		principal of, premium, if any, and interest on the Bonds
3		secured by such indenture and on any Bonds expected to be
4		issued thereafter and all fees and costs payable with respect
5		thereto, all as certified by the Director of the Bureau of the
6		Budget (now Governor's Office of Management and Budget). If on
7		the last business day of any month in which Bonds are
8		outstanding pursuant to the Build Illinois Bond Act, the
9		aggregate of the moneys deposited in the Build Illinois Bond
10		Account in the Build Illinois Fund in such month shall be less
11		than the amount required to be transferred in such month from
12		the Build Illinois Bond Account to the Build Illinois Bond
13		Retirement and Interest Fund pursuant to Section 13 of the
14		Build Illinois Bond Act, an amount equal to such deficiency
15		shall be immediately paid from other moneys received by the
16		Department pursuant to the Tax Acts to the Build Illinois Fund;
17		provided, however, that any amounts paid to the Build Illinois
18		Fund in any fiscal year pursuant to this sentence shall be
19		deemed to constitute payments pursuant to clause (b) of the
20		preceding sentence and shall reduce the amount otherwise
21		payable for such fiscal year pursuant to clause (b) of the
22		preceding sentence. The moneys received by the Department
23		pursuant to this Act and required to be deposited into the
24		Build Illinois Fund are subject to the pledge, claim and charge
25		set forth in Section 12 of the Build Illinois Bond Act.
26		Subject to payment of amounts into the Build Illinois Fund

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1		as provided in the preceding paragraph or in any amendment
2		thereto hereafter enacted, the following specified monthly
3		installment of the amount requested in the certificate of the
4		Chairman of the Metropolitan Pier and Exposition Authority
5		provided under Section 8.25f of the State Finance Act, but not
6		in excess of the sums designated as "Total Deposit", shall be
7		deposited in the aggregate from collections under Section 9 of
8		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9		9 of the Service Occupation Tax Act, and Section 3 of the
10		Retailers' Occupation Tax Act into the McCormick Place
11		Expansion Project Fund in the specified fiscal years.
12 Fiscal Year Total Deposit 13 1993 $0 14 1994 53,000,000 15 1995 58,000,000 16 1996 61,000,000 17 1997 64,000,000 18 1998 68,000,000 19 1999 71,000,000 20 2000 75,000,000 21 2001 80,000,000 22 2002 93,000,000 23 2003 99,000,000 24 2004 103,000,000 25 2005 108,000,000

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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

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1 2032 350,000,000 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.
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 the Chairman of the Metropolitan Pier and
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.
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,

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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

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1		Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
2		the Department shall pay into the Tax Compliance and
3		Administration Fund, to be used, subject to appropriation, to
4		fund additional auditors and compliance personnel at the
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		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 the Downstate Public Transportation Fund the moneys
17		required to be so paid under Section 2-3 of the Downstate
18		Public Transportation Act.
19		Of the remainder of the moneys received by the Department
20		pursuant to this Act, 75% shall be paid into the General
21		Revenue Fund of the State Treasury and 25% shall be reserved in
22		a special account and used only for the transfer to the Common
23		School Fund as part of the monthly transfer from the General
24		Revenue Fund in accordance with Section 8a of the State Finance
25		Act.
26		The Department may, upon separate written notice to a

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1		taxpayer, require the taxpayer to prepare and file with the
2		Department on a form prescribed by the Department within not
3		less than 60 days after receipt of the notice an annual
4		information return for the tax year specified in the notice.
5		Such annual return to the Department shall include a statement
6		of gross receipts as shown by the taxpayer's last Federal
7		income tax return. If the total receipts of the business as
8		reported in the Federal income tax return do not agree with the
9		gross receipts reported to the Department of Revenue for the
10		same period, the taxpayer shall attach to his annual return a
11		schedule showing a reconciliation of the 2 amounts and the
12		reasons for the difference. The taxpayer's annual return to the
13		Department shall also disclose the cost of goods sold by the
14		taxpayer during the year covered by such return, opening and
15		closing inventories of such goods for such year, cost of goods
16		used from stock or taken from stock and given away by the
17		taxpayer during such year, pay roll information of the
18		taxpayer's business during such year and any additional
19		reasonable information which the Department deems would be
20		helpful in determining the accuracy of the monthly, quarterly
21		or annual returns filed by such taxpayer as hereinbefore
22		provided for in this Section.
23		If the annual information return required by this Section
24		is not filed when and as required, the taxpayer shall be liable
25		as follows:
26		(i) Until January 1, 1994, the taxpayer shall be liable

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1		for a penalty equal to 1/6 of 1% of the tax due from such
2		taxpayer under this Act during the period to be covered by
3		the annual return for each month or fraction of a month
4		until such return is filed as required, the penalty to be
5		assessed and collected in the same manner as any other
6		penalty provided for in this Act.
7		(ii) On and after January 1, 1994, the taxpayer shall
8		be liable for a penalty as described in Section 3-4 of the
9		Uniform Penalty and Interest Act.
10		The chief executive officer, proprietor, owner or highest
11		ranking manager shall sign the annual return to certify the
12		accuracy of the information contained therein. Any person who
13		willfully signs the annual return containing false or
14		inaccurate information shall be guilty of perjury and punished
15		accordingly. The annual return form prescribed by the
16		Department shall include a warning that the person signing the
17		return may be liable for perjury.
18		The foregoing portion of this Section concerning the filing
19		of an annual information return shall not apply to a serviceman
20		who is not required to file an income tax return with the
21		United States Government.
22		As soon as possible after the first day of each month, upon
23		certification of the Department of Revenue, the Comptroller
24		shall order transferred and the Treasurer shall transfer from
25		the General Revenue Fund to the Motor Fuel Tax Fund an amount
26		equal to 1.7% of 80% of the net revenue realized under this Act

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1		for the second preceding month. Beginning April 1, 2000, this
2		transfer is no longer required and shall not be made.
3		Net revenue realized for a month shall be the revenue
4		collected by the State pursuant to this Act, less the amount
5		paid out during that month as refunds to taxpayers for
6		overpayment of liability.
7		For greater simplicity of administration, it shall be
8		permissible for manufacturers, importers and wholesalers whose
9		products are sold by numerous servicemen in Illinois, and who
10		wish to do so, to assume the responsibility for accounting and
11		paying to the Department all tax accruing under this Act with
12		respect to such sales, if the servicemen who are affected do
13		not make written objection to the Department to this
14		arrangement.
15		(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
16		100-303, eff. 8-24-17; 100-363, eff. 7-1-18; 100-863, eff.
17		8-14-18; 100-1171, eff. 1-4-19.)
18		Section 900-19. The Retailers' Occupation Tax Act is
19		amended by changing Section 3 as follows:
20		(35 ILCS 120/3) (from Ch. 120, par. 442)
21		Sec. 3. Except as provided in this Section, on or before
22		the twentieth day of each calendar month, every person engaged
23		in the business of selling tangible personal property at retail
24		in this State during the preceding calendar month shall file a

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1		return with the Department, stating:
2		1. The name of the seller;
3		2. His residence address and the address of his
4		principal place of business and the address of the
5		principal place of business (if that is a different
6		address) from which he engages in the business of selling
7		tangible personal property at retail in this State;
8		3. Total amount of receipts received by him during the
9		preceding calendar month or quarter, as the case may be,
10		from sales of tangible personal property, and from services
11		furnished, by him during such preceding calendar month or
12		quarter;
13		4. Total amount received by him during the preceding
14		calendar month or quarter on charge and time sales of
15		tangible personal property, and from services furnished,
16		by him prior to the month or quarter for which the return
17		is filed;
18		5. Deductions allowed by law;
19		6. Gross receipts which were received by him during the
20		preceding calendar month or quarter and upon the basis of
21		which the tax is imposed;
22		7. The amount of credit provided in Section 2d of this
23		Act;
24		8. The amount of tax due;
25		9. The signature of the taxpayer; and
26		10. Such other reasonable information as the

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1		Department may require.
2		On and after January 1, 2018, except for returns for motor
3		vehicles, watercraft, aircraft, and trailers that are required
4		to be registered with an agency of this State, with respect to
5		retailers whose annual gross receipts average $20,000 or more,
6		all returns required to be filed pursuant to this Act shall be
7		filed electronically. Retailers who demonstrate that they do
8		not have access to the Internet or demonstrate hardship in
9		filing electronically may petition the Department to waive the
10		electronic filing requirement.
11		If a taxpayer fails to sign a return within 30 days after
12		the proper notice and demand for signature by the Department,
13		the return shall be considered valid and any amount shown to be
14		due on the return shall be deemed assessed.
15		Each return shall be accompanied by the statement of
16		prepaid tax issued pursuant to Section 2e for which credit is
17		claimed.
18		Prior to October 1, 2003, and on and after September 1,
19		2004 a retailer may accept a Manufacturer's Purchase Credit
20		certification from a purchaser in satisfaction of Use Tax as
21		provided in Section 3-85 of the Use Tax Act if the purchaser
22		provides the appropriate documentation as required by Section
23		3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
24		certification, accepted by a retailer prior to October 1, 2003
25		and on and after September 1, 2004 as provided in Section 3-85
26		of the Use Tax Act, may be used by that retailer to satisfy

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1		Retailers' Occupation Tax liability in the amount claimed in
2		the certification, not to exceed 6.25% of the receipts subject
3		to 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
7		Purchaser Credit reported on annual returns due on or after
8		January 1, 2005 will be disallowed for periods prior to
9		September 1, 2004. No Manufacturer's Purchase Credit may be
10		used after September 30, 2003 through August 31, 2004 to
11		satisfy any tax liability imposed under this Act, including any
12		audit liability.
13		The Department may require returns to be filed on a
14		quarterly basis. If so required, a return for each calendar
15		quarter shall be filed on or before the twentieth day of the
16		calendar month following the end of such calendar quarter. The
17		taxpayer shall also file a return with the Department for each
18		of the first two months of each calendar quarter, on or before
19		the twentieth day of the following calendar month, stating:
20		1. The name of the seller;
21		2. The address of the principal place of business from
22		which he engages in the business of selling tangible
23		personal property at retail in this State;
24		3. The total amount of taxable receipts received by him
25		during the preceding calendar month from sales of tangible
26		personal property by him during such preceding calendar

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1		month, including receipts from charge and time sales, but
2		less all deductions allowed by law;
3		4. The amount of credit provided in Section 2d of this
4		Act;
5		5. The amount of tax due; and
6		6. Such other reasonable information as the Department
7		may require.
8		Beginning on October 1, 2003, any person who is not a
9		licensed distributor, importing distributor, or manufacturer,
10		as defined in the Liquor Control Act of 1934, but is engaged in
11		the business of selling, at retail, alcoholic liquor shall file
12		a statement with the Department of Revenue, in a format and at
13		a time prescribed by the Department, showing the total amount
14		paid for alcoholic liquor purchased during the preceding month
15		and such other information as is reasonably required by the
16		Department. The Department may adopt rules to require that this
17		statement be filed in an electronic or telephonic format. Such
18		rules may provide for exceptions from the filing requirements
19		of this paragraph. For the purposes of this paragraph, the term
20		"alcoholic liquor" shall have the meaning prescribed in the
21		Liquor Control Act of 1934.
22		Beginning on October 1, 2003, every distributor, importing
23		distributor, and manufacturer of alcoholic liquor as defined in
24		the Liquor Control Act of 1934, shall file a statement with the
25		Department of Revenue, no later than the 10th day of the month
26		for the preceding month during which transactions occurred, by

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1		electronic means, showing the total amount of gross receipts
2		from the sale of alcoholic liquor sold or distributed during
3		the preceding month to purchasers; identifying the purchaser to
4		whom it was sold or distributed; the purchaser's tax
5		registration number; and such other information reasonably
6		required by the Department. A distributor, importing
7		distributor, or manufacturer of alcoholic liquor must
8		personally deliver, mail, or provide by electronic means to
9		each retailer listed on the monthly statement a report
10		containing a cumulative total of that distributor's, importing
11		distributor's, or manufacturer's total sales of alcoholic
12		liquor to that retailer no later than the 10th day of the month
13		for the preceding month during which the transaction occurred.
14		The distributor, importing distributor, or manufacturer shall
15		notify the retailer as to the method by which the distributor,
16		importing distributor, or manufacturer will provide the sales
17		information. If the retailer is unable to receive the sales
18		information by electronic means, the distributor, importing
19		distributor, or manufacturer shall furnish the sales
20		information by personal delivery or by mail. For purposes of
21		this paragraph, the term "electronic means" includes, but is
22		not limited to, the use of a secure Internet website, e-mail,
23		or facsimile.
24		If a total amount of less than $1 is payable, refundable or
25		creditable, such amount shall be disregarded if it is less than
26		50 cents and shall be increased to $1 if it is 50 cents or more.

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1		Notwithstanding any other provision of this Act to the
2		contrary, retailers subject to tax on cannabis shall file all
3		cannabis tax returns and shall make all cannabis tax payments
4		by electronic means in the manner and form required by the
5		Department.
6		Beginning October 1, 1993, a taxpayer who has an average
7		monthly tax liability of $150,000 or more shall make all
8		payments required by rules of the Department by electronic
9		funds transfer. Beginning October 1, 1994, a taxpayer who has
10		an average monthly tax liability of $100,000 or more shall make
11		all payments required by rules of the Department by electronic
12		funds transfer. Beginning October 1, 1995, a taxpayer who has
13		an average monthly tax liability of $50,000 or more shall make
14		all payments required by rules of the Department by electronic
15		funds transfer. Beginning October 1, 2000, a taxpayer who has
16		an annual tax liability of $200,000 or more shall make all
17		payments required by rules of the Department by electronic
18		funds transfer. The term "annual tax liability" shall be the
19		sum of the taxpayer's liabilities under this Act, and under all
20		other State and local occupation and use tax laws administered
21		by the Department, for the immediately preceding calendar year.
22		The term "average monthly tax liability" shall be the sum of
23		the taxpayer's liabilities under this Act, and under all other
24		State and local occupation and use tax laws administered by the
25		Department, for the immediately preceding calendar year
26		divided by 12. Beginning on October 1, 2002, a taxpayer who has

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1		a tax liability in the amount set forth in subsection (b) of
2		Section 2505-210 of the Department of Revenue Law shall make
3		all payments required by rules of the Department by electronic
4		funds transfer.
5		Before August 1 of each year beginning in 1993, the
6		Department shall notify all taxpayers required to make payments
7		by electronic funds transfer. All taxpayers required to make
8		payments by electronic funds transfer shall make those payments
9		for a minimum of one year beginning on October 1.
10		Any taxpayer not required to make payments by electronic
11		funds transfer may make payments by electronic funds transfer
12		with the permission of the Department.
13		All taxpayers required to make payment by electronic funds
14		transfer and any taxpayers authorized to voluntarily make
15		payments by electronic funds transfer shall make those payments
16		in the manner authorized by the Department.
17		The Department shall adopt such rules as are necessary to
18		effectuate a program of electronic funds transfer and the
19		requirements of this Section.
20		Any amount which is required to be shown or reported on any
21		return or other document under this Act shall, if such amount
22		is not a whole-dollar amount, be increased to the nearest
23		whole-dollar amount in any case where the fractional part of a
24		dollar is 50 cents or more, and decreased to the nearest
25		whole-dollar amount where the fractional part of a dollar is
26		less than 50 cents.

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1		If the retailer is otherwise required to file a monthly
2		return and if the retailer's average monthly tax liability to
3		the Department does not exceed $200, the Department may
4		authorize his returns to be filed on a quarter annual basis,
5		with the return for January, February and March of a given year
6		being due by April 20 of such year; with the return for April,
7		May and June of a given year being due by July 20 of such year;
8		with the return for July, August and September of a given year
9		being due by October 20 of such year, and with the return for
10		October, November and December of a given year being due by
11		January 20 of the following year.
12		If the retailer is otherwise required to file a monthly or
13		quarterly return and if the retailer's average monthly tax
14		liability with the Department does not exceed $50, the
15		Department may authorize his returns to be filed on an annual
16		basis, with the return for a given year being due by January 20
17		of the following year.
18		Such quarter annual and annual returns, as to form and
19		substance, shall be subject to the same requirements as monthly
20		returns.
21		Notwithstanding any other provision in this Act concerning
22		the time within which a retailer may file his return, in the
23		case of any retailer who ceases to engage in a kind of business
24		which makes him responsible for filing returns under this Act,
25		such retailer shall file a final return under this Act with the
26		Department not more than one month after discontinuing such

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1		business.
2		Where the same person has more than one business registered
3		with the Department under separate registrations under this
4		Act, such person may not file each return that is due as a
5		single return covering all such registered businesses, but
6		shall file separate returns for each such registered business.
7		In addition, with respect to motor vehicles, watercraft,
8		aircraft, and trailers that are required to be registered with
9		an agency of this State, except as otherwise provided in this
10		Section, every retailer selling this kind of tangible personal
11		property shall file, with the Department, upon a form to be
12		prescribed and supplied by the Department, a separate return
13		for each such item of tangible personal property which the
14		retailer sells, except that if, in the same transaction, (i) a
15		retailer of aircraft, watercraft, motor vehicles or trailers
16		transfers more than one aircraft, watercraft, motor vehicle or
17		trailer to another aircraft, watercraft, motor vehicle
18		retailer or trailer retailer for the purpose of resale or (ii)
19		a retailer of aircraft, watercraft, motor vehicles, or trailers
20		transfers more than one aircraft, watercraft, motor vehicle, or
21		trailer to a purchaser for use as a qualifying rolling stock as
22		provided in Section 2-5 of this Act, then that seller may
23		report the transfer of all aircraft, watercraft, motor vehicles
24		or trailers involved in that transaction to the Department on
25		the same uniform invoice-transaction reporting return form.
26		For purposes of this Section, "watercraft" means a Class 2,

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1		Class 3, or Class 4 watercraft as defined in Section 3-2 of the
2		Boat Registration and Safety Act, a personal watercraft, or any
3		boat equipped with an inboard motor.
4		In addition, with respect to motor vehicles, watercraft,
5		aircraft, and trailers that are required to be registered with
6		an agency of this State, every person who is engaged in the
7		business of leasing or renting such items and who, in
8		connection with such business, sells any such item to a
9		retailer for the purpose of resale is, notwithstanding any
10		other provision of this Section to the contrary, authorized to
11		meet the return-filing requirement of this Act by reporting the
12		transfer of all the aircraft, watercraft, motor vehicles, or
13		trailers transferred for resale during a month to the
14		Department on the same uniform invoice-transaction reporting
15		return form on or before the 20th of the month following the
16		month in which the transfer takes place. Notwithstanding any
17		other provision of this Act to the contrary, all returns filed
18		under this paragraph must be filed by electronic means in the
19		manner and form as required by the Department.
20		Any retailer who sells only motor vehicles, watercraft,
21		aircraft, or trailers that are required to be registered with
22		an agency of this State, so that all retailers' occupation tax
23		liability is required to be reported, and is reported, on such
24		transaction reporting returns and who is not otherwise required
25		to file monthly or quarterly returns, need not file monthly or
26		quarterly returns. However, those retailers shall be required

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1		to file returns on an annual basis.
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 1 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); the place and date of the sale; a sufficient
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 other information as the Department may reasonably
22		require.
23		The transaction reporting return in the case of watercraft
24		or 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

HB1438 Enrolled - 501 - LRB101 04919 JRG 49928 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 1 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 day 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
18		Illinois use tax may be transmitted to the Department by way of
19		the State agency with which, or State officer with whom the
20		tangible personal property must be titled or registered (if
21		titling or registration is required) if the Department and such
22		agency or State officer determine that this procedure will
23		expedite the processing of applications for title or
24		registration.
25		With each such transaction reporting return, the retailer
26		shall remit the proper amount of tax due (or shall submit

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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 use tax
4		receipt (or a certificate of exemption if the Department is
5		satisfied that the particular sale is tax exempt) which such
6		purchaser may submit to the agency with which, or State officer
7		with whom, he must title or register the tangible personal
8		property that is involved (if titling or registration is
9		required) in support of such purchaser's application for an
10		Illinois certificate or other evidence of title or registration
11		to such 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		the 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

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1		the information required by the transaction reporting return
2		and the remittance for tax or proof of exemption directly to
3		the Department and obtain his tax receipt or exemption
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.
12		Refunds made by the seller during the preceding return
13		period to purchasers, on account of tangible personal property
14		returned to the seller, shall be allowed as a deduction under
15		subdivision 5 of his monthly or quarterly return, as the case
16		may be, in case the seller had theretofore included the
17		receipts from the sale of such tangible personal property in a
18		return filed by him and had paid the tax imposed by this Act
19		with respect to such receipts.
20		Where the seller is a corporation, the return filed on
21		behalf of such corporation shall be signed by the president,
22		vice-president, secretary or treasurer or by the properly
23		accredited agent of such corporation.
24		Where the seller is a limited liability company, the return
25		filed on behalf of the limited liability company shall be
26		signed by a manager, member, or properly accredited agent of

HB1438 Enrolled - 504 - LRB101 04919 JRG 49928 b
1		the limited liability company.
2		Except as provided in this Section, the retailer filing the
3		return under this Section shall, at the time of filing such
4		return, pay to the Department the amount of tax imposed by this
5		Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
6		on and after January 1, 1990, or $5 per calendar year,
7		whichever is greater, which is allowed to reimburse the
8		retailer for the expenses incurred in keeping records,
9		preparing and filing returns, remitting the tax and supplying
10		data to the Department on request. Any prepayment made pursuant
11		to Section 2d of this Act shall be included in the amount on
12		which such 2.1% or 1.75% discount is computed. In the case of
13		retailers who report and pay the tax on a transaction by
14		transaction basis, as provided in this Section, such discount
15		shall be taken with each such tax remittance instead of when
16		such retailer files his periodic return. The discount allowed
17		under this Section is allowed only for returns that are filed
18		in the manner required by this Act. The Department may disallow
19		the discount for retailers whose certificate of registration is
20		revoked at the time the return is filed, but only if the
21		Department's decision to revoke the certificate of
22		registration has become final.
23		Before October 1, 2000, if the taxpayer's average monthly
24		tax liability to the Department under this Act, the Use Tax
25		Act, the Service Occupation Tax Act, and the Service Use Tax
26		Act, excluding any liability for prepaid sales tax to be

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1		remitted in accordance with Section 2d of this Act, was $10,000
2		or more during the preceding 4 complete calendar quarters, he
3		shall file a return with the Department each month by the 20th
4		day of the month next following the month during which such tax
5		liability is incurred and shall make payments to the Department
6		on or before the 7th, 15th, 22nd and last day of the month
7		during which such liability is incurred. On and after October
8		1, 2000, if the taxpayer's average monthly tax liability to the
9		Department under this Act, the Use Tax Act, the Service
10		Occupation Tax Act, and the Service Use Tax Act, excluding any
11		liability for prepaid sales tax to be remitted in accordance
12		with Section 2d of this Act, was $20,000 or more during the
13		preceding 4 complete calendar quarters, he shall file a return
14		with the Department each month by the 20th day of the month
15		next following the month during which such tax liability is
16		incurred and shall make payment to the Department on or before
17		the 7th, 15th, 22nd and last day of the month during which such
18		liability is incurred. If the month during which such tax
19		liability is incurred began prior to January 1, 1985, each
20		payment shall be in an amount equal to 1/4 of the taxpayer's
21		actual liability for the month or an amount set by the
22		Department not to exceed 1/4 of the average monthly liability
23		of the taxpayer to the Department for the preceding 4 complete
24		calendar quarters (excluding the month of highest liability and
25		the month of lowest liability in such 4 quarter period). If the
26		month during which such tax liability is incurred begins on or

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1		after January 1, 1985 and prior to January 1, 1987, each
2		payment shall be in an amount equal to 22.5% of the taxpayer's
3		actual liability for the month or 27.5% of the taxpayer's
4		liability for the same calendar month of the preceding year. If
5		the month during which such tax liability is incurred begins on
6		or after January 1, 1987 and prior to January 1, 1988, each
7		payment shall be in an amount equal to 22.5% of the taxpayer's
8		actual liability for the month or 26.25% of the taxpayer's
9		liability for the same calendar month of the preceding year. If
10		the month during which such tax liability is incurred begins on
11		or after January 1, 1988, and prior to January 1, 1989, or
12		begins on or after January 1, 1996, each payment shall be in an
13		amount equal to 22.5% of the taxpayer's actual liability for
14		the month or 25% of the taxpayer's liability for the same
15		calendar month of the preceding year. If the month during which
16		such tax liability is incurred begins on or after January 1,
17		1989, and prior to January 1, 1996, each payment shall be in an
18		amount equal to 22.5% of the taxpayer's actual liability for
19		the month or 25% of the taxpayer's liability for the same
20		calendar month of the preceding year or 100% of the taxpayer's
21		actual liability for the quarter monthly reporting period. The
22		amount of such quarter monthly payments shall be credited
23		against the final tax liability of the taxpayer's return for
24		that month. Before October 1, 2000, once applicable, the
25		requirement of the making of quarter monthly payments to the
26		Department by taxpayers having an average monthly tax liability

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1		of $10,000 or more as determined in the manner provided above
2		shall continue until such taxpayer's average monthly liability
3		to the Department during the preceding 4 complete calendar
4		quarters (excluding the month of highest liability and the
5		month of lowest liability) is less than $9,000, or until such
6		taxpayer's average monthly liability to the Department as
7		computed for each calendar quarter of the 4 preceding complete
8		calendar quarter period is less than $10,000. However, if a
9		taxpayer can show the Department that a substantial change in
10		the taxpayer's business has occurred which causes the taxpayer
11		to anticipate that his average monthly tax liability for the
12		reasonably foreseeable future will fall below the $10,000
13		threshold stated above, then such taxpayer may petition the
14		Department for a change in such taxpayer's reporting status. On
15		and after October 1, 2000, once applicable, the requirement of
16		the making of quarter monthly payments to the Department by
17		taxpayers having an average monthly tax liability of $20,000 or
18		more as determined in the manner provided above shall continue
19		until such taxpayer's average monthly liability to the
20		Department during the preceding 4 complete calendar quarters
21		(excluding the month of highest liability and the month of
22		lowest liability) is less than $19,000 or until such taxpayer's
23		average monthly liability to the Department as computed for
24		each calendar quarter of the 4 preceding complete calendar
25		quarter period is less than $20,000. However, if a taxpayer can
26		show the Department that a substantial change in the taxpayer's

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1		business has occurred which causes the taxpayer to anticipate
2		that his average monthly tax liability for the reasonably
3		foreseeable future will fall below the $20,000 threshold stated
4		above, then such taxpayer may petition the Department for a
5		change in such taxpayer's reporting status. The Department
6		shall change such taxpayer's reporting status unless it finds
7		that such change is seasonal in nature and not likely to be
8		long term. If any such quarter monthly payment is not paid at
9		the time or in the amount required by this Section, then the
10		taxpayer shall be liable for penalties and interest on the
11		difference between the minimum amount due as a payment and the
12		amount of such quarter monthly payment actually and timely
13		paid, except insofar as the taxpayer has previously made
14		payments for that month to the Department in excess of the
15		minimum payments previously due as provided in this Section.
16		The Department shall make reasonable rules and regulations to
17		govern the quarter monthly payment amount and quarter monthly
18		payment dates for taxpayers who file on other than a calendar
19		monthly basis.
20		The provisions of this paragraph apply before October 1,
21		2001. Without regard to whether a taxpayer is required to make
22		quarter monthly payments as specified above, any taxpayer who
23		is required by Section 2d of this Act to collect and remit
24		prepaid taxes and has collected prepaid taxes which average in
25		excess of $25,000 per month during the preceding 2 complete
26		calendar quarters, shall file a return with the Department as

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1		required by Section 2f and shall make payments to the
2		Department on or before the 7th, 15th, 22nd and last day of the
3		month during which such liability is incurred. If the month
4		during which such tax liability is incurred began prior to
5		September 1, 1985 (the effective date of Public Act 84-221),
6		each payment shall be in an amount not less than 22.5% of the
7		taxpayer's actual liability under Section 2d. If the month
8		during which such tax liability is incurred begins on or after
9		January 1, 1986, each payment shall be in an amount equal to
10		22.5% of the taxpayer's actual liability for the month or 27.5%
11		of the taxpayer's liability for the same calendar month of the
12		preceding calendar year. If the month during which such tax
13		liability is incurred begins on or after January 1, 1987, 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.
17		The amount of such quarter monthly payments shall be credited
18		against the final tax liability of the taxpayer's return for
19		that month filed under this Section or Section 2f, as the case
20		may be. Once applicable, the requirement of the making of
21		quarter monthly payments to the Department pursuant to this
22		paragraph shall continue until such taxpayer's average monthly
23		prepaid tax collections during the preceding 2 complete
24		calendar quarters is $25,000 or less. If any such quarter
25		monthly payment is not paid at the time or in the amount
26		required, the taxpayer shall be liable for penalties and

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1		interest on such difference, except insofar as the taxpayer has
2		previously made payments for that month in excess of the
3		minimum payments previously due.
4		The provisions of this paragraph apply on and after October
5		1, 2001. Without regard to whether a taxpayer is required to
6		make quarter monthly payments as specified above, any taxpayer
7		who is required by Section 2d of this Act to collect and remit
8		prepaid taxes and has collected prepaid taxes that average in
9		excess of $20,000 per month during the preceding 4 complete
10		calendar quarters shall file a return with the Department as
11		required by Section 2f and shall make payments to the
12		Department on or before the 7th, 15th, 22nd and last day of the
13		month during which the liability is incurred. Each payment
14		shall be in an amount equal to 22.5% of the taxpayer's actual
15		liability for the month or 25% of the taxpayer's liability for
16		the same calendar month of the preceding year. The amount of
17		the quarter monthly payments shall be credited against the
18		final tax liability of the taxpayer's return for that month
19		filed under this Section or Section 2f, as the case may be.
20		Once applicable, the requirement of the making of quarter
21		monthly payments to the Department pursuant to this paragraph
22		shall continue until the taxpayer's average monthly prepaid tax
23		collections during the preceding 4 complete calendar quarters
24		(excluding the month of highest liability and the month of
25		lowest liability) is less than $19,000 or until such taxpayer's
26		average monthly liability to the Department as computed for

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1		each calendar quarter of the 4 preceding complete calendar
2		quarters is less than $20,000. If any such quarter monthly
3		payment is not paid at the time or in the amount required, the
4		taxpayer shall be liable for penalties and interest on such
5		difference, except insofar as the taxpayer has previously made
6		payments for that month in excess of the minimum payments
7		previously due.
8		If any payment provided for in this Section exceeds the
9		taxpayer's liabilities under this Act, the Use Tax Act, the
10		Service Occupation Tax Act and the Service Use Tax Act, as
11		shown on an original monthly return, the Department shall, if
12		requested by the taxpayer, issue to the taxpayer a credit
13		memorandum no later than 30 days after the date of payment. The
14		credit evidenced by such credit memorandum may be assigned by
15		the taxpayer to a similar taxpayer under this Act, the Use Tax
16		Act, the Service Occupation Tax Act or the Service Use Tax Act,
17		in accordance with reasonable rules and regulations to be
18		prescribed by the Department. If no such request is made, the
19		taxpayer may credit such excess payment against tax liability
20		subsequently to be remitted to the Department under this Act,
21		the Use Tax Act, the Service Occupation Tax Act or the Service
22		Use Tax Act, in accordance with reasonable rules and
23		regulations prescribed by the Department. If the Department
24		subsequently determined that all or any part of the credit
25		taken was not actually due to the taxpayer, the taxpayer's 2.1%
26		and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%

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1		of the difference between the credit taken and that actually
2		due, and that taxpayer shall be liable for penalties and
3		interest on such difference.
4		If a retailer of motor fuel is entitled to a credit under
5		Section 2d of this Act which exceeds the taxpayer's liability
6		to the Department under this Act for the month which the
7		taxpayer is filing a return, the Department shall issue the
8		taxpayer a credit memorandum for the excess.
9		Beginning January 1, 1990, each month the Department shall
10		pay into the Local Government Tax Fund, a special fund in the
11		State treasury which is hereby created, the net revenue
12		realized for the preceding month from the 1% tax imposed under
13		this Act.
14		Beginning January 1, 1990, each month the Department shall
15		pay into the County and Mass Transit District Fund, a special
16		fund in the State treasury which is hereby created, 4% of the
17		net revenue realized for the preceding month from the 6.25%
18		general rate.
19		Beginning August 1, 2000, each month the Department shall
20		pay into the County and Mass Transit District Fund 20% of the
21		net revenue realized for the preceding month from the 1.25%
22		rate on the selling price of motor fuel and gasohol. Beginning
23		September 1, 2010, each month the Department shall pay into the
24		County and Mass Transit District Fund 20% of the net revenue
25		realized for the preceding month from the 1.25% rate on the
26		selling price of sales tax holiday items.

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1		Beginning January 1, 1990, each month the Department shall
2		pay into the Local Government Tax Fund 16% of the net revenue
3		realized for the preceding month from the 6.25% general rate on
4		the selling price of tangible personal property.
5		Beginning August 1, 2000, each month the Department shall
6		pay into the Local Government Tax Fund 80% of the net revenue
7		realized for the preceding month from the 1.25% rate on the
8		selling price of motor fuel and gasohol. Beginning September 1,
9		2010, each month the Department shall pay into the Local
10		Government Tax Fund 80% of the net revenue realized for the
11		preceding month from the 1.25% rate on the selling price of
12		sales tax holiday items.
13		Beginning October 1, 2009, each month the Department shall
14		pay into the Capital Projects Fund an amount that is equal to
15		an amount estimated by the Department to represent 80% of the
16		net revenue realized for the preceding month from the sale of
17		candy, grooming and hygiene products, and soft drinks that had
18		been taxed at a rate of 1% prior to September 1, 2009 but that
19		are now taxed at 6.25%.
20		Beginning July 1, 2011, each month the Department shall pay
21		into the Clean Air Act Permit Fund 80% of the net revenue
22		realized for the preceding month from the 6.25% general rate on
23		the selling price of sorbents used in Illinois in the process
24		of sorbent injection as used to comply with the Environmental
25		Protection Act or the federal Clean Air Act, but the total
26		payment into the Clean Air Act Permit Fund under this Act and

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1		the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
2		Beginning July 1, 2013, each month the Department shall pay
3		into the Underground Storage Tank Fund from the proceeds
4		collected under this Act, the Use Tax Act, the Service Use Tax
5		Act, and the Service Occupation Tax Act an amount equal to the
6		average monthly deficit in the Underground Storage Tank Fund
7		during the prior year, as certified annually by the Illinois
8		Environmental Protection Agency, but the total payment into the
9		Underground Storage Tank Fund under this Act, the Use Tax Act,
10		the Service Use Tax Act, and the Service Occupation Tax Act
11		shall not exceed $18,000,000 in any State fiscal year. As used
12		in this paragraph, the "average monthly deficit" shall be equal
13		to the difference between the average monthly claims for
14		payment by the fund and the average monthly revenues deposited
15		into the fund, excluding payments made pursuant to this
16		paragraph.
17		Beginning July 1, 2015, of the remainder of the moneys
18		received by the Department under the Use Tax Act, the Service
19		Use Tax Act, the Service Occupation Tax Act, and this Act, each
20		month the Department shall deposit $500,000 into the State
21		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

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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 this Act,
4		Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
5		Act, and Section 9 of the Service Occupation Tax Act, such Acts
6		being hereinafter called the "Tax Acts" and such aggregate of
7		2.2% or 3.8%, as the case may be, of moneys being hereinafter
8		called the "Tax Act Amount", and (2) the amount transferred to
9		the Build Illinois Fund from the State and Local Sales Tax
10		Reform Fund shall be less than the Annual Specified Amount (as
11		hereinafter defined), an amount equal to the difference shall
12		be immediately paid into the Build Illinois Fund from other
13		moneys received by the Department pursuant to the Tax Acts; the
14		"Annual Specified Amount" means the amounts specified below for
15		fiscal years 1986 through 1993:
16 Fiscal Year Annual Specified Amount 17 1986 $54,800,000 18 1987 $76,650,000 19 1988 $80,480,000 20 1989 $88,510,000 21 1990 $115,330,000 22 1991 $145,470,000 23 1992 $182,730,000 24 1993 $206,520,000;
25		and means the Certified Annual Debt Service Requirement (as
26		defined in Section 13 of the Build Illinois Bond Act) or the

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1		Tax Act Amount, whichever is greater, for fiscal year 1994 and
2		each fiscal year thereafter; and further provided, that if on
3		the last business day of any month the sum of (1) the Tax Act
4		Amount required to be deposited into the Build Illinois Bond
5		Account in the Build Illinois Fund during such month and (2)
6		the amount transferred to the Build Illinois Fund from the
7		State and Local Sales Tax Reform Fund shall have been less than
8		1/12 of the Annual Specified Amount, an amount equal to the
9		difference shall be immediately paid into the Build Illinois
10		Fund from other moneys received by the Department pursuant to
11		the Tax Acts; and, further provided, that in no event shall the
12		payments required under the preceding proviso result in
13		aggregate payments into the Build Illinois Fund pursuant to
14		this clause (b) for any fiscal year in excess of the greater of
15		(i) the Tax Act Amount or (ii) the Annual Specified Amount for
16		such fiscal year. The amounts payable into the Build Illinois
17		Fund under clause (b) of the first sentence in this paragraph
18		shall be payable only until such time as the aggregate amount
19		on deposit under each trust indenture securing Bonds issued and
20		outstanding pursuant to the Build Illinois Bond Act is
21		sufficient, taking into account any future investment income,
22		to fully provide, in accordance with such indenture, for the
23		defeasance of or the payment of the principal of, premium, if
24		any, and interest on the Bonds secured by such indenture and on
25		any Bonds expected to be issued thereafter and all fees and
26		costs payable with respect thereto, all as certified by the

HB1438 Enrolled - 517 - LRB101 04919 JRG 49928 b
1		Director of the Bureau of the Budget (now Governor's Office of
2		Management and Budget). If on the last business day of any
3		month in which Bonds are outstanding pursuant to the Build
4		Illinois Bond Act, the aggregate of moneys deposited in the
5		Build Illinois Bond Account in the Build Illinois Fund in such
6		month shall be less than the amount required to be transferred
7		in such month from the Build Illinois Bond Account to the Build
8		Illinois Bond Retirement and Interest Fund pursuant to Section
9		13 of the Build Illinois Bond Act, an amount equal to such
10		deficiency shall be immediately paid from other moneys received
11		by the Department pursuant to the Tax Acts to the Build
12		Illinois Fund; provided, however, that any amounts paid to the
13		Build Illinois Fund in any fiscal year pursuant to this
14		sentence shall be deemed to constitute payments pursuant to
15		clause (b) of the first sentence of this paragraph and shall
16		reduce the amount otherwise payable for such fiscal year
17		pursuant to that clause (b). The moneys received by the
18		Department pursuant to this Act and required to be deposited
19		into the Build Illinois Fund are subject to the pledge, claim
20		and charge set forth in Section 12 of the Build Illinois Bond
21		Act.
22		Subject to payment of amounts into the Build Illinois Fund
23		as provided in the preceding paragraph or in any amendment
24		thereto hereafter enacted, the following specified monthly
25		installment of the amount requested in the certificate of the
26		Chairman of the Metropolitan Pier and Exposition Authority

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1		provided under Section 8.25f of the State Finance Act, but not
2		in excess of sums designated as "Total Deposit", shall be
3		deposited in the aggregate from collections under Section 9 of
4		the Use Tax Act, Section 9 of the Service Use Tax Act, Section
5		9 of the Service Occupation Tax Act, and Section 3 of the
6		Retailers' Occupation Tax Act into the McCormick Place
7		Expansion Project Fund in the specified fiscal years.
8 Fiscal Year Total Deposit 9 1993 $0 10 1994 53,000,000 11 1995 58,000,000 12 1996 61,000,000 13 1997 64,000,000 14 1998 68,000,000 15 1999 71,000,000 16 2000 75,000,000 17 2001 80,000,000 18 2002 93,000,000 19 2003 99,000,000 20 2004 103,000,000 21 2005 108,000,000 22 2006 113,000,000 23 2007 119,000,000 24 2008 126,000,000 25 2009 132,000,000

HB1438 Enrolled - 519 - LRB101 04919 JRG 49928 b

1 2010 139,000,000 2 2011 146,000,000 3 2012 153,000,000 4 2013 161,000,000 5 2014 170,000,000 6 2015 179,000,000 7 2016 189,000,000 8 2017 199,000,000 9 2018 210,000,000 10 2019 221,000,000 11 2020 233,000,000 12 2021 246,000,000 13 2022 260,000,000 14 2023 275,000,000 15 2024 275,000,000 16 2025 275,000,000 17 2026 279,000,000 18 2027 292,000,000 19 2028 307,000,000 20 2029 322,000,000 21 2030 338,000,000 22 2031 350,000,000 23 2032 350,000,000 24 and 25 each fiscal year 26 thereafter that bonds

HB1438 Enrolled - 520 - LRB101 04919 JRG 49928 b
1 are outstanding under 2 Section 13.2 of the 3 Metropolitan Pier and 4 Exposition Authority Act, 5 but not after fiscal year 2060.
6		Beginning July 20, 1993 and in each month of each fiscal
7		year thereafter, one-eighth of the amount requested in the
8		certificate of the Chairman of the Metropolitan Pier and
9		Exposition Authority for that fiscal year, less the amount
10		deposited into the McCormick Place Expansion Project Fund by
11		the State Treasurer in the respective month under subsection
12		(g) of Section 13 of the Metropolitan Pier and Exposition
13		Authority Act, plus cumulative deficiencies in the deposits
14		required under this Section for previous months and years,
15		shall be deposited into the McCormick Place Expansion Project
16		Fund, until the full amount requested for the fiscal year, but
17		not in excess of the amount specified above as "Total Deposit",
18		has been deposited.
19		Subject to payment of amounts into the Build Illinois Fund
20		and the McCormick Place Expansion Project Fund pursuant to the
21		preceding paragraphs or in any amendments thereto hereafter
22		enacted, beginning July 1, 1993 and ending on September 30,
23		2013, the Department shall each month pay into the Illinois Tax
24		Increment Fund 0.27% of 80% of the net revenue realized for the
25		preceding month from the 6.25% general rate on the selling
26		price of tangible personal property.

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1		Subject to payment of amounts into the Build Illinois Fund
2		and the McCormick Place Expansion Project Fund pursuant to the
3		preceding paragraphs or in any amendments thereto hereafter
4		enacted, beginning with the receipt of the first report of
5		taxes paid by an eligible business and continuing for a 25-year
6		period, the Department shall each month pay into the Energy
7		Infrastructure Fund 80% of the net revenue realized from the
8		6.25% general rate on the selling price of Illinois-mined coal
9		that was sold to an eligible business. For purposes of this
10		paragraph, the term "eligible business" means a new electric
11		generating facility certified pursuant to Section 605-332 of
12		the Department of Commerce and Economic Opportunity Law of the
13		Civil Administrative Code of Illinois.
14		Subject to payment of amounts into the Build Illinois Fund,
15		the McCormick Place Expansion Project Fund, the Illinois Tax
16		Increment Fund, and the Energy Infrastructure Fund pursuant to
17		the preceding paragraphs or in any amendments to this Section
18		hereafter enacted, beginning on the first day of the first
19		calendar month to occur on or after August 26, 2014 (the
20		effective date of Public Act 98-1098), each month, from the
21		collections made under Section 9 of the Use Tax Act, Section 9
22		of the Service Use Tax Act, Section 9 of the Service Occupation
23		Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
24		the Department shall pay into the Tax Compliance and
25		Administration Fund, to be used, subject to appropriation, to
26		fund additional auditors and compliance personnel at the

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1		Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2		the cash receipts collected during the preceding fiscal year by
3		the Audit Bureau of the Department under the Use Tax Act, the
4		Service Use Tax Act, the Service Occupation Tax Act, the
5		Retailers' Occupation Tax Act, and associated local occupation
6		and use taxes administered by the Department.
7		Subject to payments of amounts into the Build Illinois
8		Fund, the McCormick Place Expansion Project Fund, the Illinois
9		Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
10		Compliance and Administration Fund as provided in this Section,
11		beginning on July 1, 2018 the Department shall pay each month
12		into the Downstate Public Transportation Fund the moneys
13		required to be so paid under Section 2-3 of the Downstate
14		Public Transportation Act.
15		Of the remainder of the moneys received by the Department
16		pursuant to this Act, 75% thereof shall be paid into the State
17		Treasury and 25% shall be reserved in a special account and
18		used only for the transfer to the Common School Fund as part of
19		the monthly transfer from the General Revenue Fund in
20		accordance with Section 8a of the State Finance Act.
21		The Department may, upon separate written notice to a
22		taxpayer, require the taxpayer to prepare and file with the
23		Department on a form prescribed by the Department within not
24		less than 60 days after receipt of the notice an annual
25		information return for the tax year specified in the notice.
26		Such annual return to the Department shall include a statement

HB1438 Enrolled - 523 - LRB101 04919 JRG 49928 b
1		of gross receipts as shown by the retailer's last Federal
2		income tax return. If the total receipts of the business as
3		reported in the Federal income tax return do not agree with the
4		gross receipts reported to the Department of Revenue for the
5		same period, the retailer shall attach to his annual return a
6		schedule showing a reconciliation of the 2 amounts and the
7		reasons for the difference. The retailer's annual return to the
8		Department shall also disclose the cost of goods sold by the
9		retailer during the year covered by such return, opening and
10		closing inventories of such goods for such year, costs of goods
11		used from stock or taken from stock and given away by the
12		retailer during such year, payroll information of the
13		retailer's business during such year and any additional
14		reasonable information which the Department deems would be
15		helpful in determining the accuracy of the monthly, quarterly
16		or annual returns filed by such retailer as provided for in
17		this Section.
18		If the annual information return required by this Section
19		is not filed when and as required, the taxpayer shall be liable
20		as follows:
21		(i) Until January 1, 1994, the taxpayer shall be liable
22		for a penalty equal to 1/6 of 1% of the tax due from such
23		taxpayer under this Act during the period to be covered by
24		the annual return for each month or fraction of a month
25		until such return is filed as required, the penalty to be
26		assessed and collected in the same manner as any other

HB1438 Enrolled - 524 - LRB101 04919 JRG 49928 b
1		penalty provided for in this Act.
2		(ii) On and after January 1, 1994, the taxpayer shall
3		be liable for a penalty as described in Section 3-4 of the
4		Uniform Penalty and Interest Act.
5		The chief executive officer, proprietor, owner or highest
6		ranking manager shall sign the annual return to certify the
7		accuracy of the information contained therein. Any person who
8		willfully signs the annual return containing false or
9		inaccurate information shall be guilty of perjury and punished
10		accordingly. The annual return form prescribed by the
11		Department shall include a warning that the person signing the
12		return may be liable for perjury.
13		The provisions of this Section concerning the filing of an
14		annual information return do not apply to a retailer who is not
15		required to file an income tax return with the United States
16		Government.
17		As soon as possible after the first day of each month, upon
18		certification of the Department of Revenue, the Comptroller
19		shall order transferred and the Treasurer shall transfer from
20		the General Revenue Fund to the Motor Fuel Tax Fund an amount
21		equal to 1.7% of 80% of the net revenue realized under this Act
22		for the second preceding month. Beginning April 1, 2000, this
23		transfer is no longer required and shall not be made.
24		Net revenue realized for a month shall be the revenue
25		collected by the State pursuant to this Act, less the amount
26		paid out during that month as refunds to taxpayers for

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1		overpayment of liability.
2		For greater simplicity of administration, manufacturers,
3		importers and wholesalers whose products are sold at retail in
4		Illinois by numerous retailers, and who wish to do so, may
5		assume the responsibility for accounting and paying to the
6		Department all tax accruing under this Act with respect to such
7		sales, if the retailers who are affected do not make written
8		objection to the Department to this arrangement.
9		Any person who promotes, organizes, provides retail
10		selling space for concessionaires or other types of sellers at
11		the Illinois State Fair, DuQuoin State Fair, county fairs,
12		local fairs, art shows, flea markets and similar exhibitions or
13		events, including any transient merchant as defined by Section
14		2 of the Transient Merchant Act of 1987, is required to file a
15		report with the Department providing the name of the merchant's
16		business, the name of the person or persons engaged in
17		merchant's business, the permanent address and Illinois
18		Retailers Occupation Tax Registration Number of the merchant,
19		the dates and location of the event and other reasonable
20		information that the Department may require. The report must be
21		filed not later than the 20th day of the month next following
22		the month during which the event with retail sales was held.
23		Any person who fails to file a report required by this Section
24		commits a business offense and is subject to a fine not to
25		exceed $250.
26		Any person engaged in the business of selling tangible

HB1438 Enrolled - 526 - LRB101 04919 JRG 49928 b
1		personal property at retail as a concessionaire or other type
2		of seller at the Illinois State Fair, county fairs, art shows,
3		flea markets and similar exhibitions or events, or any
4		transient merchants, as defined by Section 2 of the Transient
5		Merchant Act of 1987, may be required to make a daily report of
6		the amount of such sales to the Department and to make a daily
7		payment of the full amount of tax due. The Department shall
8		impose this requirement when it finds that there is a
9		significant risk of loss of revenue to the State at such an
10		exhibition or event. Such a finding shall be based on evidence
11		that a substantial number of concessionaires or other sellers
12		who are not residents of Illinois will be engaging in the
13		business of selling tangible personal property at retail at the
14		exhibition or event, or other evidence of a significant risk of
15		loss of revenue to the State. The Department shall notify
16		concessionaires and other sellers affected by the imposition of
17		this requirement. In the absence of notification by the
18		Department, the concessionaires and other sellers shall file
19		their returns as otherwise required in this Section.
20		(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
21		99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
22		7-1-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19.)
23		(35 ILCS 520/Act rep.)
24		Section 900-20. The Cannabis and Controlled Substances Tax
25		Act is repealed.

HB1438 Enrolled - 527 - LRB101 04919 JRG 49928 b
1		Section 900-22. The Illinois Police Training Act is amended
2		by changing Sections 9 and 10.12 as follows:
3		(50 ILCS 705/9) (from Ch. 85, par. 509)
4		(Text of Section before amendment by P.A. 100-987)
5		Sec. 9. A special fund is hereby established in the State
6		Treasury to be known as the Traffic and Criminal Conviction
7		Surcharge Fund and shall be financed as provided in Section 9.1
8		of this Act and Section 5-9-1 of the Unified Code of
9		Corrections, unless the fines, costs, or additional amounts
10		imposed are subject to disbursement by the circuit clerk under
11		Section 27.5 of the Clerks of Courts Act. Moneys in this Fund
12		shall be expended as follows:
13		(1) a portion of the total amount deposited in the Fund
14		may be used, as appropriated by the General Assembly, for
15		the ordinary and contingent expenses of the Illinois Law
16		Enforcement Training Standards Board;
17		(2) a portion of the total amount deposited in the Fund
18		shall be appropriated for the reimbursement of local
19		governmental agencies participating in training programs
20		certified by the Board, in an amount equaling 1/2 of the
21		total sum paid by such agencies during the State's previous
22		fiscal year for mandated training for probationary police
23		officers or probationary county corrections officers and
24		for optional advanced and specialized law enforcement or

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1		county corrections training; these reimbursements may
2		include the costs for tuition at training schools, the
3		salaries of trainees while in schools, and the necessary
4		travel and room and board expenses for each trainee; if the
5		appropriations under this paragraph (2) are not sufficient
6		to fully reimburse the participating local governmental
7		agencies, the available funds shall be apportioned among
8		such agencies, with priority first given to repayment of
9		the costs of mandatory training given to law enforcement
10		officer or county corrections officer recruits, then to
11		repayment of costs of advanced or specialized training for
12		permanent police officers or permanent county corrections
13		officers;
14		(3) a portion of the total amount deposited in the Fund
15		may be used to fund the Intergovernmental Law Enforcement
16		Officer's In-Service Training Act, veto overridden October
17		29, 1981, as now or hereafter amended, at a rate and method
18		to be determined by the board;
19		(4) a portion of the Fund also may be used by the
20		Illinois Department of State Police for expenses incurred
21		in the training of employees from any State, county or
22		municipal agency whose function includes enforcement of
23		criminal or traffic law;
24		(5) a portion of the Fund may be used by the Board to
25		fund grant-in-aid programs and services for the training of
26		employees from any county or municipal agency whose

HB1438 Enrolled - 529 - LRB101 04919 JRG 49928 b
1		functions include corrections or the enforcement of
2		criminal or traffic law;
3		(6) for fiscal years 2013 through 2017 only, a portion
4		of the Fund also may be used by the Department of State
5		Police to finance any of its lawful purposes or functions;
6		and
7		(7) a portion of the Fund may be used by the Board,
8		subject to appropriation, to administer grants to local law
9		enforcement agencies for the purpose of purchasing
10		bulletproof vests under the Law Enforcement Officer
11		Bulletproof Vest Act; and .
12		(8) a portion of the Fund may be used by the Board to
13		create a law enforcement grant program available for units
14		of local government to fund crime prevention programs,
15		training, and interdiction efforts, including enforcement
16		and prevention efforts, relating to the illegal cannabis
17		market and driving under the influence of cannabis.
18		All payments from the Traffic and Criminal Conviction
19		Surcharge Fund shall be made each year from moneys appropriated
20		for the purposes specified in this Section. No more than 50% of
21		any appropriation under this Act shall be spent in any city
22		having a population of more than 500,000. The State Comptroller
23		and the State Treasurer shall from time to time, at the
24		direction of the Governor, transfer from the Traffic and
25		Criminal Conviction Surcharge Fund to the General Revenue Fund
26		in the State Treasury such amounts as the Governor determines

HB1438 Enrolled - 530 - LRB101 04919 JRG 49928 b
1		are in excess of the amounts required to meet the obligations
2		of the Traffic and Criminal Conviction Surcharge Fund.
3		(Source: P.A. 98-24, eff. 6-19-13; 98-674, eff. 6-30-14;
4		98-743, eff. 1-1-15; 99-78, eff. 7-20-15; 99-523, eff.
5		6-30-16.)
6		(Text of Section after amendment by P.A. 100-987)
7		Sec. 9. A special fund is hereby established in the State
8		Treasury to be known as the Traffic and Criminal Conviction
9		Surcharge Fund. Moneys in this Fund shall be expended as
10		follows:
11		(1) a portion of the total amount deposited in the Fund
12		may be used, as appropriated by the General Assembly, for
13		the ordinary and contingent expenses of the Illinois Law
14		Enforcement Training Standards Board;
15		(2) a portion of the total amount deposited in the Fund
16		shall be appropriated for the reimbursement of local
17		governmental agencies participating in training programs
18		certified by the Board, in an amount equaling 1/2 of the
19		total sum paid by such agencies during the State's previous
20		fiscal year for mandated training for probationary police
21		officers or probationary county corrections officers and
22		for optional advanced and specialized law enforcement or
23		county corrections training; these reimbursements may
24		include the costs for tuition at training schools, the
25		salaries of trainees while in schools, and the necessary

HB1438 Enrolled - 531 - LRB101 04919 JRG 49928 b
1		travel and room and board expenses for each trainee; if the
2		appropriations under this paragraph (2) are not sufficient
3		to fully reimburse the participating local governmental
4		agencies, the available funds shall be apportioned among
5		such agencies, with priority first given to repayment of
6		the costs of mandatory training given to law enforcement
7		officer or county corrections officer recruits, then to
8		repayment of costs of advanced or specialized training for
9		permanent police officers or permanent county corrections
10		officers;
11		(3) a portion of the total amount deposited in the Fund
12		may be used to fund the Intergovernmental Law Enforcement
13		Officer's In-Service Training Act, veto overridden October
14		29, 1981, as now or hereafter amended, at a rate and method
15		to be determined by the board;
16		(4) a portion of the Fund also may be used by the
17		Illinois Department of State Police for expenses incurred
18		in the training of employees from any State, county or
19		municipal agency whose function includes enforcement of
20		criminal or traffic law;
21		(5) a portion of the Fund may be used by the Board to
22		fund grant-in-aid programs and services for the training of
23		employees from any county or municipal agency whose
24		functions include corrections or the enforcement of
25		criminal or traffic law;
26		(6) for fiscal years 2013 through 2017 only, a portion

HB1438 Enrolled - 532 - LRB101 04919 JRG 49928 b
1		of the Fund also may be used by the Department of State
2		Police to finance any of its lawful purposes or functions;
3		and
4		(7) a portion of the Fund may be used by the Board,
5		subject to appropriation, to administer grants to local law
6		enforcement agencies for the purpose of purchasing
7		bulletproof vests under the Law Enforcement Officer
8		Bulletproof Vest Act; and .
9		(8) a portion of the Fund may be used by the Board to
10		create a law enforcement grant program available for units
11		of local government to fund crime prevention programs,
12		training, and interdiction efforts, including enforcement
13		and prevention efforts, relating to the illegal cannabis
14		market and driving under the influence of cannabis.
15		All payments from the Traffic and Criminal Conviction
16		Surcharge Fund shall be made each year from moneys appropriated
17		for the purposes specified in this Section. No more than 50% of
18		any appropriation under this Act shall be spent in any city
19		having a population of more than 500,000. The State Comptroller
20		and the State Treasurer shall from time to time, at the
21		direction of the Governor, transfer from the Traffic and
22		Criminal Conviction Surcharge Fund to the General Revenue Fund
23		in the State Treasury such amounts as the Governor determines
24		are in excess of the amounts required to meet the obligations
25		of the Traffic and Criminal Conviction Surcharge Fund.
26		(Source: P.A. 99-78, eff. 7-20-15; 99-523, eff. 6-30-16;

HB1438 Enrolled - 533 - LRB101 04919 JRG 49928 b
1		100-987, eff. 7-1-19.)
2		(50 ILCS 705/10.12)
3		Sec. 10.12. Police dog training standards. All Beginning
4		July 1, 2012, all police dogs used by State and local law
5		enforcement agencies for drug enforcement purposes pursuant to
6		the Cannabis Control Act (720 ILCS 550/), the Illinois
7		Controlled Substances Act (720 ILCS 570/), or and the
8		Methamphetamine Control and Community Protection Act (720 ILCS
9		646/) shall be trained by programs that meet the minimum
10		certification requirements set by the Board.
11		(Source: P.A. 97-469, eff. 7-1-12.)
12		Section 900-25. The Counties Code is amended by adding
13		Section 5-1006.8 and changing Section 5-1009 as follows:
14		(55 ILCS 5/5-1006.8 new)
15		Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
16		Law.
17		(a) This Section may be referred to as the County Cannabis
18		Retailers' Occupation Tax Law. On and after January 1, 2020,
19		the corporate authorities of any county may, by ordinance,
20		impose a tax upon all persons engaged in the business of
21		selling cannabis, other than cannabis purchased under the
22		Compassionate Use of Medical Cannabis Pilot Program Act, at
23		retail in the county on the gross receipts from these sales

HB1438 Enrolled - 534 - LRB101 04919 JRG 49928 b
1		made in the course of that business. If imposed, the tax shall
2		be imposed only in 0.25% increments. The tax rate may not
3		exceed: (i) 3.75% of the gross receipts of sales made in
4		unincorporated areas of the county and (ii) 0.75% of the gross
5		receipts of sales made in a municipality located in a non-home
6		rule county; and (iii) 3% of gross sales receipts made in a
7		municipality located in a home rule county. The tax imposed
8		under this Section and all civil penalties that may be assessed
9		as an incident of the tax shall be collected and enforced by
10		the Department of Revenue. The Department of Revenue shall have
11		full power to administer and enforce this Section; to collect
12		all taxes and penalties due hereunder; to dispose of taxes and
13		penalties so collected in the manner hereinafter provided; and
14		to determine all rights to credit memoranda arising on account
15		of the erroneous payment of tax or penalty under this Section.
16		In the administration of and compliance with this Section, the
17		Department of Revenue and persons who are subject to this
18		Section shall have the same rights, remedies, privileges,
19		immunities, powers and duties, and be subject to the same
20		conditions, restrictions, limitations, penalties, and
21		definitions of terms, and employ the same modes of procedure,
22		as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
23		1n, 2 through 2-65 (in respect to all provisions therein other
24		than the State rate of tax), 2c, 3 (except as to the
25		disposition of taxes and penalties collected), 4, 5, 5a, 5b,
26		5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 8,

HB1438 Enrolled - 535 - LRB101 04919 JRG 49928 b
1		8, 9, 10, 11, 12, and 13 of the Retailers' Occupation Tax Act
2		and Section 3-7 of the Uniform Penalty and Interest Act as
3		fully as if those provisions were set forth in this Section.
4		(b) Persons subject to any tax imposed under the authority
5		granted in this Section may reimburse themselves for their
6		seller's tax liability hereunder by separately stating that tax
7		as an additional charge, which charge may be stated in
8		combination, in a single amount, with any State tax that
9		sellers are required to collect.
10		(c) Whenever the Department of Revenue determines that a
11		refund should be made under this Section to a claimant instead
12		of issuing a credit memorandum, the Department of Revenue shall
13		notify the State Comptroller, who shall cause the order to be
14		drawn for the amount specified and to the person named in the
15		notification from the Department of Revenue.
16		(d) The Department of Revenue shall immediately pay over to
17		the State Treasurer, ex officio, as trustee, all taxes and
18		penalties collected hereunder for deposit into the Local
19		Cannabis Consumer Excise Tax Trust Fund.
20		(e) On or before the 25th day of each calendar month, the
21		Department of Revenue shall prepare and certify to the
22		Comptroller the amount of money to be disbursed from the Local
23		Cannabis Consumer Excise Tax Trust Fund to counties from which
24		retailers have paid taxes or penalties under this Section
25		during the second preceding calendar month. The amount to be
26		paid to each county shall be the amount (not including credit

HB1438 Enrolled - 536 - LRB101 04919 JRG 49928 b
1		memoranda) collected under this Section from sales made in the
2		county during the second preceding calendar month, plus an
3		amount the Department of Revenue determines is necessary to
4		offset any amounts that were erroneously paid to a different
5		taxing body, and not including an amount equal to the amount of
6		refunds made during the second preceding calendar month by the
7		Department on behalf of such county, and not including any
8		amount that the Department determines is necessary to offset
9		any amounts that were payable to a different taxing body but
10		were erroneously paid to the county, less 1.5% of the
11		remainder, which the Department shall transfer into the Tax
12		Compliance and Administration Fund. The Department, at the time
13		of each monthly disbursement to the counties, shall prepare and
14		certify the State Comptroller the amount to be transferred into
15		the Tax Compliance and Administration Fund under this Section.
16		Within 10 days after receipt by the Comptroller of the
17		disbursement certification to the counties and the Tax
18		Compliance and Administration Fund provided for in this Section
19		to be given to the Comptroller by the Department, the
20		Comptroller shall cause the orders to be drawn for the
21		respective amounts in accordance with the directions contained
22		in the certification.
23		(f) An ordinance or resolution imposing or discontinuing a
24		tax under this Section or effecting a change in the rate
25		thereof shall be adopted and a certified copy thereof filed
26		with the Department on or before the first day of June,

HB1438 Enrolled - 537 - LRB101 04919 JRG 49928 b
1		whereupon the Department shall proceed to administer and
2		enforce this Section as of the first day of September next
3		following the adoption and filing.
4		(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
5		Sec. 5-1009. Limitation on home rule powers. Except as
6		provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007 and
7		5-1008, on and after September 1, 1990, no home rule county has
8		the authority to impose, pursuant to its home rule authority, a
9		retailer's occupation tax, service occupation tax, use tax,
10		sales tax or other tax on the use, sale or purchase of tangible
11		personal property based on the gross receipts from such sales
12		or the selling or purchase price of said tangible personal
13		property. Notwithstanding the foregoing, this Section does not
14		preempt any home rule imposed tax such as the following: (1) a
15		tax on alcoholic beverages, whether based on gross receipts,
16		volume sold or any other measurement; (2) a tax based on the
17		number of units of cigarettes or tobacco products; (3) a tax,
18		however measured, based on the use of a hotel or motel room or
19		similar facility; (4) a tax, however measured, on the sale or
20		transfer of real property; (5) a tax, however measured, on
21		lease receipts; (6) a tax on food prepared for immediate
22		consumption and on alcoholic beverages sold by a business which
23		provides for on premise consumption of said food or alcoholic
24		beverages; or (7) other taxes not based on the selling or
25		purchase price or gross receipts from the use, sale or purchase

HB1438 Enrolled - 538 - LRB101 04919 JRG 49928 b
1		of tangible personal property. This Section does not preempt a
2		home rule county from imposing a tax, however measured, on the
3		use, for consideration, of a parking lot, garage, or other
4		parking facility. This Section is a limitation, pursuant to
5		subsection (g) of Section 6 of Article VII of the Illinois
6		Constitution, on the power of home rule units to tax.
7		(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
8		Section 900-30. The Illinois Municipal Code is amended by
9		changing Section 8-11-6a and adding Section 8-11-22 as follows:
10		(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
11		Sec. 8-11-6a. Home rule municipalities; preemption of
12		certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
13		8-11-6, 8-11-6b, 8-11-6c, 8-11-22, and 11-74.3-6 on and after
14		September 1, 1990, no home rule municipality has the authority
15		to impose, pursuant to its home rule authority, a retailer's
16		occupation tax, service occupation tax, use tax, sales tax or
17		other tax on the use, sale or purchase of tangible personal
18		property based on the gross receipts from such sales or the
19		selling or purchase price of said tangible personal property.
20		Notwithstanding the foregoing, this Section does not preempt
21		any home rule imposed tax such as the following: (1) a tax on
22		alcoholic beverages, whether based on gross receipts, volume
23		sold or any other measurement; (2) a tax based on the number of
24		units of cigarettes or tobacco products (provided, however,

HB1438 Enrolled - 539 - LRB101 04919 JRG 49928 b
1		that a home rule municipality that has not imposed a tax based
2		on the number of units of cigarettes or tobacco products before
3		July 1, 1993, shall not impose such a tax after that date); (3)
4		a tax, however measured, based on the use of a hotel or motel
5		room or similar facility; (4) a tax, however measured, on the
6		sale or transfer of real property; (5) a tax, however measured,
7		on lease receipts; (6) a tax on food prepared for immediate
8		consumption and on alcoholic beverages sold by a business which
9		provides for on premise consumption of said food or alcoholic
10		beverages; or (7) other taxes not based on the selling or
11		purchase price or gross receipts from the use, sale or purchase
12		of tangible personal property. This Section does not preempt a
13		home rule municipality with a population of more than 2,000,000
14		from imposing a tax, however measured, on the use, for
15		consideration, of a parking lot, garage, or other parking
16		facility. This Section is not intended to affect any existing
17		tax on food and beverages prepared for immediate consumption on
18		the premises where the sale occurs, or any existing tax on
19		alcoholic beverages, or any existing tax imposed on the charge
20		for renting a hotel or motel room, which was in effect January
21		15, 1988, or any extension of the effective date of such an
22		existing tax by ordinance of the municipality imposing the tax,
23		which extension is hereby authorized, in any non-home rule
24		municipality in which the imposition of such a tax has been
25		upheld by judicial determination, nor is this Section intended
26		to preempt the authority granted by Public Act 85-1006. This

HB1438 Enrolled - 540 - LRB101 04919 JRG 49928 b
1		Section is a limitation, pursuant to subsection (g) of Section
2		6 of Article VII of the Illinois Constitution, on the power of
3		home rule units to tax.
4		(Source: P.A. 97-1168, eff. 3-8-13; 97-1169, eff. 3-8-13.)
5		(65 ILCS 5/8-11-22 new)
6		Sec. 8-11-22. Municipal Cannabis Retailers' Occupation Tax
7		Law.
8		(a) This Section may be referred to as the Municipal
9		Cannabis Retailers' Occupation Tax Law. On and after January 1,
10		2020, the corporate authorities of any municipality may, by
11		ordinance, impose a tax upon all persons engaged in the
12		business of selling cannabis, other than cannabis purchased
13		under the Compassionate Use of Medical Cannabis Pilot Program
14		Act, at retail in the municipality on the gross receipts from
15		these sales made in the course of that business. If imposed,
16		the tax may not exceed 3% of the gross receipts from these
17		sales and shall only be imposed in 1/4% increments. The tax
18		imposed under this Section and all civil penalties that may be
19		assessed as an incident of the tax shall be collected and
20		enforced by the Department of Revenue. The Department of
21		Revenue shall have full power to administer and enforce this
22		Section; to collect all taxes and penalties due hereunder; to
23		dispose of taxes and penalties so collected in the manner
24		hereinafter provided; and to determine all rights to credit
25		memoranda arising on account of the erroneous payment of tax or

HB1438 Enrolled - 541 - LRB101 04919 JRG 49928 b
1		penalty under this Section. In the administration of and
2		compliance with this Section, the Department and persons who
3		are subject to this Section shall have the same rights,
4		remedies, privileges, immunities, powers and duties, and be
5		subject to the same conditions, restrictions, limitations,
6		penalties and definitions of terms, and employ the same modes
7		of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
8		1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
9		provisions therein other than the State rate of tax), 2c, 3
10		(except as to the disposition of taxes and penalties
11		collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
12		5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
13		Retailers' Occupation Tax Act and Section 3-7 of the Uniform
14		Penalty and Interest Act, as fully as if those provisions were
15		set forth herein.
16		(b) Persons subject to any tax imposed under the authority
17		granted in this Section may reimburse themselves for their
18		seller's tax liability hereunder by separately stating that tax
19		as an additional charge, which charge may be stated in
20		combination, in a single amount, with any State tax that
21		sellers are required to collect.
22		(c) Whenever the Department of Revenue determines that a
23		refund should be made under this Section to a claimant instead
24		of issuing a credit memorandum, the Department of Revenue shall
25		notify the State Comptroller, who shall cause the order to be
26		drawn for the amount specified and to the person named in the

HB1438 Enrolled - 542 - LRB101 04919 JRG 49928 b
1		notification from the Department of Revenue.
2		(d) The Department of Revenue shall immediately pay over to
3		the State Treasurer, ex officio, as trustee, all taxes and
4		penalties collected hereunder for deposit into the Cannabis
5		Regulation Fund.
6		(e) On or before the 25th day of each calendar month, the
7		Department of Revenue shall prepare and certify to the
8		Comptroller the amount of money to be disbursed from the Local
9		Cannabis Consumer Excise Tax Trust Fund to municipalities from
10		which retailers have paid taxes or penalties under this Section
11		during the second preceding calendar month. The amount to be
12		paid to each municipality shall be the amount (not including
13		credit memoranda) collected under this Section from sales made
14		in the municipality during the second preceding calendar month,
15		plus an amount the Department of Revenue determines is
16		necessary to offset any amounts that were erroneously paid to a
17		different taxing body, and not including an amount equal to the
18		amount of refunds made during the second preceding calendar
19		month by the Department on behalf of such municipality, and not
20		including any amount that the Department determines is
21		necessary to offset any amounts that were payable to a
22		different taxing body but were erroneously paid to the
23		municipality, less 1.5% of the remainder, which the Department
24		shall transfer into the Tax Compliance and Administration Fund.
25		The Department, at the time of each monthly disbursement to the
26		municipalities, shall prepare and certify to the State

HB1438 Enrolled - 543 - LRB101 04919 JRG 49928 b
1		Comptroller the amount to be transferred into the Tax
2		Compliance and Administration Fund under this Section. Within
3		10 days after receipt by the Comptroller of the disbursement
4		certification to the municipalities and the Tax Compliance and
5		Administration Fund provided for in this Section to be given to
6		the Comptroller by the Department, the Comptroller shall cause
7		the orders to be drawn for the respective amounts in accordance
8		with the directions contained in the certification.
9		(f) An ordinance or resolution imposing or discontinuing a
10		tax under this Section or effecting a change in the rate
11		thereof shall be adopted and a certified copy thereof filed
12		with the Department on or before the first day of June,
13		whereupon the Department shall proceed to administer and
14		enforce this Section as of the first day of September next
15		following the adoption and filing.
16		Section 900-32. The Illinois Banking Act is amended by
17		changing Section 48 as follows:
18		(205 ILCS 5/48)
19		Sec. 48. Secretary's powers; duties. The Secretary shall
20		have the powers and authority, and is charged with the duties
21		and responsibilities designated in this Act, and a State bank
22		shall not be subject to any other visitorial power other than
23		as authorized by this Act, except those vested in the courts,
24		or upon prior consultation with the Secretary, a foreign bank

HB1438 Enrolled - 544 - LRB101 04919 JRG 49928 b
1		regulator with an appropriate supervisory interest in the
2		parent or affiliate of a state bank. In the performance of the
3		Secretary's duties:
4		(1) The Commissioner shall call for statements from all
5		State banks as provided in Section 47 at least one time
6		during each calendar quarter.
7		(2) (a) The Commissioner, as often as the Commissioner
8		shall deem necessary or proper, and no less frequently than
9		18 months following the preceding examination, shall
10		appoint a suitable person or persons to make an examination
11		of the affairs of every State bank, except that for every
12		eligible State bank, as defined by regulation, the
13		Commissioner in lieu of the examination may accept on an
14		alternating basis the examination made by the eligible
15		State bank's appropriate federal banking agency pursuant
16		to Section 111 of the Federal Deposit Insurance Corporation
17		Improvement Act of 1991, provided the appropriate federal
18		banking agency has made such an examination. A person so
19		appointed shall not be a stockholder or officer or employee
20		of any bank which that person may be directed to examine,
21		and shall have powers to make a thorough examination into
22		all the affairs of the bank and in so doing to examine any
23		of the officers or agents or employees thereof on oath and
24		shall make a full and detailed report of the condition of
25		the bank to the Commissioner. In making the examination the
26		examiners shall include an examination of the affairs of

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1		all the affiliates of the bank, as defined in subsection
2		(b) of Section 35.2 of this Act, or subsidiaries of the
3		bank as shall be necessary to disclose fully the conditions
4		of the subsidiaries or affiliates, the relations between
5		the bank and the subsidiaries or affiliates and the effect
6		of those relations upon the affairs of the bank, and in
7		connection therewith shall have power to examine any of the
8		officers, directors, agents, or employees of the
9		subsidiaries or affiliates on oath. After May 31, 1997, the
10		Commissioner may enter into cooperative agreements with
11		state regulatory authorities of other states to provide for
12		examination of State bank branches in those states, and the
13		Commissioner may accept reports of examinations of State
14		bank branches from those state regulatory authorities.
15		These cooperative agreements may set forth the manner in
16		which the other state regulatory authorities may be
17		compensated for examinations prepared for and submitted to
18		the Commissioner.
19		(b) After May 31, 1997, the Commissioner is authorized
20		to examine, as often as the Commissioner shall deem
21		necessary or proper, branches of out-of-state banks. The
22		Commissioner may establish and may assess fees to be paid
23		to the Commissioner for examinations under this subsection
24		(b). The fees shall be borne by the out-of-state bank,
25		unless the fees are borne by the state regulatory authority
26		that chartered the out-of-state bank, as determined by a

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1		cooperative agreement between the Commissioner and the
2		state regulatory authority that chartered the out-of-state
3		bank.
4		(2.1) Pursuant to paragraph (a) of subsection (6) of
5		this Section, the Secretary shall adopt rules that ensure
6		consistency and due process in the examination process. The
7		Secretary may also establish guidelines that (i) define the
8		scope of the examination process and (ii) clarify
9		examination items to be resolved. The rules, formal
10		guidance, interpretive letters, or opinions furnished to
11		State banks by the Secretary may be relied upon by the
12		State banks.
13		(2.5) Whenever any State bank, any subsidiary or
14		affiliate of a State bank, or after May 31, 1997, any
15		branch of an out-of-state bank causes to be performed, by
16		contract or otherwise, any bank services for itself,
17		whether on or off its premises:
18		(a) that performance shall be subject to
19		examination by the Commissioner to the same extent as
20		if services were being performed by the bank or, after
21		May 31, 1997, branch of the out-of-state bank itself on
22		its own premises; and
23		(b) the bank or, after May 31, 1997, branch of the
24		out-of-state bank shall notify the Commissioner of the
25		existence of a service relationship. The notification
26		shall be submitted with the first statement of

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1		condition (as required by Section 47 of this Act) due
2		after the making of the service contract or the
3		performance of the service, whichever occurs first.
4		The Commissioner shall be notified of each subsequent
5		contract in the same manner.
6		For purposes of this subsection (2.5), the term "bank
7		services" means services such as sorting and posting of
8		checks and deposits, computation and posting of interest
9		and other credits and charges, preparation and mailing of
10		checks, statements, notices, and similar items, or any
11		other clerical, bookkeeping, accounting, statistical, or
12		similar functions performed for a State bank, including but
13		not limited to electronic data processing related to those
14		bank services.
15		(3) The expense of administering this Act, including
16		the expense of the examinations of State banks as provided
17		in this Act, shall to the extent of the amounts resulting
18		from the fees provided for in paragraphs (a), (a-2), and
19		(b) of this subsection (3) be assessed against and borne by
20		the State banks:
21		(a) Each bank shall pay to the Secretary a Call
22		Report Fee which shall be paid in quarterly
23		installments equal to one-fourth of the sum of the
24		annual fixed fee of $800, plus a variable fee based on
25		the assets shown on the quarterly statement of
26		condition delivered to the Secretary in accordance

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1		with Section 47 for the preceding quarter according to
2		the following schedule: 16¢ per $1,000 of the first
3		$5,000,000 of total assets, 15¢ per $1,000 of the next
4		$20,000,000 of total assets, 13¢ per $1,000 of the next
5		$75,000,000 of total assets, 9¢ per $1,000 of the next
6		$400,000,000 of total assets, 7¢ per $1,000 of the next
7		$500,000,000 of total assets, and 5¢ per $1,000 of all
8		assets in excess of $1,000,000,000, of the State bank.
9		The Call Report Fee shall be calculated by the
10		Secretary and billed to the banks for remittance at the
11		time of the quarterly statements of condition provided
12		for in Section 47. The Secretary may require payment of
13		the fees provided in this Section by an electronic
14		transfer of funds or an automatic debit of an account
15		of each of the State banks. In case more than one
16		examination of any bank is deemed by the Secretary to
17		be necessary in any examination frequency cycle
18		specified in subsection 2(a) of this Section, and is
19		performed at his direction, the Secretary may assess a
20		reasonable additional fee to recover the cost of the
21		additional examination. In lieu of the method and
22		amounts set forth in this paragraph (a) for the
23		calculation of the Call Report Fee, the Secretary may
24		specify by rule that the Call Report Fees provided by
25		this Section may be assessed semiannually or some other
26		period and may provide in the rule the formula to be

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1		used for calculating and assessing the periodic Call
2		Report Fees to be paid by State banks.
3		(a-1) If in the opinion of the Commissioner an
4		emergency exists or appears likely, the Commissioner
5		may assign an examiner or examiners to monitor the
6		affairs of a State bank with whatever frequency he
7		deems appropriate, including but not limited to a daily
8		basis. The reasonable and necessary expenses of the
9		Commissioner during the period of the monitoring shall
10		be borne by the subject bank. The Commissioner shall
11		furnish the State bank a statement of time and expenses
12		if requested to do so within 30 days of the conclusion
13		of the monitoring period.
14		(a-2) On and after January 1, 1990, the reasonable
15		and necessary expenses of the Commissioner during
16		examination of the performance of electronic data
17		processing services under subsection (2.5) shall be
18		borne by the banks for which the services are provided.
19		An amount, based upon a fee structure prescribed by the
20		Commissioner, shall be paid by the banks or, after May
21		31, 1997, branches of out-of-state banks receiving the
22		electronic data processing services along with the
23		Call Report Fee assessed under paragraph (a) of this
24		subsection (3).
25		(a-3) After May 31, 1997, the reasonable and
26		necessary expenses of the Commissioner during

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1		examination of the performance of electronic data
2		processing services under subsection (2.5) at or on
3		behalf of branches of out-of-state banks shall be borne
4		by the out-of-state banks, unless those expenses are
5		borne by the state regulatory authorities that
6		chartered the out-of-state banks, as determined by
7		cooperative agreements between the Commissioner and
8		the state regulatory authorities that chartered the
9		out-of-state banks.
10		(b) "Fiscal year" for purposes of this Section 48
11		is defined as a period beginning July 1 of any year and
12		ending June 30 of the next year. The Commissioner shall
13		receive for each fiscal year, commencing with the
14		fiscal year ending June 30, 1987, a contingent fee
15		equal to the lesser of the aggregate of the fees paid
16		by all State banks under paragraph (a) of subsection
17		(3) for that year, or the amount, if any, whereby the
18		aggregate of the administration expenses, as defined
19		in paragraph (c), for that fiscal year exceeds the sum
20		of the aggregate of the fees payable by all State banks
21		for that year under paragraph (a) of subsection (3),
22		plus any amounts transferred into the Bank and Trust
23		Company Fund from the State Pensions Fund for that
24		year, plus all other amounts collected by the
25		Commissioner for that year under any other provision of
26		this Act, plus the aggregate of all fees collected for

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1		that year by the Commissioner under the Corporate
2		Fiduciary Act, excluding the receivership fees
3		provided for in Section 5-10 of the Corporate Fiduciary
4		Act, and the Foreign Banking Office Act. The aggregate
5		amount of the contingent fee thus arrived at for any
6		fiscal year shall be apportioned amongst, assessed
7		upon, and paid by the State banks and foreign banking
8		corporations, respectively, in the same proportion
9		that the fee of each under paragraph (a) of subsection
10		(3), respectively, for that year bears to the aggregate
11		for that year of the fees collected under paragraph (a)
12		of subsection (3). The aggregate amount of the
13		contingent fee, and the portion thereof to be assessed
14		upon each State bank and foreign banking corporation,
15		respectively, shall be determined by the Commissioner
16		and shall be paid by each, respectively, within 120
17		days of the close of the period for which the
18		contingent fee is computed and is payable, and the
19		Commissioner shall give 20 days' advance notice of the
20		amount of the contingent fee payable by the State bank
21		and of the date fixed by the Commissioner for payment
22		of the fee.
23		(c) The "administration expenses" for any fiscal
24		year shall mean the ordinary and contingent expenses
25		for that year incident to making the examinations
26		provided for by, and for otherwise administering, this

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1		Act, the Corporate Fiduciary Act, excluding the
2		expenses paid from the Corporate Fiduciary
3		Receivership account in the Bank and Trust Company
4		Fund, the Foreign Banking Office Act, the Electronic
5		Fund Transfer Act, and the Illinois Bank Examiners'
6		Education Foundation Act, including all salaries and
7		other compensation paid for personal services rendered
8		for the State by officers or employees of the State,
9		including the Commissioner and the Deputy
10		Commissioners, communication equipment and services,
11		office furnishings, surety bond premiums, and travel
12		expenses of those officers and employees, employees,
13		expenditures or charges for the acquisition,
14		enlargement or improvement of, or for the use of, any
15		office space, building, or structure, or expenditures
16		for the maintenance thereof or for furnishing heat,
17		light, or power with respect thereto, all to the extent
18		that those expenditures are directly incidental to
19		such examinations or administration. The Commissioner
20		shall not be required by paragraphs (c) or (d-1) of
21		this subsection (3) to maintain in any fiscal year's
22		budget appropriated reserves for accrued vacation and
23		accrued sick leave that is required to be paid to
24		employees of the Commissioner upon termination of
25		their service with the Commissioner in an amount that
26		is more than is reasonably anticipated to be necessary

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1		for any anticipated turnover in employees, whether due
2		to normal attrition or due to layoffs, terminations, or
3		resignations.
4		(d) The aggregate of all fees collected by the
5		Secretary under this Act, the Corporate Fiduciary Act,
6		or the Foreign Banking Office Act on and after July 1,
7		1979, shall be paid promptly after receipt of the same,
8		accompanied by a detailed statement thereof, into the
9		State treasury and shall be set apart in a special fund
10		to be known as the "Bank and Trust Company Fund",
11		except as provided in paragraph (c) of subsection (11)
12		of this Section. All earnings received from
13		investments of funds in the Bank and Trust Company Fund
14		shall be deposited in the Bank and Trust Company Fund
15		and may be used for the same purposes as fees deposited
16		in that Fund. The amount from time to time deposited
17		into the Bank and Trust Company Fund shall be used: (i)
18		to offset the ordinary administrative expenses of the
19		Secretary as defined in this Section or (ii) as a
20		credit against fees under paragraph (d-1) of this
21		subsection (3). Nothing in this amendatory Act of 1979
22		shall prevent continuing the practice of paying
23		expenses involving salaries, retirement, social
24		security, and State-paid insurance premiums of State
25		officers by appropriations from the General Revenue
26		Fund. However, the General Revenue Fund shall be

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1		reimbursed for those payments made on and after July 1,
2		1979, by an annual transfer of funds from the Bank and
3		Trust Company Fund. Moneys in the Bank and Trust
4		Company Fund may be transferred to the Professions
5		Indirect Cost Fund, as authorized under Section
6		2105-300 of the Department of Professional Regulation
7		Law of the Civil Administrative Code of Illinois.
8		Notwithstanding provisions in the State Finance
9		Act, as now or hereafter amended, or any other law to
10		the contrary, the sum of $18,788,847 shall be
11		transferred from the Bank and Trust Company Fund to the
12		Financial Institutions Settlement of 2008 Fund on the
13		effective date of this amendatory Act of the 95th
14		General Assembly, or as soon thereafter as practical.
15		Notwithstanding provisions in the State Finance
16		Act, as now or hereafter amended, or any other law to
17		the contrary, the Governor may, during any fiscal year
18		through January 10, 2011, from time to time direct the
19		State Treasurer and Comptroller to transfer a
20		specified sum not exceeding 10% of the revenues to be
21		deposited into the Bank and Trust Company Fund during
22		that fiscal year from that Fund to the General Revenue
23		Fund in order to help defray the State's operating
24		costs for the fiscal year. Notwithstanding provisions
25		in the State Finance Act, as now or hereafter amended,
26		or any other law to the contrary, the total sum

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1		transferred during any fiscal year through January 10,
2		2011, from the Bank and Trust Company Fund to the
3		General Revenue Fund pursuant to this provision shall
4		not exceed during any fiscal year 10% of the revenues
5		to be deposited into the Bank and Trust Company Fund
6		during that fiscal year. The State Treasurer and
7		Comptroller shall transfer the amounts designated
8		under this Section as soon as may be practicable after
9		receiving the direction to transfer from the Governor.
10		(d-1) Adequate funds shall be available in the Bank
11		and Trust Company Fund to permit the timely payment of
12		administration expenses. In each fiscal year the total
13		administration expenses shall be deducted from the
14		total fees collected by the Commissioner and the
15		remainder transferred into the Cash Flow Reserve
16		Account, unless the balance of the Cash Flow Reserve
17		Account prior to the transfer equals or exceeds
18		one-fourth of the total initial appropriations from
19		the Bank and Trust Company Fund for the subsequent
20		year, in which case the remainder shall be credited to
21		State banks and foreign banking corporations and
22		applied against their fees for the subsequent year. The
23		amount credited to each State bank and foreign banking
24		corporation shall be in the same proportion as the Call
25		Report Fees paid by each for the year bear to the total
26		Call Report Fees collected for the year. If, after a

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1		transfer to the Cash Flow Reserve Account is made or if
2		no remainder is available for transfer, the balance of
3		the Cash Flow Reserve Account is less than one-fourth
4		of the total initial appropriations for the subsequent
5		year and the amount transferred is less than 5% of the
6		total Call Report Fees for the year, additional amounts
7		needed to make the transfer equal to 5% of the total
8		Call Report Fees for the year shall be apportioned
9		amongst, assessed upon, and paid by the State banks and
10		foreign banking corporations in the same proportion
11		that the Call Report Fees of each, respectively, for
12		the year bear to the total Call Report Fees collected
13		for the year. The additional amounts assessed shall be
14		transferred into the Cash Flow Reserve Account. For
15		purposes of this paragraph (d-1), the calculation of
16		the fees collected by the Commissioner shall exclude
17		the receivership fees provided for in Section 5-10 of
18		the Corporate Fiduciary Act.
19		(e) The Commissioner may upon request certify to
20		any public record in his keeping and shall have
21		authority to levy a reasonable charge for issuing
22		certifications of any public record in his keeping.
23		(f) In addition to fees authorized elsewhere in
24		this Act, the Commissioner may, in connection with a
25		review, approval, or provision of a service, levy a
26		reasonable charge to recover the cost of the review,

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1		approval, or service.
2		(4) Nothing contained in this Act shall be construed to
3		limit the obligation relative to examinations and reports
4		of any State bank, deposits in which are to any extent
5		insured by the United States or any agency thereof, nor to
6		limit in any way the powers of the Commissioner with
7		reference to examinations and reports of that bank.
8		(5) The nature and condition of the assets in or
9		investment of any bonus, pension, or profit sharing plan
10		for officers or employees of every State bank or, after May
11		31, 1997, branch of an out-of-state bank shall be deemed to
12		be included in the affairs of that State bank or branch of
13		an out-of-state bank subject to examination by the
14		Commissioner under the provisions of subsection (2) of this
15		Section, and if the Commissioner shall find from an
16		examination that the condition of or operation of the
17		investments or assets of the plan is unlawful, fraudulent,
18		or unsafe, or that any trustee has abused his trust, the
19		Commissioner shall, if the situation so found by the
20		Commissioner shall not be corrected to his satisfaction
21		within 60 days after the Commissioner has given notice to
22		the board of directors of the State bank or out-of-state
23		bank of his findings, report the facts to the Attorney
24		General who shall thereupon institute proceedings against
25		the State bank or out-of-state bank, the board of directors
26		thereof, or the trustees under such plan as the nature of

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1		the case may require.
2		(6) The Commissioner shall have the power:
3		(a) To promulgate reasonable rules for the purpose
4		of administering the provisions of this Act.
5		(a-5) To impose conditions on any approval issued
6		by the Commissioner if he determines that the
7		conditions are necessary or appropriate. These
8		conditions shall be imposed in writing and shall
9		continue in effect for the period prescribed by the
10		Commissioner.
11		(b) To issue orders against any person, if the
12		Commissioner has reasonable cause to believe that an
13		unsafe or unsound banking practice has occurred, is
14		occurring, or is about to occur, if any person has
15		violated, is violating, or is about to violate any law,
16		rule, or written agreement with the Commissioner, or
17		for the purpose of administering the provisions of this
18		Act and any rule promulgated in accordance with this
19		Act.
20		(b-1) To enter into agreements with a bank
21		establishing a program to correct the condition of the
22		bank or its practices.
23		(c) To appoint hearing officers to execute any of
24		the powers granted to the Commissioner under this
25		Section for the purpose of administering this Act and
26		any rule promulgated in accordance with this Act and

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1		otherwise to authorize, in writing, an officer or
2		employee of the Office of Banks and Real Estate to
3		exercise his powers under this Act.
4		(d) To subpoena witnesses, to compel their
5		attendance, to administer an oath, to examine any
6		person under oath, and to require the production of any
7		relevant books, papers, accounts, and documents in the
8		course of and pursuant to any investigation being
9		conducted, or any action being taken, by the
10		Commissioner in respect of any matter relating to the
11		duties imposed upon, or the powers vested in, the
12		Commissioner under the provisions of this Act or any
13		rule promulgated in accordance with this Act.
14		(e) To conduct hearings.
15		(7) Whenever, in the opinion of the Secretary, any
16		director, officer, employee, or agent of a State bank or
17		any subsidiary or bank holding company of the bank or,
18		after May 31, 1997, of any branch of an out-of-state bank
19		or any subsidiary or bank holding company of the bank shall
20		have violated any law, rule, or order relating to that bank
21		or any subsidiary or bank holding company of the bank,
22		shall have obstructed or impeded any examination or
23		investigation by the Secretary, shall have engaged in an
24		unsafe or unsound practice in conducting the business of
25		that bank or any subsidiary or bank holding company of the
26		bank, or shall have violated any law or engaged or

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1		participated in any unsafe or unsound practice in
2		connection with any financial institution or other
3		business entity such that the character and fitness of the
4		director, officer, employee, or agent does not assure
5		reasonable promise of safe and sound operation of the State
6		bank, the Secretary may issue an order of removal. If, in
7		the opinion of the Secretary, any former director, officer,
8		employee, or agent of a State bank or any subsidiary or
9		bank holding company of the bank, prior to the termination
10		of his or her service with that bank or any subsidiary or
11		bank holding company of the bank, violated any law, rule,
12		or order relating to that State bank or any subsidiary or
13		bank holding company of the bank, obstructed or impeded any
14		examination or investigation by the Secretary, engaged in
15		an unsafe or unsound practice in conducting the business of
16		that bank or any subsidiary or bank holding company of the
17		bank, or violated any law or engaged or participated in any
18		unsafe or unsound practice in connection with any financial
19		institution or other business entity such that the
20		character and fitness of the director, officer, employee,
21		or agent would not have assured reasonable promise of safe
22		and sound operation of the State bank, the Secretary may
23		issue an order prohibiting that person from further service
24		with a bank or any subsidiary or bank holding company of
25		the bank as a director, officer, employee, or agent. An
26		order issued pursuant to this subsection shall be served

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1		upon the director, officer, employee, or agent. A copy of
2		the order shall be sent to each director of the bank
3		affected by registered mail. A copy of the order shall also
4		be served upon the bank of which he is a director, officer,
5		employee, or agent, whereupon he shall cease to be a
6		director, officer, employee, or agent of that bank. The
7		Secretary may institute a civil action against the
8		director, officer, or agent of the State bank or, after May
9		31, 1997, of the branch of the out-of-state bank against
10		whom any order provided for by this subsection (7) of this
11		Section 48 has been issued, and against the State bank or,
12		after May 31, 1997, out-of-state bank, to enforce
13		compliance with or to enjoin any violation of the terms of
14		the order. Any person who has been the subject of an order
15		of removal or an order of prohibition issued by the
16		Secretary under this subsection or Section 5-6 of the
17		Corporate Fiduciary Act may not thereafter serve as
18		director, officer, employee, or agent of any State bank or
19		of any branch of any out-of-state bank, or of any corporate
20		fiduciary, as defined in Section 1-5.05 of the Corporate
21		Fiduciary Act, or of any other entity that is subject to
22		licensure or regulation by the Division of Banking unless
23		the Secretary has granted prior approval in writing.
24		For purposes of this paragraph (7), "bank holding
25		company" has the meaning prescribed in Section 2 of the
26		Illinois Bank Holding Company Act of 1957.

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1		(7.5) Notwithstanding the provisions of this Section,
2		the Secretary shall not:
3		(1) issue an order against a State bank or any
4		subsidiary organized under this Act for unsafe or
5		unsound banking practices solely because the entity
6		provides or has provided financial services to a
7		cannabis-related legitimate business;
8		(2) prohibit, penalize, or otherwise discourage a
9		State bank or any subsidiary from providing financial
10		services to a cannabis-related legitimate business
11		solely because the entity provides or has provided
12		financial services to a cannabis-related legitimate
13		business;
14		(3) recommend, incentivize, or encourage a State
15		bank or any subsidiary not to offer financial services
16		to an account holder or to downgrade or cancel the
17		financial services offered to an account holder solely
18		because:
19		(A) the account holder is a manufacturer or
20		producer, or is the owner, operator, or employee of
21		a cannabis-related legitimate business;
22		(B) the account holder later becomes an owner
23		or operator of a cannabis-related legitimate
24		business; or
25		(C) the State bank or any subsidiary was not
26		aware that the account holder is the owner or

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1		operator of a cannabis-related legitimate
2		business; and
3		(4) take any adverse or corrective supervisory
4		action on a loan made to an owner or operator of:
5		(A) a cannabis-related legitimate business
6		solely because the owner or operator owns or
7		operates a cannabis-related legitimate business;
8		or
9		(B) real estate or equipment that is leased to
10		a cannabis-related legitimate business solely
11		because the owner or operator of the real estate or
12		equipment leased the equipment or real estate to a
13		cannabis-related legitimate business.
14		(8) The Commissioner may impose civil penalties of up
15		to $100,000 against any person for each violation of any
16		provision of this Act, any rule promulgated in accordance
17		with this Act, any order of the Commissioner, or any other
18		action which in the Commissioner's discretion is an unsafe
19		or unsound banking practice.
20		(9) The Commissioner may impose civil penalties of up
21		to $100 against any person for the first failure to comply
22		with reporting requirements set forth in the report of
23		examination of the bank and up to $200 for the second and
24		subsequent failures to comply with those reporting
25		requirements.
26		(10) All final administrative decisions of the

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1		Commissioner hereunder shall be subject to judicial review
2		pursuant to the provisions of the Administrative Review
3		Law. For matters involving administrative review, venue
4		shall be in either Sangamon County or Cook County.
5		(11) The endowment fund for the Illinois Bank
6		Examiners' Education Foundation shall be administered as
7		follows:
8		(a) (Blank).
9		(b) The Foundation is empowered to receive
10		voluntary contributions, gifts, grants, bequests, and
11		donations on behalf of the Illinois Bank Examiners'
12		Education Foundation from national banks and other
13		persons for the purpose of funding the endowment of the
14		Illinois Bank Examiners' Education Foundation.
15		(c) The aggregate of all special educational fees
16		collected by the Secretary and property received by the
17		Secretary on behalf of the Illinois Bank Examiners'
18		Education Foundation under this subsection (11) on or
19		after June 30, 1986, shall be either (i) promptly paid
20		after receipt of the same, accompanied by a detailed
21		statement thereof, into the State Treasury and shall be
22		set apart in a special fund to be known as "The
23		Illinois Bank Examiners' Education Fund" to be
24		invested by either the Treasurer of the State of
25		Illinois in the Public Treasurers' Investment Pool or
26		in any other investment he is authorized to make or by

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1		the Illinois State Board of Investment as the State
2		Banking Board of Illinois may direct or (ii) deposited
3		into an account maintained in a commercial bank or
4		corporate fiduciary in the name of the Illinois Bank
5		Examiners' Education Foundation pursuant to the order
6		and direction of the Board of Trustees of the Illinois
7		Bank Examiners' Education Foundation.
8		(12) (Blank).
9		(13) The Secretary may borrow funds from the General
10		Revenue Fund on behalf of the Bank and Trust Company Fund
11		if the Director of Banking certifies to the Governor that
12		there is an economic emergency affecting banking that
13		requires a borrowing to provide additional funds to the
14		Bank and Trust Company Fund. The borrowed funds shall be
15		paid back within 3 years and shall not exceed the total
16		funding appropriated to the Agency in the previous year.
17		(14) In addition to the fees authorized in this Act,
18		the Secretary may assess reasonable receivership fees
19		against any State bank that does not maintain insurance
20		with the Federal Deposit Insurance Corporation. All fees
21		collected under this subsection (14) shall be paid into the
22		Non-insured Institutions Receivership account in the Bank
23		and Trust Company Fund, as established by the Secretary.
24		The fees assessed under this subsection (14) shall provide
25		for the expenses that arise from the administration of the
26		receivership of any such institution required to pay into

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1		the Non-insured Institutions Receivership account, whether
2		pursuant to this Act, the Corporate Fiduciary Act, the
3		Foreign Banking Office Act, or any other Act that requires
4		payments into the Non-insured Institutions Receivership
5		account. The Secretary may establish by rule a reasonable
6		manner of assessing fees under this subsection (14).
7		(Source: P.A. 99-39, eff. 1-1-16; 100-22, eff. 1-1-18.)
8		Section 900-33. The Illinois Credit Union Act is amended by
9		changing Section 8 as follows:
10		(205 ILCS 305/8) (from Ch. 17, par. 4409)
11		Sec. 8. Secretary's powers and duties. Credit unions are
12		regulated by the Department. The Secretary in executing the
13		powers and discharging the duties vested by law in the
14		Department has the following powers and duties:
15		(1) To exercise the rights, powers and duties set forth
16		in this Act or any related Act. The Director shall oversee
17		the functions of the Division and report to the Secretary,
18		with respect to the Director's exercise of any of the
19		rights, powers, and duties vested by law in the Secretary
20		under this Act. All references in this Act to the Secretary
21		shall be deemed to include the Director, as a person
22		authorized by the Secretary or this Act to assume
23		responsibility for the oversight of the functions of the
24		Department relating to the regulatory supervision of

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1		credit unions under this Act.
2		(2) To prescribe rules and regulations for the
3		administration of this Act. The provisions of the Illinois
4		Administrative Procedure Act are hereby expressly adopted
5		and incorporated herein as though a part of this Act, and
6		shall apply to all administrative rules and procedures of
7		the Department under this Act.
8		(3) To direct and supervise all the administrative and
9		technical activities of the Department including the
10		employment of a Credit Union Supervisor who shall have
11		knowledge in the theory and practice of, or experience in,
12		the operations or supervision of financial institutions,
13		preferably credit unions, and such other persons as are
14		necessary to carry out his functions. The Secretary shall
15		ensure that all examiners appointed or assigned to examine
16		the affairs of State-chartered credit unions possess the
17		necessary training and continuing education to effectively
18		execute their jobs.
19		(4) To issue cease and desist orders when in the
20		opinion of the Secretary, a credit union is engaged or has
21		engaged, or the Secretary has reasonable cause to believe
22		the credit union is about to engage, in an unsafe or
23		unsound practice, or is violating or has violated or the
24		Secretary has reasonable cause to believe is about to
25		violate a law, rule or regulation or any condition imposed
26		in writing by the Department.

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1		(5) To suspend from office and to prohibit from further
2		participation in any manner in the conduct of the affairs
3		of his credit union any director, officer or committee
4		member who has committed any violation of a law, rule,
5		regulation or of a cease and desist order or who has
6		engaged or participated in any unsafe or unsound practice
7		in connection with the credit union or who has committed or
8		engaged in any act, omission, or practice which constitutes
9		a breach of his fiduciary duty as such director, officer or
10		committee member, when the Secretary has determined that
11		such action or actions have resulted or will result in
12		substantial financial loss or other damage that seriously
13		prejudices the interests of the members.
14		(6) To assess a civil penalty against a credit union
15		provided that:
16		(A) the Secretary reasonably determines, based on
17		objective facts and an accurate assessment of
18		applicable legal standards, that the credit union has:
19		(i) committed a violation of this Act, any rule
20		adopted in accordance with this Act, or any order
21		of the Secretary issued pursuant to his or her
22		authority under this Act; or
23		(ii) engaged or participated in any unsafe or
24		unsound practice;
25		(B) before a civil penalty is assessed under this
26		item (6), the Secretary must make the further

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1		reasonable determination, based on objective facts and
2		an accurate assessment of applicable legal standards,
3		that the credit union's action constituting a
4		violation under subparagraph (i) of paragraph (A) of
5		item (6) or an unsafe and unsound practice under
6		subparagraph (ii) of paragraph (A) of item (6):
7		(i) directly resulted in a substantial and
8		material financial loss or created a reasonable
9		probability that a substantial and material
10		financial loss will directly result; or
11		(ii) constituted willful misconduct or a
12		material breach of fiduciary duty of any director,
13		officer, or committee member of the credit union;
14		Material financial loss, as referenced in this
15		paragraph (B), shall be assessed in light of
16		surrounding circumstances and the relative size and
17		nature of the financial loss or probable financial
18		loss. Certain benchmarks shall be used in determining
19		whether financial loss is material, such as a
20		percentage of total assets or total gross income for
21		the immediately preceding 12-month period. Absent
22		compelling and extraordinary circumstances, no civil
23		penalty shall be assessed, unless the financial loss or
24		probable financial loss is equal to or greater than
25		either 1% of the credit union's total assets for the
26		immediately preceding 12-month period, or 1% of the

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1		credit union's total gross income for the immediately
2		preceding 12-month period, whichever is less;
3		(C) before a civil penalty is assessed under this
4		item (6), the credit union must be expressly advised in
5		writing of the:
6		(i) specific violation that could subject it
7		to a penalty under this item (6); and
8		(ii) the specific remedial action to be taken
9		within a specific and reasonable time frame to
10		avoid imposition of the penalty;
11		(D) Civil penalties assessed under this item (6)
12		shall be remedial, not punitive, and reasonably
13		tailored to ensure future compliance by the credit
14		union with the provisions of this Act and any rules
15		adopted pursuant to this Act;
16		(E) a credit union's failure to take timely
17		remedial action with respect to the specific violation
18		may result in the issuance of an order assessing a
19		civil penalty up to the following maximum amount, based
20		upon the total assets of the credit union:
21		(i) Credit unions with assets of less than $10
22		million................................................$1,000
23		(ii) Credit unions with assets of at least $10
24		million and less than $50 million......................$2,500
25		(iii) Credit unions with assets of at least $50
26		million and less than $100 million.....................$5,000

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1		(iv) Credit unions with assets of at least $100
2		million and less than $500 million....................$10,000
3		(v) Credit unions with assets of at least $500
4		million and less than $1 billion......................$25,000
5		(vi) Credit unions with assets of $1 billion
6		and greater.....................................$50,000; and
7		(F) an order assessing a civil penalty under this
8		item (6) shall take effect upon service of the order,
9		unless the credit union makes a written request for a
10		hearing under 38 IL. Adm. Code 190.20 of the
11		Department's rules for credit unions within 90 days
12		after issuance of the order; in that event, the order
13		shall be stayed until a final administrative order is
14		entered.
15		This item (6) shall not apply to violations separately
16		addressed in rules as authorized under item (7) of this
17		Section.
18		(7) Except for the fees established in this Act, to
19		prescribe, by rule and regulation, fees and penalties for
20		preparing, approving, and filing reports and other
21		documents; furnishing transcripts; holding hearings;
22		investigating applications for permission to organize,
23		merge, or convert; failure to maintain accurate books and
24		records to enable the Department to conduct an examination;
25		and taking supervisory actions.
26		(8) To destroy, in his discretion, any or all books and

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1		records of any credit union in his possession or under his
2		control after the expiration of three years from the date
3		of cancellation of the charter of such credit unions.
4		(9) To make investigations and to conduct research and
5		studies and to publish some of the problems of persons in
6		obtaining credit at reasonable rates of interest and of the
7		methods and benefits of cooperative saving and lending for
8		such persons.
9		(10) To authorize, foster or establish experimental,
10		developmental, demonstration or pilot projects by public
11		or private organizations including credit unions which:
12		(a) promote more effective operation of credit
13		unions so as to provide members an opportunity to use
14		and control their own money to improve their economic
15		and social conditions; or
16		(b) are in the best interests of credit unions,
17		their members and the people of the State of Illinois.
18		(11) To cooperate in studies, training or other
19		administrative activities with, but not limited to, the
20		NCUA, other state credit union regulatory agencies and
21		industry trade associations in order to promote more
22		effective and efficient supervision of Illinois chartered
23		credit unions.
24		(12) Notwithstanding the provisions of this Section,
25		the Secretary shall not:
26		(1) issue an order against a credit union organized

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1		under this Act for unsafe or unsound banking practices
2		solely because the entity provides or has provided
3		financial services to a cannabis-related legitimate
4		business;
5		(2) prohibit, penalize, or otherwise discourage a
6		credit union from providing financial services to a
7		cannabis-related legitimate business solely because
8		the entity provides or has provided financial services
9		to a cannabis-related legitimate business;
10		(3) recommend, incentivize, or encourage a credit
11		union not to offer financial services to an account
12		holder or to downgrade or cancel the financial services
13		offered to an account holder solely because:
14		(A) the account holder is a manufacturer or
15		producer, or is the owner, operator, or employee of
16		a cannabis-related legitimate business;
17		(B) the account holder later becomes an owner
18		or operator of a cannabis-related legitimate
19		business; or
20		(C) the credit union was not aware that the
21		account holder is the owner or operator of a
22		cannabis-related legitimate business; and
23		(4) take any adverse or corrective supervisory
24		action on a loan made to an owner or operator of:
25		(A) a cannabis-related legitimate business
26		solely because the owner or operator owns or

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1		operates a cannabis-related legitimate business;
2		or
3		(B) real estate or equipment that is leased to
4		a cannabis-related legitimate business solely
5		because the owner or operator of the real estate or
6		equipment leased the equipment or real estate to a
7		cannabis-related legitimate business.
8		(Source: P.A. 97-133, eff. 1-1-12; 98-400, eff. 8-16-13.)
9		Section 900-35. The Compassionate Use of Medical Cannabis
10		Pilot Program Act is amended by changing Section 210 as
11		follows:
12		(410 ILCS 130/210)
13		(Section scheduled to be repealed on July 1, 2020)
14		Sec. 210. Returns.
15		(a) This subsection (a) applies to returns due on or before
16		the effective date of this amendatory Act of the 101st General
17		Assembly. On or before the twentieth day of each calendar
18		month, every person subject to the tax imposed under this Law
19		during the preceding calendar month shall file a return with
20		the Department, stating:
21		(1) The name of the taxpayer;
22		(2) The number of ounces of medical cannabis sold to a
23		dispensary organization or a registered qualifying patient
24		during the preceding calendar month;

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1		(3) The amount of tax due;
2		(4) The signature of the taxpayer; and
3		(5) Such other reasonable information as the
4		Department may require.
5		If a taxpayer fails to sign a return within 30 days after
6		the proper notice and demand for signature by the Department,
7		the return shall be considered valid and any amount shown to be
8		due on the return shall be deemed assessed.
9		The taxpayer shall remit the amount of the tax due to the
10		Department at the time the taxpayer files his or her return.
11		(b) Beginning on the effective date of this amendatory Act
12		of the 101st General Assembly, Section 65-20 of the Cannabis
13		Regulation and Tax Act shall apply to returns filed and taxes
14		paid under this Act to the same extent as if those provisions
15		were set forth in full in this Section.
16		(Source: P.A. 98-122, eff. 1-1-14.)
17		Section 900-38. The Illinois Vehicle Code is amended by
18		changing Sections 2-118.2, 11-501.2, 11-501.9, and 11-502.1
19		and by adding Sections 11-501.10 and 11-502.15 as follows:
20		(625 ILCS 5/2-118.2)
21		Sec. 2-118.2. Opportunity for hearing; medical
22		cannabis-related suspension under Section 11-501.9.
23		(a) A suspension of driving privileges under Section
24		11-501.9 of this Code shall not become effective until the

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1		person is notified in writing of the impending suspension and
2		informed that he or she may request a hearing in the circuit
3		court of venue under subsection (b) of this Section and the
4		suspension shall become effective as provided in Section
5		11-501.9.
6		(b) Within 90 days after the notice of suspension served
7		under Section 11-501.9, the person may make a written request
8		for a judicial hearing in the circuit court of venue. The
9		request to the circuit court shall state the grounds upon which
10		the person seeks to have the suspension rescinded. Within 30
11		days after receipt of the written request or the first
12		appearance date on the Uniform Traffic Ticket issued for a
13		violation of Section 11-501 of this Code, or a similar
14		provision of a local ordinance, the hearing shall be conducted
15		by the circuit court having jurisdiction. This judicial
16		hearing, request, or process shall not stay or delay the
17		suspension. The hearing shall proceed in the court in the same
18		manner as in other civil proceedings.
19		The hearing may be conducted upon a review of the law
20		enforcement officer's own official reports; provided however,
21		that the person may subpoena the officer. Failure of the
22		officer to answer the subpoena shall be considered grounds for
23		a continuance if in the court's discretion the continuance is
24		appropriate.
25		The scope of the hearing shall be limited to the issues of:
26		(1) Whether the person was issued a registry

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1		identification card under the Compassionate Use of Medical
2		Cannabis Pilot Program Act; and
3		(1) (2) Whether the officer had reasonable suspicion to
4		believe that the person was driving or in actual physical
5		control of a motor vehicle upon a highway while impaired by
6		the use of cannabis; and
7		(2) (3) Whether the person, after being advised by the
8		officer that the privilege to operate a motor vehicle would
9		be suspended if the person refused to submit to and
10		complete the field sobriety tests, did refuse to submit to
11		or complete the field sobriety tests authorized under
12		Section 11-501.9; and
13		(3) (4) Whether the person after being advised by the
14		officer that the privilege to operate a motor vehicle would
15		be suspended if the person submitted to field sobriety
16		tests that disclosed the person was impaired by the use of
17		cannabis, did submit to field sobriety tests that disclosed
18		that the person was impaired by the use of cannabis.
19		Upon the conclusion of the judicial hearing, the circuit
20		court shall sustain or rescind the suspension and immediately
21		notify the Secretary of State. Reports received by the
22		Secretary of State under this Section shall be privileged
23		information and for use only by the courts, police officers,
24		and Secretary of State.
25		(Source: P.A. 98-1172, eff. 1-12-15.)

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1		(625 ILCS 5/11-501.2) (from Ch. 95 1/2, par. 11-501.2)
2		Sec. 11-501.2. Chemical and other tests.
3		(a) Upon the trial of any civil or criminal action or
4		proceeding arising out of an arrest for an offense as defined
5		in Section 11-501 or a similar local ordinance or proceedings
6		pursuant to Section 2-118.1, evidence of the concentration of
7		alcohol, other drug or drugs, or intoxicating compound or
8		compounds, or any combination thereof in a person's blood or
9		breath at the time alleged, as determined by analysis of the
10		person's blood, urine, breath, or other bodily substance, shall
11		be admissible. Where such test is made the following provisions
12		shall apply:
13		1. Chemical analyses of the person's blood, urine,
14		breath, or other bodily substance to be considered valid
15		under the provisions of this Section shall have been
16		performed according to standards promulgated by the
17		Department of State Police by a licensed physician,
18		registered nurse, trained phlebotomist, licensed
19		paramedic, or other individual possessing a valid permit
20		issued by that Department for this purpose. The Director of
21		State Police is authorized to approve satisfactory
22		techniques or methods, to ascertain the qualifications and
23		competence of individuals to conduct such analyses, to
24		issue permits which shall be subject to termination or
25		revocation at the discretion of that Department and to
26		certify the accuracy of breath testing equipment. The

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1		Department of State Police shall prescribe regulations as
2		necessary to implement this Section.
3		2. When a person in this State shall submit to a blood
4		test at the request of a law enforcement officer under the
5		provisions of Section 11-501.1, only a physician
6		authorized to practice medicine, a licensed physician
7		assistant, a licensed advanced practice registered nurse,
8		a registered nurse, trained phlebotomist, or licensed
9		paramedic, or other qualified person approved by the
10		Department of State Police may withdraw blood for the
11		purpose of determining the alcohol, drug, or alcohol and
12		drug content therein. This limitation shall not apply to
13		the taking of breath, other bodily substance, or urine
14		specimens.
15		When a blood test of a person who has been taken to an
16		adjoining state for medical treatment is requested by an
17		Illinois law enforcement officer, the blood may be
18		withdrawn only by a physician authorized to practice
19		medicine in the adjoining state, a licensed physician
20		assistant, a licensed advanced practice registered nurse,
21		a registered nurse, a trained phlebotomist acting under the
22		direction of the physician, or licensed paramedic. The law
23		enforcement officer requesting the test shall take custody
24		of the blood sample, and the blood sample shall be analyzed
25		by a laboratory certified by the Department of State Police
26		for that purpose.

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1		3. The person tested may have a physician, or a
2		qualified technician, chemist, registered nurse, or other
3		qualified person of their own choosing administer a
4		chemical test or tests in addition to any administered at
5		the direction of a law enforcement officer. The failure or
6		inability to obtain an additional test by a person shall
7		not preclude the admission of evidence relating to the test
8		or tests taken at the direction of a law enforcement
9		officer.
10		4. Upon the request of the person who shall submit to a
11		chemical test or tests at the request of a law enforcement
12		officer, full information concerning the test or tests
13		shall be made available to the person or such person's
14		attorney.
15		5. Alcohol concentration shall mean either grams of
16		alcohol per 100 milliliters of blood or grams of alcohol
17		per 210 liters of breath.
18		6. Tetrahydrocannabinol concentration means either 5
19		nanograms or more of delta-9-tetrahydrocannabinol per
20		milliliter of whole blood or 10 nanograms or more of
21		delta-9-tetrahydrocannabinol per milliliter of other
22		bodily substance.
23		(a-5) Law enforcement officials may use validated roadside
24		chemical tests or standardized field sobriety tests approved by
25		the National Highway Traffic Safety Administration when
26		conducting investigations of a violation of Section 11-501 or

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1		similar local ordinance by drivers suspected of driving under
2		the influence of cannabis. The General Assembly finds that (i)
3		validated roadside chemical tests are effective means to
4		determine if a person is under the influence of cannabis and
5		(ii) standardized field sobriety tests approved by the National
6		Highway Traffic Safety Administration are divided attention
7		tasks that are intended to determine if a person is under the
8		influence of cannabis. The purpose of these tests is to
9		determine the effect of the use of cannabis on a person's
10		capacity to think and act with ordinary care and therefore
11		operate a motor vehicle safely. Therefore, the results of these
12		validated roadside chemical tests and standardized field
13		sobriety tests, appropriately administered, shall be
14		admissible in the trial of any civil or criminal action or
15		proceeding arising out of an arrest for a cannabis-related
16		offense as defined in Section 11-501 or a similar local
17		ordinance or proceedings under Section 2-118.1 or 2-118.2.
18		Where a test is made the following provisions shall apply:
19		1. The person tested may have a physician, or a
20		qualified technician, chemist, registered nurse, or other
21		qualified person of their own choosing administer a
22		chemical test or tests in addition to the standardized
23		field sobriety test or tests administered at the direction
24		of a law enforcement officer. The failure or inability to
25		obtain an additional test by a person does not preclude the
26		admission of evidence relating to the test or tests taken

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1		at the direction of a law enforcement officer.
2		2. Upon the request of the person who shall submit to
3		validated roadside chemical tests or a standardized field
4		sobriety test or tests at the request of a law enforcement
5		officer, full information concerning the test or tests
6		shall be made available to the person or the person's
7		attorney.
8		3. At the trial of any civil or criminal action or
9		proceeding arising out of an arrest for an offense as
10		defined in Section 11-501 or a similar local ordinance or
11		proceedings under Section 2-118.1 or 2-118.2 in which the
12		results of these validated roadside chemical tests or
13		standardized field sobriety tests are admitted, the person
14		cardholder may present and the trier of fact may consider
15		evidence that the person card holder lacked the physical
16		capacity to perform the validated roadside chemical tests
17		or standardized field sobriety tests.
18		(b) Upon the trial of any civil or criminal action or
19		proceeding arising out of acts alleged to have been committed
20		by any person while driving or in actual physical control of a
21		vehicle while under the influence of alcohol, the concentration
22		of alcohol in the person's blood or breath at the time alleged
23		as shown by analysis of the person's blood, urine, breath, or
24		other bodily substance shall give rise to the following
25		presumptions:
26		1. If there was at that time an alcohol concentration

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1		of 0.05 or less, it shall be presumed that the person was
2		not under the influence of alcohol.
3		2. If there was at that time an alcohol concentration
4		in excess of 0.05 but less than 0.08, such facts shall not
5		give rise to any presumption that the person was or was not
6		under the influence of alcohol, but such fact may be
7		considered with other competent evidence in determining
8		whether the person was under the influence of alcohol.
9		3. If there was at that time an alcohol concentration
10		of 0.08 or more, it shall be presumed that the person was
11		under the influence of alcohol.
12		4. The foregoing provisions of this Section shall not
13		be construed as limiting the introduction of any other
14		relevant evidence bearing upon the question whether the
15		person was under the influence of alcohol.
16		(b-5) Upon the trial of any civil or criminal action or
17		proceeding arising out of acts alleged to have been committed
18		by any person while driving or in actual physical control of a
19		vehicle while under the influence of alcohol, other drug or
20		drugs, intoxicating compound or compounds or any combination
21		thereof, the concentration of cannabis in the person's whole
22		blood or other bodily substance at the time alleged as shown by
23		analysis of the person's blood or other bodily substance shall
24		give rise to the following presumptions:
25		1. If there was a tetrahydrocannabinol concentration
26		of 5 nanograms or more in whole blood or 10 nanograms or

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1		more in an other bodily substance as defined in this
2		Section, it shall be presumed that the person was under the
3		influence of cannabis.
4		2. If there was at that time a tetrahydrocannabinol
5		concentration of less than 5 nanograms in whole blood or
6		less than 10 nanograms in an other bodily substance, such
7		facts shall not give rise to any presumption that the
8		person was or was not under the influence of cannabis, but
9		such fact may be considered with other competent evidence
10		in determining whether the person was under the influence
11		of cannabis.
12		(c) 1. If a person under arrest refuses to submit to a
13		chemical test under the provisions of Section 11-501.1,
14		evidence of refusal shall be admissible in any civil or
15		criminal action or proceeding arising out of acts alleged to
16		have been committed while the person under the influence of
17		alcohol, other drug or drugs, or intoxicating compound or
18		compounds, or any combination thereof was driving or in actual
19		physical control of a motor vehicle.
20		2. Notwithstanding any ability to refuse under this Code to
21		submit to these tests or any ability to revoke the implied
22		consent to these tests, if a law enforcement officer has
23		probable cause to believe that a motor vehicle driven by or in
24		actual physical control of a person under the influence of
25		alcohol, other drug or drugs, or intoxicating compound or
26		compounds, or any combination thereof has caused the death or

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1		personal injury to another, the law enforcement officer shall
2		request, and that person shall submit, upon the request of a
3		law enforcement officer, to a chemical test or tests of his or
4		her blood, breath, other bodily substance, or urine for the
5		purpose of determining the alcohol content thereof or the
6		presence of any other drug or combination of both.
7		This provision does not affect the applicability of or
8		imposition of driver's license sanctions under Section
9		11-501.1 of this Code.
10		3. For purposes of this Section, a personal injury includes
11		any Type A injury as indicated on the traffic accident report
12		completed by a law enforcement officer that requires immediate
13		professional attention in either a doctor's office or a medical
14		facility. A Type A injury includes severe bleeding wounds,
15		distorted extremities, and injuries that require the injured
16		party to be carried from the scene.
17		(d) If a person refuses validated roadside chemical tests
18		or standardized field sobriety tests under Section 11-501.9 of
19		this Code, evidence of refusal shall be admissible in any civil
20		or criminal action or proceeding arising out of acts committed
21		while the person was driving or in actual physical control of a
22		vehicle and alleged to have been impaired by the use of
23		cannabis.
24		(e) Department of State Police compliance with the changes
25		in this amendatory Act of the 99th General Assembly concerning
26		testing of other bodily substances and tetrahydrocannabinol

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1		concentration by Department of State Police laboratories is
2		subject to appropriation and until the Department of State
3		Police adopt standards and completion validation. Any
4		laboratories that test for the presence of cannabis or other
5		drugs under this Article, the Snowmobile Registration and
6		Safety Act, or the Boat Registration and Safety Act must comply
7		with ISO/IEC 17025:2005.
8		(Source: P.A. 99-697, eff. 7-29-16; 100-513, eff. 1-1-18.)
9		(625 ILCS 5/11-501.9)
10		Sec. 11-501.9. Suspension of driver's license; failure or
11		refusal of validated roadside chemical tests medical cannabis
12		card holder; failure or refusal of field sobriety tests;
13		implied consent.
14		(a) A person who has been issued a registry identification
15		card under the Compassionate Use of Medical Cannabis Pilot
16		Program Act who drives or is in actual physical control of a
17		motor vehicle upon the public highways of this State shall be
18		deemed to have given consent to (i) validated roadside chemical
19		tests or (ii) standardized field sobriety tests approved by the
20		National Highway Traffic Safety Administration, under
21		subsection (a-5) of Section 11-501.2 of this Code, if detained
22		by a law enforcement officer who has a reasonable suspicion
23		that the person is driving or is in actual physical control of
24		a motor vehicle while impaired by the use of cannabis. The law
25		enforcement officer must have an independent, cannabis-related

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1		factual basis giving reasonable suspicion that the person is
2		driving or in actual physical control of a motor vehicle while
3		impaired by the use of cannabis for conducting validated
4		roadside chemical tests or standardized field sobriety tests,
5		which shall be included with the results of the validated
6		roadside chemical tests and field sobriety tests in any report
7		made by the law enforcement officer who requests the test. The
8		person's possession of a registry identification card issued
9		under the Compassionate Use of Medical Cannabis Pilot Program
10		Act alone is not a sufficient basis for reasonable suspicion.
11		For purposes of this Section, a law enforcement officer of
12		this State who is investigating a person for an offense under
13		Section 11-501 of this Code may travel into an adjoining state
14		where the person has been transported for medical care to
15		complete an investigation and to request that the person submit
16		to field sobriety tests under this Section.
17		(b) A person who is unconscious, or otherwise in a
18		condition rendering the person incapable of refusal, shall be
19		deemed to have withdrawn the consent provided by subsection (a)
20		of this Section.
21		(c) A person requested to submit to validated roadside
22		chemical tests or field sobriety tests, as provided in this
23		Section, shall be warned by the law enforcement officer
24		requesting the field sobriety tests that a refusal to submit to
25		the validated roadside chemical tests or field sobriety tests
26		will result in the suspension of the person's privilege to

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1		operate a motor vehicle, as provided in subsection (f) of this
2		Section. The person shall also be warned by the law enforcement
3		officer that if the person submits to validated roadside
4		chemical tests or field sobriety tests as provided in this
5		Section which disclose the person is impaired by the use of
6		cannabis, a suspension of the person's privilege to operate a
7		motor vehicle, as provided in subsection (f) of this Section,
8		will be imposed.
9		(d) The results of validated roadside chemical tests or
10		field sobriety tests administered under this Section shall be
11		admissible in a civil or criminal action or proceeding arising
12		from an arrest for an offense as defined in Section 11-501 of
13		this Code or a similar provision of a local ordinance. These
14		test results shall be admissible only in actions or proceedings
15		directly related to the incident upon which the test request
16		was made.
17		(e) If the person refuses validated roadside chemical tests
18		or field sobriety tests or submits to validated roadside
19		chemical tests or field sobriety tests that disclose the person
20		is impaired by the use of cannabis, the law enforcement officer
21		shall immediately submit a sworn report to the circuit court of
22		venue and the Secretary of State certifying that testing was
23		requested under this Section and that the person refused to
24		submit to validated roadside chemical tests or field sobriety
25		tests or submitted to validated roadside chemical tests or
26		field sobriety tests that disclosed the person was impaired by

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1		the use of cannabis. The sworn report must include the law
2		enforcement officer's factual basis for reasonable suspicion
3		that the person was impaired by the use of cannabis.
4		(f) Upon receipt of the sworn report of a law enforcement
5		officer submitted under subsection (e) of this Section, the
6		Secretary of State shall enter the suspension to the driving
7		record as follows:
8		(1) for refusal or failure to complete validated
9		roadside chemical tests or field sobriety tests, a 12 month
10		suspension shall be entered; or
11		(2) for submitting to validated roadside chemical
12		tests or field sobriety tests that disclosed the driver was
13		impaired by the use of cannabis, a 6 month suspension shall
14		be entered.
15		The Secretary of State shall confirm the suspension by
16		mailing a notice of the effective date of the suspension to the
17		person and the court of venue. However, should the sworn report
18		be defective for insufficient information or be completed in
19		error, the confirmation of the suspension shall not be mailed
20		to the person or entered to the record; instead, the sworn
21		report shall be forwarded to the court of venue with a copy
22		returned to the issuing agency identifying the defect.
23		(g) The law enforcement officer submitting the sworn report
24		under subsection (e) of this Section shall serve immediate
25		notice of the suspension on the person and the suspension shall
26		be effective as provided in subsection (h) of this Section. If

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1		immediate notice of the suspension cannot be given, the
2		arresting officer or arresting agency shall give notice by
3		deposit in the United States mail of the notice in an envelope
4		with postage prepaid and addressed to the person at his or her
5		address as shown on the Uniform Traffic Ticket and the
6		suspension shall begin as provided in subsection (h) of this
7		Section. The officer shall confiscate any Illinois driver's
8		license or permit on the person at the time of arrest. If the
9		person has a valid driver's license or permit, the officer
10		shall issue the person a receipt, in a form prescribed by the
11		Secretary of State, that will allow the person to drive during
12		the period provided for in subsection (h) of this Section. The
13		officer shall immediately forward the driver's license or
14		permit to the circuit court of venue along with the sworn
15		report under subsection (e) of this Section.
16		(h) The suspension under subsection (f) of this Section
17		shall take effect on the 46th day following the date the notice
18		of the suspension was given to the person.
19		(i) When a driving privilege has been suspended under this
20		Section and the person is subsequently convicted of violating
21		Section 11-501 of this Code, or a similar provision of a local
22		ordinance, for the same incident, any period served on
23		suspension under this Section shall be credited toward the
24		minimum period of revocation of driving privileges imposed
25		under Section 6-205 of this Code.
26		(Source: P.A. 98-1172, eff. 1-12-15.)

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1		(625 ILCS 5/11-501.10 new)
2		Sec. 11-501.10. DUI Cannabis Task Force.
3		(a) The DUI Cannabis Task Force is hereby created to study
4		the issue of driving under the influence of cannabis. The Task
5		Force shall consist of the following members:
6		(1) The Director of State Police, or his or her
7		designee, who shall serve as chair;
8		(2) The Secretary of State, or his or her designee;
9		(3) The President of the Illinois State's Attorneys
10		Association, or his or her designee;
11		(4) The President of the Illinois Association of
12		Criminal Defense Lawyers, or his or her designee;
13		(5) One member appointed by the Speaker of the House of
14		Representatives;
15		(6) One member appointed by the Minority Leader of the
16		House of Representatives;
17		(7) One member appointed by the President of the
18		Senate;
19		(8) One member appointed by the Minority Leader of the
20		Senate;
21		(9) One member of an organization dedicated to end
22		drunk driving and drugged driving;
23		(10) The president of a statewide bar association,
24		appointed by the Governor; and
25		(11) One member of a statewide organization

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1		representing civil and constitutional rights, appointed by
2		the Governor.
3		(b) The members of the Task Force shall serve without
4		compensation.
5		(c) The Task Force shall examine best practices in the area
6		of driving under the influence of cannabis enforcement,
7		including examining emerging technology in roadside testing.
8		(d) The Task Force shall meet no fewer than 3 times and
9		shall present its report and recommendations on improvements to
10		enforcement of driving under the influence of cannabis, in
11		electronic format, to the Governor and the General Assembly no
12		later than July 1, 2020.
13		(e) The Department of State Police shall provide
14		administrative support to the Task Force as needed. The
15		Sentencing Policy Advisory Council shall provide data on
16		driving under the influence of cannabis offenses and other data
17		to the Task Force as needed.
18		(f) This Section is repealed on July 1, 2021.
19		(625 ILCS 5/11-502.1)
20		Sec. 11-502.1. Possession of medical cannabis in a motor
21		vehicle.
22		(a) No driver, who is a medical cannabis cardholder, may
23		use medical cannabis within the passenger area of any motor
24		vehicle upon a highway in this State.
25		(b) No driver, who is a medical cannabis cardholder, a

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1		medical cannabis designated caregiver, medical cannabis
2		cultivation center agent, or dispensing organization agent may
3		possess medical cannabis within any area of any motor vehicle
4		upon a highway in this State except in a sealed, odor-proof,
5		and child-resistant tamper-evident medical cannabis container.
6		(c) No passenger, who is a medical cannabis card holder, a
7		medical cannabis designated caregiver, or medical cannabis
8		dispensing organization agent may possess medical cannabis
9		within any passenger area of any motor vehicle upon a highway
10		in this State except in a sealed, odor-proof, and
11		child-resistant tamper-evident medical cannabis container.
12		(d) Any person who violates subsections (a) through (c) of
13		this Section:
14		(1) commits a Class A misdemeanor;
15		(2) shall be subject to revocation of his or her
16		medical cannabis card for a period of 2 years from the end
17		of the sentence imposed;
18		(4) shall be subject to revocation of his or her status
19		as a medical cannabis caregiver, medical cannabis
20		cultivation center agent, or medical cannabis dispensing
21		organization agent for a period of 2 years from the end of
22		the sentence imposed.
23		(Source: P.A. 98-122, eff. 1-1-14.)
24		(625 ILCS 5/11-502.15 new)
25		Sec. 11-502.15. Possession of adult use cannabis in a motor

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1		vehicle.
2		(a) No driver may use cannabis within the passenger area of
3		any motor vehicle upon a highway in this State.
4		(b) No driver may possess cannabis within any area of any
5		motor vehicle upon a highway in this State except in a sealed,
6		odor-proof, child-resistant cannabis container.
7		(c) No passenger may possess cannabis within any passenger
8		area of any motor vehicle upon a highway in this State except
9		in a sealed, odor-proof, child-resistant cannabis container.
10		(d) Any person who knowingly violates subsection (a), (b),
11		or (c) of this Section commits a Class A misdemeanor.
12		Section 900-39. The Juvenile Court Act of 1987 is amended
13		by changing Section 5-401 as follows:
14		(705 ILCS 405/5-401)
15		Sec. 5-401. Arrest and taking into custody of a minor.
16		(1) A law enforcement officer may, without a warrant,
17		(a) arrest a minor whom the officer with probable cause
18		believes to be a delinquent minor; or
19		(b) take into custody a minor who has been adjudged a
20		ward of the court and has escaped from any commitment
21		ordered by the court under this Act; or
22		(c) take into custody a minor whom the officer
23		reasonably believes has violated the conditions of
24		probation or supervision ordered by the court.

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1		(2) Whenever a petition has been filed under Section 5-520
2		and the court finds that the conduct and behavior of the minor
3		may endanger the health, person, welfare, or property of the
4		minor or others or that the circumstances of his or her home
5		environment may endanger his or her health, person, welfare or
6		property, a warrant may be issued immediately to take the minor
7		into custody.
8		(3) Except for minors accused of violation of an order of
9		the court, any minor accused of any act under federal or State
10		law, or a municipal or county ordinance that would not be
11		illegal if committed by an adult, cannot be placed in a jail,
12		municipal lockup, detention center, or secure correctional
13		facility. Juveniles accused with underage consumption and
14		underage possession of alcohol or cannabis cannot be placed in
15		a jail, municipal lockup, detention center, or correctional
16		facility.
17		(Source: P.A. 90-590, eff. 1-1-99.)
18		Section 900-40. The Cannabis Control Act is amended by
19		changing Sections 4, 5, 5.1, 5.3, and 8 as follows:
20		(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)
21		Sec. 4. Except as otherwise provided in the Cannabis
22		Regulation and Tax Act, it It is unlawful for any person
23		knowingly to possess cannabis.
24		Any person who violates this Section section with respect to:

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1		(a) not more than 10 grams of any substance containing
2		cannabis is guilty of a civil law violation punishable by a
3		minimum fine of $100 and a maximum fine of $200. The
4		proceeds of the fine shall be payable to the clerk of the
5		circuit court. Within 30 days after the deposit of the
6		fine, the clerk shall distribute the proceeds of the fine
7		as follows:
8		(1) $10 of the fine to the circuit clerk and $10 of
9		the fine to the law enforcement agency that issued the
10		citation; the proceeds of each $10 fine distributed to
11		the circuit clerk and each $10 fine distributed to the
12		law enforcement agency that issued the citation for the
13		violation shall be used to defer the cost of automatic
14		expungements under paragraph (2.5) of subsection (a)
15		of Section 5.2 of the Criminal Identification Act;
16		(2) $15 to the county to fund drug addiction
17		services;
18		(3) $10 to the Office of the State's Attorneys
19		Appellate Prosecutor for use in training programs;
20		(4) $10 to the State's Attorney; and
21		(5) any remainder of the fine to the law
22		enforcement agency that issued the citation for the
23		violation.
24		With respect to funds designated for the Department of
25		State Police, the moneys shall be remitted by the circuit
26		court clerk to the Department of State Police within one

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1		month after receipt for deposit into the State Police
2		Operations Assistance Fund. With respect to funds
3		designated for the Department of Natural Resources, the
4		Department of Natural Resources shall deposit the moneys
5		into the Conservation Police Operations Assistance Fund;
6		(b) more than 10 grams but not more than 30 grams of
7		any substance containing cannabis is guilty of a Class B
8		misdemeanor;
9		(c) more than 30 grams but not more than 100 grams of
10		any substance containing cannabis is guilty of a Class A
11		misdemeanor; provided, that if any offense under this
12		subsection (c) is a subsequent offense, the offender shall
13		be guilty of a Class 4 felony;
14		(d) more than 100 grams but not more than 500 grams of
15		any substance containing cannabis is guilty of a Class 4
16		felony; provided that if any offense under this subsection
17		(d) is a subsequent offense, the offender shall be guilty
18		of a Class 3 felony;
19		(e) more than 500 grams but not more than 2,000 grams
20		of any substance containing cannabis is guilty of a Class 3
21		felony;
22		(f) more than 2,000 grams but not more than 5,000 grams
23		of any substance containing cannabis is guilty of a Class 2
24		felony;
25		(g) more than 5,000 grams of any substance containing
26		cannabis is guilty of a Class 1 felony.

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1		(Source: P.A. 99-697, eff. 7-29-16.)
2		(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)
3		Sec. 5. Except as otherwise provided in the Cannabis
4		Regulation and Tax Act, it It is unlawful for any person
5		knowingly to manufacture, deliver, or possess with intent to
6		deliver, or manufacture, cannabis. Any person who violates this
7		Section section with respect to:
8		(a) not more than 2.5 grams of any substance containing
9		cannabis is guilty of a Class B misdemeanor;
10		(b) more than 2.5 grams but not more than 10 grams of any
11		substance containing cannabis is guilty of a Class A
12		misdemeanor;
13		(c) more than 10 grams but not more than 30 grams of any
14		substance containing cannabis is guilty of a Class 4 felony;
15		(d) more than 30 grams but not more than 500 grams of any
16		substance containing cannabis is guilty of a Class 3 felony for
17		which a fine not to exceed $50,000 may be imposed;
18		(e) more than 500 grams but not more than 2,000 grams of
19		any substance containing cannabis is guilty of a Class 2 felony
20		for which a fine not to exceed $100,000 may be imposed;
21		(f) more than 2,000 grams but not more than 5,000 grams of
22		any substance containing cannabis is guilty of a Class 1 felony
23		for which a fine not to exceed $150,000 may be imposed;
24		(g) more than 5,000 grams of any substance containing
25		cannabis is guilty of a Class X felony for which a fine not to

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1		exceed $200,000 may be imposed.
2		(Source: P.A. 90-397, eff. 8-15-97.)
3		(720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)
4		Sec. 5.1. Cannabis Trafficking.
5		(a) Except for purposes authorized by this Act or the
6		Cannabis Regulation and Tax Act, any person who knowingly
7		brings or causes to be brought into this State for the purpose
8		of manufacture or delivery or with the intent to manufacture or
9		deliver 2,500 grams or more of cannabis in this State or any
10		other state or country is guilty of cannabis trafficking.
11		(b) A person convicted of cannabis trafficking shall be
12		sentenced to a term of imprisonment not less than twice the
13		minimum term and fined an amount as authorized by subsection
14		(f) or (g) of Section 5 of this Act, based upon the amount of
15		cannabis brought or caused to be brought into this State, and
16		not more than twice the maximum term of imprisonment and fined
17		twice the amount as authorized by subsection (f) or (g) of
18		Section 5 of this Act, based upon the amount of cannabis
19		brought or caused to be brought into this State.
20		(Source: P.A. 90-397, eff. 8-15-97.)
21		(720 ILCS 550/5.3)
22		Sec. 5.3. Unlawful use of cannabis-based product
23		manufacturing equipment.
24		(a) A person commits unlawful use of cannabis-based product

HB1438 Enrolled - 600 - LRB101 04919 JRG 49928 b
1		manufacturing equipment when he or she knowingly engages in the
2		possession, procurement, transportation, storage, or delivery
3		of any equipment used in the manufacturing of any
4		cannabis-based product using volatile or explosive gas,
5		including, but not limited to, canisters of butane gas, with
6		the intent to manufacture, compound, covert, produce, derive,
7		process, or prepare either directly or indirectly any
8		cannabis-based product.
9		(b) This Section does not apply to a cultivation center or
10		cultivation center agent that prepares medical cannabis or
11		cannabis-infused products in compliance with the Compassionate
12		Use of Medical Cannabis Pilot Program Act and Department of
13		Public Health and Department of Agriculture rules.
14		(c) Sentence. A person who violates this Section is guilty
15		of a Class 2 felony.
16		(d) This Section does not apply to craft growers,
17		cultivation centers, and infuser organizations licensed under
18		the Cannabis Regulation and Tax Act.
19		(e) This Section does not apply to manufacturers of
20		cannabis-based product manufacturing equipment or transporting
21		organizations with documentation identifying the seller and
22		purchaser of the equipment if the seller or purchaser is a
23		craft grower, cultivation center, or infuser organization
24		licensed under the Cannabis Regulation and Tax Act.
25		(Source: P.A. 99-697, eff. 7-29-16.)

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1		(720 ILCS 550/8) (from Ch. 56 1/2, par. 708)
2		Sec. 8. Except as otherwise provided in the Cannabis
3		Regulation and Tax Act, it It is unlawful for any person
4		knowingly to produce the Cannabis cannabis sativa plant or to
5		possess such plants unless production or possession has been
6		authorized pursuant to the provisions of Section 11 or 15.2 of
7		the Act. Any person who violates this Section with respect to
8		production or possession of:
9		(a) Not more than 5 plants is guilty of a civil violation
10		punishable by a minimum fine of $100 and a maximum fine of
11		$200. The proceeds of the fine are payable to the clerk of the
12		circuit court. Within 30 days after the deposit of the fine,
13		the clerk shall distribute the proceeds of the fine as follows:
14		(1) $10 of the fine to the circuit clerk and $10 of the
15		fine to the law enforcement agency that issued the
16		citation; the proceeds of each $10 fine distributed to the
17		circuit clerk and each $10 fine distributed to the law
18		enforcement agency that issued the citation for the
19		violation shall be used to defer the cost of automatic
20		expungements under paragraph (2.5) of subsection (a) of
21		Section 5.2 of the Criminal Identification Act;
22		(2) $15 to the county to fund drug addiction services;
23		(3) $10 to the Office of the State's Attorneys
24		Appellate Prosecutor for use in training programs;
25		(4) $10 to the State's Attorney; and
26		(5) any remainder of the fine to the law enforcement

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1		agency that issued the citation for the violation.
2		With respect to funds designated for the Department of
3		State Police, the moneys shall be remitted by the circuit court
4		clerk to the Department of State Police within one month after
5		receipt for deposit into the State Police Operations Assistance
6		Fund. With respect to funds designated for the Department of
7		Natural Resources, the Department of Natural Resources shall
8		deposit the moneys into the Conservation Police Operations
9		Assistance Fund. Class A misdemeanor.
10		(b) More than 5, but not more than 20 plants, is guilty of
11		a Class 4 felony.
12		(c) More than 20, but not more than 50 plants, is guilty of
13		a Class 3 felony.
14		(d) More than 50, but not more than 200 plants, is guilty
15		of a Class 2 felony for which a fine not to exceed $100,000 may
16		be imposed and for which liability for the cost of conducting
17		the investigation and eradicating such plants may be assessed.
18		Compensation for expenses incurred in the enforcement of this
19		provision shall be transmitted to and deposited in the
20		treasurer's office at the level of government represented by
21		the Illinois law enforcement agency whose officers or employees
22		conducted the investigation or caused the arrest or arrests
23		leading to the prosecution, to be subsequently made available
24		to that law enforcement agency as expendable receipts for use
25		in the enforcement of laws regulating controlled substances and
26		cannabis. If such seizure was made by a combination of law

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1		enforcement personnel representing different levels of
2		government, the court levying the assessment shall determine
3		the allocation of such assessment. The proceeds of assessment
4		awarded to the State treasury shall be deposited in a special
5		fund known as the Drug Traffic Prevention Fund.
6		(e) More than 200 plants is guilty of a Class 1 felony for
7		which a fine not to exceed $100,000 may be imposed and for
8		which liability for the cost of conducting the investigation
9		and eradicating such plants may be assessed. Compensation for
10		expenses incurred in the enforcement of this provision shall be
11		transmitted to and deposited in the treasurer's office at the
12		level of government represented by the Illinois law enforcement
13		agency whose officers or employees conducted the investigation
14		or caused the arrest or arrests leading to the prosecution, to
15		be subsequently made available to that law enforcement agency
16		as expendable receipts for use in the enforcement of laws
17		regulating controlled substances and cannabis. If such seizure
18		was made by a combination of law enforcement personnel
19		representing different levels of government, the court levying
20		the assessment shall determine the allocation of such
21		assessment. The proceeds of assessment awarded to the State
22		treasury shall be deposited in a special fund known as the Drug
23		Traffic Prevention Fund.
24		(Source: P.A. 98-1072, eff. 1-1-15.)
25		Section 900-42. The Code of Civil Procedure is amended by

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1		changing Section 2-1401 as follows:
2		(735 ILCS 5/2-1401) (from Ch. 110, par. 2-1401)
3		Sec. 2-1401. Relief from judgments.
4		(a) Relief from final orders and judgments, after 30 days
5		from the entry thereof, may be had upon petition as provided in
6		this Section. Writs of error coram nobis and coram vobis, bills
7		of review and bills in the nature of bills of review are
8		abolished. All relief heretofore obtainable and the grounds for
9		such relief heretofore available, whether by any of the
10		foregoing remedies or otherwise, shall be available in every
11		case, by proceedings hereunder, regardless of the nature of the
12		order or judgment from which relief is sought or of the
13		proceedings in which it was entered. Except as provided in the
14		Illinois Parentage Act of 2015, there shall be no distinction
15		between actions and other proceedings, statutory or otherwise,
16		as to availability of relief, grounds for relief or the relief
17		obtainable.
18		(b) The petition must be filed in the same proceeding in
19		which the order or judgment was entered but is not a
20		continuation thereof. The petition must be supported by
21		affidavit or other appropriate showing as to matters not of
22		record. A petition to reopen a foreclosure proceeding must
23		include as parties to the petition, but is not limited to, all
24		parties in the original action in addition to the current
25		record title holders of the property, current occupants, and

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1		any individual or entity that had a recorded interest in the
2		property before the filing of the petition. All parties to the
3		petition shall be notified as provided by rule.
4		(b-5) A movant may present a meritorious claim under this
5		Section if the allegations in the petition establish each of
6		the following by a preponderance of the evidence:
7		(1) the movant was convicted of a forcible felony;
8		(2) the movant's participation in the offense was
9		related to him or her previously having been a victim of
10		domestic violence as perpetrated by an intimate partner;
11		(3) no evidence of domestic violence against the movant
12		was presented at the movant's sentencing hearing;
13		(4) the movant was unaware of the mitigating nature of
14		the evidence of the domestic violence at the time of
15		sentencing and could not have learned of its significance
16		sooner through diligence; and
17		(5) the new evidence of domestic violence against the
18		movant is material and noncumulative to other evidence
19		offered at the sentencing hearing, and is of such a
20		conclusive character that it would likely change the
21		sentence imposed by the original trial court.
22		Nothing in this subsection (b-5) shall prevent a movant
23		from applying for any other relief under this Section or any
24		other law otherwise available to him or her.
25		As used in this subsection (b-5):
26		"Domestic violence" means abuse as defined in Section

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1		103 of the Illinois Domestic Violence Act of 1986.
2		"Forcible felony" has the meaning ascribed to the term
3		in Section 2-8 of the Criminal Code of 2012.
4		"Intimate partner" means a spouse or former spouse,
5		persons who have or allegedly have had a child in common,
6		or persons who have or have had a dating or engagement
7		relationship.
8		(c) Except as provided in Section 20b of the Adoption Act
9		and Section 2-32 of the Juvenile Court Act of 1987 or in a
10		petition based upon Section 116-3 of the Code of Criminal
11		Procedure of 1963, or in a motion to vacate and expunge
12		convictions under the Cannabis Control Act as provided by
13		subsection (i) of Section 5.2 of the Criminal Identification
14		Act, the petition must be filed not later than 2 years after
15		the entry of the order or judgment. Time during which the
16		person seeking relief is under legal disability or duress or
17		the ground for relief is fraudulently concealed shall be
18		excluded in computing the period of 2 years.
19		(d) The filing of a petition under this Section does not
20		affect the order or judgment, or suspend its operation.
21		(e) Unless lack of jurisdiction affirmatively appears from
22		the record proper, the vacation or modification of an order or
23		judgment pursuant to the provisions of this Section does not
24		affect the right, title or interest in or to any real or
25		personal property of any person, not a party to the original
26		action, acquired for value after the entry of the order or

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1		judgment but before the filing of the petition, nor affect any
2		right of any person not a party to the original action under
3		any certificate of sale issued before the filing of the
4		petition, pursuant to a sale based on the order or judgment.
5		When a petition is filed pursuant to this Section to reopen a
6		foreclosure proceeding, notwithstanding the provisions of
7		Section 15-1701 of this Code, the purchaser or successor
8		purchaser of real property subject to a foreclosure sale who
9		was not a party to the mortgage foreclosure proceedings is
10		entitled to remain in possession of the property until the
11		foreclosure action is defeated or the previously foreclosed
12		defendant redeems from the foreclosure sale if the purchaser
13		has been in possession of the property for more than 6 months.
14		(f) Nothing contained in this Section affects any existing
15		right to relief from a void order or judgment, or to employ any
16		existing method to procure that relief.
17		(Source: P.A. 99-85, eff. 1-1-16; 99-384, eff. 1-1-16; 99-642,
18		eff. 7-28-16; 100-1048, eff. 8-23-18.)
19		Section 900-45. The Condominium Property Act is amended by
20		adding Section 33 as follows:
21		(765 ILCS 605/33 new)
22		Sec. 33. Limitations on the use of smoking cannabis. The
23		condominium instruments of an association may prohibit or limit
24		the smoking of cannabis, as the term "smoking" is defined in

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1		the Cannabis Regulation and Tax Act, within a unit owner's
2		unit. The condominium instruments and rules and regulations
3		shall not otherwise restrict the consumption of cannabis by any
4		other method within a unit owner's unit, or the limited common
5		elements, but may restrict any form of consumption on the
6		common elements.
7		Section 900-50. The Right to Privacy in the Workplace Act
8		is amended by changing Section 5 as follows:
9		(820 ILCS 55/5) (from Ch. 48, par. 2855)
10		Sec. 5. Discrimination for use of lawful products
11		prohibited.
12		(a) Except as otherwise specifically provided by law,
13		including Section 10-50 of the Cannabis Regulation and Tax Act,
14		and except as provided in subsections (b) and (c) of this
15		Section, it shall be unlawful for an employer to refuse to hire
16		or to discharge any individual, or otherwise disadvantage any
17		individual, with respect to compensation, terms, conditions or
18		privileges of employment because the individual uses lawful
19		products off the premises of the employer during nonworking and
20		non-call hours. As used in this Section, "lawful products"
21		means products that are legal under state law. For purposes of
22		this Section, an employee is deemed on-call when the employee
23		is scheduled with at least 24 hours' notice by his or her
24		employer to be on standby or otherwise responsible for

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1		performing tasks related to his or her employment either at the
2		employer's premises or other previously designated location by
3		his or her employer or supervisor to perform a work-related
4		task. hours.
5		(b) This Section does not apply to any employer that is a
6		non-profit organization that, as one of its primary purposes or
7		objectives, discourages the use of one or more lawful products
8		by the general public. This Section does not apply to the use
9		of those lawful products which impairs an employee's ability to
10		perform the employee's assigned duties.
11		(c) It is not a violation of this Section for an employer
12		to offer, impose or have in effect a health, disability or life
13		insurance policy that makes distinctions between employees for
14		the type of coverage or the price of coverage based upon the
15		employees' use of lawful products provided that:
16		(1) differential premium rates charged employees
17		reflect a differential cost to the employer; and
18		(2) employers provide employees with a statement
19		delineating the differential rates used by insurance
20		carriers.
21		(Source: P.A. 87-807.)
22		ARTICLE 999.
23		MISCELLANEOUS PROVISIONS
24		Section 999-95. No acceleration or delay. Where this Act

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1		makes changes in a statute that is represented in this Act by
2		text that is not yet or no longer in effect (for example, a
3		Section represented by multiple versions), the use of that text
4		does not accelerate or delay the taking effect of (i) the
5		changes made by this Act or (ii) provisions derived from any
6		other Public Act.