Bill Amendment: IL SB0776 | 2023-2024 | 103rd General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: REGULATION-TECH

Status: 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB0776 Detail]

Download: Illinois-2023-SB0776-Senate_Amendment_001.html

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Sen. Kimberly A. Lightford

Filed: 5/9/2024

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AMENDMENT TO SENATE BILL 776
AMENDMENT NO. ______. Amend Senate Bill 776 by replacing
everything after the enacting clause with the following:
"Article 1.
Short title; Definitions
Section 1-1. Short title. This Act may be cited as the Hemp
Cannabinoid Products Act. References to "this Act" in Articles
1 through 40 of this Act mean Articles 1 through 40 of this
Act.
Section 1-5. Definitions. In this Act:
"Accreditation body" means an impartial nonprofit
organization that operates in conformance with the
International Organization for Standardization
(ISO)/International Electrotechnical Commission (IEC)
standard 17011 and is a signatory to the International

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Laboratory Accreditation Cooperation (ILAC) Mutual Recognition
Arrangement (MRA) for Testing.
"Batch" means a specific quantity of a specific
cannabinoid product that is manufactured during the same batch
cycle.
"Batch cycle" means a specific quantity of a specific
cannabinoid product that is manufactured using the same
methods, equipment, and ingredients that is uniform and
intended to meet specifications for identity, strength,
purity, and composition and that is manufactured, packaged,
and labeled according to a batch cycle production record
executed and documented during the same cycle of manufacture.
"Broad spectrum" means a hemp extract or hemp extract
derived product containing multiple hemp-derived cannabinoids,
terpenes, and other naturally occurring compounds, processed
with the intentional removal of delta-9 Tetrahydrocannabinol.
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Full spectrum" means a hemp concentrate or hemp
concentrate product cannabinoid product containing multiple
hemp-derived cannabinoids, terpenes, and other naturally
occurring compounds processed without intentional complete
removal of any compound and without the addition of isolated
cannabinoids.
"Hemp business establishment" means a hemp cultivator,
hemp processor, hemp distributor, hemp infuser, or any other

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business licensed by the Department of Agriculture under this
Act.
"Hemp cannabinoid" means the chemical constituents of
industrial hemp plants that are naturally occurring and
derived from hemp plants with less than 0.3% delta-9 THC as
tested on a dry weight basis.
"Hemp cannabinoid product" means a finished product for
sale to consumer within the State that contains cannabinoids
derived from industrial hemp, is intended for human
consumption, and meets the packaging, labeling, and testing
requirements of this Act.
"Hemp concentrate" means the extracts and resins of a hemp
plant or hemp plant parts, including the extracts or resins of
a hemp plant or hemp plant parts that are refined to increase
or decrease the presence of targeted cannabinoids intended to
cause an intoxicating effect or having a total milligram by
volume over 0.5 milligrams per serving or 2 milligrams per
packaging of delta-9-tetrahydrocannabinol or
delta-8-tetrahydrocannabinol, including any other substance
containing THC.
"Hemp concentrate derived products" means a product
intended for human consumption that is derived from hemp
concentrate and meets the labeling and potency requirements
set forth in this Act.
"Hemp concentrate infuser" means the establishment that
takes intermediate hemp products, hemp extract, or hemp

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concentrate and infuses it with products intended for human
consumption that meets the labeling and potency limits set
forth in this Act.
"Hemp concentrate infuser agent" means a principal
officer, employee, or agent of a hemp concentrate infuser who
is 21 years of age or older.
"Hemp concentrate infuser agent identification card" means
a document issued by the Department of Agriculture that
identifies a person as a hemp concentrate infuser agent.
"Hemp concentrate retailer" means the establishment where
hemp cannabinoid products, hemp extract derived products, or
hemp concentrate derived products may be sold to consumers.
"Hemp concentrate retail agent" means a principal officer,
employee, or agent of a hemp concentrate retailer who is 21
years of age or older.
"Hemp concentrate retail agent identification card" means
a document issued by the Department of Agriculture that
identifies a person as a hemp concentrate retail agent.
"Hemp extract" means a substance or compound intended for
ingestion or inhalations that is derived from or contains hemp
and that does not contain other controlled substances or
resins of a hemp plant or hemp plant parts that are refined to
increase or decrease the presence of targeted cannabinoids.
"Hemp distributor" means a business that transports
intermediate hemp product, hemp extract, hemp concentrate, or
raw hemp to hemp infusers, processors, testing facilities, or

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retail locations licensed by the Department of Financial and
Professional Regulation or Department of Agriculture.
"Hemp distributor agent" means a principal officer,
employee, or agent of a hemp distributor who is 21 years of age
or older.
"Hemp distributor agent identification card" means a
document issued by the Department of Agriculture that
identifies a person as a hemp distributor agent.
"Hemp extract derived products" means a product intended
for human consumptions that is derived from hemp extract and
meets the labeling and potency limits set forth in this Act and
does not contain more than 0.5 milligrams per serving or 2
milligrams per package of delta-8 or delta-9 THC derived from
any naturally occurring cannabinoids found in hemp.
"Hemp extract infuser" means the establishment that takes
intermediate hemp products or hemp extract and infuses it with
products intended for human consumption that meets the
labeling and potency limits set forth in this Act for a hemp
extract product.
"Hemp processor" means the establishment that removes the
hemp extract from the hemp plant or refines or isomerizes the
hemp extract into hemp concentrate for use in an intermediate
hemp product.
"Hemp processor agent" means a principal officer,
employee, or agent of a hemp processor who is 21 years of age
or older.

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"Hemp processor agent identification card" means a
document issued by the Department of Agriculture that
identifies a person as a hemp processor agent.
"Hemp retailer" means the establishment where hemp
cannabinoid products or hemp extract derived products may be
sold to consumers.
"Imported hemp" means industrial hemp that incorporates
raw hemp or intermediate hemp products not produced in
Illinois.
"Intermediate hemp product" means a product that is made
from hemp concentrate that can only be sold to hemp business
establishments to be used as ingredients for other
intermediate hemp products or hemp concentrate derived
products for human consumption.
"Scope of accreditation" means a document issued by an
accreditation body that attests to the laboratory's competence
to carry out specific testing and analysis.
"Social Equity Applicant" has the meaning given to that
term in Section 1-10 of the Cannabis Regulation and Tax Act.
"Testing laboratory" means an independent, third-party
laboratory contracted by a licensee to test hemp cannabinoid
products.
"Tetrahydrocannabinol" or "THC" means any naturally
occurring or synthetic tetrahydrocannabinol, including its
salts, isomers, and salts of isomers whenever the existence of
such salts, isomers, and salts of isomers is possible within

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the specific chemical designation and any preparation,
mixture, or substance containing, or mixed or infused with,
any detectable amount of tetrahydrocannabinol or
tetrahydrocannabolic acid, including, but not limited to,
delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
tetrahydrocannabipherol, or hexahydrocannabinol, however
derived, or any other substance determined to have similar
intoxicating effects on the mind or body by the Department.
For the purposes of this definition, "isomer" means the
optical, position, and geometric isomers.
Article 5.
General Provisions
Section 5-5. Prohibitions.
(a) No person shall process, manufacture, label,
distribute for sale, sell, offer for sale, market, or
advertise any hemp cannabinoid product within this State
without obtaining a license under this Act.
(b) No licensee shall distribute for sale, offer for sale,
market, or advertise intermediate hemp products or hemp
concentrate to a person or entity that is not a licensed hemp
business establishment.
(c) No hemp retailer shall distribute for sale, offer for
sale, market, or advertise hemp concentrate products.

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(d) No licensee shall process, manufacture, distribute for
sale, sell, offer for sale, market, or advertise any hemp
cannabinoid product unless the product complies with the
labeling, packaging, minimum testing, and other requirements
of this Act and any administrative rules adopted by the
Department.
(e) A product that has a THC concentration greater than
the limits set forth for hemp cannabinoid products as defined
in this Act shall be regulated as cannabis as defined in the
Cannabis Regulation and Tax Act, whether or not the product is
made with or derived from hemp, industrial hemp, or derived
from natural or synthetic sources.
(f) No product intended for consumption by any means that
is derived from hemp or marketed as hemp shall be distributed
for sale, offered for sale, or sold to a consumer within this
State unless it meets the minimum requirements of this Act.
Article 10.
Hemp Retailers
Section 10-5. Authority.
(a) The Department shall administer and enforce the
provisions of this Act relating to the licensure and oversight
of licensure of a hemp retailer unless otherwise provided in
this Act.
(b) No person shall operate a hemp retailer organization

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for the purpose of serving purchasers of hemp extract derived
products without a license issued under this Article by the
Department.
(c) Subject to this Act, the Department may exercise the
following powers and duties:
(1) Prescribe forms to be issued for the
administration and enforcement of this Article.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp retail organization
applicants and licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to the hemp retail organization.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand, or otherwise discipline a license
under this Article or take other nondisciplinary action.
(5) Adopt rules required for the administration of
this Article.
Section 10-10. Application for hemp retailers. An
applicant seeking issuance of a license as a hemp retailer
shall submit an application on forms provided by the
Department. An applicant must meet the following requirements:
(1) payment of a nonrefundable application fee of $100
for each license for which the applicant is applying,
which shall be deposited into the Cannabis Regulation

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Fund;
(2) certification that the applicant will comply with
the requirements contained in this Act;
(3) the legal name of the proposed hemp retailer;
(4) a statement that the hemp retailer agrees to
respond to the Department's supplemental requests for
information;
(5) a resume for each principal officer, including
whether that person has an academic degree, certification,
or relevant experience with a hemp business establishment
or in a related industry;
(6) a copy of the proposed operating bylaws;
(7) a copy of the proposed business plan that complies
with the requirements in this Act;
(8) a proposed floor plan, including a square footage
estimate;
(9) the name, address, social security number, and
date of birth of each principal officer and board member
of the retailer; each principal officer and board member
shall be at least 21 years of age;
(10) the address, telephone number, and email address
of the applicant's principal place of business, if
applicable. A post office box is not permitted;
(11) written summaries of any information regarding
instances in which a business or nonprofit organization
that a prospective board member previously managed or

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served on was fined or censured or any instances in which a
business or nonprofit organization that a prospective
board member previously managed or served on had its
registration suspended or revoked in any administrative or
judicial proceeding;
(12) procedures to ensure accurate recordkeeping;
(13) a description of the features that will provide
accessibility to purchasers as required by the Americans
with Disabilities Act;
(14) the dated signature of each principal officer;
and
(15) any other information deemed necessary by the
Department.
Section 10-15. Renewal of licenses.
(a) A hemp retailer license issued under Section 10-10
shall expire 2 years after the date issued.
(b) A license holder shall submit a renewal application as
provided by the Department and pay the required renewal fee.
The Department shall require an agent, employee, contracting,
and subcontracting diversity report and an environmental
impact report with its renewal application. No license may be
renewed if it is currently under revocation or suspension for
violation of this Act, the Cannabis Regulation and Tax Act, or
the Industrial Hemp Act or any rules that adopted under this
Act, the Cannabis Regulation and Tax Act, or the Industrial

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Hemp Act or if the licensee, principal officer, board member,
person having a financial or voting interest of 5% or greater
in the licensee, or agent is delinquent in filing any required
tax returns or paying any amounts owed to the State.
(c) For a hemp retailer license, $100 shall be paid as a
renewal fee and shall be deposited into the Cannabis
Regulation Fund.
(d) If a hemp retailer fails to renew its license before
expiration, the hemp retailer shall cease operations until the
license is renewed.
(e) A hemp retailer that continues to operate without
renewal of its license is subject to penalty as provided in
this Article or any rules that may be adopted pursuant to this
Article.
(f) The Department shall not renew a license if the
applicant is delinquent in filing required tax returns or
paying amounts owed to the State.
Section 10-20 Denial of application.
(a) An application for a hemp retailer license must be
denied if any of the following conditions are met:
(1) The applicant failed to submit the materials
required by this Article.
(2) The applicant would not be in compliance with
local zoning rules or permit requirements.
(3) One or more of the prospective principal officers

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or board members causes a violation of this Act.
(4) One or more of the principal officers or board
members is under 21 years of age.
(5) The person has submitted an application for a
license under this Act or this Article that contains false
information.
(6) If the licensee, principal officer, board member,
agent, or person having a financial or voting interest of
5% or greater in the licensee is delinquent in filing any
required tax returns or paying any amounts owed to the
State of Illinois.
Article 15.
Hemp Concentrate Retailers
Section 15-5. Definitions; issuance of licenses.
(a) In this Article:
"Department" means the Department of Financial and
Professional Regulation.
"Secretary" means the Secretary of Financial and
Professional Regulation
(b) The Department shall issue licenses for hemp
concentrate retailers through the process provided for in this
Article no later than July 1, 2026.
(c) The Department may not issue more than 500 licenses
for hemp concentrate retailers under this Article.

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(d) The Department shall make the application to be
licensed as a hemp concentrate retailer available on January
7, 2026 and shall receive any initial applications under this
subsection no later than March 15, 2026.
(e) Upon completion of the disparity and availability
study published by the Illinois Cannabis Regulation Oversight
Officer under subsection (e) of Section 5-45 of the Cannabis
Regulation and Tax Act, the Department may modify or change
the licensing application process to reduce or eliminate
barriers and remedy discrimination identified in the study.
(f) Beginning January 7, 2027, the Department shall make
the applications available and on every January 7 thereafter
or, if that date falls on a weekend or holiday, the business
day immediately succeeding the weekend or holiday and shall
receive any application no later than March 15 or the
succeeding business day thereafter.
Section 15-10. Authority.
(a) The Department shall administer and enforce the
provisions of this Act relating to the licensure and oversight
of hemp concentrate retailer license holders and hemp
concentrate retail agents unless otherwise provided in this
Act.
(b) No person shall operate a hemp concentrate retail
organization for the purpose of serving purchasers of hemp
concentrate derived products or hemp extract derived products

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without a license issued under this Article by the Department.
No person shall be an officer, director, manager, or employee
of a hemp concentrate retail organization without having been
issued a hemp concentrate retail agent card by the Department.
(c) Subject to this Act, the Department may exercise the
following powers and duties:
(1) Prescribe forms to be issued for the
administration and enforcement of this Article.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp concentrate retail
organization applicants and licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to hemp concentrate retail
organization or hemp concentrate retail agents.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand, or otherwise discipline a license
under this Article or take other nondisciplinary action.
(5) Adopt rules required for the administration of
this Article.
Section 15-15. Application for hemp concentrate retailers.
An applicant seeking issuance of a hemp concentrate retailer
shall submit an application on forms provided by the
Department. An applicant must meet the following requirements:
(1) payment of a nonrefundable application fee of

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$5,000 for each license for which the applicant is
applying, which shall be deposited into the Cannabis
Regulation Fund;
(2) certification that the applicant will comply with
the requirements contained in this Act;
(3) the legal name of the proposed hemp concentrate
retailer;
(4) a statement that the hemp concentrate retailer
agrees to respond to the Department's supplemental
requests for information;
(5) from each principal officer, a statement
indicating whether that person:
(A) has previously held or currently holds an
ownership interest in a cannabis business
establishment or a hemp business establishment in this
State; or
(B) has held an ownership interest in a cannabis
dispensing organization, hemp retailer organization,
or its equivalent in another state or territory of the
United States that had the cannabis dispensing
organization registration, hemp retailer organization,
or license suspended, revoked, placed on probationary
status, or subjected to other disciplinary action;
(6) disclosure of whether any principal officer has
ever filed for bankruptcy or defaulted on spousal support
or child support obligation;

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(7) a resume for each principal officer, including
whether that person has an academic degree, certification,
or relevant experience with a hemp business establishment
or in a related industry;
(8) a description of the training and education that
will be provided to hemp concentrate retailer agents;
(9) a copy of the proposed operating bylaws;
(10) a copy of the proposed business plan that
complies with the requirements in this Act, including, at
a minimum, the following:
(A) a description of services to be offered; and
(B) a description of the process of dispensing
hemp concentrate products;
(11) a copy of the proposed security plan that
complies with the requirements in this Act, including:
(A) the process or controls that will be
implemented to monitor the hemp concentrate retailer,
secure the premises, agents, and currency, and prevent
the diversion, theft, or loss of hemp concentrate
products; and
(B) the process to ensure that access to the
restricted access areas is restricted to, registered
agents, service professionals, hemp distributor
agents, Department inspectors, and security personnel;
(12) a proposed inventory control plan that complies
with this Section;

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(13) a proposed floor plan, including a square footage
estimate, and a description of proposed security devices,
including, without limitation, cameras, motion detectors,
servers, video storage capabilities, and alarm service
providers;
(14) the name, address, social security number, and
date of birth of each principal officer and board member
of the hemp concentrate retailer; each of those
individuals shall be at least 21 years of age;
(15) the address, telephone number, and email address
of the applicant's principal place of business, if
applicable. A post office box is not permitted;
(16) written summaries of any information regarding
instances in which a business or nonprofit organization
that a prospective board member previously managed or
served on was fined or censured or any instances in which a
business or nonprofit organization that a prospective
board member previously managed or served on had its
registration suspended or revoked in any administrative or
judicial proceeding;
(17) a plan for community engagement;
(18) procedures to ensure accurate recordkeeping and
security measures that are in accordance with this Article
and Department rules;
(19) the estimated volume of hemp concentrate products
it plans to store at the hemp concentrate retailer;

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(20) a description of the features that will provide
accessibility to purchasers, as required by the Americans
with Disabilities Act;
(21) a detailed description of air treatment systems
that will be installed to reduce odors;
(22) a reasonable assurance that the issuance of a
license will not have a detrimental impact on the
community in which the applicant wishes to locate;
(23) the dated signature of each principal officer;
(24) a description of the enclosed, locked facility
where hemp concentrate products will be stored by the hemp
concentrate retailer;
(25) signed statements from each hemp concentrate
retailer agent stating that he or she will not divert hemp
concentrate products;
(26) a diversity plan that includes a narrative of at
least 2,500 words that establishes a goal of diversity in
ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity;
(27) a contract with a private security contractor
that is licensed under Section 10-5 of the Private
Detective, Private Alarm, Private Security, Fingerprint
Vendor, and Locksmith Act of 2004 in order for the hemp
concentrate retailer to have adequate security at its
facility; and

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(28) any other information deemed necessary by the
Illinois Cannabis Regulation Oversight Officer to conduct
the disparity and availability study referenced in
subsection (e) of Section 5-45 of the Cannabis Regulation
and Tax Act.
Section 15-20. Selection criteria for a hemp concentrate
license.
(a) An applicant for a hemp concentrate license must
submit all required information, including the information
required under Section 15-15, to the Department. Failure by an
applicant to submit all required information may result in the
application being disqualified.
(b) If the Department receives an application that fails
to provide the required elements contained in this Section,
the Department shall issue a deficiency notice to the
applicant. The applicant shall have 10 calendar days from the
date of the deficiency notice to resubmit the incomplete
information. Applications that are still incomplete after this
opportunity to cure will not be scored and will be
disqualified.
(c) The Department shall, by rule, develop a system to
score hemp concentrate license applications to
administratively rank applications based on the clarity,
organization, and quality of the applicant's responses to
required information. Applicants shall be awarded points based

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on the following categories:
(1) Suitability of employee training plan. The plan
includes an employee training plan that demonstrates that
employees will understand the rules and laws to be
followed by hemp concentrate retail agents, have knowledge
of any security measures and operating procedures of the
hemp concentrate retailer, and are able to advise
purchasers on how to safely consume hemp concentrate
derived products and use individual products offered by
the hemp concentrate retailers.
(2) Security and recordkeeping.
(A) The security plan accounts for the prevention
of the theft or diversion of hemp concentrate derived
product. The security plan demonstrates safety
procedures for hemp concentrate retail agents and
purchasers, and safe delivery and storage of hemp
concentrate derived products and currency. It
demonstrates compliance with all security requirements
in this Act and rules.
(B) A plan for recordkeeping, tracking, and
monitoring inventory, quality control, and other
policies and procedures that will promote standard
recordkeeping and discourage unlawful activity. This
plan includes the applicant's strategy to communicate
with the Department and the Illinois State Police on
the destruction and disposal of hemp concentrate

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derived products. The plan must also demonstrate
compliance with this Act and rules.
(C) The security plan shall also detail which
private security contractor licensed under Section
10-5 of the Private Detective, Private Alarm, Private
Security, Fingerprint Vendor, and Locksmith Act of
2004 the dispensary will contract with in order to
provide adequate security at its facility.
(3) The applicant's business plan, finances,
operating, and floor plan.
(A) The business plan shall describe, at a
minimum, how the retailer will be managed on a
long-term basis. This shall include a description of
the retailer's point-of-sale system, purchases and
denials of sale, confidentiality, and products and
services to be offered. It must demonstrate compliance
with this Act and rules.
(B) The operating plan shall include, at a
minimum, best practices for day-to-day retailer
operation and staffing. The operating plan may also
include information about employment practices,
including information about the percentage of
full-time employees who will be provided a living
wage.
(C) The proposed floor plan is suitable for public
access, promotes safe sale of hemp concentrate derived

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products, is compliant with the Americans with
Disabilities Act and the Environmental Barriers Act,
and facilitates safe product handling and storage.
(4) Knowledge and experience.
(A) The applicant's principal officers must
demonstrate experience and qualifications in business
management or experience with the hemp industry. This
includes ensuring optimal safety and accuracy in sale
of hemp cannabinoid products.
(B) The applicant's principal officers must
demonstrate knowledge of various hemp cannabinoids or
varieties and describe the types and quantities of
products planned to be sold. This includes
confirmation of whether the hemp concentrate retailer
plans to sell consumption paraphernalia or edibles.
(C) Knowledge and experience may be demonstrated
through experience in other comparable industries that
reflect on the applicant's ability to operate a hemp
business establishment.
(5) Labor and employment practices. The applicant may
describe plans to provide a safe, healthy, and
economically beneficial working environment for its
agents, including, but not limited to, codes of conduct,
health care benefits, educational benefits, retirement
benefits, living wage standards, and entering a labor
peace agreement with employees.

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(6) Environmental plan. The applicant may demonstrate
an environmental plan of action to minimize the carbon
footprint, environmental impact, and resource needs for
the hemp concentrate retailer, which may include, without
limitation, recycling hemp cannabinoid product packaging.
(7) Illinois owner. The applicant is 51% or more owned
and controlled by an resident of this State who can prove
residency in each of the past 5 years with tax records or 2
of the following:
(A) a signed lease agreement that includes the
applicant's name;
(B) a property deed that includes the applicant's
name;
(C) school records;
(D) a voter registration card;
(E) an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card;
(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other
information necessary to establish residence as
provided by rule.
(8) Status as veteran. The applicant is 51% or more
controlled and owned by an individual or individuals who
meet the qualifications of a veteran, as that term is

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defined by Section 45-57 of the Illinois Procurement Code.
(9) A diversity plan (5% of the total points that may
be awarded). The plan includes a narrative of not more
than 2,500 words that establishes a goal of diversity in
ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity.
(d) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a hemp concentrate
retail organization.
(e) The Department may, in its discretion, refuse to issue
an authorization to any applicant who:
(1) is unqualified to perform the duties required of
the applicant;
(2) fails to disclose or states falsely any
information called for in the application;
(3) has been found guilty of a violation of this Act,
who has had any disciplinary order entered against it by
the Department, who has entered into a disciplinary or
nondisciplinary agreement with the Department, or whose
medical cannabis dispensing organization, medical cannabis
cultivation organization, Early Approval Adult Use
Dispensing Organization License, Early Approval Adult Use
Dispensing Organization License at a secondary site, Early
Approval Cultivation Center License, Conditional Adult Use

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Cannabis Dispensing Organization License, Adult Use
Cannabis Dispensing Organization License, or hemp retail
license was suspended, restricted, revoked, or denied for
just cause or the applicant's cannabis business
establishment license or hemp business establishment
license was suspended, restricted, revoked, or denied in
any other state; or
(4) has engaged in a pattern or practice of unfair or
illegal practices, methods, or activities in the conduct
of owning a cannabis business establishment, hemp business
establishment or other business.
(f) The Department shall deny the license if any principal
officer, board member, or person having a financial or voting
interest of 5% or greater in the licensee is delinquent in
filing any required tax returns or paying any amounts owed to
the State of Illinois.
(g) The Department shall verify an applicant's compliance
with the requirements of this Article and rules before issuing
a hemp concentrate retailer license.
(h) If an applicant is awarded a license, the information
and plans provided in the application shall become a condition
of the hemp concentrate retailer license except as otherwise
provided by this Act or rule. Hemp concentrate retailer
organizations shall have a duty to disclose any material
changes to the application. The Department shall review all
material changes disclosed by the hemp concentrate retailer

10300SB0776sam001 - 27 - LRB103 03232 RJT 73288 a
and may reevaluate its prior decision regarding the awarding
of a license, including, but not limited to, suspending or
permanently revoking a license. Failure to comply with the
conditions or requirements in the application may subject the
hemp concentrate retailer to discipline, up to and including
suspension or permanent revocation of its authorization or
license by the Department.
Section 15-25. Hemp concentrate retailer agent
identification card; agent training.
(a) The Department shall:
(1) verify the information contained in an application
or renewal for a hemp concentrate retailer agent
identification card submitted under this Article, and
approve or deny an application or renewal, within 30 days
of receiving a completed application or renewal
application and all supporting documentation required by
rule;
(2) issue a hemp concentrate retailer agent
identification card to a qualifying agent within 15
business days of approving the application or renewal;
(3) enter the registry identification number of the
hemp concentrate retailer where the agent works;
(4) within one year from the effective date of this
Act, allow for an electronic application process and
provide a confirmation by electronic or other methods that

10300SB0776sam001 - 28 - LRB103 03232 RJT 73288 a
an application has been submitted; and
(5) collect a $100 nonrefundable fee from the
applicant to be deposited into the Cannabis Regulation
Fund.
(b) A hemp concentrate retailer agent must keep the
agent's hemp concentrate retailer agent identification card
visible at all times when in the hemp concentrate retailer.
(c) The hemp concentrate retailer agent identification
card shall contain the following:
(1) the name of the cardholder;
(2) the date of issuance and expiration date of the
hemp concentrate retailer agent identification card;
(3) a random 10-digit alphanumeric identification
number containing at least 4 numbers and at least 4
letters that is unique to the cardholder; and
(4) a photograph of the cardholder.
(d) The hemp concentrate retailer agent identification
card shall be immediately returned to the hemp concentrate
retailer upon termination of employment.
(e) The Department shall not issue a hemp concentrate
retailer agent identification card if the applicant is
delinquent in filing any required tax returns or paying any
amounts owed to the State of Illinois.
(f) Any card lost by a hemp concentrate retailer agent
shall be reported to the Illinois State Police and the
Department immediately upon discovery of the loss.

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(g) An applicant shall be denied a hemp concentrate
retailer agent identification card renewal if the applicant
fails to complete the training provided for in this Section.
(h) Each owner, manager, employee, and agent of a hemp
concentrate retailer shall successfully complete hemp
concentrate retail sales training, including completing a
responsible vendor program, as follows:
(1) 90 days after employment at a licensed hemp
concentrate retailer or 90 days after the hemp concentrate
retailers receives a license, all owners, managers,
employees, and agents involved in the handling or sale of
hemp concentrate derived products shall attend and
successfully complete a responsible vendor program and
annually thereafter.
(2) Responsible vendor program training modules shall
include at least 2 hours of instruction time approved by
the Department, including:
(A) Health and safety concerns of hemp concentrate
derived products use, including the responsible use of
hemp concentrate derived products, its physical
effects, onset of physiological effects, recognizing
signs of impairment, and appropriate responses in the
event of overconsumption.
(B) Training on laws and regulations on driving
while under the influence and operating a watercraft
or snowmobile while under the influence.

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(C) Sales to minors prohibition, including
covering all relevant Illinois laws and rules.
(D) Quantity limitations on sales to purchasers,
including covering all relevant Illinois laws and
rules.
(E) Acceptable forms of identification, including:
(i) how to check identification; and
(ii) common mistakes made in verification.
(F) Safe storage of hemp concentrate derived
products.
(G) Compliance with all inventory tracking system
regulations.
(H) Waste handling, management, and disposal.
(I) Health and safety standards.
(J) Maintenance of records.
(K) Security and surveillance requirements.
(L) Permitting inspections by State and local
licensing and enforcement authorities.
(M) Privacy issues.
(N) Packaging and labeling requirement for sales
to purchasers.
(O) Other areas as determined by rule.
(i) Upon the successful completion of the responsible
vendor program, the provider shall deliver proof of completion
either through mail or electronic communication to the hemp
concentrate retailer, which shall retain a copy of the

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certificate.
(j) The license of a hemp concentrate retailer whose
owners, managers, employees, or agents fail to comply with
this Section may be suspended, permanently revoked, or may
face other disciplinary action.
(k) The regulation of hemp concentrate retail sale and
employee training is an exclusive function of the State, and
regulation by a unit of local government, including a home
rule unit, is prohibited. This subsection (k) is a denial and
limitation of home rule powers and functions under subsection
(h) of Section 6 of Article VII of the Illinois Constitution.
(l) Persons seeking Department approval to offer the
training required by paragraph (2) of subsection (h) may apply
for such approval between August 1 and August 15 of each
odd-numbered year in a manner prescribed by the Department.
(m) Persons seeking Department approval to offer the
training required by paragraph (2) of subsection (h) shall
submit a nonrefundable application fee of $2,000 to be
deposited into the Cannabis Regulation Fund or a fee as may be
set by rule. Any changes made to the training module shall be
approved by the Department.
(n) The Department shall not unreasonably deny approval of
a training module that meets all the requirements of paragraph
(2) of subsection (h). A denial of approval shall include a
detailed description of the reasons for the denial.
(o) Any person approved to provide the training required

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by subsection (h) shall submit an application for reapproval
between August 1 and August 15 of each odd-numbered year and
include a nonrefundable application fee of $2,000 to be
deposited into the Cannabis Regulation Fund or a fee as may be
set by rule.
(p) All persons applying to become or renewing their
registrations to be agents, including agents-in-charge and
principal officers, shall disclose any disciplinary action
taken against them that may have occurred in Illinois, another
state, or another country in relation to their employment at a
cannabis business establishment, hemp business establishment,
or at any cannabis cultivation center, processor, infuser,
dispensary, hemp processor, hemp infuser, or other hemp
business establishment.
(q) An agent applicant may begin employment at a hemp
concentrate retailer while the agent applicant's hemp
concentrate retailer agent identification card application is
pending. Upon approval, the Department shall issue the agent's
hemp concentrate retailer agent identification card to the
agent. If denied, the hemp concentrate retailer and the agent
applicant shall be notified and the agent applicant must cease
all activity at the hemp concentrate retailer immediately.
Section 15-30. Renewal.
(a) A hemp concentrate retailer license shall expire on
March 31 of even-numbered years.

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(b) A hemp concentrate retail agent identification card
shall expire one year from the date it is issued.
(c) Any license holder and hemp concentrate retail agent
shall submit a renewal application as provided by the
Department and pay the required renewal fee. The Department
shall require an agent, employee, contracting, and
subcontracting diversity report and an environmental impact
report with its renewal application. No license or agent
identification card shall be renewed if it is currently under
revocation or suspension for violation of this Article or any
rules that may be adopted under this Article or the licensee,
principal officer, board member, person having a financial or
voting interest of 5% or greater in the licensee, or agent is
delinquent in filing any required tax returns or paying any
amounts owed to the State of Illinois.
(d) Renewal fees.
(1) For a hemp concentrate retailer license, $30,000,
to be deposited into the Cannabis Regulation Fund.
(2) For a hemp concentrate retail agent identification
card, $100, to be deposited into the Cannabis Regulation
Fund.
(e) If a hemp concentrate retailer fails to renew its
license before expiration, the hemp concentrate retailer shall
cease operations until the license is renewed.
(f) If a hemp concentrate retail agent fails to renew the
agent's registration before its expiration, the agent shall

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cease to perform duties authorized by this Article at a hemp
concentrate retailer until the agent's registration is
renewed.
(g) A hemp concentrate retailer that continues to operate
without renewal of its license or a hemp concentrate retail
agent that continues to perform duties authorized by this
Article at a hemp concentrate retailer that has failed to
renew its license is subject to penalty as provided in this
Article or any rules that may be adopted pursuant to this
Article.
(h) The Department shall not renew a license if the
applicant is delinquent in filing required tax returns or
paying amounts owed to the State of Illinois. The Department
shall not renew a hemp concentrate retail agent identification
card if the applicant is delinquent in filing any required tax
returns or paying any amounts owed to the State of Illinois.
Section 15-35. Disclosure of ownership and control.
(a) Each hemp concentrate retailer applicant and licensee
shall file and maintain a table of organization, ownership,
and control with the Department. The table of organization,
ownership, and control shall contain the information required
by this Section in sufficient detail to identify all owners,
directors, and principal officers and the title of each
principal officer or business entity that, through direct or
indirect means, manages, owns, or controls the applicant or

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licensee.
(b) The table of organization, ownership, and control
shall identify the following information:
(1) The management structure, ownership, and control
of the applicant or license holder, including the name of
each principal officer or business entity, the office or
position held, and the percentage ownership interest, if
any. If the business entity has a parent company, the name
of each owner, board member, and officer of the parent
company and the percentage ownership interest in the
parent company and the retailer.
(2) If the applicant or licensee is a business entity
with publicly traded stock, the identification of
ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a
publicly traded company, the following information shall be
provided in the table of organization, ownership, and control:
(1) The name and percentage of ownership interest of
each individual or business entity with ownership of more
than 5% of the voting shares of the entity, to the extent
such information is known or contained in 13D or 13G
Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage of
interest of ownership of persons who are relatives of one
another and who together exercise control over or own more
than 10% of the voting shares of the entity.

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(d) A hemp concentrate retailer with a parent company or
companies, or partially owned or controlled by another entity,
must disclose to the Department the relationship and all
owners, board members, officers, or individuals with control
or management of those entities. A hemp concentrate shall not
shield its ownership or control from the Department.
(e) All principal officers must submit a complete online
application with the Department within 14 days of the hemp
concentrate retailer being licensed by the Department or
within 14 days of Department notice of approval as a new
principal officer.
(f) A principal officer may not allow the principal
officer's registration to expire.
(g) A hemp concentrate retailer separating with a
principal officer must do so under this Act. The principal
officer must communicate the separation to the Department
within 5 business days.
(h) A principal officer not in compliance with the
requirements of this Act shall be removed from the principal
officer's position with the hemp concentrate retailer or shall
otherwise terminate the principal officer's affiliation.
Failure to do so may subject the hemp concentrate retailer to
discipline, suspension, or revocation of its license by the
Department.
(i) It is the responsibility of the hemp concentrate
retailer and its principal officers to promptly notify the

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Department of any change of the principal place of business
address, hours of operation, change in ownership or control,
or a change of the hemp concentrate retailer primary or
secondary contact information. Any changes must be made to the
Department in writing.
Section 15-40. Financial responsibility. Evidence of
financial responsibility is a requirement for the issuance,
maintenance, or reactivation of a license under this Article.
Evidence of financial responsibility shall be used to
guarantee that the hemp concentrate retailer timely and
successfully completes construction, operates in a manner that
provides an uninterrupted supply of hemp concentrate derived
products, faithfully pays registration renewal fees, keeps
accurate books and records, makes regularly required reports,
complies with State tax requirements, and conducts the hemp
concentrate retailer in conformity with this Act and rules.
Evidence of financial responsibility shall be provided by one
of the following:
(1) Establishing and maintaining an escrow or surety
account in a financial institution in the amount of
$50,000, with escrow terms, approved by the Department,
that it shall be payable to the Department as provided in
this Act and rules. The following applies to escrow or
surety accounts:
(A) A financial institution may not return money

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in an escrow or surety account to the hemp concentrate
retailer that established the account or a
representative of the organization unless the
organization or representative presents a statement
issued by the Department indicating that the account
may be released.
(B) The escrow or surety account shall not be
canceled on less than 30 days' notice in writing to the
Department, unless otherwise approved by the
Department. If an escrow or surety account is canceled
and the registrant fails to secure a new account with
the required amount on or before the effective date of
cancellation, the registrant's registration may be
permanently revoked. The total and aggregate liability
of the surety on the bond is limited to the amount
specified in the escrow or surety account.
(2) Providing a surety bond in the amount of $50,000
and naming the hemp concentrate retailer as principal of
the bond, with terms approved by the Department that the
bond defaults to the Department in the event of
circumstances outlined in this Act and rules. Bond terms
shall include:
(A) The business name and registration number on
the bond must correspond exactly with the business
name and registration number in the Department's
records.

10300SB0776sam001 - 39 - LRB103 03232 RJT 73288 a
(B) The bond must be written on a form approved by
the Department.
(C) A copy of the bond must be received by the
Department within 90 days after the effective date.
(D) The bond may not be canceled by a surety on
less than 30 days' notice in writing to the
Department. If a bond is canceled and the registrant
fails to file a new bond with the Department in the
required amount on or before the effective date of
cancellation, the registrant's registration may be
permanently revoked. The total and aggregate liability
of the surety on the bond is limited to the amount
specified in the bond.
Section 15-45. Changes to a hemp concentrate retailer.
(a) A license shall be issued to the specific hemp
concentrate retailer identified on the application and for the
specific location proposed. The license is valid only as
designated on the license and for the location for which it is
issued.
(b) A hemp concentrate retailer may only add principal
officers approved by the Department.
(c) A hemp concentrate retailer shall provide written
notice of the removal of a principal officer within 5 business
days after removal. The notice shall include the written
agreement of the principal officer being removed, unless

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otherwise approved by the Department, and allocation of
ownership shares after removal in an updated ownership chart.
(d) A hemp concentrate retailer shall provide a written
request to the Department for the addition of principal
officers. A hemp concentrate retailer shall submit proposed
principal officer applications on forms approved by the
Department.
(e) Any proposed new principal officer shall be subject to
the requirements of this Act and any rules that may be adopted
pursuant to this Act.
(f) The Department may prohibit the addition of a
principal officer to a hemp concentrate retailer for failure
to comply with this Act and any rules that may be adopted
pursuant to this Act.
(g) A hemp concentrate retailer may not assign a license.
(h) A hemp concentrate retailer may not transfer a license
without prior Department approval. Such approval may be
withheld if the person to whom the license is being
transferred does not commit to the same or a similar community
engagement plan provided as part of the hemp concentrate
retailer's application and such transferee's license shall be
conditional upon that commitment.
(i) With the addition or removal of principal officers,
the Department shall review the ownership structure to
determine whether the change in ownership has had the effect
of a transfer of the license. The hemp concentrate retailer

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shall supply all ownership documents requested by the
Department.
(j) A hemp concentrate retailer may apply to the
Department to approve a sale of the hemp concentrate retailer.
A request to sell the hemp concentrate retailer must be on
application forms provided by the Department and must comply
with the following:
(1) New application materials shall comply with this
Act and any rules that may be adopted pursuant to this Act.
(2) Application materials shall include a change of
ownership fee of $5,000 to be deposited into the Cannabis
Regulation Fund.
(3) The application materials shall provide proof that
the transfer of ownership will not have the effect of
granting any of the owners or principal officers direct or
indirect ownership or control of more than 10 hemp
business establishments.
(4) Any new principal officer shall each complete the
proposed new principal officer application.
(5) If the Department approves the application
materials and proposed new principal officer applications,
it shall perform an inspection before approving the sale
and issuing the hemp concentrate retailer license.
(6) If a new license is approved, the Department shall
issue a new license number and certificate to the new hemp
concentrate retailer.

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(k) The hemp concentrate retailer shall provide the
Department with the personal information for all new hemp
concentrate retail agents as required in this Article and all
new hemp concentrate retail agents shall be subject to the
requirements of this Article. A hemp concentrate retail agent
must obtain a hemp concentrate retail agent identification
card from the Department before beginning work at a hemp
concentrate retailer.
(l) Before remodeling, expansion, reduction, or other
physical, noncosmetic alteration of a hemp concentrate
retailer physical space, the hemp concentrate retailer must
notify the Department and confirm the alterations are in
compliance with this Act and any rules that may be adopted
pursuant to this Act.
Section 15-50. Administration.
(a) A hemp concentrate retailer shall establish, maintain,
and comply with written policies and procedures as submitted
in the business, financial, and operating plan as required in
this Article or by rules established by the Department, and
approved by the Department, for the security, storage,
inventory, and distribution of hemp concentrate derived
products. The policies and procedures shall include methods
for identifying, recording, and reporting diversion, theft, or
loss, and for correcting errors and inaccuracies in
inventories. At a minimum, hemp concentrate retailers shall

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ensure the written policies and procedures provide for the
following:
(1) Mandatory and voluntary recalls of hemp
concentrate derived products. The policies shall be
adequate to deal with recalls due to any action initiated
at the request of the Department and any voluntary action
by the hemp concentrate retailer to remove defective or
potentially defective hemp concentrate derived products
from the market or any action undertaken to promote public
health and safety, including:
(A) a mechanism reasonably calculated to contact
purchasers who have, or likely have, obtained the
product from the hemp concentrate retailer, including
information on the policy for return of the recalled
product;
(B) a mechanism to identify and contact the hemp
concentrate infuser or hemp processor that
manufactured the hemp concentrate derived product;
(C) policies for communicating with the Department
and the Department of Public Health within 24 hours
after discovering defective or potentially defective
hemp concentrate derived products; and
(D) policies for destruction of any recalled hemp
concentrate derived product.
(2) Responses to local, State, or national
emergencies, including natural disasters, that affect the

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security or operation of a hemp concentrate retailer.
(3) Segregation and destruction of outdated, damaged,
deteriorated, misbranded, or adulterated hemp concentrate
derived products. This procedure shall provide for written
documentation of the hemp concentrate derived products
disposition.
(4) Ensure the oldest stock of a hemp concentrate
derived product is distributed first. The procedure may
permit deviation from this requirement, if such deviation
is temporary and appropriate.
(5) Training of hemp concentrate retail agents in the
provisions of this Act and any rules adopted to
effectively operate the point-of-sale system and the
State's verification system, proper inventory handling and
tracking, specific uses of hemp concentrate derived
products, instruction regarding regulatory inspection
preparedness and law enforcement interaction, awareness of
the legal requirements for maintaining status as an agent,
and any other topics as specified by the hemp concentrate
retailer or the Department. The hemp concentrate retailer
shall maintain evidence of all training provided to each
agent in its files that is subject to inspection and audit
by the Department. The hemp concentrate retailer shall
ensure agents receive at least 8 hours of training subject
to the requirements in subsection (h) of Section 15-25
annually, unless otherwise approved by the Department.

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(6) Maintenance of business records consistent with
industry standards, including bylaws, consents, manual or
computerized records of assets and liabilities, audits,
monetary transactions, journals, ledgers, and supporting
documents, including agreements, checks, invoices,
receipts, and vouchers. Records shall be maintained in a
manner consistent with this Act and shall be retained for
5 years.
(7) Inventory control, including:
(A) tracking purchases and denials of sale; and
(B) disposal of unusable or damaged hemp
concentrate derived products as required by this Act
and rules.
(8) Purchaser education and support, including:
(A) current educational information issued by the
Department of Public Health about the health risks
associated with the use or abuse of hemp concentrate
derived products;
(B) information about possible side effects;
(C) prohibition on smoking hemp concentrate
derived products in public places; and
(D) offering any other appropriate purchaser
education or support materials.
(b) A hemp concentrate retailer shall maintain copies of
the policies and procedures on the hemp concentrate retailer
premises and provide copies to the Department upon request.

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The hemp concentrate retailer shall review the hemp
concentrate retailer policies and procedures at least once
every 12 months from the issue date of the license and update
as needed due to changes in industry standards or as requested
by the Department.
(c) A hemp concentrate retailer shall ensure that each
principal officer and each hemp concentrate retail agent has a
current hemp concentrate retailer agent identification card in
the agent's immediate possession when the agent is at the hemp
concentrate retailer.
(d) A hemp concentrate retailer shall provide prompt
written notice to the Department, including the date of the
event, when a hemp concentrate retail agent no longer is
employed by the hemp concentrate retailer.
(e) A hemp concentrate retailer and hemp concentrate
retailer agent shall promptly document and report any loss or
theft of hemp concentrate derived product from the hemp
concentrate retailer to the Illinois State Police and the
Department.
(f) A hemp concentrate retailer shall post the following
information and signage in a conspicuous location in an area
of the hemp concentrate retailer accessible to consumers:
(1) The hemp concentrate retailer's license.
(2) The hours of operation.
(3) A placard that states the following: "Hemp
concentrate derived products consumption can impair

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cognition and driving, is for adult use only, may be habit
forming, and should not be used by pregnant or
breastfeeding women.".
(4) A hemp concentrate retailer that sells edible hemp
concentrate derived products must display a placard that
states the following:
(A) "Edible hemp concentrate derived products were
produced in a kitchen that may also process common
food allergens."; and
(B) "The effects of hemp concentrate derived
products can vary from person to person, and it can
take as long as two hours to feel the effects of some
hemp concentrate derived products. Carefully review
the portion size information and warnings contained on
the product packaging before consuming.".
All of the required signage in paragraphs (3) and (4)
shall be no smaller than 24 inches tall by 36 inches wide, with
typed letters no smaller than 2 inches. The signage shall be
clearly visible and readable by customers. The signage shall
be placed in the area where hemp concentrate derived products
are sold and may be translated into additional languages as
needed. The Department may require a hemp concentrate retailer
to display the required signage in a different language, other
than English, if the Secretary deems it necessary.
(g) A hemp concentrate retailer shall prominently post
notices inside the hemp concentrate retailer that state

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activities that are strictly prohibited and punishable by law,
including, but not limited to:
(1) no minors permitted on the premises; and
(2) distribution to persons under the age of 21 is
prohibited.
Section 15-55. Operational requirements; prohibitions.
(a) A hemp concentrate retailer shall operate in
accordance with the representations made in its application
and license materials. It shall be in compliance with this Act
and rules.
(b) A hemp concentrate retailer must include the legal
name of the hemp concentrate retailer on the packaging of any
hemp concentrate derived product it sells.
(c) Hemp concentrate derived product must be obtained from
an Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, adult use cannabis
infuser that meets the requirements of a Social Equity
Applicant, a hemp concentrate infuser, or hemp processor.
(d) A hemp concentrate retailer may not sell any product
containing alcohol except tinctures that are limited to
containers no larger than 100 milliliters.
(e) A hemp concentrate retailer shall inspect and count
product received from a State registered adult use craft
grower that meets the requirements of a Social Equity
Applicant, an adult use cannabis infuser that meets the

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requirements of a Social Equity Applicant, an adult use
cannabis transporter that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, hemp processor,
or hemp distributor before selling it.
(f) A hemp concentrate retailer may only accept hemp
concentrate derived product deliveries into a restricted
access area. Deliveries may not be accepted through the public
or limited access areas unless otherwise approved by the
Department.
(g) A hemp concentrate retailer shall maintain compliance
with State and local building, fire, and zoning requirements
or regulations.
(h) A hemp concentrate retailer shall submit a list to the
Department of the names of any service professional that will
work at the hemp concentrate retailer. The list shall include
a description of the type of business or service provided.
Changes to the service professional list shall be promptly
provided. No service professional shall work in the hemp
concentrate retailer until the name is provided to the
Department on the service professional list.
(i) A hemp concentrate retailer license allows the hemp
concentrate retailer to be operated only at a single location.
(j) A hemp concentrate retailer may operate between 6 a.m.
and 10 p.m. local time.
(k) A hemp concentrate retailer must keep all lighting
outside and inside the hemp concentrate retailer in good

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working order and at a wattage sufficient for security
cameras.
(l) A hemp concentrate retailer must keep all air
treatment systems that will be installed to reduce odors in
good working order.
(m) A hemp concentrate retailer must contract with a
private security contractor that is licensed under Section
10-5 of the Private Detective, Private Alarm, Private
Security, Fingerprint Vendor, and Locksmith Act of 2004 to
provide on-site security at all hours of the hemp concentrate
retailer.
(n) A hemp concentrate retailer shall ensure that any
building or equipment used by a hemp concentrate retailer for
the storage or sale of hemp concentrate derived products is
maintained in a clean and sanitary condition.
(o) The hemp concentrate retailer shall be free from
infestation by insects, rodents, or pests.
(p) A hemp concentrate retailer may not:
(1) produce or manufacture hemp concentrate derived
products;
(2) accept a hemp concentrate derived product from an
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, an adult use cannabis transporter that
meets the requirements of a Social Equity Applicant, a

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hemp concentrate infuser, hemp processor, or hemp
distributor;
(3) enter into an exclusive agreement with any
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, or hemp
processor. Hemp concentrate retailer shall provide
consumers an assortment of products from various hemp
business establishment licensees and hemp business
establishment licensees such that the inventory available
for sale at any hemp concentrate retailer from any single
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, or hemp
processor entity shall not be more than 40% of the total
inventory available for sale. For the purpose of this
subsection, an Illinois-registered adult use craft grower
that meets the requirements of a Social Equity Applicant,
an adult use cannabis infuser that meets the requirements
of a Social Equity Applicant, a hemp concentrate infuser,
or hemp processor shall be considered part of the same
entity if the licensees share at least one principal
officer. The Department may request that a hemp
concentrate retailer diversify its products as needed or

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otherwise discipline a hemp concentrate retailer for
violating this requirement;
(4) refuse to conduct business with an
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, an adult use cannabis transporter that
meets the requirements of a Social Equity Applicant, a
hemp concentrate infuser, hemp processor, or hemp
distributor that has the ability to properly deliver the
product and is permitted by the Department, on the same
terms as other Illinois-registered adult use craft grower
that meets the requirements of a Social Equity Applicant,
an adult use cannabis infuser that meets the requirements
of a Social Equity Applicant, an adult use cannabis
transporter that meets the requirements of a Social Equity
Applicant, a hemp concentrate infuser, hemp processor, or
hemp distributor with whom it is dealing;
(5) operate drive-through windows;
(6) allow for the sale of hemp concentrate derived
products in vending machines;
(7) transport hemp concentrate derived products to
residences or other locations where purchasers may be for
delivery;
(8) enter into agreements to allow persons who are
hemp concentrate retail agents to deliver hemp concentrate

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derived products or to transport hemp concentrate derived
products to purchasers;
(9) operate a hemp concentrate retailer if its video
surveillance equipment is inoperative;
(10) operate a hemp concentrate retailer if the
point-of-sale equipment is inoperative;
(11) operate a hemp concentrate retailer if the
State's hemp concentrate derived products electronic
verification system is inoperative;
(12) have fewer than 2 people working at the hemp
concentrate retailer at any time while the hemp
concentrate retailer is open;
(13) be located within 1,500 feet of the property line
of a preexisting cannabis dispensing organization or a
hemp concentrate retailer unless the applicant is
Qualifying Applicant or Social Equity Justice Involved
Applicant under the Cannabis Regulation and Tax Act;
(14) sell hemp concentrate derived products in
combination or bundled with each other or any other items
for one price. Each item of hemp concentrate derived
product must be separately identified by quantity and
price on the receipt;
(15) sell cannabis, cannabis infused products, or
cannabis concentrate that is regulated under the Cannabis
Regulation and Tax Act; or
(16) violate any other requirements or prohibitions

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set by Department rules.
(q) It is unlawful for any person having a hemp
concentrate retailer license or any officer, associate,
member, representative, or agent of such licensee to accept,
receive, or borrow money or anything else of value or accept or
receive credit, other than merchandising credit in the
ordinary course of business for a period not to exceed 30 days,
directly or indirectly from any Illinois-registered adult use
craft grower that meets the requirements of a Social Equity
Applicant, an adult use cannabis infuser that meets the
requirements of a Social Equity Applicant, an adult use
cannabis transporter that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, hemp processor,
or hemp distributor in exchange for preferential placement on
the shelves, display cases, or website of a hemp concentrate
retailer or a Qualifying Applicant or Social Equity Justice
Involved Applicant dispensary under the Cannabis Regulation
and Tax Act. This includes anything received or borrowed or
from any stockholders, officers, agents, or persons connected
with an Illinois-registered adult use craft grower that meets
the requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, an adult use cannabis transporter that meets
the requirements of a Social Equity Applicant, a hemp
concentrate infuser, hemp processor, or hemp distributor.
(r) It is unlawful for any person having a hemp

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concentrate retailer license to enter into any contract with
any person licensed to infuse, process, or transport hemp
concentrate derived products whereby such hemp concentrate
retailer agrees not to sell any hemp concentrate derived
product infused, processed, transported, manufactured, or
distributed by any other Illinois-registered adult use craft
grower that meets the requirements of a Social Equity
Applicant, an adult use cannabis infuser that meets the
requirements of a Social Equity Applicant, an adult use
cannabis transporter that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, hemp processor,
or hemp distributor and any provision in any contract
violative of this Section shall render the whole of such
contract void and no action shall be brought thereon in any
court.
Section 15-60. Inventory control system.
(a) A hemp concentrate retailer agent-in-charge shall have
primary oversight of the hemp concentrate retailer hemp
concentrate derived product inventory verification system, and
its point-of-sale system. The inventory point-of-sale system
shall be real-time, web-based, and accessible by the
Department at any time. The point-of-sale system shall track,
at a minimum the date of sale, amount, price, and currency.
(b) A hemp concentrate retailer shall establish an account
with the State's verification system that documents the

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following:
(1) Each sales transaction at the time of sale and
each day's beginning inventory, acquisitions, sales,
disposal, and ending inventory.
(2) Acquisition of hemp concentrate derived products
from an Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant, an
adult use cannabis infuser that meets the requirements of
a Social Equity Applicant, an adult use cannabis
transporter that meets the requirements of a Social Equity
Applicant, a hemp concentrate infuser, hemp processor, or
hemp distributor, including the following:
(A) A description of the products, including the
quantity, variety, and batch number of each product
received.
(B) The name and registry identification number of
the Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant,
an adult use cannabis infuser that meets the
requirements of a Social Equity Applicant, a hemp
concentrate infuser, or hemp processor providing the
hemp concentrate derived product.
(C) The name and registry identification number of
the Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant,
an adult use cannabis infuser that meets the

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requirements of a Social Equity Applicant, an adult
use cannabis transporter that meets the requirements
of a Social Equity Applicant, a hemp concentrate
infuser, hemp processor, or hemp distributor agent
delivering the hemp concentrate derived product.
(D) The name and registry identification number of
the hemp concentrate retail agent receiving the hemp
concentrate derived products.
(E) The date of acquisition.
(3) The disposal of hemp concentrate derived product,
including the following:
(A) A description of the products, including the
quantity, variety, batch number, and reason for the
hemp concentrate derived product being disposed.
(B) The method of disposal.
(C) The date and time of disposal.
(c) Upon hemp concentrate derived product delivery, a hemp
concentrate retailer shall confirm the product's name, hemp
concentrate, weight, and identification number on the manifest
matches the information on the hemp concentrate derived
product label and package. The product name listed and the
weight listed in the State's verification system shall match
the product packaging.
(d) The agent-in-charge shall conduct daily inventory
reconciliation documenting and balancing hemp concentrate
derived product inventory by confirming the State's

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verification system matches the hemp concentrate retailer's
point-of-sale system and the amount of physical product at the
hemp concentrate retailer as follows:
(1) A hemp concentrate retailer must receive
Department approval before completing an inventory
adjustment. It shall provide a detailed reason for the
adjustment. Inventory adjustment documentation shall be
kept at the dispensary for 2 years from the date
performed.
(2) If the hemp concentrate retailer identifies an
imbalance in the amount of hemp concentrate derived
product after the daily inventory reconciliation due to
mistake, the hemp concentrate retailer shall determine how
the imbalance occurred and immediately, upon discovery,
take and document corrective action. If the hemp
concentrate retailer cannot identify the reason for the
mistake within 2 calendar days after it first discovered
the mistake, it shall inform the Department immediately in
writing of the imbalance and the corrective action taken
to date. The hemp concentrate retailer shall work
diligently to determine the reason for the mistake.
(3) If the hemp concentrate retailer identifies an
imbalance in the amount of hemp concentrate derived
product after the daily inventory reconciliation or
through other means due to theft, criminal activity, or
suspected criminal activity, the hemp concentrate retailer

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shall immediately determine how the reduction occurred and
take and document corrective action. Within 24 hours after
the first discovery of the reduction due to theft,
criminal activity, or suspected criminal activity, the
hemp concentrate retailer shall inform the Department and
the Illinois State Police in writing.
(4) The hemp concentrate retailer shall file an annual
compilation report with the Department, including a
financial statement that shall include, but not be limited
to, an income statement, balance sheet, profit and loss
statement, statement of cash flow, wholesale cost and
sales, and any other documentation requested by the
Department in writing. The financial statement shall
include any other information the Department deems
necessary in order to effectively administer this Act and
all rules, orders, and final decisions adopted under this
Act. Reports required by this paragraph shall be filed
with the Department within 60 days after the end of the
calendar year. The report shall include a letter authored
by a licensed certified public accountant that it has been
reviewed and is accurate based on the information
provided. The hemp concentrate retailer's, financial
statement, and accompanying documents are not required to
be audited unless specifically requested by the
Department.
(e) A hemp concentrate retailer shall:

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(1) maintain the documentation required in this
Section in a secure locked location at the retailer for 5
years from the date on the document;
(2) provide any documentation required to be
maintained in this Section to the Department for review
upon request; and
(3) if maintaining a bank account, retain for a period
of 5 years a record of each deposit or withdrawal from the
account.
(f) If a hemp concentrate retailer chooses to have a
return policy for hemp concentrate derived product, the hemp
concentrate retailer shall seek prior approval from the
Department.
Section 15-65. Storage requirements.
(a) A hemp concentrate retailer must store inventory on
its premises. All inventory stored on the premises must be
secured in a restricted access area and tracked consistently
with the inventory tracking rules.
(b) A hemp concentrate retailer shall be of suitable size
and construction to facilitate cleaning, maintenance, and
proper operations.
(c) A hemp concentrate retailer shall maintain adequate
lighting, ventilation, temperature, humidity control, and
equipment.
(d) Containers storing hemp concentrate derived products

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that have been tampered with, damaged, or opened shall be
labeled with the date opened and quarantined from other hemp
concentrate derived products in the vault until they are
disposed.
(e) Hemp concentrate derived products that was tampered
with, expired, or damaged shall not be stored at the premises
for more than 7 calendar days.
(f) Hemp concentrate derived product samples shall be in a
sealed container. Samples shall be maintained in the
restricted access area.
(g) The hemp concentrate retailer storage areas shall be
maintained in accordance with the security requirements in
this Act and rules.
(h) Hemp concentrate derived products must be stored at
appropriate temperatures and under appropriate conditions to
help ensure that its packaging, strength, quality, and purity
are not adversely affected.
Section 15-70. Dispensing hemp concentrate derived
products.
(a) Before a hemp concentrate retail agent dispenses hemp
concentrate derived products to a purchaser, the agent shall
do all of the following:
(1) Verify the age of the purchaser by checking a
government-issued identification card by use of an
electronic reader or electronic scanning device to scan a

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purchaser's government-issued identification, if
applicable, to determine the purchaser's age and the
validity of the identification.
(2) Verify the validity of the government-issued
identification card by use of an electronic reader or
electronic scanning device to scan a purchaser's
government-issued identification, if applicable, to
determine the purchaser's age and the validity of the
identification.
(3) Offer any appropriate purchaser education or
support materials.
(4) Enter the following information into the State's
hemp concentrate derived products electronic verification
system:
(A) the hemp concentrate retail agent's
identification number, or if the agent's card
application is pending the Department's approval, a
temporary and unique identifier until the agent's card
application is approved or denied by the Department;
(B) the hemp concentrate retailer identification
number;
(C) the amount and type of hemp concentrate
derived product sold; and
(D) the date and time the hemp concentrate derived
product was sold.
(b) A hemp concentrate retailer shall refuse to sell hemp

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concentrate derived product to any person unless the person
produces a valid identification showing that the person is 21
years of age or older.
(c) For the purposes of this Section, valid identification
must:
(1) be valid and unexpired; and
(2) contain a photograph and the date of birth of the
person.
Section 15-75. Destruction and disposal of hemp
concentrate derived products.
(a) Hemp concentrate derived products must be destroyed by
rendering them unusable using methods approved by the
Department that comply with this Act and rules.
(b) Hemp concentrate derived products waste rendered
unusable must be promptly disposed according to this Act and
rules. Disposal of the hemp concentrate derived products waste
rendered unusable may be delivered to a permitted solid waste
facility for final disposition. Acceptable permitted solid
waste facilities include, but are not limited to, the
following:
(1) Compostable mixed waste: Compost, anaerobic
digester, or other facility with approval of the
jurisdictional health department.
(2) Noncompostable mixed waste: landfill, incinerator,
or other facility with approval of the jurisdictional

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health department.
(c) All waste and unusable product shall be weighed,
recorded, and entered into the inventory system before
rendering it unusable. All waste and unusable hemp concentrate
derived products shall be recorded and entered into the
inventory system before rendering it unusable. Verification of
this event shall be performed by an agent-in-charge and
conducted in an area with video surveillance.
(d) Electronic documentation of destruction and disposal
shall be maintained for a period of at least 5 years.
Section 15-80. Agent-in-charge.
(a) Every hemp concentrate retailer shall designate, at a
minimum, one agent-in-charge for each licensed hemp
concentrate retailer. The designated agent-in-charge must hold
a hemp concentrate retail agent identification card.
Maintaining an agent-in-charge is a continuing requirement for
the license, except as provided in subsection (f).
(b) The agent-in-charge shall be a principal officer or a
full-time agent of the hemp concentrate retailer and shall
manage the hemp concentrate retailer. Managing the hemp
concentrate retailer includes, but is not limited to,
responsibility for opening and closing the hemp concentrate
retailer, delivery acceptance, oversight of sales and hemp
concentrate retail agents, recordkeeping, inventory, hemp
concentrate retail agent training, and compliance with this

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Act and rules. Participation in affairs also includes the
responsibility for maintaining all files subject to audit or
inspection by the Department at the hemp concentrate retailer.
(c) The agent-in-charge is responsible for promptly
notifying the Department of any change of information required
to be reported to the Department.
(d) In determining whether an agent-in-charge manages the
hemp concentrate retailer, the Department may consider the
responsibilities identified in this Section, the number of
hemp concentrate retail agents under the supervision of the
agent-in-charge, and the employment relationship between the
agent-in-charge and the hemp concentrate retailer, including
the existence of a contract for employment and any other
relevant fact or circumstance.
(e) The agent-in-charge is responsible for notifying the
Department of a change in the employment status of all hemp
concentrate retail agents within 5 business days after the
change, including notice to the Department if the termination
of an agent was for diversion of product or theft of currency.
(f) If an agent-in-charge is separated due to death,
incapacity, termination, or any other reason and if the hemp
concentrate retailer does not have an active agent-in-charge,
the hemp concentrate retailer shall immediately contact the
Department and request a temporary certificate of authority
allowing the continuing operation. The request shall include
the name of an interim agent-in-charge until a replacement is

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identified, or shall include the name of the replacement. The
Department shall issue the temporary certificate of authority
promptly after it approves the request. If a hemp concentrate
retailer fails to promptly request a temporary certificate of
authority after the separation of the agent-in-charge, its
registration shall cease until the Department approves the
temporary certificate of authority or registers a new
agent-in-charge. No temporary certificate of authority shall
be valid for more than 90 days. The succeeding agent-in-charge
shall register with the Department in compliance with this
Article. Once the permanent succeeding agent-in-charge is
registered with the Department, the temporary certificate of
authority is void. No temporary certificate of authority shall
be issued for the separation of an agent-in-charge due to
disciplinary action by the Department related to the
agent-in-charge's conduct on behalf of the hemp concentrate
retailer.
(g) The hemp concentrate retail agent-in-charge
registration shall expire one year from the date it is issued.
The agent-in-charge's registration shall be renewed annually.
The Department shall review the hemp concentrate retailer's
compliance history when determining whether to grant the
request to renew.
(h) Upon termination of an agent-in-charge's employment,
the hemp concentrate retailer shall immediately reclaim the
hemp concentrate retail agent identification card. The hemp

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concentrate retailer shall promptly return the identification
card to the Department.
(i) The Department may deny an application or renewal or
discipline or revoke an agent-in-charge's hemp concentrate
retail agent identification card for any of the following
reasons:
(1) Submission of misleading, incorrect, false, or
fraudulent information in the application or renewal
application.
(2) Violation of the requirements of this Act or
rules.
(3) Fraudulent use of the agent-in-charge's hemp
concentrate retail agent identification card.
(4) Selling, distributing, transferring in any manner,
or giving hemp concentrate derived products to any
unauthorized person.
(5) Theft of hemp concentrate derived products,
currency, or any other items from a hemp concentrate
retailer.
(6) Tampering with, falsifying, altering, modifying,
or duplicating an agent-in-charge's hemp concentrate
retail agent identification card.
(7) Tampering with, falsifying, altering, or modifying
the surveillance video footage, point-of-sale system, or
the State's verification system.
(8) Failure to notify the Department immediately upon

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discovery that the agent-in-charge identification card has
been lost, stolen, or destroyed.
(9) Failure to notify the Department within 5 business
days after a change in the information provided in the
application for an agent-in-charge identification card.
(10) Conviction of a felony offense under Section
2105-131, 2105-135, or 2105-205 of the Department of
Professional Regulation Law of the Civil Administrative
Code of Illinois or any incident listed in this Act or
rules following the issuance of an agent-in-charge's hemp
concentrate retail agent identification card.
(11) Selling to purchasers in amounts above the limits
provided in this Act.
(12) Delinquency in filing any required tax returns or
paying any amounts owed to the State of Illinois.
Section 15-85. Security.
(a) A hemp concentrate retailer shall implement security
measures to deter and prevent entry into and theft of hemp
concentrate derived products or currency.
(b) A hemp concentrate retailer shall submit any changes
to the floor plan or security plan to the Department for
preapproval. All hemp concentrate derived product shall be
maintained and stored in a restricted access area during
construction.
(c) The hemp concentrate retailer shall implement security

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measures to protect the premises, purchasers, and hemp
concentrate retail agents including, but not limited to, the
following:
(1) Establish a locked door or barrier between the
facility's entrance and the limited access area.
(2) Prevent individuals from remaining on the premises
if they are not engaging in activity permitted by this Act
or rules.
(3) Develop a policy that addresses the maximum
capacity and purchaser flow in the waiting rooms and
limited access areas.
(4) Dispose of hemp concentrate derived products in
accordance with this Act and rules.
(5) During hours of operation, store and sell all hemp
concentrate derived product from the restricted access
area. During operational hours, hemp concentrate derived
product shall be stored in an enclosed locked room or
cabinet and accessible only to specifically authorized
hemp concentrate retail agents.
(6) When the hemp concentrate retailer is closed,
store all hemp concentrate derived product and currency in
a reinforced vault room in the restricted access area and
in a manner as to prevent diversion, theft, or loss.
(7) Keep the reinforced vault room and any other
equipment or hemp concentrate derived product storage
areas securely locked and protected from unauthorized

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entry.
(8) Keep an electronic daily log of hemp concentrate
retail agents with access to the reinforced vault room and
knowledge of the access code or combination.
(9) Keep all locks and security equipment in good
working order.
(10) Maintain an operational security and alarm system
at all times.
(11) Prohibit keys, if applicable, from being left in
the locks, or stored or placed in a location accessible to
persons other than specifically authorized personnel.
(12) Prohibit accessibility of security measures,
including combination numbers, passwords, or electronic or
biometric security systems to persons other than
specifically authorized hemp concentrate retail agents.
(13) Ensure that the hemp concentrate retailer
interior and exterior premises are sufficiently lit to
facilitate surveillance.
(14) Ensure that trees, bushes, and other foliage
outside of the hemp concentrate retailer premises do not
allow for a person or persons to conceal themselves from
sight.
(15) Develop emergency policies and procedures form
securing all product and currency following any instance
of diversion, theft, or loss of hemp concentrate derived
products, and conduct an assessment to determine whether

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additional safeguards are necessary.
(16) Develop sufficient additional safeguards in
response to any special security concerns, or as required
by the Department.
(d) The Department may request or approve alternative
security provisions that it determines are an adequate
substitute for a security requirement specified in this
Article. Any additional protections may be considered by the
Department in evaluating overall security measures.
(e) A hemp concentrate retailer shall provide additional
security as needed and in a manner appropriate for the
community where it operates.
(f) Restricted access areas must meet the following
criteria:
(1) All restricted access areas must be identified by
the posting of a sign that is a minimum of 12 inches by 12
inches and that states "Do Not Enter - Restricted Access
Area - Authorized Personnel Only" in lettering no smaller
than one inch in height.
(2) All restricted access areas shall be clearly
described in the floor plan of the premises, in the form
and manner determined by the Department, reflecting walls,
partitions, counters, and all areas of entry and exit. The
floor plan shall show all storage, disposal, and retail
sales areas.
(3) All restricted access areas must be secure, with

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locking devices that prevent access from the limited
access areas.
(g) A hemp concentrate retailer shall have an adequate
security plan and security system to prevent and detect
diversion, theft, or loss of hemp concentrate derived
products, currency, or unauthorized intrusion using commercial
grade equipment installed by a State-licensed private alarm
contractor or private alarm contractor agency that shall, at a
minimum, include the following:
(1) A perimeter alarm on all entry points and glass
break protection on perimeter windows.
(2) Security shatterproof tinted film on exterior
windows.
(3) A failure notification system that provides an
audible, text, or visual notification of any failure in
the surveillance system, including, but not limited to,
panic buttons, alarms, and video monitoring system. The
failure notification system shall provide an alert to
designated hemp concentrate retail agents within 5 minutes
after the failure, either by telephone or text message.
(4) A duress alarm, panic button, and alarm, or holdup
alarm and after-hours intrusion detection alarm that by
design and purpose will directly or indirectly notify, by
the most efficient means, the public safety answering
point for the law enforcement agency having primary
jurisdiction.

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(5) Security equipment to deter and prevent
unauthorized entrance into the hemp concentrate retailer,
including electronic door locks on the limited and
restricted access areas that include devices or a series
of devices to detect unauthorized intrusion, which may
include a signal system interconnected with a radio
frequency method, cellular, private radio signals or other
mechanical or electronic device.
Security system equipment and recordings shall be
maintained in good working order and in a secure location so as
to prevent theft, loss, destruction, or alterations.
Access to surveillance monitoring recording equipment
shall be limited to persons who are essential to surveillance
operations, law enforcement authorities acting within their
jurisdiction, security system service personnel, and the
Department. A current list of authorized hemp concentrate
retail agents and service personnel that have access to the
surveillance equipment must be available to the Department
upon request.
Any security equipment shall be inspected and tested at
regular intervals, not to exceed one month from the previous
inspection, and tested to ensure the systems remain
functional.
The security system shall provide protection against theft
and diversion that is facilitated or hidden by tampering with
computers or electronic records.

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The hemp concentrate retailer shall ensure all access
doors are not solely controlled by an electronic access panel
to ensure that locks are not released during a power outage.
(h) To monitor the hemp concentrate retailer, the hemp
concentrate retailer shall incorporate continuous electronic
video monitoring, that shall include the following:
(1) All monitors must be 19 inches or greater.
(2) Unobstructed video surveillance of all enclosed
hemp concentrate retailer areas, unless prohibited by law,
including all points of entry and exit that shall be
appropriate for the normal lighting conditions of the area
under surveillance. The cameras shall be directed so all
areas are captured, including, but not limited to, safes,
vaults, sales areas, and areas where hemp concentrate
retailer is stored, handled, sold, or destroyed. Cameras
shall be angled to allow for facial recognition, the
capture of clear and certain identification of any person
entering or exiting the hemp concentrate retail area and
in lighting sufficient during all times of night or day.
(3) Unobstructed video surveillance of outside areas,
the storefront, and the parking lot, that shall be
appropriate for the normal lighting conditions of the area
under surveillance. Cameras shall be angled so as to allow
for the capture of facial recognition, clear and certain
identification of any person entering or exiting the hemp
concentrate retailer and the immediate surrounding area,

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and license plates of vehicles in the parking lot.
(4) 24-hour recordings from all video cameras
available for immediate viewing by the Department upon
request. Recordings shall not be destroyed or altered and
shall be retained for at least 90 days. Recordings shall
be retained as long as necessary if the retailer is aware
of the loss or theft of hemp concentrate derived product
or a pending criminal, civil, or administrative
investigation or legal proceeding for which the recording
may contain relevant information.
(5) The ability to immediately produce a clear, color
still photo from the surveillance video, either live or
recorded.
(6) A date and time stamp embedded on all video
surveillance recordings. The date and time shall be
synchronized and set correctly and shall not significantly
obscure the picture.
(7) The ability to remain operational during a power
outage and ensure all access doors are not solely
controlled by an electronic access panel to ensure that
locks are not released during a power outage.
(8) All video surveillance equipment shall allow for
the exporting of still images in an industry standard
image format, including .jpg, .bmp, and .gif. Exported
video shall have the ability to be archived in a
proprietary format that ensures authentication of the

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video and guarantees that no alteration of the recorded
image has taken place. Exported video shall also have the
ability to be saved in an industry standard file format
that can be played on a standard computer operating
system. All recordings shall be erased or destroyed before
disposal.
(9) The video surveillance system shall be operational
during a power outage with a 4-hour minimum battery
backup.
(10) A video camera or cameras recording at each
point-of-sale location allowing for the identification of
the hemp concentrate retail agent distributing the hemp
concentrate derived products and any purchaser. The camera
or cameras shall capture the sale, the individuals, and
the computer monitors used for the sale.
(11) A failure notification system that provides an
audible and visual notification of any failure in the
electronic video monitoring system.
(12) All electronic video surveillance monitoring must
record at least the equivalent of 8 frames per second and
be available as recordings to the Department and the
Illinois State Police 24 hours a day via a secure
web-based portal with reverse functionality.
(i) The requirements contained in this Article shall be
the minimum requirements for operating a hemp concentrate
retailer. The Department may establish additional requirements

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by rule.
Section 15-90. Recordkeeping.
(a) Hemp concentrate retailer records must be maintained
electronically for 3 years and be available for inspection by
the Department upon request. Required written records include,
but are not limited to, the following:
(1) Operating procedures.
(2) Inventory records, policies, and procedures.
(3) Security records.
(4) Audit records.
(5) Staff training plans and completion documentation.
(6) Staffing plan.
(7) Business records, including, but not limited to:
(A) assets and liabilities;
(B) monetary transactions;
(C) written or electronic accounts, including bank
statements, journals, ledgers, and supporting
documents, agreements, checks, invoices, receipts, and
vouchers; and
(D) any other financial accounts reasonably
related to the hemp concentrate retailer operations.
(b) If a hemp concentrate retailer closes due to
insolvency, revocation, bankruptcy, or for any other reason,
all records must be preserved at the expense of the hemp
concentrate retailer for at least 3 years in a form and

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location in this State in a format and location that is
acceptable to the Department. The hemp concentrate retailer
shall keep the records longer if requested by the Department.
The hemp concentrate retailer shall notify the Department of
the location where the hemp concentrate retailer records are
stored or transferred.
Section 15-95. Closure of a dispensary.
(a) If a hemp concentrate retailer decides not to renew
its license or decides to close its business, the hemp
concentrate retailer shall promptly notify the Department not
less than 3 months before the effective date of the closing
date or as otherwise authorized by the Department.
(b) The hemp concentrate retailer shall work with the
Department to develop a closure plan that addresses, at a
minimum, the transfer of business records, transfer of hemp
concentrate derived products, and anything else the Department
finds necessary.
Section 15-100. Investigations.
(a) A hemp concentrate retailer is subject to random and
unannounced hemp concentrate retailer inspections and hemp
concentrate derived products testing by the Department, the
Illinois State Police, local law enforcement, or as provided
by rule.
(b) The Department and its authorized representatives may

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(i) enter any place, including a vehicle, in which hemp
concentrate derived product is held, stored, sold, produced,
delivered, transported, manufactured, or disposed of, (ii)
inspect, in a reasonable manner, the place and all pertinent
equipment, containers, and labeling and other pertinent
things, including records, files, financial data, sales data,
shipping data, pricing data, personnel data, research, papers,
processes, controls, facilities, and (iii) inventory any stock
of hemp concentrate derived product and obtain samples of any
hemp concentrate derived product, any labels or containers for
hemp concentrate derived product, or paraphernalia.
(c) The Department may conduct an investigation of an
applicant, application, hemp concentrate retailer, principal
officer, hemp concentrate retail agent, third party vendor, or
any other party associated with a hemp concentrate retailer
for an alleged violation of this Act or rules or to determine
qualifications to be granted a registration by the Department.
(d) The Department may require an applicant or holder of
any license issued pursuant to this Article to produce
documents, records, or any other material pertinent to the
investigation of an application or alleged violations of this
Act or rules. Failure to provide the required material may be
grounds for denial or discipline.
(e) Each person charged with preparation, obtaining, or
keeping records, logs, reports, or other documents in
connection with this Act and rules and every person in charge,

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or having custody, of those documents shall, upon request by
the Department, make the documents immediately available for
inspection and copying by the Department, the Department's
authorized representative, or others authorized by law to
review the documents.
Section 15-105. Citations. The Department may issue
nondisciplinary citations for minor violations. Any such
citation issued by the Department may be accompanied by a fee.
The fee may not exceed $20,000 per violation. The citation
shall be issued to the licensee and shall contain the
licensee's name and address, the licensee's license number, a
brief factual statement, the Sections of the law allegedly
violated, and the fee, if any, imposed. The citation must
clearly state that the licensee may choose, in lieu of
accepting the citation, to request a hearing. If the licensee
does not dispute the matter in the citation with the
Department within 30 days after the citation is served, then
the citation shall become final and not subject to appeal. The
penalty shall be a fee or other conditions as established by
rule.
Section 15-110. Grounds for discipline.
(a) The Department may deny issuance, refuse to renew or
restore, or may reprimand, place on probation, suspend,
revoke, or take other disciplinary or nondisciplinary action

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against any license or hemp concentrate retailer agent
identification card or may impose a fine for any of the
following:
(1) Material misstatement in furnishing information to
the Department.
(2) Violations of this Act or rules.
(3) Obtaining an authorization or license by fraud or
misrepresentation.
(4) A pattern of conduct that demonstrates
incompetence or that the applicant has engaged in conduct
or actions that would constitute grounds for discipline
under this Act.
(5) Aiding or assisting another person in violating
any provision of this Act or rules.
(6) Failing to respond to a written request for
information by the Department within 30 days.
(7) Engaging in unprofessional, dishonorable, or
unethical conduct of a character likely to deceive,
defraud, or harm the public.
(8) Adverse action by another state or territory of
the United States or foreign nation.
(9) A finding by the Department that the licensee,
after having the license placed on suspended or
probationary status, has violated the terms of the
suspension or probation.
(10) Conviction, entry of a plea of guilty, nolo

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contendere, or the equivalent in a State or federal court
of a principal officer or agent-in-charge of a felony
offense under Section 2105-131, 2105-135, or 2105-205 of
the Department of Professional Regulation Law of the Civil
Administrative Code of Illinois.
(11) Excessive use of or addiction to alcohol,
narcotics, stimulants, or any other chemical agent or
drug.
(12) A finding by the Department of a discrepancy in a
Department audit of hemp concentrate derived product.
(13) A finding by the Department of a discrepancy in a
Department audit of capital or funds.
(14) A finding by the Department of acceptance of hemp
concentrate derived product from a source other than an
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, an adult use cannabis transporter that
meets the requirements of a Social Equity Applicant, a
hemp concentrate infuser, hemp processor, or hemp
distributor.
(15) An inability to operate using reasonable
judgment, skill, or safety due to physical or mental
illness or other impairment or disability, including,
without limitation, deterioration through the aging
process or loss of motor skills or mental incompetence,

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(16) Failing to report to the Department within the
time frames established, or if not identified, 14 days, of
any adverse action taken against the hemp concentrate
retailer or an agent by a licensing jurisdiction in any
state or any territory of the United States or any foreign
jurisdiction, any governmental agency, any law enforcement
agency, or any court.
(17) Any violation of the hemp concentrate retailer's
policies and procedures submitted to the Department
annually as a condition for licensure.
(18) Failure to inform the Department of any change of
address within 10 business days.
(19) Disclosing customer names, personal information,
or protected health information in violation of any State
or federal law.
(20) Operating a hemp concentrate retailer before
obtaining a license from the Department.
(21) Performing duties authorized by this Act prior to
receiving a license to perform such duties.
(22) Selling hemp concentrate derived products when
prohibited by this Act or rules.
(23) Any fact or condition that, if it had existed at
the time of the original application for the license,
would have warranted the denial of the license.
(24) Permitting a person without a valid hemp
concentrate retailer agent identification card to perform

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licensed activities under this Act.
(25) Failure to assign an agent-in-charge as required
by this Article.
(26) Failure to provide the training required under
subsection (h) of Section 15-25 within the provided
timeframe.
(27) Personnel insufficient in number or unqualified
in training or experience to properly operate the hemp
concentrate retailer.
(28) Any pattern of activity that causes a harmful
impact on the community.
(29) Failing to prevent diversion, theft, or loss of
hemp concentrate derived products.
(b) All fines and fees imposed under this Section shall be
paid within 60 days after the effective date of the order
imposing the fine or as otherwise specified in the order.
(c) A circuit court order establishing that an
agent-in-charge or principal officer holding a hemp
concentrate retailer agent identification card is subject to
involuntary admission on an inpatient basis or outpatient
basis, as those terms are defined in Sections 1-119 and
1-119.1 of the Mental Health and Developmental Disabilities
Code, shall operate as a suspension of that card.
Section 15-115. Temporary suspension.
(a) The Department may temporarily suspend a hemp

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concentrate retailer license or an agent registration without
a hearing if the Secretary finds that public safety or welfare
requires emergency action. The Secretary shall cause the
temporary suspension by issuing a suspension notice in
connection with the institution of proceedings for a hearing.
(b) If the Secretary temporarily suspends a license or
agent registration without a hearing, the licensee or agent is
entitled to a hearing within 45 days after the suspension
notice has been issued. The hearing shall be limited to the
issues cited in the suspension notice, unless all parties
agree otherwise.
(c) If the Department does not hold a hearing with 45 days
after the date the suspension notice was issued, then the
suspended license or registration shall be automatically
reinstated and the suspension vacated.
(d) The suspended licensee or agent may seek a continuance
of the hearing date, during which time the suspension remains
in effect and the license or registration shall not be
automatically reinstated.
(e) Subsequently discovered causes of action by the
Department after the issuance of the suspension notice may be
filed as a separate notice of violation. The Department is not
precluded from filing a separate action against the suspended
licensee or agent.
Section 15-120. Notice; hearing.

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(a) The Department shall, before disciplining an applicant
or licensee, at least 30 days before the date set for the
hearing: (i) notify the accused in writing of the charges made
and the time and place for the hearing on the charges; (ii)
direct the applicant or licensee to file a written answer to
the charges under oath within 20 days after service; and (iii)
inform the applicant or licensee that failure to answer will
result in a default being entered against the applicant or
licensee.
(b) At the time and place fixed in the notice, the hearing
officer appointed by the Department shall proceed to hear the
charges, and the parties or their counsel shall be accorded
ample opportunity to present any pertinent statements,
testimony, evidence, and arguments. The hearing officer may
continue the hearing from time to time. In case the person,
after receiving the notice, fails to file an answer, the
person's license may, in the discretion of the Secretary,
having first received the recommendation of the hearing
officer, be suspended, revoked, or placed on probationary
status or be subject to whatever disciplinary action the
Secretary considers proper, including a fine, without hearing,
if that act or acts charged constitute sufficient grounds for
that action under this Act.
(c) The written notice and any notice in the subsequent
proceeding may be served by regular mail or email to the
licensee's or applicant's address of record.

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Section 15-125. Subpoenas; oaths. The Department may
subpoena and bring before it any person, take testimony either
orally or by deposition, or both, with the same fees and
mileage and in the same manner as prescribed by law in judicial
proceedings in civil cases in courts in this State. The
Secretary or the hearing officer shall each have the power to
administer oaths to witnesses at any hearings that the
Department is authorized to conduct.
Section 15-130. Hearing; motion for rehearing.
(a) The hearing officer shall hear evidence in support of
the formal charges and evidence produced by the licensee. At
the conclusion of the hearing, the hearing officer shall
present to the Secretary a written report of the hearing
officer's findings of fact, conclusions of law, and
recommendations.
(b) At the conclusion of the hearing, a copy of the hearing
officer's report shall be served upon the applicant or
licensee by the Department, either personally or as provided
in this Act for the service of a notice of hearing. Within 20
calendar days after service, the applicant or licensee may
present to the Department a motion in writing for rehearing,
which shall specify the particular grounds for rehearing. The
Department may respond to the motion for rehearing within 20
calendar days after service on the Department. If no motion

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for rehearing is filed, then, upon the expiration of the time
specified for filing such motion or upon denial of a motion for
rehearing, the Secretary may enter an order in accordance with
the recommendation of the hearing officer. If the applicant or
licensee orders from the reporting service and pays for a
transcript of the record within the time for filing a motion
for rehearing, the 20-day period within which a motion may be
filed shall commence upon the delivery of the transcript to
the applicant or licensee.
(c) If the Secretary disagrees in any regard with the
report of the hearing officer, the Secretary may issue an
order contrary to the report.
(d) Whenever the Secretary is not satisfied that
substantial justice has been done, the Secretary may order a
rehearing by the same or another hearing officer.
(e) At any point in any investigation or disciplinary
proceeding under in this Article, both parties may agree to a
negotiated consent order. The consent order shall be final
upon signature of the Secretary.
Section 15-135. Review under the Administrative Review
Law.
(a) All final administrative decisions of the Department
are subject to judicial review under the provisions of the
Administrative Review Law. As used in this subsection,
"administrative decision" has the meaning given to that term

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in Section 3-101 of the Code of Civil Procedure.
(b) Proceedings for judicial review shall be commenced in
the circuit court of the county in which the party applying for
review resides, but, if the party is not a resident of
Illinois, the venue shall be in Sangamon County.
(c) The Department shall not be required to certify any
record to the court, file any answer in court, or otherwise
appear in any court in a judicial review proceeding unless and
until the Department has received from the plaintiff payment
of the costs of furnishing and certifying the record, which
costs shall be determined by the Department. Failure on the
part of the plaintiff to file a receipt in court shall be
grounds for dismissal of the action.
Article 20.
Hemp Extract Infusers
Section 20-5. Hemp Extract Infusers application. When
applying for a license, the applicant shall electronically
submit the following in such form as the Department may
direct:
(1) the nonrefundable application fee of $100 for each
license for which the applicant is applying, which shall
be deposited into the Cannabis Regulation Fund;
(2) the legal name of the infuser;
(3) the proposed physical address of the infuser;

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(4) the name, address, social security number, and
date of birth of each principal officer and board member
of the infuser. Each principal officer and board member
shall be at least 21 years of age;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board
members of the infuser (i) pled guilty, were convicted,
fined, or had a registration or license suspended or
revoked, or (ii) managed or served on the board of a
business or nonprofit organization that pled guilty, was
convicted, fined, or had a registration or license
suspended or revoked;
(6) proposed operating bylaws;
(7) a copy of the current local zoning ordinance and
verification that the proposed infuser is in compliance
with the local zoning rules and distance limitations
established by the local jurisdiction;
(8) proposed employment practices in which the
applicant must demonstrate a plan of action to inform,
hire, and educate minorities, women, veterans, and persons
with disabilities, engage in fair labor practices, and
provide worker protections;
(9) processing, inventory, and packaging plans;
(10) a description of the applicant's experience with
operating a commercial kitchen or laboratory preparing
products for human consumption;

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(11) a list of any academic degrees, certifications,
or relevant experience of all prospective principal
officers, board members, and agents of the related
business;
(12) a plan describing how the hemp extract infuser
will address each of the following:
(A) Energy needs, including estimates of monthly
electricity and gas usage, to what extent it will
procure energy from a local utility or from on-site
generation, and if it has or will adopt a sustainable
energy use and energy conservation policy.
(B) Water needs, including estimated water draw,
and if it has or will adopt a sustainable water use and
water conservation policy.
(C) Waste management, including if it has or will
adopt a waste reduction policy;
(13) a recycling plan that meets the following
requirements:
(A) A commitment that any recyclable waste
generated by the hemp extract infuser shall be
recycled per applicable State and local laws,
ordinances, and rules.
(B) A commitment to comply with local waste
provisions. A hemp extract infuser commits to remain
in compliance with applicable State and federal
environmental requirements, including, but not limited

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to, storing, securing, and managing all recyclables
and waste, including organic waste composed of or
containing hemp extract products, in accordance with
applicable State and local laws, ordinances, and
rules; and
(14) any other information required by rule.
Section 20-10. Renewal of licenses.
(a) A hemp extract infuser license issued under Section
20-5 shall expire 2 years after the date issued.
(b) A license holder shall submit a renewal application as
provided by the Department and pay the required renewal fee.
The Department shall require an agent, employee, contracting,
and subcontracting diversity report and an environmental
impact report with its renewal application. No license may be
renewed if it is currently under revocation or suspension for
violation of this Act, the Cannabis Regulation and Tax Act, or
the Industrial Hemp Act or any rules that adopted under this
Act, the Cannabis Regulation and Tax Act, or the Industrial
Hemp Act or if the licensee, principal officer, board member,
person having a financial or voting interest of 5% or greater
in the licensee, or agent is delinquent in filing any required
tax returns or paying any amounts owed to the State.
(c) For a hemp extract infuser license, $100 shall be paid
as a renewal fee and shall be deposited into the Cannabis
Regulation Fund.

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(d) If a hemp extract infuser fails to renew its license
before expiration, the hemp extract infuser shall cease
operations until the license is renewed.
(e) A hemp extract infuser that continues to operate
without renewal of its license is subject to penalty as
provided in this Article or any rules that may be adopted
pursuant to this Article.
(f) The Department shall not renew a license if the
applicant is delinquent in filing required tax returns or
paying amounts owed to the State.
Section 20-15 Denial of application.
(a) An application for a hemp extract infuser license must
be denied if any of the following conditions are met:
(1) The applicant failed to submit the materials
required by this Article.
(2) The applicant would not be in compliance with
local zoning rules or permit requirements.
(3) One or more of the prospective principal officers
or board members causes a violation of this Act.
(4) One or more of the principal officers or board
members is under 21 years of age.
(5) The person has submitted an application for a
license under this Act or this Article that contains false
information.
(6) If the licensee, principal officer, board member,

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agent, or person having a financial or voting interest of
5% or greater in the licensee is delinquent in filing any
required tax returns or paying any amounts owed to the
State of Illinois.
Article 25.
Hemp Concentrate Infusers
Section 25-5. Hemp concentrate infuser application. When
applying for a license, the applicant shall electronically
submit the following in such form as the Department may
direct:
(1) the nonrefundable application fee of $5,000 for
each license for which the applicant is applying, which
shall be deposited into the Cannabis Regulation Fund;
(2) the legal name of the hemp concentrate infuser;
(3) the proposed physical address of the hemp
concentrate infuser;
(4) the name, address, social security number, and
date of birth of each principal officer and board member
of the hemp concentrate infuser. Each principal officer
and board member shall be at least 21 years of age;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board
members of the hemp concentrate infuser (i) pled guilty,
were convicted, fined, or had a registration or license

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suspended or revoked, or (ii) managed or served on the
board of a business or nonprofit organization that pled
guilty, was convicted, fined, or had a registration or
license suspended or revoked;
(6) proposed operating bylaws that include procedures
for the oversight of the hemp concentrate infuser,
including the development and implementation of an
intermediate hemp product monitoring system, accurate
recordkeeping, staffing plan, and security plan approved
by the Illinois State Police that are in accordance with
the rules issued by the Department under this Act. A
physical inventory of all intermediate hemp products, hemp
concentrate, and hemp extract shall be performed on a
weekly basis by the hemp concentrate infuser;
(7) verification from the Illinois State Police that
all background checks of the prospective principal
officers, board members, and agents of the hemp
concentrate infuser organization have been conducted;
(8) a copy of the current local zoning ordinance and
verification that the proposed hemp concentrate infuser is
in compliance with the local zoning rules and distance
limitations established by the local jurisdiction;
(9) proposed employment practices, in which the
applicant must demonstrate a plan of action to inform,
hire, and educate minorities, women, veterans, and persons
with disabilities, engage in fair labor practices, and

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provide worker protections;
(10) whether an applicant can demonstrate experience
in or business practices that promote economic empowerment
in disproportionately impacted areas, as that term is
defined in Section 1-10 of the Cannabis Regulation and Tax
Act;
(11) experience with infusing products with hemp
concentrate;
(12) a description of the enclosed, locked facility
where hemp concentrate will be infused, packaged, or
otherwise prepared for distribution to a hemp concentrate
retailer organization or other hemp concentrate infuser;
(13) processing, inventory, and packaging plans;
(14) a description of the applicant's experience with
operating a commercial kitchen or laboratory preparing
products for human consumption;
(15) a list of any academic degrees, certifications,
or relevant experience of all prospective principal
officers, board members, and agents of the related
business;
(16) the identity of every person having a financial
or voting interest of 5% or greater in the hemp
concentrate infuser operation with respect to which
license is sought, whether a trust, corporation,
partnership, limited liability company, or sole
proprietorship, including the name and address of each

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person;
(17) a plan describing how the infuser will address
each of the following:
(A) Energy needs, including estimates of monthly
electricity and gas usage, to what extent it will
procure energy from a local utility or from on-site
generation, and if it has or will adopt a sustainable
energy use and energy conservation policy.
(B) Water needs, including estimated water draw,
and if it has or will adopt a sustainable water use and
water conservation policy.
(C) Waste management, including if it has or will
adopt a waste reduction policy;
(18) a recycling plan that meets the following
requirements:
(A) A commitment that any recyclable waste
generated by the hemp concentrate infuser shall be
recycled per applicable State and local laws,
ordinances, and rules.
(B) A commitment to comply with local waste
provisions. A hemp concentrate infuser commits to
remain in compliance with applicable State and federal
environmental requirements, including, but not limited
to, storing, securing, and managing all recyclables
and waste, including organic waste composed of or
containing finished hemp concentrate and hemp

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concentrate derived products, in accordance with
applicable State and local laws, ordinances, and
rules; and
(19) any other information required by rule.
Section 25-10. Issuing licenses.
(a) The Department shall, by rule, develop a system to
score hemp concentrate infuser applications to
administratively rank applications based on the clarity,
organization, and quality of the applicant's responses to
required information. Applicants shall be awarded points based
on the following categories:
(1) Suitability of the proposed facility.
(2) Suitability of the employee training plan.
(3) Security and recordkeeping plan.
(4) Infusing plan.
(5) Product safety and labeling plan.
(6) Business plan.
(7) Community engagement plan.
(8) Labor and employment practices, which shall
constitute no less than 2% of total available points.
(9) Environmental plan, as described in paragraphs
(17) and (18) of Section 25-5.
(10) The applicant is 51% or more owned and controlled
by an individual or individuals who have been an Illinois
resident for the past 5 years as proved by tax records or 2

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of the following:
(A) A signed lease agreement that includes the
applicant's name.
(B) A property deed that includes the applicant's
name.
(C) School records.
(D) A voter registration card.
(E) An Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card.
(F) A paycheck stub.
(G) A utility bill.
(H) Any other proof of residency or other
information necessary to establish residence as
provided by rule.
(11) The applicant is 51% or more controlled and owned
by an individual or individuals who meet the
qualifications of a veteran, as that term is defined in
Section 45-57 of the Illinois Procurement Code.
(12) A diversity plan that includes a narrative of not
more than 2,500 words that establishes a goal of diversity
in ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity.
(13) Any other criteria the Department may set by rule
for points.

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(b) If the applicant is awarded a hemp concentrate infuser
license, the information and plans that an applicant provided
in its application shall be a mandatory condition of the
license. Any variation from or failure to perform such plans
may result in discipline, including the revocation or
nonrenewal of a license.
(c) If the applicant is awarded a hemp concentrate infuser
license, the applicant shall pay a fee of $5,000 prior to
receiving the license, to be deposited into the Cannabis
Regulation Fund.
Section 25-15. Denial of application. An application for a
hemp concentrate infuser license shall be denied if any of the
following conditions are met:
(1) The applicant failed to submit the materials
required by this Article.
(2) The applicant would not be in compliance with
local zoning rules or permit requirements.
(3) One or more of the prospective principal officers
or board members causes a violation of Section 25-20.
(4) One or more of the principal officers or board
members is under 21 years of age.
(5) The person has submitted an application for a
license under this Act or this Article that contains false
information.
(6) If the licensee, principal officer, board member,

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agent, or person having a financial or voting interest of
5% or greater in the licensee is delinquent in filing any
required tax returns or paying any amounts owed to the
State of Illinois.
Section 25-20. Hemp concentrate infuser organization
requirements; prohibitions.
(a) The operating documents of a hemp concentrate infuser
shall include procedures for the oversight of the infuser, an
inventory monitoring system including a physical inventory
recorded weekly, accurate recordkeeping, and a staffing plan.
(b) A hemp concentrate infuser shall implement a security
plan reviewed by the Illinois State Police that includes, but
is not limited to: facility access controls; perimeter
intrusion detection systems; personnel identification systems;
and a 24-hour surveillance system to monitor the interior and
exterior of the infuser facility and that is accessible to
authorized law enforcement, the Department of Public Health,
and the Department in real time.
(c) Any processing of hemp concentrate by a hemp
concentrate infuser must take place in an enclosed, locked
facility at the physical address provided to the Department
during the licensing process. The hemp concentrate infuser
location shall only be accessed by the agents working for the
hemp concentrate infuser, Department staff performing
inspections, Department of Public Health staff performing

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inspections, State and local law enforcement or other
emergency personnel, contractors working on jobs unrelated to
hemp concentrate, intermediate hemp products, or hemp
concentrate derived products, such as installing or
maintaining security devices or performing electrical wiring,
hemp retailer agents as provided in this Act, participants in
an incubator program, individuals in a mentoring or
educational program approved by the State, local safety or
health inspectors, or other individuals as provided by rule.
(d) A hemp concentrate infuser may not sell or distribute
any intermediate hemp products, hemp concentrate, or hemp
concentrate derived products to any person other than a hemp
concentrate retailer, other hemp concentrate infuser,
Qualifying Applicant or Social Equity Justice Involved
Applicant under the Cannabis Regulation and Tax Act, or as
otherwise authorized by rule.
(e) A hemp concentrate infuser may not either directly or
indirectly discriminate in price between different hemp
business establishments that are purchasing a like grade,
brand, and quality of hemp concentrate derived product or
intermediate hemp product. Nothing in this subsection prevents
a hemp concentrate infuser from pricing hemp concentrate
derived products or intermediate hemp products differently
based on differences in the cost of manufacturing or
processing, the quantities sold, such volume discounts, or the
way the products are delivered.

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(f) Any hemp concentrate or intermediate hemp product
infused by an infuser and intended for distribution to a hemp
concentrate retailer, other hemp concentrate infuser, or
Qualifying Applicant or Social Equity Justice Involved
Applicant defined by the Cannabis Regulation and Tax Act must
be entered into a data collection system and packaged and
labeled under Section 40-15. All hemp concentrate derived
products or intermediate hemp products must be placed into a
container for transport.
(g) A hemp concentrate infuser is subject to random
inspections by the Department, the Department of Public
Health, the Illinois State Police, local law enforcement, or
as provided by rule.
(h) A hemp concentrate infuser agent shall notify local
law enforcement, the Illinois State Police, and the Department
within 24 hours of the discovery of any loss or theft.
Notification shall be made by phone, in person, or by written
or electronic communication.
(i) A hemp concentrate infuser may not be located in an
area zoned for residential use.
(j) A hemp concentrate infuser or hemp concentrate infuser
agent shall not transport hemp concentrate, hemp concentrate
derived products or intermediate hemp products to any other
hemp business establishment without a hemp distributor license
except as follows:
(A) If the hemp concentrate infuser is located in a

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county with a population of 3,000,000 or more, the hemp
business establishment receiving the hemp concentrate,
hemp concentrate derived products, or intermediate hemp
products is within 2,000 feet of the property line of the
hemp concentrate infuser.
(B) If the hemp concentrate infuser is located in a
county with a population of at least 700,000 but fewer
than 3,000,000, the hemp business establishment receiving
the hemp concentrate, hemp concentrate derived products or
intermediate hemp products is within 2 miles of the
infuser.
(C) If the hemp concentrate infuser is located in a
county with a population of fewer than 700,000, the hemp
business establishment receiving the hemp concentrate,
hemp concentrate derived products, or intermediate hemp
products is within 15 miles of the infuser.
(k) A hemp concentrate infuser may enter into a contract
with a hemp distributor to transport hemp concentrate, hemp
concentrate derived products, or intermediate hemp products to
a hemp concentrate retailer, other hemp concentrate infuser,
Qualifying Applicant or Social Equity Justice Involved
Applicant defined by the Cannabis Regulation and Tax Act, or a
laboratory.
(l) At no time shall a hemp concentrate infuser or a hemp
concentrate infuser agent perform the extraction of hemp
extract, hemp concentrate, or intermediate hemp products from

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industrial hemp.
Section 25-25. Hemp concentrate infuser agent
identification card.
(a) The Department shall:
(1) establish, by rule, the information required in an
initial application or renewal application for an agent
identification card submitted under this Act and the
nonrefundable fee to accompany the initial application or
renewal application;
(2) verify the information contained in an initial
application or renewal application for a hemp concentrate
infuser agent identification card submitted under this
Act, and approve or deny an application within 30 days of
receiving a completed initial application or renewal
application and all supporting documentation required by
rule;
(3) issue a hemp concentrate infuser agent
identification card to a qualifying agent within 15
business days of approving the initial application or
renewal application;
(4) enter the license number of the hemp concentrate
infuser where the agent works; and
(5) allow for an electronic initial application and
renewal application process, and provide a confirmation by
electronic or other methods that an application has been

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submitted. The Department may by rule require prospective
agents to file their applications by electronic means and
provide notices to the agents by electronic means.
(b) A hemp concentrate infuser agent must keep the hemp
concentrate infuser agent's hemp concentrate infuser agent
identification card visible at all times when on the property
of a hemp business establishment including the hemp business
establishment for which the person is an agent for.
(c) Hemp concentrate infuser agent identification cards
shall contain the following:
(1) The name of the cardholder.
(2) The date of issuance and expiration date of the
identification card.
(3) A random 10-digit alphanumeric identification
number containing at least 4 numbers and at least 4
letters that is unique to the holder.
(4) A photograph of the cardholder.
(5) The legal name of the hemp concentrate infuser
employing the agent.
(d) A hemp concentrate infuser agent identification card
shall be immediately returned to the hemp concentrate infuser
of the agent upon termination of the agent's employment.
(e) A hemp concentrate infuser agent identification card
lost by a hemp concentrate infuser agent shall be reported to
the Illinois State Police and the Department immediately upon
discovery of the loss.

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(f) An agent applicant may begin employment at a hemp
concentrate infuser while the agent applicant's hemp
concentrate infuser agent identification card application is
pending. Upon approval, the Department shall issue the agent's
identification card to the agent. If denied, the hemp
concentrate infuser and the agent applicant shall be notified
and the agent applicant must cease all activity at the hemp
concentrate infuser immediately.
Section 25-30. Hemp concentrate infuser organization
background checks.
(a) Through the Illinois State Police, the Department
shall conduct a background check of the prospective principal
officers, board members, and agents of a hemp concentrate
infuser applying for a license or a hemp concentrate infuser
agent identification card under this Article. The Illinois
State Police shall charge a fee set by rule for conducting the
criminal history record check, which shall be deposited into
the State Police Services Fund and shall not exceed the actual
cost of the record check. Each hemp concentrate infuser
prospective principal officer, board member, or agent shall
submit a full set of fingerprints to the Illinois State Police
for the purpose of obtaining a State and federal criminal
records check. These fingerprints shall be checked against the
fingerprint records during the application process and in a
frequency thereafter as prescribed by the Department, to the

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extent allowed by law, filed in any relevant Illinois State
Police and Federal Bureau of Investigation criminal history
records databases. The Illinois State Police shall furnish,
following positive identification, all conviction information
to the Department.
(b) When applying for the initial license or
identification card, the background checks for all prospective
principal officers, board members, and agents shall be
completed before submitting the application to the licensing
or issuing agency.
Section 25-35. Renewal of hemp concentrate infuser
licenses and agent identification cards.
(a) A license or identification card issued under this
Article shall be renewed annually. A hemp concentrate infuser
shall receive written or electronic notice 90 days before the
expiration of its current license that the license will
expire. The Department shall grant a renewal within 45 days of
submission of a renewal application if:
(1) the hemp concentrate infuser submits a renewal
application and the required nonrefundable renewal fee of
$20,000, to be deposited into the Cannabis Regulation
Fund;
(2) the Department has not suspended or revoked the
license of the hemp concentrate infuser for violating this
Act or rules adopted under this Act;

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(3) the hemp concentrate infuser has continued to
operate in accordance with all plans submitted as part of
its application and approved by the Department or any
amendments thereto that have been approved by the
Department;
(4) the hemp concentrate infuser has submitted an
agent, employee, contracting, and subcontracting diversity
report as required by the Department; and
(5) the hemp concentrate infuser has submitted an
environmental impact report.
(b) If a hemp concentrate infuser fails to renew its
license before expiration, the hemp concentrate infuser shall
cease operations until its license is renewed.
(c) If a hemp concentrate infuser agent fails to renew the
agent's hemp concentrate infuser agent identification card
before its expiration, the agent shall cease to work as an
agent of the hemp concentrate infuser until the agent's hemp
concentrate infuser agent identification card is renewed.
(d) Any hemp concentrate infuser that continues to operate
or any hemp concentrate infuser agent who continues to work as
an agent after the applicable license or a hemp concentrate
infuser agent identification card has expired without renewal
is subject to the penalties provided under Section 25-20.
(e) The Department may not renew a license or a hemp
concentrate infuser agent identification card if the applicant
is delinquent in filing any required tax returns or paying any

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amounts owed to the State of Illinois.
Section 25-40. Disclosure of ownership and control.
(a) Each hemp concentrate infuser applicant and licensee
shall file and maintain a table of organization, ownership,
and control with the Department. The table of organization,
ownership, and control shall contain the information required
by this Section in sufficient detail to identify all owners,
directors, and principal officers, and the title of each
principal officer or business entity that, through direct or
indirect means, manages, owns, or controls the applicant or
licensee.
(b) The table of organization, ownership, and control
shall identify the following information:
(1) The management structure, ownership, and control
of the applicant or license holder including the name of
each principal officer or business entity, the office or
position held, and the percentage ownership interest, if
any. If the business entity has a parent company, the name
of each owner, board member, and officer of the parent
company and the percentage ownership interest in the
parent company and the hemp concentrate infuser.
(2) If the applicant or licensee is a business entity
with publicly traded stock, the identification of
ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a

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publicly traded company, the following information shall be
provided in the table of organization, ownership, and control:
(1) The name and percentage of ownership interest of
each individual or business entity with ownership of more
than 5% of the voting shares of the entity, to the extent
such information is known or contained in 13D or 13G
Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage of
interest of ownership of persons who are relatives of one
another and who together exercise control over or own more
than 10% of the voting shares of the entity.
(d) A hemp concentrate infuser with a parent company or
companies, or partially owned or controlled by another entity,
must disclose to the Department the relationship and all
owners, board members, officers, or individuals with control
or management of those entities. A hemp concentrate infuser
organization shall not shield its ownership or control from
the Department.
(e) A principal officer must submit a complete online
application with the Department within 14 days of the hemp
concentrate infuser organization being licensed by the
Department or within 14 days of Department notice of approval
as a new principal officer.
(f) A principal officer may not allow the principal
officer's registration to expire.
(g) A hemp concentrate infuser organization separating

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with a principal officer must do so under this Act. The
principal officer must communicate the separation to the
Department within 5 business days.
(h) A principal officer not in compliance with the
requirements of this Act shall be removed from the principal
officer's position with the hemp concentrate infuser or shall
otherwise terminate the principal officer's affiliation.
Failure to do so may subject the hemp concentrate infuser to
discipline, suspension, or revocation of its license by the
Department.
(i) It is the responsibility of the hemp concentrate
infuser and its principal officers to promptly notify the
Department of any change of the principal place of business
address, hours of operation, change in ownership or control,
or a change of the hemp concentrate infuser's primary or
secondary contact information. Any changes must be made to the
Department in writing.
Article 30.
Hemp Processor
Section 30-5. Hemp processor application. When applying
for a license, the applicant shall electronically submit the
following in such form as the Department may direct:
(1) the nonrefundable application fee of $5,000 for
each license for which the applicant is applying, which

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shall be deposited into the Cannabis Regulation Fund;
(2) the legal name of the hemp processor;
(3) the proposed physical address of the hemp
processor;
(4) the name, address, social security number, and
date of birth of each principal officer and board member
of the hemp processor. Each principal officer and board
member shall be at least 21 years of age;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board
members of the hemp processor (i) pled guilty, were
convicted, fined, or had a registration or license
suspended or revoked, or (ii) managed or served on the
board of a business or nonprofit organization that pled
guilty, was convicted, fined, or had a registration or
license suspended or revoked;
(6) proposed operating bylaws that include procedures
for the oversight of the hemp processor, including the
development and implementation of a plant monitoring
system, accurate recordkeeping, staffing plan, and
security plan approved by the Illinois State Police that
are in accordance with the rules issued by the Department
under this Act;
(7) verification from the Illinois State Police that
all background checks of the prospective principal
officers, board members, and agents of the hemp processor

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have been conducted and those persons have not been
convicted of an excluded offense;
(8) a copy of the current local zoning ordinance and
verification that the proposed hemp processor is in
compliance with the local zoning rules and distance
limitations established by the local jurisdiction;
(9) proposed employment practices in which the
applicant must demonstrate a plan of action to inform,
hire, and educate minorities, women, veterans, and persons
with disabilities and engage in fair labor practices and
provide worker protections;
(10) whether an applicant can demonstrate experience
in or business practices that promote economic empowerment
in disproportionately impacted areas, as that term is
defined in Section 1-10 of the Cannabis Regulation and Tax
Act;
(11) experience with the extraction, processing, or
infusing of oils similar to those derived from cannabis,
hemp, or other business practices to be performed by the
hemp processor;
(12) a description of the enclosed, locked facility
where hemp will be processed, packaged, or otherwise
prepared for distribution to a cannabis or hemp business
establishment or other hemp processor;
(13) processing, inventory, and packaging plans;
(14) a description of the applicant's experience with

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manufacturing equipment and chemicals to be used in hemp
processing;
(15) a list of any academic degrees, certifications,
or relevant experience of all prospective principal
officers, board members, and agents with related
businesses;
(16) the identity of every person having a financial
or voting interest of 5% or greater in the hemp processor
operation with respect to which the license is sought,
whether a trust, corporation, partnership, limited
liability company, or sole proprietorship, including the
name and address of each person;
(17) a plan describing how the hemp processor will
address each of the following:
(A) Energy needs, including estimates of monthly
electricity and gas usage, to what extent it will
procure energy from a local utility or from on-site
generation and if it has or will adopt a sustainable
energy use and energy conservation policy.
(B) Water needs, including estimated water draw,
and if it has or will adopt a sustainable water use and
water conservation policy.
(C) Waste management, including if it has or will
adopt a waste reduction policy; and
(18) any other information required by rule.

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Section 30-10. Inventory. A physical inventory shall be
performed of all intermediate hemp products, hemp extract, or
hemp concentrate on a weekly basis by the hemp processor.
Section 30-15. Issuance of licenses.
(a) The Department shall, by rule, develop a system to
score hemp processor applications to administratively rank
applications based on the clarity, organization, and quality
of the applicant's responses to required information.
Applicants shall be awarded points based on the following
categories:
(1) Suitability of the proposed facility.
(2) Suitability of employee training plan.
(3) Security and recordkeeping plan.
(4) Processing plan.
(5) Product safety and labeling plan.
(6) Business plan.
(7) Community engagement plan.
(8) Environmental plan as described in paragraphs
(18), (19), (20), and (21) of subsection (a) of Section
30-5.
(9) The applicant is 51% or more owned and controlled
by an individual or individuals who have been an Illinois
resident for the past 5 years as proved by tax records or 2
of the following:
(A) A signed lease agreement that includes the

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applicant's name.
(B) A property deed that includes the applicant's
name;
(C) School records.
(D) A voter registration card.
(E) An Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card.
(F) A paycheck stub.
(G) A utility bill.
(H) Any other proof of residency or other
information necessary to establish residence as
provided by rule.
(10) The applicant is 51% or more controlled and owned
by an individual or individuals who meet the
qualifications of a veteran as defined in Section 45-57 of
the Illinois Procurement Code.
(11) A diversity plan that includes a narrative of not
more than 2,500 words that establishes a goal of diversity
in ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity.
(12) Any other criteria the Department may set by rule
for points. A person or entity awarded a license pursuant
to this Section may sell its hemp processor licenses
subject to the restrictions of this Act or as determined

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by administrative rule.
(b) The applicant shall demonstrate a desire to engage
with its community by participating in one or more of, but not
limited to, the following actions: (i) establishment of an
incubator program designed to increase participation in the
hemp industry by persons who would qualify as Social Equity
Applicants as defined by the Cannabis Regulation and Tax Act;
(ii) providing financial assistance to substance abuse
treatment centers; (iii) educating children and teens about
the potential harms of hemp concentrate derived products use;
or (iv) other measures demonstrating a commitment to the
applicant's community.
(c) If the applicant be awarded a hemp processor license,
the information and plans that an applicant provided in its
application, including any plans submitted in the application,
shall be a mandatory condition of the license. Any variation
from or failure to perform such plans may result in
discipline, including the revocation or nonrenewal of a
license.
(d) Upon the completion of the disparity and availability
study pertaining to hemp processors by the Cannabis Regulation
Oversight Officer pursuant to subsection (e) of Section 5-45
of the Cannabis Regulation and Tax Act, the Department may
modify or change the licensing application process to reduce
or eliminate barriers from and remedy evidence of
discrimination identified in the disparity and availability

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study.
Section 30-20. Denial of application. An application for a
hemp processor license must be denied if any of the following
conditions are met:
(1) The applicant failed to submit the materials
required by this Article.
(2) The applicant would not be in compliance with
local zoning rules or permit requirements.
(3) One or more of the principal officers or board
members is under 21 years of age.
(4) The person has submitted an application for a
license under this Act or this Article that contains false
information.
(5) If the licensee, principal officer, board member,
agent, or person having a financial or voting interest of
5% or greater in the licensee is delinquent in filing any
required tax returns or paying any amounts owed to the
State of Illinois.
Section 30-25. Hemp processor requirements; prohibitions.
(a) The operating documents of a hemp processor shall
include procedures for the oversight of the hemp processor, an
intermediate hemp product monitoring system, including a
physical inventory recorded weekly, accurate recordkeeping,
and a staffing plan.

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(b) A hemp processor shall implement a security plan
reviewed by the Illinois State Police that includes, but is
not limited to, facility access controls, perimeter intrusion
detection systems, personnel identification systems, and a
24-hour surveillance system to monitor the interior and
exterior of the hemp processor facility and that is accessible
to authorized law enforcement and the Department in real time.
(c) All processing of hemp into intermediate hemp products
and hemp concentrate by a hemp processor must take place in an
enclosed, locked facility at the physical address provided to
the Department during the licensing process. The hemp
processor location shall only be accessed by the agents
working for the hemp processor, Department staff performing
inspections, Department of Public Health staff performing
inspections, State and local law enforcement or other
emergency personnel, contractors working on jobs unrelated to
hemp processing, such as installing or maintaining security
devices or performing electrical wiring, transporting
organization agents as provided in this Act, or participants
in the incubator program, individuals in a mentoring or
educational program approved by the State, or other
individuals as provided by rule.
(d) A hemp processor may not sell or distribute any
intermediate hemp product or hemp concentrate to any person
other than an Illinois-registered adult use cannabis craft
grower who meets the requirements of a Social Equity

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Applicant, an adult use cannabis infuser that meets the
requirements of a Social Equity Applicant, an adult use
cannabis transporter that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, or other hemp
processors.
(e) A hemp processor may not be located in an area zoned
for residential use.
(f) A hemp processor may not either directly or indirectly
discriminate in price between different cannabis or hemp
business establishments that are purchasing a like grade,
brand, and quality of intermediate hemp products or hemp
concentrate. Nothing in this subsection prevents a hemp
processor from pricing intermediate hemp products or hemp
concentrate differently based on differences in the cost of
manufacturing or processing, the quantities sold, such as
volume discounts, or the way the products are delivered.
(g) All intermediate hemp products or hemp concentrate
processed by a hemp processor and intended for distribution to
a hemp or cannabis business establishment must be entered into
a data collection system and packaged and labeled under this
Act before transport.
(h) Hemp processors are subject to random inspections by
the Department, local safety or health inspectors, the
Illinois State Police, or as provided by rule.
(i) A hemp processor agent shall notify local law
enforcement, the Illinois State Police, and the Department

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within 24 hours of the discovery of any loss or theft.
Notification shall be made by phone, in person, or written or
electronic communication.
(j) A hemp processor or hemp processor agent shall not
transport any intermediate hemp product or hemp concentrate to
any other cannabis or hemp business establishment without a
hemp distributor license unless:
(1) If the hemp processor is located in a county with a
population of 3,000,000 or more, the cannabis or hemp
business establishment receiving the intermediate hemp
products or hemp concentrate is within 2,000 feet of the
property line of the hemp processor;
(2) If the hemp processor is located in a county with a
population of more than 700,000 but fewer than 3,000,000,
the cannabis or hemp business establishment receiving the
intermediate hemp products or hemp concentrate is within 2
miles of the hemp processor; or
(3) If the hemp processor is located in a county with a
population of fewer than 700,000, the cannabis or hemp
business establishment receiving the intermediate hemp
products or hemp concentrate is within 15 miles of the
hemp processor.
(k) A hemp processor may enter into a contract with a hemp
distributor or an adult use cannabis transporter organization
that meets the requirements of a Social Equity Applicant to
transport intermediate hemp product or hemp concentrate to a

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cannabis or hemp business establishment allowed to process or
infuse intermediate hemp product or hemp concentrate under
this Act.
(l) A person or entity may not hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 3 hemp processor licenses. Further, a person or
entity that is employed by, an agent of, or has a contract to
receive payment from or participate in the management of a
hemp processor, is a principal officer of a hemp processor, or
entity controlled by or affiliated with a principal officer of
a hemp processor may not hold any legal, equitable, ownership,
or beneficial interest, directly or indirectly, in a hemp
processor license that would result in the person or entity
owning or controlling in combination with any hemp processor,
principal officer of a hemp processor, or entity controlled or
affiliated with a principal officer of a hemp processor by
which he, she, or it is employed, is an agent of, or
participates in the management of more than 3 hemp processor
licenses.
(m) A hemp processor shall not be located within 1,500
feet of another hemp processor.
(n) A hemp processor may process industrial hemp, as
defined by the Industrial Hemp Act, intermediate hemp product,
hemp concentrate, or full spectrum concentrate and broad
spectrum extract that is to be used in either hemp extract
derived products or hemp concentrate derived products.

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(o) A hemp processor shall comply with any other
requirements or prohibitions set by administrative rule of the
Department.
Section 30-30. Hemp processor agent identification card.
(a) The Department shall:
(1) establish, by rule, the information required in an
initial application or renewal application for a hemp
processor agent identification card submitted under this
Act and the nonrefundable fee to accompany the initial
application or renewal application;
(2) verify the information contained in an initial
application or renewal application for a hemp processor
agent identification card submitted under this Act and
approve or deny an application within 30 days of receiving
a completed initial application or renewal application and
all supporting documentation required by rule;
(3) issue an hemp processor agent identification card
to a qualifying agent within 15 business days of approving
the initial application or renewal application;
(4) enter the license number of the hemp processor
where the agent works; and
(5) allow for an electronic initial application and
renewal application process, and provide a confirmation by
electronic or other methods that an application has been
submitted. The Department may, by rule, require

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prospective agents to file their applications by
electronic means and provide notices to the agents by
electronic means.
(b) A hemp processor agent must keep the hemp processor
agent's hemp processor agent identification card visible at
all times when on the property of a cannabis or hemp business
establishment, including the hemp processor for which the
person is an agent for.
(c) The hemp processor agent identification cards shall
contain the following:
(1) The name of the cardholder.
(2) The date of issuance and expiration date of the
identification card.
(3) A random 10-digit alphanumeric identification
number containing at least 4 numbers and at least 4
letters that is unique to the holder.
(4) A photograph of the cardholder.
(5) The legal name of the hemp processor employing the
agent.
(d) A hemp processor agent identification card shall be
immediately returned to the hemp business establishment of the
agent upon termination of the agent's employment.
(e) A hemp processor agent identification card lost by a
hemp processor agent shall be reported to the Illinois State
Police and the Department immediately upon discovery of the
loss.

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Section 30-35. Hemp processor background checks.
(a) Through the Illinois State Police, the Department
shall conduct a background check of the prospective principal
officers, board members, and agents of a hemp processor
applying for a license or hemp processor agent identification
card under this Article. The Illinois State Police shall
charge a fee set by rule for conducting the criminal history
record check, which shall be deposited into the State Police
Services Fund and shall not exceed the actual cost of the
record check. Each hemp concentrate infuser prospective
principal officer, board member, or agent shall submit a full
set of fingerprints to the Illinois State Police for the
purpose of obtaining a State and federal criminal records
check. These fingerprints shall be checked against the
fingerprint records during the application process and in a
frequency thereafter as prescribed by the Department, to the
extent allowed by law, filed in any relevant Illinois State
Police and Federal Bureau of Investigation criminal history
records databases. The Illinois State Police shall furnish,
following positive identification, all conviction information
to the Department.
(b) When applying for the initial license or
identification card, the background checks for all prospective
principal officers, board members, and agents shall be
completed before submitting the application to the licensing

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or issuing agency.
Section 30-40. Renewal of hemp processor licenses and
agent identification cards.
(a) A license or hemp processor agent identification card
issued under this Article shall be renewed annually. A hemp
processor shall receive written or electronic notice 90 days
before the expiration of its current license that the license
will expire. The Department shall grant a renewal within 45
days of submission of a renewal application if:
(1) The hemp processor submits a renewal application
and the required nonrefundable renewal fee of $40,000, or
another amount as the Department may set by rule after
January 1, 2025.
(2) The Department has not suspended the license of
the hemp processor or suspended or revoked the license of
the hemp processor for violating this Act or rules adopted
under this Act.
(3) The hemp processor has continued to operate in
accordance with all plans submitted as part of its
application and approved by the Department or any
amendments thereto that have been approved by the
Department.
(4) The hemp processor has submitted an agent,
employee, contracting, and subcontracting diversity report
as required by the Department.

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(5) The hemp processor has submitted an environmental
impact report.
(b) If a hemp processor fails to renew its license before
expiration, the hemp processor shall cease operations until
its license is renewed.
(c) If a hemp processor agent fails to renew the agent's
hemp processor agent identification card before its
expiration, the agent shall cease to work as an agent of the
hemp processor until his or her identification card is
renewed.
(d) Any hemp processor that continues to operate or any
hemp processor agent who continues to work as an agent after
the applicable license or a hemp processor agent
identification card has expired without renewal is subject to
the penalties provided under this Act.
(e) All fees or fines collected from the renewal of a hemp
processor license shall be deposited into the Cannabis
Regulation Fund.
Section 30-45. Hemp processor taxes; returns.
(a) A tax is imposed upon the privilege of processing hemp
into intermediate hemp products at the rate of 7% of the gross
receipts from the sale of intermediate hemp products, hemp
concentrate, or hemp extract by a hemp processor to a
qualified cannabis or hemp business establishment. The sale of
any hemp cannabinoid product that contains any amount of hemp

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cannabinoids or any derivative thereof is subject to the tax
under this Section on the full selling price of the product.
The proceeds from this tax shall be deposited into the
Cannabis Regulation Fund. This tax shall be paid by the hemp
processor who makes the first sale and is not the
responsibility of a craft grower who meets the requirements of
a Social Equity Applicant, an infuser that meets the
requirements of Social Equity Applicant, a transporter that
meets the requirements of a Social Equity Applicant, a hemp
concentrate infuser, a hemp extract infuser, or another hemp
processor.
(b) In the administration of and compliance with this
Section, the Department of Revenue and persons who are subject
to this Section: (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) are subject
to the same conditions, restrictions, limitations, penalties,
and definitions of terms, and (iii) shall employ the same
modes of procedure as are set forth in the Intermediate Hemp
Product Processing Tax Law and the Uniform Penalty and
Interest Act as if those provisions were set forth in this
Section.
(c) The tax imposed under this Act shall be in addition to
all other occupation or privilege taxes imposed by the State
of Illinois or by any municipal corporation or political
subdivision thereof.

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Section 30-50. Disclosure of ownership and control.
(a) Each hemp processor applicant and licensee shall file
and maintain a table of organization, ownership, and control
with the Department. The table of organization, ownership, and
control shall contain the information required by this Section
in sufficient detail to identify all owners, directors, and
principal officers, and the title of each principal officer or
business entity that, through direct or indirect means,
manages, owns, or controls the applicant or licensee.
(b) The table of organization, ownership, and control
shall identify the following information:
(1) The management structure, ownership, and control
of the applicant or license holder including the name of
each principal officer or business entity, the office or
position held, and the percentage ownership interest, if
any. If the business entity has a parent company, the name
of each owner, board member, and officer of the parent
company and the percentage ownership interest in the
parent company and the hemp processor.
(2) If the applicant or licensee is a business entity
with publicly traded stock, the identification of
ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a
publicly traded company, the following information shall be
provided in the table of organization, ownership, and control:
(1) The name and percentage of ownership interest of

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each individual or business entity with ownership of more
than 5% of the voting shares of the entity, to the extent
such information is known or contained in 13D or 13G
Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage of
interest of ownership of persons who are relatives of one
another and who together exercise control over or own more
than 10% of the voting shares of the entity.
(d) A hemp processor with a parent company or companies,
or partially owned or controlled by another entity, must
disclose to the Department the relationship and all owners,
board members, officers, or individuals with control or
management of those entities. A hemp processor shall not
shield its ownership or control from the Department.
(e) A principal officer must submit a complete online
application with the Department within 14 days of the hemp
processor being licensed by the Department or within 14 days
of Department notice of approval as a new principal officer.
(f) A principal officer may not allow the principal
officer's registration to expire.
(g) A hemp processor separating with a principal officer
must do so under this Act. The principal officer must
communicate the separation to the Department within 5 business
days.
(h) A principal officer not in compliance with the
requirements of this Act shall be removed from the principal

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officer's position with the hemp processor or shall otherwise
terminate the principal officer's affiliation. Failure to do
so may subject the hemp processor to discipline, suspension,
or revocation of its license by the Department.
(i) It is the responsibility of the hemp processor and its
principal officers to promptly notify the Department of any
change of the principal place of business address, hours of
operation, change in ownership or control, or a change of the
hemp processor's primary or secondary contact information. Any
changes must be made to the Department in writing.
Article 35.
Hemp Distributor
Section 35-5. Hemp distributor application. When applying
for a hemp distributor license, the applicant shall
electronically submit the following in such form as the
Department may direct:
(1) the nonrefundable application fee of $5,000 for
each license for which the applicant is applying, which
shall be deposited into the Cannabis Regulation Fund;
(2) the legal name of the hemp distributor license;
(3) the proposed physical address of the hemp
distributor, if one is proposed;
(4) the name, address, social security number, and
date of birth of each principal officer and board member

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of the hemp distributor. Each principal officer and board
member shall be at least 21 years of age;
(5) the details of any administrative or judicial
proceeding in which any of the principal officers or board
members of the hemp distributor (i) pled guilty, were
convicted, fined, or had a registration or license
suspended or revoked, or (ii) managed or served on the
board of a business or nonprofit organization that pled
guilty, was convicted, fined, or had a registration or
license suspended or revoked;
(6) proposed operating bylaws that include procedures
for the oversight of the hemp distributor, including the
development and implementation of an accurate
recordkeeping plan, staffing plan, and security plan
approved by the Illinois State Police that are in
accordance with the rules issued by the Department under
this Act;
(7) verification from the Illinois State Police that
all background checks of the prospective principal
officers, board members, and agents of the hemp
distributor have been conducted;
(8) a copy of the current local zoning ordinance or
permit and verification that the proposed hemp distributor
is in compliance with the local zoning rules and distance
limitations established by the local jurisdiction, if the
hemp distributor has a business address;

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(9) proposed employment practices, in which the
applicant must demonstrate a plan of action to inform,
hire, and educate minorities, women, veterans, and persons
with disabilities, engage in fair labor practices, and
provide worker protections;
(10) whether an applicant can demonstrate experience
in or business practices that promote economic empowerment
in disproportionately impacted areas, as that term is
defined in Section 1-10 of the Cannabis Regulation and Tax
Act;
(11) the number and type of equipment the hemp
distributor will use to transport hemp extract derived
products and hemp concentrate derived products;
(12) loading, transporting, and unloading plans;
(13) a description of the applicant's experience in
the distribution or security business;
(14) the identity of every person having a financial
or voting interest of 5% or more in the hemp distributor
organization with respect to which the license is sought,
whether a trust, corporation, partnership, limited
liability company, or sole proprietorship, including the
name and address of each person; and
(15) any other information required by rule.
Section 35-10. Issuing licenses.
(a) The Department shall, by rule, develop a system to

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score distributor applications to administratively rank
applications based on the clarity, organization, and quality
of the applicant's responses to required information.
Applicants shall be awarded points based on the following
categories:
(1) suitability of employee training plan;
(2) security and recordkeeping plan;
(3) business plan;
(4) labor and employment practices, which shall
constitute no less than 2% of total available points;
(5) environmental plan that demonstrates an
environmental plan of action to minimize the carbon
footprint, environmental impact, and resource needs for
the distributor, which may include, without limitation,
recycling hemp cannabinoid product packaging;
(6) the applicant is 51% or more owned and controlled
by an individual or individuals who have been an Illinois
resident for the past 5 years as proved by tax records or 2
of the following:
(A) A signed lease agreement that includes the
applicant's name.
(B) A property deed that includes the applicant's
name.
(C) School records.
(D) A voter registration card.
(E) An Illinois driver's license, an Illinois

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Identification Card, or an Illinois Person with a
Disability Identification Card.
(F) A paycheck stub.
(G) A utility bill.
(H) Any other proof of residency or other
information necessary to establish residence as
provided by rule;
(7) the applicant is 51% or more controlled and owned
by an individual or individuals who meet the
qualifications of a veteran, as that term is defined in
Section 45-57 of the Illinois Procurement Code;
(8) a diversity plan that includes a narrative of not
more than 2,500 words that establishes a goal of diversity
in ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity; and
(9) any other criteria the Department may set by rule
for points.
(b) Applicants for hemp distributor licenses that score at
least 75% of the available points according to the system
developed by rule and meet all other requirements for a hemp
distributor license shall be issued a license by the
Department within 60 days of receiving the application.
(c) If the applicant is awarded a hemp distributor
license, the information and plans that an applicant provided
in its application shall be a mandatory condition of the

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permit. Any variation from or failure to perform such plans
may result in discipline, including the revocation or
nonrenewal of a license.
(d) If the applicant is awarded a hemp distributor
license, the applicant shall pay a prorated fee of $10,000
prior to receiving the license to be deposited into the
Cannabis Regulation Fund.
Section 35-15. Denial of application. An application for a
hemp distributor license shall be denied if any of the
following conditions are met:
(1) The applicant failed to submit the materials
required by this Article.
(2) The applicant would not be in compliance with
local zoning rules or permit requirements.
(3) One or more of the prospective principal officers
or board members causes a violation of this Article.
(4) One or more of the principal officers or board
members is under 21 years of age.
(5) The person has submitted an application for a
license under this Act that contains false information.
(6) The licensee, principal officer, board member, or
person having a financial or voting interest of 5% or
greater in the licensee is delinquent in filing any
required tax returns or paying any amounts owed to the
State of Illinois.

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Section 35-20. Hemp distributor requirements;
prohibitions.
(a) The operating documents of a hemp distributor shall
include procedures for the oversight of the hemp distributor,
an inventory monitoring system, including a physical inventory
recorded weekly, accurate recordkeeping, and a staffing plan.
(b) A hemp distributor may not distribute intermediate
hemp products, hemp concentrate, or hemp concentrate derived
products to any person other than an Illinois-registered adult
use craft grower that meets the requirements of a Social
Equity Applicant, an adult use cannabis infuser that meets the
requirements of a Social Equity Applicant, an adult use
cannabis transporter that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser, hemp processor,
a testing facility, or as otherwise authorized by rule.
(c) A hemp cannabinoid product distributed by a hemp
distributor must be entered into a data collection system and
placed into a hemp container for distribution.
(d) Hemp distributors are subject to random inspections by
the Department, the Department of Public Health, the Illinois
State Police, or as provided by rule.
(e) A hemp distributor agent shall notify local law
enforcement, the Illinois State Police, and the Department
within 24 hours of the discovery of any loss or theft.
Notification shall be made by phone, in person, or by written

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or electronic communication.
(f) No person under the age of 21 years shall be in a
commercial vehicle or trailer distribution of hemp cannabinoid
goods.
(g) No person or individual who is not a hemp distributor
agent shall be in a vehicle while distributing hemp
cannabinoid goods.
(h) Hemp distributors may not use commercial motor
vehicles with a weight rating of over 10,001 pounds.
(i) It is unlawful for any person to offer or deliver
money, or anything else of value, directly or indirectly, to
any of the following persons to obtain preferential placement
within the hemp concentrate retailer's or Qualifying
Applicant's or a Social Equity Justice Involved Applicant's,
as defined by the Cannabis Regulation and Tax Act, dispensary
shelves, including, without limitation, on shelves and in
display cases where purchasers can view products, or on the
website of the hemp concentrate retailer or on the website of
the Qualifying Applicant or on the website of the Social
Equity Justice Involved Applicant dispensary under the
Cannabis Regulation and Tax Act:
(1) a person having a hemp distributor license, or any
officer, associate, member, representative, or agent of
the licensee;
(2) a person having an Illinois-registered adult use
craft grower that meets the requirements of a Social

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Equity Applicant, an adult use cannabis infuser that meets
the requirements of a Social Equity Applicant hemp
concentrate infuser, hemp extract infuser, or hemp
processor license;
(3) a person connected with or in any way
representing, or a member of the family of, a person
holding an Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant, an
adult use cannabis infuser that meets the requirements of
a Social Equity Applicant, hemp concentrate infuser, hemp
extract infuser, or hemp processor license; or
(4) a stockholder, officer, manager, agent, or
representative of a corporation engaged in an
Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an adult use
cannabis infuser that meets the requirements of a Social
Equity Applicant, hemp concentrate infuser, hemp extract
infuser, or hemp processor license.
(j) A hemp distributor agent must keep the agent's
identification card visible at all times when on the property
of a cannabis or hemp business establishment and during the
distribution of hemp cannabinoid products when acting under
the agent's duties as a hemp distributor agent. During these
times, the hemp distributor agent must also provide the
identification card upon request of any law enforcement
officer engaged in the agent's official duties.

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(k) A copy of the hemp distributor's registration and a
manifest for the delivery shall be present in any vehicle
distributing hemp cannabinoid products.
(l) Any hemp cannabinoid product shall be transported so
it is not visible or recognizable from outside the vehicle.
(m) A vehicle distributing hemp cannabinoid products must
not bear any markings to indicate the vehicle contains hemp
cannabinoid products or bear the name or logo of the hemp
business establishment.
(n) Hemp cannabinoid products must be transported in an
enclosed, locked storage compartment that is secured or
affixed to the vehicle.
(o) The Department may, by rule, impose any other
requirements or prohibitions on the transportation of hemp
cannabinoid products.
Section 35-25. Hemp distributor agent identification card.
(a) The Department shall:
(1) establish, by rule, the information required in an
initial application or renewal application for a hemp
distributor agent identification card submitted under this
Act and the nonrefundable fee to accompany the initial
application or renewal application;
(2) verify the information contained in an initial
application or renewal application for a hemp distributor
agent identification card submitted under this Act and

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approve or deny an application within 30 days of receiving
a completed initial application or renewal application and
all supporting documentation required by rule;
(3) issue a hemp distributor agent identification card
to a qualifying agent within 15 business days of approving
the initial application or renewal application;
(4) enter the license number of the transporting
organization where the agent works; and
(5) allow for an electronic initial application and
renewal application process and provide a confirmation by
electronic or other methods that an application has been
submitted. The Department may, by rule, require
prospective agents to file their applications by
electronic means and provide notices to the agents by
electronic means.
(b) An agent must keep the agent's hemp distributor agent
identification card visible at all times when on the property
of a cannabis or hemp business establishment, including the
hemp business establishment for which the person is an agent.
(c) Hemp distributor agent identification cards shall
contain the following:
(1) The name of the cardholder.
(2) The date of issuance and expiration date of the
identification card.
(3) A random 10-digit alphanumeric identification
number containing at least 4 numbers and at least 4

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letters that is unique to the holder.
(4) A photograph of the cardholder.
(5) The legal name of the hemp distributor employing
the agent.
(d) A hemp distributor agent identification card shall be
immediately returned to the hemp distributor of the agent upon
termination of the agent's employment.
(e) A hemp distributor agent identification card lost by a
hemp distributor agent shall be reported to the Illinois State
Police and the Department immediately upon discovery of the
loss.
(f) An application for a hemp distributor agent
identification card shall be denied if the applicant is
delinquent in filing any required tax returns or paying any
amounts owed to the State of Illinois.
(g) An agent applicant may begin employment at a hemp
distributor while the agent applicant's hemp distributor agent
identification card application is pending. Upon approval, the
Department shall issue the agent's hemp distributor agent
identification card to the agent. If denied, the hemp
distributor and the agent applicant shall be notified and the
agent applicant must cease all activity at the transporting
organization immediately.
Section 35-30. Hemp distributor organization background
checks.

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(a) Through the Illinois State Police, the Department
shall conduct a background check of the prospective principal
officers, board members, and agents of a hemp distributor
applying for a license or a hemp distributor agent
identification card under this Article. The Illinois State
Police shall charge a fee set by rule for conducting the
criminal history record check, which shall be deposited into
the State Police Services Fund and shall not exceed the actual
cost of the record check. Each hemp distributor's prospective
principal officer, board member, or agent shall submit a full
set of fingerprints to the Illinois State Police for the
purpose of obtaining a State and federal criminal records
check. These fingerprints shall be checked against the
fingerprint records during the application process and in a
frequency thereafter as prescribed by the Department, to the
extent allowed by law, filed in any relevant Illinois State
Police and Federal Bureau of Investigation criminal history
records databases. The Illinois State Police shall furnish,
following positive identification, all conviction information
to the Department.
(b) When applying for the initial license or
identification card, the background checks for all prospective
principal officers, board members, and agents shall be
completed before submitting the application to the Department.
Section 35-35. Renewal of hemp distributor licenses and

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agent identification cards.
(a) Any license or hemp distributor agent identification
card issued under this Article shall be renewed annually. A
hemp distributor shall receive written or electronic notice 90
days before the expiration of its current license that the
license will expire. The Department shall grant a renewal
within 45 days of submission of a renewal application if:
(1) the hemp distributor submits a renewal application
and the required nonrefundable renewal fee of $10,000, or
after January 1, 2025, another amount set by rule by the
Department, to be deposited into the Cannabis Regulation
Fund;
(2) the Department has not suspended or revoked the
license of the hemp distributor for violating this Act or
rules adopted under this Act;
(3) the hemp distributor has continued to operate in
accordance with all plans submitted as part of its
application and approved by the Department or any
amendments thereto that have been approved by the
Department; and
(4) the hemp distributor has submitted an agent,
employee, contracting, and subcontracting diversity report
as required by the Department.
(b) If a hemp distributor fails to renew its license
before expiration, the hemp distributor shall cease operations
until its license is renewed.

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(c) If a hemp distributor agent fails to renew the agent's
hemp distributor agent identification card before the card's
expiration, the agent shall cease to work as an agent of the
hemp distributor until the agent's hemp distributor agent
identification card is renewed.
(d) Any hemp distributor that continues to operate, or any
hemp distributor agent who continues to work as an agent,
after the applicable license or identification card has
expired without renewal is subject to the penalties provided
under this Act.
(e) The Department shall not renew a license or a hemp
distributor agent identification card if the applicant is
delinquent in filing any required tax returns or paying any
amounts owed to the State of Illinois.
Section 35-40. Disclosure of ownership and control.
(a) Each hemp distributor applicant and licensee shall
file and maintain a table of organization, ownership, and
control with the Department. The table of organization,
ownership, and control shall contain the information required
by this Section in sufficient detail to identify all owners,
directors, and principal officers, and the title of each
principal officer or business entity that, through direct or
indirect means, manages, owns, or controls the applicant or
licensee.
(b) The table of organization, ownership, and control

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shall identify the following information:
(1) The management structure, ownership, and control
of the applicant or license holder including the name of
each principal officer or business entity, the office or
position held, and the percentage ownership interest, if
any. If the business entity has a parent company, the name
of each owner, board member, and officer of the parent
company and the agent's percentage ownership interest in
the parent company and the hemp distributor.
(2) If the applicant or licensee is a business entity
with publicly traded stock, the identification of
ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a
publicly traded company, the following information shall be
provided in the table of organization, ownership, and control:
(1) The name and percentage of ownership interest of
each individual or business entity with ownership of more
than 5% of the voting shares of the entity, to the extent
such information is known or contained in 13D or 13G
Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage of
interest of ownership of persons who are relatives of one
another and who together exercise control over or own more
than 10% of the voting shares of the entity.
(d) A hemp distributor with a parent company or companies,
or partially owned or controlled by another entity, must

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disclose to the Department the relationship and all owners,
board members, officers, or individuals with control or
management of those entities. A hemp distributor shall not
shield its ownership or control from the Department.
(e) All principal officers must submit a completed online
application with the Department within 14 days of the hemp
distributor being licensed by the Department or within 14 days
of Department notice of approval as a new principal officer.
(f) A principal officer may not allow the principal
officer's registration to expire.
(g) A hemp distributor separating with a principal officer
must do so under this Act. The principal officer must
communicate the separation to the Department within 5 business
days.
(h) A principal officer not in compliance with the
requirements of this Act shall be removed from the principal
officer's position with the hemp distributor or shall
otherwise terminate the principal officer's affiliation.
Failure to do so may subject the transporting organization to
discipline, suspension, or revocation of its license by the
Department.
(i) It is the responsibility of the hemp distributor and
its principal officers to promptly notify the Department of
any change of the principal place of business address, hours
of operation, change in ownership or control, or a change of
the transporting organization's primary or secondary contact

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information. Any changes must be made to the Department in
writing.
Article 40.
Hemp Derived Products
Section 40-5. Hemp extract derived products.
(a) Any hemp cannabinoid products manufactured, processed,
distributed, sold, or offered for sale in this State shall:
(1) be manufactured in accordance with this Act;
(2) be subject to the following minimum requirements:
(A) contain naturally occurring hemp
phytocannabinoids;
(B) be intended for consumption by any means,
including, but not limited to, oral ingestion,
inhalation, smoking, or topical absorption;
(C) contain a total tetrahydrocannabinol
concentration of no greater than:
(i) 0.3% for any intermediate or finished
plant product or material or any hemp cannabinoid
product intended for consumption by inhalation or
smoking; or
(ii) 0.5 milligrams per serving or individual
product unit, and 2 milligrams per package for
products sold in multiple servings or units, for
any beverage, food, oil, ointment, tincture,

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topical formation or any other product that is
intended for human consumption by means other than
inhalation or smoking;
(D) contain an amount of total hemp cannabinoid
concentration that is at least 25 times greater than
the amount of total tetrahydrocannabinol concentration
per serving and per package;
(3) not contain liquor, wine, beer, or cider or meet
the definition of alcoholic liquor under the Liquor
Control Act of 1934;
(4) not contain tobacco or nicotine in the product;
(5) accurately reflect testing results and not contain
less than 90% or more than 110% of the concentration of
total cannabinoid content as listed on the product label;
(6) be prepackaged and not added to food or any other
consumable products at the point of sale;
(7) comply with product testing standards set forth in
this Act; and
(8) not contain hemp concentrate, artificially derived
cannabinoids, or cannabinoids created through
isomerization, including tetrahydrocannabinol created
through isomerization.
(b) Any hemp extract derived product intended for
inhalation or vaporization shall meet the following additional
requirements:
(1) The product shall be a closed system with a

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pre-filled disposable cartridge that attaches to a
rechargeable battery or a single-use product that cannot
be recharged.
(2) Electronic vaporization devices shall have
internal or external temperature controls to prevent
combustion and have a heating element made of inert
material, such as glass, ceramic, or stainless steel, and
not plastic or rubber.
(3) Except for hemp-derived terpenes, excipients and
ingredients must be pharmaceutical grade, unless otherwise
approved by the Department, and shall not include:
(A) synthetic terpenes;
(B) polyethylene glycol (PEG);
(C) vitamin E acetate;
(D) medium chain triglycerides (MCT oil);
(E) medicinal compounds;
(F) illegal or controlled substances;
(G) artificial food coloring;
(H) benzoic acid;
(I) diketones; or
(J) any other compound or ingredient as determined
by the Department in rules.
(4) The product may not contain any flavors or
flavoring agents, except for hemp-derived terpenes.
(5) The packaging shall include a Department-approved
symbol, as set out by rule, in a manner that is clear and

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conspicuous.
Section 40-10. Hemp concentrate derived products.
(a) Hemp concentrate derived products manufactured,
processed, distributed, sold, or offered for sale in this
State shall:
(1) be manufactured in accordance with this Act;
(2) be subject to the following minimum requirements:
(A) contain only cannabinoids derived from hemp;
(B) be intended for consumption by any means,
including, but not limited to, oral ingestion,
inhalation, smoking, or topical absorption;
(C) contain a total tetrahydrocannabinol
concentration of no greater than:
(i) 0.3% for any intermediate or finished
plant product or material or any hemp cannabinoid
product intended for consumption by inhalation or
smoking; or
(ii) 5 milligrams per serving or individual
product unit, and 50 milligrams per package for
products sold in multiple servings or units, for
any beverage, food, oil, ointment, tincture,
topical formation or any other product that is
intended for human consumption by means other than
inhalation or smoking;
(3) not contain liquor, wine, beer, or cider or meet

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the definition of alcoholic liquor under the Liquor
Control Act of 1934;
(4) not contain tobacco or nicotine in the product;
(5) accurately reflect testing results and not contain
less than 90% or more than 110% of the concentration of
total cannabinoid content as listed on the product label;
(6) be prepackaged and not added to food or any other
consumable products at the point of sale; and
(7) comply with product testing standards set forth in
this Act.
(b) If the product is a hemp concentrate derived product
intended for inhalation or vaporization, then the product
shall meet the following additional requirements:
(1) The product shall be a closed system with a
pre-filled disposable cartridge that attaches to a
rechargeable battery or a single-use product that cannot
be recharged.
(2) Electronic vaporization devices shall have
internal or external temperature controls to prevent
combustion and have a heating element made of inert
material, such as glass, ceramic, or stainless steel, and
not plastic or rubber.
(3) Except for hemp cannabinoids, hemp extract, and
hemp concentrate, excipients and ingredients must be
pharmaceutical grade, unless otherwise approved by the
Department, and may not include;

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(A) polyethylene glycol (PEG);
(B) vitamin E acetate;
(C) medium chain triglycerides (MCT oil);
(D) medicinal compounds;
(E) illegal or controlled substances;
(F) artificial food coloring
(G) benzoic acid;
(H) diketones; or
(I) any other compound or ingredient as determined
by the Department in rules.
(4) The product may not contain any flavors or
flavoring agents, except for hemp-derived terpenes.
(5) The packaging shall include a Department-approved
symbol, as set out by rule, in a manner that is clear and
conspicuous.
Section 40-15. Packaging and labeling of hemp extract
derived products.
(a) A hemp extract derived product distributed or offered
for retail sale in this State shall include the following
information on the product label or packaging:
(1) information that complies with the requirements in
21 CFR 101 and include a nutritional or supplement fact
panel that is based on the number of servings within the
container;
(2) a list of all ingredients in descending order of

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predominance by weight in the product;
(3) The serving size and number of servings per
package or container, including the milligrams per serving
of:
(A) individual hemp cannabinoids;
(B) total hemp cannabinoids;
(C) individual THC cannabinoids;
(D) total THC;
(E) any other cannabinoids;
(F) an expiration date;
(G) a lot or batch number;
(H) the name of the hemp processor, craft grower,
or cultivation center that is allowed to process hemp
in accordance with this Act, whether in-state or
out-of-state;
(I) a scannable QR code linked to download the
certificate of analysis and testing results for the
product;
(J) the state or country of origin from which the
hemp used in the product was sourced;
(K) a means for reporting serious adverse events;
and
(L) any other marking, statement, or symbol
required by the Department.
(b) No hemp extract derived product offered for retail
sale shall be made attractive to individuals under 21 years of

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age, imitate a candy label, or use cartoons or other images
popularly used to advertise to children or otherwise be
marketed to individuals under 21 years of age.
(c) No hemp extract derived product shall be marketed,
advertised, or offered for sale in a manner that would cause a
reasonable consumer:
(1) to be confused as to whether the hemp extract
derived product is trademarked, marked, or labeled in a
manner that violates any federal trademark law or
regulation; or
(2) to believe that a hemp extract derived product is
cannabis, medical cannabis, or that a licensee is
authorized to sell or dispense cannabis or medical
cannabis, as those terms are defined in the Cannabis
Regulation and Tax Act or the Compassionate Use of Medical
Cannabis Program Act.
(d) Hemp extract derived product offered for retail sale
shall include the following warnings on the product label or
packaging in a manner that is clear and conspicuous:
(1) this product must be kept out of the reach of
children and pets;
(2) this product is derived from hemp and may contain
THC which could result in a failed drug test; except that
this warning may be omitted for a hemp extract derived
product that has a certificate of testing analysis
demonstrating 0% THC concentration in the finished

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product;
(3) this product has not been evaluated or approved by
the Food and Drug Administration for safety or efficacy;
(4) if you are pregnant or nursing you should consult
your health care provider before use;
(5) for a hemp extract derived product intended to be
inhaled or vaporized, a warning stating that smoking or
vaping is hazardous to your health; and
(6) any other warning required by the Department.
Section 40-20. Laboratory testing requirements for hemp
cannabinoid products.
(a) The Department shall approve testing laboratories to
be contracted by licensees under this Act for testing of hemp
cannabinoid products.
(b) All approved testing laboratories shall meet the
following minimum requirements:
(1) maintain ISO/IEC 17025 accreditation for the
premises and for the testing of one or more of the analytes
determined by the Department;
(2) maintain a valid scope of accreditation, issued by
an accreditation body, that attests to the laboratory's
competence to perform testing of hemp cannabinoid
products;
(3) maintain method validation reports for all testing
performed;

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(4) maintain standard operating procedures for the
sampling of hemp cannabinoid products; and
(5) maintain testing methodologies to ascertain the
presence of intermediate hemp products, hemp extract, hemp
concentrate, or cannabinoids created through
isomerization, including tetrahydrocannabinol created
through isomerization.
(c) Hemp cannabinoid products shall not be sold within
this State if hemp cannabinoid, THC, or other contaminants are
detected at levels greater than provided for by this Act or
rules or guidance adopted by the Department.
(d) The Department may impose additional testing
requirements, including, but not limited to, testing for
additional analytes, setting stricter contaminant limits, and
mandating the use of specific sampling methodologies per lot
or batch manufactured.
(e) The Department shall make available a list of required
analytes, their acceptable limits, and approved testing
methods on the Department's website and in any other manner as
determined by the Department.
(f) The total tetrahydrocannabinol concentration for hemp
cannabinoid products shall not exceed the limits established
in this Act.
(g) If a hemp cannabinoid product fails testing, the hemp
processor may elect to reformulate the failing batch to reduce
the total tetrahydrocannabinol of the batch to comply with the

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THC limits established by this Act. If the reformulated batch
still exceeds the THC limits, the hemp processor shall destroy
the batch.
(h) If a hemp cannabinoid product is found to contain
levels of any pathogen, toxicant, residual solvent, metal, or
pesticide not enumerated in this Section or by other State
law, then the product shall not be sold in this State.
Section 40-25. Advertising requirements. An advertisement
for a hemp cannabinoid product, hemp extract retailer, hemp
concentrate retailer, hemp extract infuser, hemp concentrate
infuser, or hemp processor may not:
(1) include any false or misleading statements,
images, or other content, including, but not limited to,
any health claims;
(2) contain claims that hemp consumption or a hemp
cannabinoid product can or is intended to diagnose, cure,
mitigate, treat, or prevent disease;
(3) lead a reasonable consumer to believe that a hemp
cannabinoid product is cannabis or medical cannabis,
including any product that exceeds the THC limits
established under this Act for lawful hemp cannabinoid
products, or that a licensee is authorized to sell or
dispense cannabis or medical cannabis; or
(4) have the purpose or effect of targeting or being
attractive to individuals under 21 years of age. The use

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of images of children or minors consuming hemp cannabinoid
products and the use of words, designs, or brands that
resemble products commonly associated with children,
minors, or marketed to children or minors, is prohibited.
Section 40-30. Lawful transport of industrial hemp, hemp,
and hemp materials.
(a) Nothing in this Act shall prohibit or interfere with
the lawful transport of industrial hemp, hemp materials, or
hemp products as authorized by the U.S. Department of
Agriculture and the U.S. Food and Drug Administration and, in
compliance with other federal law, regulation, or rule,
through the State of Illinois for delivery to an out-of-state
destination.
(b) No person shall transport industrial hemp, hemp, or
hemp materials within the State unless the person is duly
authorized under federal law and regulation to transport hemp
and possesses a hemp manifest that includes the following
information:
(1) the name and address of the owner of the hemp;
(2) the point of origin;
(3) the point of delivery, including name and address;
(4) the kind and quantity of packages or, if in bulk,
the total quantity of hemp in the shipment; and
(5) the date of shipment.

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Section 40-35. Penalties.
(a) Licensees under this Act shall comply with all
applicable laws, rules, and regulations as it relates to such
licensure.
(b) Failure to comply with a requirement of this Act or
rules adopted by the Department may be punishable by a civil
penalty, as follows:
(1) a fine of up to $1,000 for a first violation;
(2) a fine up to $5,000 for a second violation within 3
years; or
(3) a fine of up to $10,000 for a third violation and
each subsequent violation thereafter within a 3-year
period.
(c) If a licensee willfully violates or refuses or
neglects to comply with one or more provisions of this Act, the
Department may limit, suspend, revoke, or annul a license
after providing notice and an opportunity for a hearing to the
licensee. However, a license may be temporarily limited,
suspended, revoked, or annulled without a hearing for a period
not to exceed 30 days, upon notice to the licensee, following a
finding by the Department that the public health, safety, or
welfare is in imminent danger.
(d) A licensee who negligently violates this Act 3 times
in a 5-year period shall be ineligible to process or sell hemp
cannabinoid for a period of 5 years beginning on the date of
the third violation. The Department may reduce the suspension

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for good cause shown.
Section 40-40. Administration and enforcement; rules;
emergency rules; inspections.
(a) The Department shall administer and enforce this Act
and may adopt rules under the Illinois Administrative
Procedure Act for the purpose of administering and enforcing
this Act.
(b) The Department shall develop rules setting forth
labeling, packaging, and minimum testing requirements of hemp
cannabinoid products.
(c) In order to provide for the expeditious and timely
implementation of the provisions of this Act, the Department
may adopt emergency rules in accordance with Section 5-45 of
the Illinois Administrative Procedure Act to the extent
necessary to administer the Department's responsibilities
under this Act. The adoption of emergency rules authorized by
this subsection (c) is deemed to be necessary for the public
interest, safety, and welfare to regulate consumer safety over
hemp cannabinoid products.
(d) The Department of Public Health, local health
departments, the Illinois State Police, local sheriff's
offices, municipal police departments, and the Department of
Revenue may inspect a business that manufactures, processes,
or offers for sale hemp cannabinoid products in the State if a
formal complaint is registered with the appropriate agency in

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order to ensure compliance with this Act. The Department may
inspect any business that manufactures, processes, or offers
for sale hemp a cannabinoid product in the State to ensure
compliance with this Act. The Department may enter into
interagency agreements to regulate and enforce this Act and
any rules or guidance adopted or promulgated.
Section 40-45. Publishing information. The Department
shall make available to the public complaints about hemp
cannabinoid products in violation of this Act, information
regarding pending administrative hearings or court cases under
this Act, or information regarding disciplinary actions taken
against a hemp extract retailer, hemp concentrate retailer,
hemp extract infuser, hemp concentrate infuser, or hemp
processor.
Section 40-50. Temporary restraining order or injunction.
The Director, through the Attorney General or any unit of
local government, may file a complaint and apply to the
circuit court for, and the court upon hearing and for cause
shown may grant, a temporary restraining order or a
preliminary or permanent injunction restraining any person
from violating this Act.
Section 40-55. Preparation of hemp concentrate derived
products.

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(a) The Department may regulate the production of hemp
concentrate derived products by an Illinois-registered adult
use craft grower that meets the requirements of a Social
Equity Applicant, an infuser organization that meets the
requirements of a Social Equity Applicant, a dispensary that
meets the requirements of a Social Equity Applicant, a hemp
concentrate infuser, or a hemp concentrate retailer and
establish rules related to refrigeration, hot-holding, and
handling of hemp concentrate derived products. Hemp
concentrate derived products shall meet the packaging and
labeling requirements contained in Section 40-65.
(b) Hemp concentrate derived products for sale or
distribution at an Illinois-registered hemp retailer that
meets the requirements of a Social Equity Applicant or a hemp
concentrate retailer must be prepared by an approved agent of
an Illinois-registered adult use craft grower that meets the
requirements of a Social Equity Applicant, an infuser
organization that meets the requirements of a Social Equity
Applicant, or a hemp concentrate infuser.
(c) An Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant, an
infuser organization that meets the requirements of a Social
Equity Applicant, a hemp concentrate infuser that prepares
hemp concentrate derived products for sale or distribution by
an Illinois-registered hemp retailer that meets the
requirements of a Social Equity Applicant, or a hemp

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concentrate retailer shall be under the operational
supervision of a Department of Public Health certified food
service sanitation manager.
(d) An Illinois-registered hemp retailer that meets the
requirements of a Social Equity Applicant or a hemp
concentrate retailer may not manufacture, process, or produce
hemp concentrate derived products.
(e) The Department of Public Health shall adopt and
enforce rules for the manufacture and processing of hemp
concentrate derived products, and, for that purpose, it may at
all times enter every building, room, basement, enclosure, or
premises occupied or used, or suspected of being occupied or
used, for the production, preparation, manufacture for sale,
storage, sale, processing, distribution, or transportation of
hemp concentrate derived products and inspect the premises
together with all utensils, fixtures, furniture, and machinery
used for the preparation of these products.
(f) The Department shall, by rule, establish a maximum
level of THC that may be contained in each serving of a hemp
concentrate derived product and within the product package.
(g) If a local public health agency has a reasonable
belief that a hemp concentrate derived product poses a public
health hazard, it may refer the Illinois-registered adult use
craft grower that meets the requirements of a Social Equity
Applicant, an infuser organization that meets the requirements
of a Social Equity Applicant, or a hemp concentrate infuser

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that manufactured or processed the hemp concentrate derived
product to the Department of Public Health. If the Department
of Public Health finds that a hemp concentrate derived product
poses a health hazard, it may bring an action for immediate
injunctive relief to require that action be taken as the court
deems necessary to meet the hazard of the cultivation facility
or seek other relief as provided by rule.
Section 40-60. Destruction of hemp concentrate derived
product, hemp concentrate, and intermediate hemp products.
(a) Any hemp concentrate derived product, hemp
concentrate, and intermediate hemp product and scrap not
intended for distribution must be destroyed and disposed of
under rules adopted by the Department of Agriculture under
this Act. Documentation of destruction and disposal shall be
retained at the Illinois-registered adult use craft grower
that meets the requirements of a Social Equity Applicant,
infuser organization that meets the requirements of a Social
Equity Applicant, hemp concentrate infuser, or testing
facility as applicable for a period of not less than 5 years.
(b) An Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant, an
infuser organization that meets the requirements of a Social
Equity Applicant, or a hemp concentrate infuser shall, before
destruction, notify the Department and the Illinois State
Police. An Illinois-registered hemp retailer that meets the

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requirements of a Social Equity Applicant or a hemp
concentrate retailer shall, before destruction, notify the
Department of Financial and Professional Regulation and the
Illinois State Police. The Department may, by rule, require
that an employee of the Department or the Department of
Financial and Professional Regulation be present during the
destruction of any hemp concentrate derived product, hemp
concentrate or intermediate hemp product, scrap, and harvested
cannabis, as applicable.
(c) An Illinois-registered adult use craft grower that
meets the requirements of a Social Equity Applicant, infuser
organization that meets the requirements of a Social Equity
Applicant, Illinois-registered hemp retailer that meets the
requirements of a Social Equity Applicant, hemp concentrate
infuser, or hemp concentrate retailer shall keep a record of
the date of destruction and how much was destroyed.
(d) An Illinois-registered hemp retailer that meets the
requirement of a Social Equity Applicant or a hemp concentrate
retailer shall destroy all hemp concentrate derived products
not sold to purchasers. Documentation of destruction and
disposal shall be retained at the Illinois-registered hemp
retailer that meets the requirement of a Social Equity
Applicant or a hemp concentrate retailer for a period of not
less than 5 years.
Section 40-65. Hemp concentrate derived product packaging

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and labeling.
(a) Each hemp concentrate derived product produced for
sale shall be registered with the Department on forms provided
by the Department. Each product registration shall include a
label and the required registration fee at the rate
established by the Department for a comparable medical
cannabis or cannabis product, or as established by rule. The
registration fee is for the name of the product offered for
sale and one fee shall be sufficient for all package sizes.
(b) All hemp concentrate or intermediate hemp product
intended for distribution to a cannabis or hemp business
establishment must be packaged in a sealed, labeled container.
(c) A product containing hemp concentrate shall be sold in
a sealed, odor-proof, and child-resistant hemp concentrate
derived product container consistent with current standards,
including the Consumer Product Safety Commission standards
referenced by the Poison Prevention Act unless the sale is
between cannabis or hemp business establishments.
(d) Hemp concentrate derived product shall be individually
wrapped or packaged at the original point of preparation. The
packaging of the hemp concentrate derived product shall
conform to the labeling requirements of the Illinois Food,
Drug and Cosmetic Act in addition to the other requirements
set forth in this Section.
(e) Hemp concentrate derived product shall be labeled
before sale and each label shall be securely affixed to the

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package and shall state the following in legible English and
any other language required by the Department:
(1) The name and address where the item was
manufactured by the Illinois-registered adult use craft
grower that meets the requirements of a Social Equity
Applicant, infuser organization that meets the
requirements of a Social Equity Applicant, or hemp
concentrate infuser.
(2) The common or usual name of the item and the
registered name of the hemp concentrate derived product
that was registered with the Department under subsection
(a).
(3) A unique serial number that shall match the
product with a craft grower that meets the requirements of
a Social Equity Applicant, an infuser organization that
meets the requirements of a Social Equity Applicant, or a
hemp concentrate infuser and a batch and lot number to
facilitate any warnings or recalls by the Department, a
craft grower that meets the requirements of a Social
Equity Applicant, an infuser organization that meets the
requirements of a Social Equity Applicant, or a hemp
concentrate infuser.
(4) The date of final testing and packaging, if
sampled, and the identification of the independent testing
laboratory.
(5) The date the hemp was harvested and "use by" date.

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(6) The quantity, in ounces or grams, of hemps
concentrate or intermediate hemp product contained in the
product;
(7) A pass or fail rating based on the laboratory's
microbiological, mycotoxins, and pesticide and solvent
residue analyses, if sampled.
(8) A list of the following, including the minimum and
maximum percentage content by weight for the following:
(A) delta-9-tetrahydrocannabinol;
(B) delta-8- tetrahydrocannabinol;
(C) tetrahydrocannabinolic acid;
(D) cannabidiol (CBD);
(E) cannabidiolic acid (CBDA);
(F) all other ingredients of the item, including
any colors, artificial flavors, and preservatives,
listed in descending order by predominance of weight
shown with common or usual names.
The acceptable tolerances for the minimum percentage
printed on the label for any of subparagraphs (A) through
(D) of paragraph (8) may not be below 85% or above 115% of
the labeled amount.
(f) Packaging may not contain information that:
(1) is false or misleading;
(2) promotes excessive consumption;
(3) depicts a person under 21 years of age consuming
cannabis or hemp concentrate derived products;

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(4) includes the image of a cannabis leaf or hemp
leaf;
(5) includes any image designed or likely to appeal to
minors, including cartoons, toys, animals, or children, or
any other likeness to images, characters, or phrases that
are popularly used to advertise to children, or any
packaging or labeling that bears reasonable resemblance to
any product available for consumption as a commercially
available candy or that promotes consumption of cannabis
or hemp concentrate derived products; and
(6) contains any seal, flag, crest, coat of arms, or
other insignia likely to mislead the purchaser to believe
that the product has been endorsed, made, or used by the
State or any of its representatives, except when
authorized by this Act.
(g) Hemp concentrate derived products produced by
concentrating or extracting ingredients from the industrial
hemp plant shall contain the following information, when
applicable:
(1) if solvents were used to create the concentrate or
extract, a statement that discloses the type of extraction
method, including any solvents or gases used to create the
concentrate or extract; and
(2) any other chemicals or compounds used to produce
or that were added to the concentrate or extract.
(h) All hemp concentrate derived products must contain

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warning statements established for purchasers of a size that
is legible and readily visible to a consumer inspecting a
package. The warning statements may not be covered or obscured
in any way. The Department of Public Health shall define and
update appropriate health warnings for packages including
specific labeling or warning requirements for specific hemp
concentrate derived products.
(i) Unless modified by rule to strengthen or respond to
new evidence and science, the following warnings shall apply
to all hemp concentrate derived products: "This product
contains hemp concentrate or intermediate hemp product and is
intended for use by adults 21 and over. Its use can impair
cognition and may be habit forming. This product should not be
used by pregnant or breastfeeding women. It is unlawful to
sell or give this item to any individual. It is illegal to
operate a motor vehicle while under the influence of hemp
concentrate or intermediate hemp product. Possession or use of
this product may carry significant legal penalties in some
jurisdictions.".
(j) Warnings for each of the following product types must
be present on labels when offered for sale to a purchaser:
(1) Hemp concentrate derived products that may be
smoked must contain a statement that "Smoking is hazardous
to your health.".
(2) Hemp concentrate derived products, other than
those intended for topical application, must contain a

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statement "CAUTION: This product contains hemp concentrate
or intermediate hemp product, and intoxication following
use may be delayed 2 or more hours. This product was
produced in a facility that may also process common food
allergens.".
(3) Hemp concentrate derived products intended for
topical application must contain a statement "DO NOT EAT"
in bold, capital letters.
(k) Each hemp concentrate derived products intended for
consumption must be individually packaged, must include the
total milligram content of THC and CBD, and may not (i) include
more than a total of 100 milligrams of THC per package if
packaged by an Illinois-registered adult use craft grower that
meets the requirement of a Social Equity Applicant or an
infuser that meets the requirement of a Social Equity
Applicant and (ii) contain more than 50 milligrams of THC per
package if packaged by a hemp infuser. A package may contain
multiple servings of (A) 10 milligrams of THC if packaged by an
Illinois-registered adult use craft grower that meets the
requirement of a Social Equity Applicant or an infuser that
meets the requirement of a Social Equity Applicant or (B) 5
milligrams of THC if packaged by a hemp concentrate infuser,
each indicated by scoring, wrapping, or by other indicators
designating individual serving sizes. The Department may
change the total amount of THC allowed for each package, or the
total amount of THC allowed for each serving size, by rule.

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(l) An individual other than the purchaser may not alter
or destroy labeling affixed to the primary packaging of hemp
concentrate derived products.
(m) For each commercial weighing and measuring device used
at a facility, the cannabis or hemp business establishment
must:
(1) ensure that the commercial device is licensed
under the Weights and Measures Act and the associated
administrative rules;
(2) maintain documentation of the licensure of the
commercial device; and
(3) provide a copy of the license of the commercial
device to the Department for review upon request.
(n) It is the responsibility of the Department to ensure
that packaging and labeling requirements, including product
warnings, are enforced at all times for products provided to
purchasers. Product registration requirements and container
requirements may be modified by rule by the Department.
(o) Any labeling under this Section, including warning
labels and the specific wording of the labels, may be modified
by rule by the Department.
Section 40-70. Local ordinances. Unless otherwise provided
under this Act or otherwise in accordance with State law:
(1) A municipality or county, including a county
within the unincorporated territory of the county, may

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enact reasonable zoning ordinances or resolutions, not in
conflict with this Act or rules adopted pursuant to this
Act, regulating hemp business establishments. The
municipality or county may not prohibit home cultivation
of hemp or unreasonably prohibit use of hemp authorized by
this Act.
(2) The municipality or county may enact ordinances
not in conflict with this Act or with rules adopted
pursuant to this Act governing the time, place, manner,
and number of hemp business establishment operations,
including minimum distance limitations between hemp
business establishments and locations it deems sensitive,
including colleges and universities, through the use of
conditional use permits. The municipality or county may
establish civil penalties for violation of an ordinance
governing the time, place, and manner of operation of a
hemp business establishment or a conditional use permit in
the jurisdiction of the municipality or county. The
municipality or county may not unreasonably restrict the
time, place, manner, and number of hemp business
establishment operations authorized by this Act.
(3) The municipality or county may authorize or permit
the on-premises consumption of hemp concentrate derived
products at or in a hemp retailer that meets the
requirements of a Social Equity Applicant, hemp
concentrate retailer, or retail tobacco store, as defined

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under Section 10 of the Smoke Free Illinois Act, within
its jurisdiction in a manner consistent with this Act. A
hemp retailer that meets the requirements of a Social
Equity Applicant, hemp concentrate retailer, or retail
tobacco store authorized or permitted by the municipality
or county to allow on-site consumption shall not be deemed
a public place within the meaning of the Smoke Free
Illinois Act.
(4) A home rule unit may not regulate the activities
described in paragraph (1), (2), or (3) in a manner more
restrictive than the regulation of those activities by the
State under this Act. Paragraphs (1), (2), and (3) are a
limitation under subsection (i) of Section 6 of Article
VII of the Illinois Constitution on the concurrent
exercise by home rule units of powers and functions
exercised by the State.
(5) The municipality or county may enact ordinances to
prohibit or significantly limit a hemp business
establishment's location.
Section 40-75. Confidentiality.
(a) Information provided by the hemp business
establishment licensees or applicants to the Department, the
Department of Public Health, the Department of Financial and
Professional Regulation, or other agency shall be limited to
information necessary for the purposes of administering this

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Act. The information provided is subject to the provisions and
limitations contained in the Freedom of Information Act and
may be disclosed in accordance with this Act.
(b) The following information received and records kept by
the Department, the Department of Public Health, the Illinois
State Police, and the Department of Financial and Professional
Regulation for purposes of administering this Article are
subject to all applicable federal privacy laws, are
confidential and exempt from disclosure under the Freedom of
Information Act, except as provided in this Act, and not
subject to disclosure to any individual or public or private
entity, except to the Department of Financial and Professional
Regulation, the Department, the Department of Public Health,
and the Illinois State Police as necessary to perform official
duties under this Article and to the Attorney General as
necessary to enforce the provisions of this Act. The following
information received and kept by the Department of Financial
and Professional Regulation or the Department may be disclosed
to the Department of Public Health, the Department, the
Department of Revenue, the Illinois State Police, or the
Attorney General upon request:
(1) Applications and renewals, their contents, and
supporting information submitted by or on behalf of a hemp
business establishment, in compliance with this Article,
including their physical addresses; however, this does not
preclude the release of ownership information about hemp

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business establishment licenses, or information submitted
with an application required to be disclosed pursuant to
subsection (f).
(2) Any plans, procedures, policies, or other records
relating to hemp business establishment security.
(3) Information otherwise exempt from disclosure by
State or federal law, including State or national criminal
history record information or the nonexistence or lack of
such information, may not be disclosed by the Department
of Financial and Professional Regulation or the
Department, except as necessary to the Attorney General to
enforce this Act.
(c) The name and address of a hemp concentrate retailer
licensed under this Act shall be subject to disclosure under
the Freedom of Information Act. The name and hemp business
establishment address of the person or entity holding each
cannabis business establishment license shall be subject to
disclosure.
(d) All information collected by the Department of
Financial and Professional Regulation or the Department in the
course of an examination, inspection, or investigation of a
licensee or applicant, including, but not limited to, a
complaint against a licensee or applicant filed with the
Department of Financial and Professional Regulation or the
Department and information collected to investigate the
complaint, shall be maintained for the confidential use of the

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Department of Financial and Professional Regulation or the
Department and may not be disclosed, except as otherwise
provided in this Act. A formal complaint against a licensee by
the Department of Financial and Professional Regulation or the
Department or any disciplinary order issued by the Department
of Financial and Professional Regulation or the Department
against a licensee or applicant shall be a public record,
except as otherwise provided by law. Complaints from consumers
or members of the general public received regarding a
specific, named licensee or complaints regarding conduct by
unlicensed entities shall be subject to disclosure under the
Freedom of Information Act.
(e) The Department, the Illinois State Police, and the
Department of Financial and Professional Regulation may not
share or disclose any State or national criminal history
record information, or the nonexistence or lack of such
information, to any person or entity not expressly authorized
by this Act.
(f) The Department and the Department of Financial and
Professional Regulation shall publish on each Department
website a list of the ownership information of cannabis
business establishment licensees under each Department's
jurisdiction. The list shall include, but is not limited to:
the name of the person or entity holding each hemp business
establishment license; and the address at which the entity is
operating under this Act. This list shall be published and

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updated monthly.
Section 40-80. Suspension or revocation of a license.
(a) The Department of Financial and Professional
Regulation or the Department may suspend or revoke a license
for a violation of this Act or a rule adopted in accordance
with this Act by the Department and the Department of
Financial and Professional Regulation.
(b) The Department and the Department of Financial and
Professional Regulation may suspend or revoke an agent
identification card for a violation of this Act or a rule
adopted in accordance with this Act.
Section 40-85. Contracts enforceable. It is the public
policy of this State that contracts related to the operation
of a lawful hemp business establishment under this Act are
enforceable. It is the public policy of this State that no
contract entered into by a lawful hemp business establishment
or its agents on behalf of a hemp business establishment, or by
those who allow property to be used by a hemp business
establishment, shall be unenforceable on the basis that
cultivating, obtaining, manufacturing, processing,
distributing, dispensing, transporting, selling, possessing,
or using cannabis or hemp is prohibited by federal law.
Section 40-90. Annual reports.

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(a) The Department of Financial and Professional
Regulation shall submit to the General Assembly and Governor a
report, by September 30 of each year, that does not disclose
any information identifying information about hemp business
establishments but does contain, at a minimum, all of the
following information for the previous fiscal year:
(1) The number of licenses issued to hemp concentrate
retailers by county, or, in counties with greater than
3,000,000 residents, by zip code.
(2) The total number of hemp concentrate retailers
that are minority persons, women, or persons with
disabilities, as those terms are defined in the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(3) The total amount of revenues received from hemp
concentrate retailers or hemp retailers that meet the
requirements of a Social Equity Applicant, segregated from
revenues received from hemp retailers under the Cannabis
Regulation and Tax Act or Compassionate Use of Medical
Cannabis Program Act by county, separated by source of
revenue.
(4) An analysis of revenue generated from taxation,
licensing, and other fees for the State, including
recommendations to change the tax rate applied.
(b) The Department shall submit to the General Assembly
and Governor a report, by September 30 of each year, that does

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not disclose any information identifying information about
hemp business establishment but does contain, at a minimum,
all of the following information for the previous fiscal year:
(1) The number of licenses issued to hemp processors,
hemp concentrate infusers, and hemp distributors by
license type, and, in counties with more than 3,000,000
residents, by zip code.
(2) The total number of hemp processors, hemp
concentrate infusers, and hemp distributors by license
type minority persons, women, or persons with
disabilities, as those terms are defined in the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act.
(3) The total amount of revenue received from hemp
processors, hemp concentrate infusers, and hemp
distributors separated by license types and source of
revenue.
(4) The total amount of revenue received from craft
growers and infusers that share a premises or majority
ownership with a hemp retailer.
(5) The total amount of revenue received from
Illinois-registered adult use craft growers that meet the
requirements of a Social Equity Applicant and infusers
that meet the requirements of a Social Equity Applicant,
segregated from revenues received from hemp retailers
under the Cannabis Regulation and Tax Act or Compassionate

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Use of Medical Cannabis Program Act by county, separated
by source of revenue.
(6) An analysis of revenue generated from taxation,
licensing, and other fees for the State, including
recommendations to change the tax rate applied.
(c) The Illinois State Police shall submit to the General
Assembly and Governor a report, by September 30 of each year
that contains, at a minimum, all of the following information
for the previous fiscal year:
(1) The effect of regulation and taxation of hemp
concentrate derived products on law enforcement resources.
(2) The impact of regulation and taxation of hemp
concentrate derived products on highway and waterway
safety and rates of impaired driving or operating when
impairment was determined based on failure of a field
sobriety test.
(3) The available and emerging methods for detecting
the metabolites for delta-9-tetrahydrocannabinol or
delta-8-tetrahydrocannabinol in bodily fluids, including,
without limitation, blood and saliva.
(4) The effectiveness of current laws regarding
driving while intoxicated and recommendations for
improvements to policy to better ensure safe highways and
fair laws.
(d) The Adult Use Cannabis Health Advisory Committee shall
submit to the General Assembly and Governor a report, by

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September 30 of each year, that does not disclose any
identifying information about any individuals but does
contain, at a minimum:
(1) Self-reported youth hemp concentrate derived
product use, as published in the most recent Illinois
Youth Survey available.
(2) Self-reported adult hemp concentrate derived
product use, as published in the most recent Behavioral
Risk Factor Surveillance Survey available.
(3) Hospital room admissions and hospital utilization
rates caused by hemp concentrate derived product
consumption, including the presence or detection of other
drugs.
(4) Overdoses of hemp concentrate derived product and
poison control data, including the presence of other drugs
that may have contributed.
(5) Incidents of impaired driving caused by the
consumption of hemp concentrate derived products,
including the presence of other drugs or alcohol that may
have contributed to the impaired driving.
(6) Prevalence of infants born testing positive for
delta-9-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol, including demographic and
racial information on which infants are tested.
(7) Public perceptions of use and risk of harm.
(8) Revenue collected from hemp concentrate derived

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products taxation and how that revenue was used.
(9) Cannabis and hemp concentrate retail licenses
granted and locations.
(10) Hemp concentrate derived product-related arrests.
(11) The number of individuals completing required bud
tender training.
(e) Each agency or committee submitting reports under this
Section may consult with one another in the preparation of
each report.
Section 40-95. Potency level. Nothing in this Act shall
prohibit hemp concentrate or intermediate hemp product that is
sold, offered for sale, or otherwise transferred from a
cannabis or hemp business establishment to another cannabis or
hemp business establishment from having a potency level above
the potency requirements set forth in this Act.
Section 40-100. Home rule. Except as otherwise allowed in
this Act, the regulation and licensing of the activities
described in this Act are exclusive powers and functions of
the State. Except as otherwise allowed in this Act, a unit of
local government, including a home rule unit, may not regulate
or license the activities described in this Act. This Section
is a denial and limitation of home rule powers and functions
under subsection (h) of Section 6 of Article VII of the
Illinois Constitution.

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Section 40-105. Conflict of interest. A person is
ineligible to apply for, hold, or own financial or voting
interest, other than a passive interest in a publicly traded
company, in a cannabis or hemp business license under this Act
if, within a 2-year period after the effective date of this
Act, the person or the person's spouse or immediate family
member was a member of the General Assembly or a State employee
at an agency that regulates cannabis or hemp business
establishment license holders who participated personally and
substantially in the award of licenses under this Act. A
person who violates this Section shall be guilty under
subsection (b) of Section 50-5 of the State Officials and
Employees Ethics Act.
Article 45.
Personal Use of Hemp Cannabinoid Products
Section 45-5. Possession limit.
(a) For a person who is 21 years of age or older and a
resident of this State, the possession limit is as follows:
(1) 30 grams of hemp concentrate derived product in
the form of flower; or
(2) no more than 500 milligrams of THC contained in a
hemp concentrate derived products, 500 milligrams of THC
contained in cannabis-infused products, or 500 milligrams

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of THC contained in both hemp concentrate derived products
and cannabis-infused products.
(b) For a person who is 21 years of age or older and who is
not a resident of this State, the possession limit is as
follows:
(1) 15 grams of hemp concentrate derived product in
the form of flower; or
(2) no more than 250 milligrams of THC contained in a
hemp concentrate derived products, 250 milligrams of THC
contained in cannabis-infused products, or 250 milligrams
of THC contained in both hemp concentrate derived products
and cannabis-infused products.
A person may not possess hemp concentrate or intermediate
hemp products without being a licensed hemp business
establishment.
(c) The possession limits under subsections (a) and (b)
are cumulative. The possession limits under subsections (a)
and (b) and the possession limits found in subsection (a) and
(b) of Section 10-10 in the Cannabis Regulation and Tax Act are
cumulative.
(d) A person shall not knowingly obtain, seek to obtain,
or possess an amount of cannabis or hemp concentrate derived
products or both from a hemp retailer, craft grower, or a hemp
concentrate retailer that would cause the person to exceed the
possession limit under this Section or the possession limits
under the Cannabis Regulation and Tax Act or the Compassionate

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Use of Medical Cannabis Act.
Section 45-10. Age limit.
(a) Nothing in this Act permits the transfer of hemp
concentrate product, with or without remuneration, to a person
under 21 years of age or allows a person under 21 years of age
to purchase, possess, use, process, transport, or consume hemp
concentrate derived product.
(b) A person under 21 years of age with hemp concentrate
derived products in the person's possession is liable under
subsection (a) of Section 4 of the Cannabis Control Act.
(c) If the person under the age of 21 was in a motor
vehicle at the time of the offense, the Secretary of State may
suspend or revoke the driving privileges of any person for a
violation of this Section under Section 6-206 of the Illinois
Vehicle Code and the rules adopted under it.
(d) It is unlawful for any parent or guardian to knowingly
permit the parent's or guardian's residence, any other private
property under the parent's or guardian's control, or any
vehicle, conveyance, or watercraft under the parent's or
guardian's control, to be used by an invitee under the age of
21 who is an invitee of the parent's child or the guardian's
ward in a manner that constitutes a violation of this Section.
A parent or guardian is deemed to have knowingly permitted the
parent's or guardian's residence, any other private property
under the parent's or guardian's control, or any vehicle,

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conveyance, or watercraft under the parent's or guardian's
control to be used in violation of this Section if the parent
or guardian knowingly authorizes or permits consumption of
hemp concentrate derived product by underage invitees. Any
person who violates this subsection is guilty of a Class A
misdemeanor and the person's sentence shall include, but shall
not be limited to, a fine of not less than $500. If a violation
of this subsection directly or indirectly results in great
bodily harm or death to any person, the person violating this
subsection is guilty of a Class 4 felony. In this subsection,
where the residence or other property has an owner and a tenant
or lessee, the trier of fact may infer that the residence or
other property is occupied only by the tenant or lessee.
Section 45-15. Identification; false identification;
penalty.
(a) To protect personal privacy, the Department may not
require a purchaser to provide a hemp concentrate retailer or
hemp retailer that meets the qualifications of a Social Equity
Applicant with personal information other than
government-issued identification to determine the purchaser's
age, and a hemp concentrate retailer or hemp retailer that
meets the qualifications of a Social Equity Applicant may not
obtain and record personal information about a purchaser
without the purchaser's consent. A hemp concentrate retailer
or hemp retailer that meets the qualifications of a Social

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Equity Applicant shall use an electronic reader or electronic
scanning device to scan a purchaser's government-issued
identification, if applicable, to determine the purchaser's
age and the validity of the identification. Any identifying or
personal information of a purchaser obtained or received in
accordance with this Section shall not be retained, used,
shared or disclosed for any purpose except as authorized by
this Act.
(b) A person who is under 21 years of age may not present
or offer to a hemp business establishment or the hemp business
establishment's principal or employee any written or oral
evidence of age that is false, fraudulent, or not actually the
person's own, for the purpose of:
(1) purchasing, attempting to purchase, or otherwise
obtaining or attempting to obtain hemp concentrate derived
products; or
(2) gaining access to a hemp business establishment.
(c) A violation of this Section is a Class A misdemeanor
consistent with Section 6-20 of the Liquor Control Act of
1934.
(d) The Secretary of State may suspend or revoke the
driving privileges of any person for a violation of this
Section under Section 6-206 of the Illinois Vehicle Code and
the rules adopted under it.
(e) An agent or employee of the licensee may not be
disciplined or discharged for selling or furnishing hemp

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concentrate derived products to a person under 21 years of age
if the agent or employee demanded and was shown, before
furnishing hemp concentrate derived products to a person under
21 years of age, adequate written evidence of age and identity
of the person. This subsection does not apply if the agent or
employee accepted the written evidence knowing it to be false
or fraudulent. Adequate written evidence of age and identity
of the person is a document issued by a federal, State, county,
or municipal government, or subdivision or agency thereof,
including, but not limited to, a motor vehicle operator's
license, a registration certificate issued under the Military
Selective Service Act, or an identification card issued to a
member of the Armed Forces. Proof that the licensee or his or
her employee or agent was shown and reasonably relied upon
such written evidence in any transaction forbidden by this
Section is an affirmative defense in any criminal prosecution
therefor or to any proceedings for the suspension or
revocation of any license based thereon.
Section 45-20. Immunities and presumptions related to the
use of hemp concentrate derived products by purchasers.
(a) A purchaser who is 21 years of age or older is not
subject to arrest, prosecution, denial of any right or
privilege, or other punishment, including, but not limited to,
a civil penalty or disciplinary action taken by an
occupational or professional licensing board, based solely on

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the use of hemp concentrate derived products if (i) the
purchaser possesses an amount of hemp concentrate derived
products or cannabis that does not exceed the possession limit
under Section 45-5 and if the purchaser is licensed,
certified, or registered to practice any trade or profession
under any Act and (ii) the use of hemp concentrate derived
products does not impair that person when he or she is engaged
in the practice of the profession for which he or she is
licensed, certified, or registered.
(b) A purchaser 21 years of age or older is not subject to
arrest, prosecution, denial of any right or privilege, or
other punishment, including, but not limited to, a civil
penalty or disciplinary action taken by an occupational or
professional licensing board, based solely for (i) selling
hemp cannabinoid paraphernalia if employed and licensed as a
hemp concentrate retail agent or dispensing agent by a hemp
concentrate retailer or hemp retailer that meets the
qualifications of a Social Equity Applicant, (ii) being in the
presence or vicinity of the use of hemp concentrate derived
product or hemp concentrate derived product paraphernalia as
allowed under this Act, or (iii) possessing hemp concentrate
derived product paraphernalia.
(c) Mere possession of, or application for, an agent
identification card or license does not constitute probable
cause or reasonable suspicion to believe that a crime has been
committed, nor shall it be used as the sole basis to support

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the search of the person, property, or home of the person
possessing or applying for the agent identification card. The
possession of, or application for, an agent identification
card does not preclude the existence of probable cause if
probable cause exists based on other grounds.
(d) A person employed by the State is not subject to
criminal or civil penalties for taking any action in good
faith in reliance on this Act when acting within the scope of
the person's employment. Representation and indemnification
shall be provided to State employees as set forth in Section 2
of the State Employee Indemnification Act.
(e) A law enforcement or correctional agency, or a person
employed by a law enforcement or correctional agency, is not
subject to criminal or civil liability, except for willful and
wanton misconduct, as a result of taking any action within the
scope of the official duties of the agency or person to
prohibit or prevent the possession or use of hemp concentrate
derived product by a person incarcerated at a correctional
facility, jail, or municipal lockup facility, on parole or
mandatory supervised release, or otherwise under the lawful
jurisdiction of the agency or person.
(f) For purposes of receiving medical care, including
organ transplants, a person's use of hemp concentrate product
under this Act does not constitute the use of an illicit
substance or otherwise disqualify a person from medical care.

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Section 45-25. Discrimination prohibited.
(a) The presence of cannabinoid components or metabolites
in a person's bodily fluids, possession of hemp concentrate
derived product-related paraphernalia, or conduct related to
the use of hemp concentrate derived product or the
participation in hemp concentrate derived product-related
activities lawful under this Act by a custodial or
noncustodial parent, grandparent, legal guardian, foster
parent, or other person charged with the well-being of a child
may not form the sole or primary basis or supporting basis for
any action or proceeding by a child welfare agency or in a
family or juvenile court, an adverse finding, adverse
evidence, or a restriction of any right or privilege in a
proceeding related to adoption of a child, acting as a foster
parent of a child, or a person's fitness to adopt a child or
act as a foster parent of a child, or serve as the basis of any
adverse finding, adverse evidence, or restriction of any right
of privilege in a proceeding related to guardianship,
conservatorship, trusteeship, the execution of a will, or the
management of an estate unless the person's actions in
relation to hemp concentrate derived product created an
unreasonable danger to the safety of the minor or otherwise
show the person to not be competent as established by clear and
convincing evidence. This subsection applies only to conduct
protected under this Act.
(b) A landlord may not be penalized or denied any benefit

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under State law for leasing to a person who uses hemp
concentrate derived product under this Act.
(c) Nothing in this Act may be construed to require a
person or establishment in lawful possession of property to
allow a guest, client, lessee, customer, or visitor to use
hemp concentrate derived product on or in that property,
including on any land owned in whole or in part or managed in
whole or in part by the State.
Section 45-30. Limitations and penalties.
(a) This Act does not permit any person to engage in, and
does not prevent the imposition of any civil, criminal, or
other penalties for engaging in, any of the following conduct:
(1) Undertaking any task under the influence of hemp
concentrate derived product when doing so would constitute
negligence, professional malpractice, or professional
misconduct.
(2) Possessing hemp concentrate derived product:
(A) in a school bus;
(B) on the grounds of any preschool or primary or
secondary school;
(C) in any correctional facility;
(D) in a vehicle not open to the public unless the
hemp concentrate derived product is in a reasonably
secured, sealed, or resealable container and
reasonably inaccessible while the vehicle is moving;

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or
(E) in a private residence that is used at any time
to provide licensed child care or other similar social
service care on the premises.
(3) Using hemp concentrate derived product:
(A) in a school bus;
(B) on the grounds of any preschool or primary or
secondary school;
(C) in any correctional facility;
(D) in any motor vehicle;
(E) in a private residence that is used at any time
to provide licensed child care or other similar social
service care on the premises;
(F) in any public place; or
(G) knowingly in close physical proximity to
anyone under 21 years of age.
(4) Smoking hemp concentrate derived products in any
place where smoking is prohibited under the Smoke Free
Illinois Act.
(5) Operating, navigating, or being in actual physical
control of any motor vehicle, aircraft, watercraft, or
snowmobile while using or under the influence of cannabis
in violation of Section 11-501 or 11-502.1 of the Illinois
Vehicle Code, Section 5-16 of the Boat Registration and
Safety Act, or Section 5-7 of the Snowmobile Registration
and Safety Act.

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(6) Facilitating the use of hemp concentrate derived
products by any person who is not allowed to use hemp
concentrate derived products under this Act.
(7) Transferring hemp concentrate derived products to
any person contrary to this Act.
(8) The use of hemp concentrate derived products by a
law enforcement officer, corrections officer, probation
officer, or firefighter while on duty. Nothing in this Act
prevents a public employer of law enforcement officers,
corrections officers, probation officers, paramedics, or
firefighters from prohibiting or taking disciplinary
action for the consumption, possession, sales, purchase,
or delivery of hemp concentrate derived product substances
while on-duty or off-duty unless provided for in the
employer's policies. However, an employer may not take
adverse employment action against an employee based solely
on the lawful possession or consumption of hemp
concentrate derived products substances by members of the
employee's household.
(9) The use of hemp concentrate derived product by a
person who has a school bus permit or a Commercial
Driver's License while on duty.
As used in this subsection, "public place" means a place
where a person could reasonably be expected to be observed by
others. "Public place" includes all parts of buildings owned
or leased, in whole or in part, by the State or a unit of local

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government and all areas in a park, recreation area, wildlife
area, or playground owned, leased, or managed, in whole or in
part, by the State or a unit of local government. "Public
place" does not include a private residence unless the private
residence is used to provide licensed child care, foster care,
or other similar social service care on the premises.
(b) Nothing in this Act shall be construed to prevent the
arrest or prosecution of a person for reckless driving or
driving under the influence of hemp concentrate derived
product, operating a watercraft under the influence of hemp
concentrate derived product, or operating a snowmobile under
the influence of hemp concentrate derived product if probable
cause exists.
(c) Nothing in this Act prevents a private business from
restricting or prohibiting the use of hemp concentrate derived
product on its property, including areas where motor vehicles
are parked.
(d) Nothing in this Act requires an individual or business
entity to violate the provisions of federal law, including
colleges or universities that must abide by the Drug-Free
Schools and Communities Act Amendments of 1989, that require
campuses to be drug free.
(e) To the extent that this Section conflicts with any
applicable collective bargaining agreement, the provisions of
the collective bargaining agreement prevails. Nothing in this
Act shall be construed to limit in any way the right to

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collectively bargain over the subject matters contained in
this Act.
Section 45-35. Employment; employer liability.
(a) Nothing in this Act prohibits an employer from
adopting reasonable zero-tolerance or drug-free workplace
policies or employment policies concerning drug testing,
smoking, consumption, storage, or use of hemp concentrate
derived products in the workplace or while on call if the
policy is applied in a nondiscriminatory manner.
(b) Nothing in this Act requires an employer to permit an
employee to be under the influence of or use hemp concentrate
derived product in the employer's workplace or while
performing the employee's job duties or while on call.
(c) Nothing in this Act limits or prevents an employer
from disciplining an employee or terminating employment of an
employee for violating an employer's employment policies or
workplace drug policy.
(d) An employer may consider an employee to be impaired or
under the influence of hemp concentrate derived product if the
employer has a good faith belief that an employee manifests
specific, articulable symptoms while working that decrease or
lessen the employee's performance of the duties or tasks of
the employee's job position, including symptoms of the
employee's speech, physical dexterity, agility, coordination,
demeanor, irrational or unusual behavior, or negligence or

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carelessness in operating equipment or machinery; disregard
for the safety of the employee or others; involvement in any
accident that results in serious damage to equipment or
property; disruption of a production or manufacturing process;
or carelessness that results in any injury to the employee or
others. If an employer elects to discipline an employee on the
basis that the employee is under the influence or impaired by
hemp concentrate derived products, the employer must afford
the employee a reasonable opportunity to contest the basis of
the determination.
(e) Nothing in this Act shall be construed to create or
imply a cause of action for any person against an employer for:
(1) actions taken pursuant to an employer's reasonable
workplace drug policy, including, but not limited to,
subjecting an employee or applicant to reasonable drug and
alcohol testing, reasonable and nondiscriminatory random
drug testing, and discipline, termination of employment,
or withdrawal of a job offer due to a failure of a drug
test;
(2) actions based on the employer's good faith belief
that an employee used or possessed hemp concentrate
derived products while in the employer's workplace, while
performing the employee's job duties, or while on call in
violation of the employer's employment policies;
(3) actions, including discipline or termination of
employment, based on the employer's good faith belief that

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an employee was impaired as a result of the use of hemp
concentrate derived products or under the influence of
hemp concentrate derived products while at the employer's
workplace or while performing the employee's job duties or
while on call in violation of the employer's workplace
drug policy; or
(4) injury, loss, or liability to a third party if the
employer neither knew nor had reason to know that the
employee was impaired.
(f) Nothing in this Act shall be construed to enhance or
diminish protections afforded by any other law, including, but
not limited to, the Compassionate Use of Medical Cannabis
Program Act or the Opioid Alternative Pilot Program.
(g) Nothing in this Act shall be construed to interfere
with any federal, State, or local restrictions on employment,
including, but not limited to, the United States Department of
Transportation regulation 49 CFR 40.151(e), or impact an
employer's ability to comply with federal or State law or
cause it to lose a federal or State contract or funding.
(h) As used in this Section:
"Workplace" means the employer's premises, including
any building, real property, and parking area under the
control of the employer or area used by an employee while
in the performance of the employee's job duties and
vehicles, whether leased, rented, or owned, while being
used in the performance of the employee's duties for the

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employer. "Workplace" may be further defined by the
employer's written employment policy if the policy is
consistent with this Section.
An employee is deemed "on call" when the employee is
scheduled with at least 24 hours' notice by the employer
to be on standby or otherwise responsible for performing
tasks related to the person's employment, either at the
employer's premises or other previously designated
location by the employee's employer or supervisor, to
perform a work-related task.
Article 50.
Intermediate Hemp Product Processing Tax
Section 50-5. Definitions. In this Article:
"Cannabis" has the meaning given to that term in Article 1
of this Act, except that it does not include cannabis that is
subject to tax under the Compassionate Use of Medical Cannabis
Program Act.
"Craft grower" has the meaning given to that term in the
Cannabis Regulation and Tax Act.
"Cultivation center" has the meaning given to that term in
the Cannabis Regulation and Tax Act.
"Department" means the Department of Revenue.
"Director" means the Director of Revenue.
"Dispensary" has the meaning given to that term in the

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Cannabis Regulation and Tax Act.
"Gross receipts" from the sales of intermediate hemp
products by a processor means the total selling price or the
amount of such sales, as defined in this Article. In the case
of charges and time sales, the amount thereof shall be
included only when payments are received by the processor.
"Infuser" has the meaning given to that term in the
Cannabis Regulation and Tax Act.
"Person" means a natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
"Processor" or "taxpayer" means a cultivation center,
craft grower, or hemp processor who is subject to tax under
this Article.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property, and services, and shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost, or any
other expense whatsoever, but does not include separately
stated charges identified on the invoice by cultivators to
reimburse themselves for their tax liability under this
Article.

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Section 50-10. Tax imposed.
(a) Beginning September 1, 2024, a tax is imposed upon the
privilege of processing hemp products into intermediate hemp
products at the rate of 7% of the gross receipts from the first
sale of intermediate hemp products by a processor. The sale of
any product that contains any amount of intermediate hemp
product or any derivative thereof is subject to the tax under
this Section on the full selling price of the product. The
Department may determine the selling price of the intermediate
hemp product when the seller and purchaser are affiliated
persons, when the sale and purchase of intermediate hemp
products are not an arm's length transaction, or when
intermediate hemp products are transferred by a craft grower
to the craft grower's or infuser or processing organization
and a value is not established for the cannabis. The value
determined by the Department shall be commensurate with the
actual price received for products of like quality, character,
and use in the area. If there are no sales of intermediate hemp
products of like quality, character, and use in the same area,
then the Department shall establish a reasonable value based
on sales of products of like quality, character, and use in
other areas of the State, taking into consideration any other
relevant factors.
(b) The intermediate hemp product procession tax imposed
under this Article is solely the responsibility of the
processor who makes the first sale and is not the

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responsibility of a subsequent purchaser, hemp retailer, hemp
concentrate retailer, hemp extract retailer, hemp concentrate
infuser, or an infuser. Persons subject to the tax imposed
under this Article may, however, reimburse themselves for
their tax liability hereunder by separately stating
reimbursement for their tax liability as an additional charge.
(c) The tax imposed under this Article shall be in
addition to all other occupation, privilege, or excise taxes
imposed by the State of Illinois or by any unit of local
government.
Section 50-15. Registration of processor. Every processor
subject to the tax under this Article shall apply to the
Department for a certificate of registration under this
Article. All applications for registration under this Article
shall be made by electronic means in the form and manner
required by the Department. For that purpose, the provisions
of Section 2a of the Retailers' Occupation Tax Act are
incorporated into this Article to the extent not inconsistent
with this Article. In addition, no certificate of registration
shall be issued under this Article unless the applicant is
licensed under this Act.
Section 50-20. Returns. Return and payment of intermediate
hemp product processing tax. Each person who is required to
pay the tax imposed by this Article shall make a return to the

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Department on or before the 20th day of each month for the
preceding calendar month stating:
(1) the taxpayer's name;
(2) the address of the taxpayer's principal place of
business and the address of the principal place of
business, if that is a different address, from which the
taxpayer is engaged in the business of processing hemp
subject to tax under this Article;
(3) the total amount of receipts received by the
taxpayer during the preceding calendar month from sales of
intermediate hemp product subject to tax under this
Article by the taxpayer during the preceding calendar
month;
(4) the total amount received by the taxpayer during
the preceding calendar month on charge and time sales of
intermediate hemp product subject to tax imposed under
this Article by the taxpayer before the month for which
the return is filed;
(5) deductions allowed by law;
(6) gross receipts that were received by the taxpayer
during the preceding calendar month and upon the basis of
which the tax is imposed;
(7) the amount of tax due;
(8) the signature of the taxpayer; and
(9) any other information as the Department may
reasonably require.

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All returns required to be filed and payments required to
be made under this Article shall be by electronic means.
Taxpayers who demonstrate hardship in paying electronically
may petition the Department to waive the electronic payment
requirement. The Department may require a separate return for
the tax under this Article or combine the return for the tax
under this Article with the return for the tax under the
Compassionate Use of Medical Cannabis Program Act, the
Cannabis Regulation and Tax Act, or both. If the return for the
tax under this Article is combined with the return for tax
under the Compassionate Use of Medical Cannabis Program Act,
the Cannabis Regulation and Tax Act, or both, then the
vendor's discount allowed under this Section and any cap on
that discount shall apply to the combined return. The taxpayer
making the return provided for in this Section shall also pay
to the Department, in accordance with this Section, the amount
of tax imposed by this Article, less a discount of 1.75%, but
not to exceed $1,000 per return period, which is allowed to
reimburse the taxpayer for the expenses incurred in keeping
records, collecting tax, preparing and filing returns,
remitting the tax, and supplying data to the Department upon
request. No discount may be claimed by a taxpayer on returns
not timely filed and for taxes not timely remitted. No
discount may be claimed by a taxpayer for any return that is
not filed electronically. No discount may be claimed by a
taxpayer for any payment that is not made electronically

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unless a waiver has been granted under this Section. Any
amount that is required to be shown or reported on any return
or other document under this Article shall, if the amount is
not a whole-dollar amount, be increased to the nearest
whole-dollar amount if the fractional part of a dollar is
$0.50 or more and decreased to the nearest whole-dollar amount
if the fractional part of a dollar is less than $0.50. If a
total amount of less than $1 is payable, refundable, or
creditable, the amount shall be disregarded if it is less than
$0.50 and shall be increased to $1 if it is $0.50 or more.
Notwithstanding any other provision of this Article concerning
the time within which a taxpayer may file a return, any such
taxpayer who ceases to engage in the kind of business that
makes the person responsible for filing returns under this
Article shall file a final return under this Article with the
Department within one month after discontinuing such business.
Each taxpayer under this Article shall make estimated
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which tax liability to the
Department is incurred. The payments shall be in an amount not
less than the lower of either 22.5% of the taxpayer's actual
tax liability for the month or 25% of the taxpayer's actual tax
liability for the same calendar month of the preceding year.
The amount of the quarter-monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. If any quarter-monthly payment is not paid at the

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time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of the quarter-monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Article, as shown on an
original monthly return, the Department shall, if requested by
the taxpayer, issue to the taxpayer a credit memorandum no
later than 30 days after the date of payment. The credit
evidenced by the credit memorandum may be assigned by the
taxpayer to a similar taxpayer under this Act, in accordance
with reasonable rules to be prescribed by the Department. If
no such request is made, the taxpayer may credit the excess
payment against tax liability subsequently to be remitted to
the Department under this Act, in accordance with reasonable
rules prescribed by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
discount shall be reduced, if necessary, to reflect the
difference between the credit taken and that actually due, and
that taxpayer shall be liable for penalties and interest on
the difference.
If a taxpayer fails to sign a return within 30 days after

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the proper notice and demand for signature by the Department
is received by the taxpayer, the return shall be considered
valid and any amount shown to be due on the return shall be
deemed assessed.
Section 50-25. Infuser and hemp concentrate infuser
information returns. If it is deemed necessary for the
administration of this Article, the Department may adopt rules
that require infusers or hemp concentrate infusers to file
information returns regarding the sale of hemp concentrate
derived products by infusers or hemp concentrate infusers to
dispensaries or hemp concentrate retailers. The Department may
require infusers or hemp concentrate infusers to file all
information returns by electronic means.
Section 50-30. Deposit of proceeds. All moneys received by
the Department under this Article shall be deposited into the
Cannabis Regulation Fund.
Section 50-35. Department administration and enforcement.
The Department shall administer and enforce this Article,
collect all taxes, penalties, and interest due under this
Article, dispose of taxes, penalties, and interest so
collected in the manner provided in this Article, and
determine all rights to credit memoranda arising on account of
the erroneous payment of tax, penalty, or interest under this

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Article. In the administration of, and compliance with, this
Article, the Department and persons who are subject to this
Article shall have the same rights, remedies, privileges,
immunities, powers, and duties, shall be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and shall employ the same modes of
procedure as are prescribed in Sections 1, 2-40, 2a, 2b, 2i, 4,
5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8,
9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and all of the provisions of the Uniform Penalty and Interest
Act that are not inconsistent with this Article, as fully as if
those provisions were set forth in this Article. As used in
this Section, references in the Retailers' Occupation Tax Act
to a "sale of tangible personal property at retail" mean the
"sale of intermediate hemp product by a processor".
Section 50-40. Invoices. Every sales invoice for
intermediate hemp product issued by a processor to a cannabis
or hemp business establishment shall contain the processor's
certificate of registration number assigned under this
Article, date, invoice number, purchaser's name and address,
selling price, amount of intermediate hemp product, hemp
concentrate, hemp extract, hemp extract derived product, or
hemp concentrate derived product and any other reasonable
information as the Department may provide by rule is necessary
for the administration of this Article. Processors shall

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retain the invoices for inspection by the Department.
Section 50-45. Rules. The Department may adopt rules
related to the enforcement of this Article.
Article 55.
Hemp Concentrate Derived Product Excise Tax
Section 55-5. Definitions. In this Article:
"Adjusted delta-9-tetrahydrocannabinol level" means, for a
delta-9-tetrahydrocannabinol dominant product, the sum of the
percentage of delta-9-tetrahydrocannabinol plus .877
multiplied by the percentage of tetrahydrocannabinolic acid.
"Cannabis retailer" means a dispensing organization that
sells cannabis or hemp concentrate derived product for use and
not for resale.
"Department" means the Department of Revenue.
"Director" means the Director of Revenue.
"Dispensing organization" has the meaning given to that
term in Article 1 of the Cannabis Regulation and Tax Act.
"Person" means a natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
"Infuser organization" and "infuser" have the meanings

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given to those terms in Article 1 of the Cannabis Regulation
and Tax Act.
"Purchase price" means the consideration paid for a
purchase of cannabis, valued in money, whether received in
money or otherwise, including cash, gift cards, credits, and
property and shall be determined without any deduction on
account of the cost of materials used, labor or service costs,
or any other expense whatsoever. "Purchase price" does not
include consideration paid for:
(1) any charge for a payment that is not honored by a
financial institution;
(2) any finance or credit charge, penalty or charge
for delayed payment, or discount for prompt payment; and
(3) any amounts added to a purchaser's bill because of
charges made under the tax imposed by this Article, the
Municipal Cannabis Retailers' Occupation Tax Law, the
County Cannabis Retailers' Occupation Tax Law, the
Retailers' Occupation Tax Act, the Use Tax Act, the
Service Occupation Tax Act, the Service Use Tax Act, or
any locally imposed occupation or use tax.
"Purchaser" means a person who acquires hemp concentrate
derived products for a valuable consideration.
"Taxpayer" means a hemp concentrate derived product
retailer who is required to collect the tax imposed under this
Article.

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Section 55-10. Tax imposed.
(a) Beginning January 1, 2024, a tax is imposed upon
purchasers for the privilege of using hemp concentrate derived
products at the following rates:
(1) A hemp concentrate derived product, other than a
cannabis-infused product, with an adjusted
delta-9-tetrahydrocannabinol, or
delta-8-tetrahydrocannabinol level at or below 35% shall
be taxed at a rate of 10% of the purchase price;
(2) A hemp concentrate derived product, other than a
cannabis-infused product, with an adjusted
delta-9-tetrahydrocannabinol level or
delta-8-tetrahydrocannabinol above 35% shall be taxed at a
rate of 25% of the purchase price; and
(3) A hemp concentrate derived product shall be taxed
at a rate of 20% of the purchase price.
(b) The purchase of any product that contains any amount
of hemp concentrate is subject to the tax under subsection (a)
on the full purchase price of the product.
(c) The tax imposed by this Article is not imposed with
respect to any transaction in interstate commerce, to the
extent the transaction may not, under the Constitution and
statutes of the United States, be made the subject of taxation
by this State.
(d) The tax imposed under this Article shall be in
addition to all other occupation, privilege, or excise taxes

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imposed by the State or by any municipal corporation or
political subdivision thereof.
(e) The tax imposed under this Article may not be imposed
on any purchase by a purchaser if the hemp concentrate
retailer or dispensing organization is prohibited by federal
or State Constitution, treaty, convention, statute, or court
decision from collecting the tax from the purchaser.
Section 55-15. Bundling of taxable and nontaxable items;
prohibition; taxation. If a hemp concentrate derived product
retailer sells hemp concentrate derived products in
combination or bundled with items that are not subject to tax
under this Act for one price in violation of the prohibition on
this activity in Article 15, then the tax under this Act is
imposed on the purchase price of the entire bundled product.
Section 55-20. Collection of tax.
(a) The tax imposed by this Article shall be collected
from the purchaser by the hemp concentrate derived product
retailer at the rate stated in Section 55-10 with respect to
hemp concentrate derived products sold by the hemp concentrate
derived product retailer to the purchaser and shall be
remitted to the Department as provided in Section 55-30. Hemp
concentrate derived product retailers shall collect the tax
from purchasers by adding the tax to the amount of the purchase
price received from the purchaser for selling hemp concentrate

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derived products to the purchaser. The tax imposed by this
Article shall, when collected, be stated as a distinct item
separate and apart from the purchase price of the hemp
concentrate derived products.
(b) If a hemp concentrate derived product retailer
collects the hemp concentrate derived product excise tax
measured by a purchase price that is not subject to the
intermediate hemp product processing tax, or, if a hemp
concentrate derived product retailer, in collecting hemp
concentrate derived product excise tax measured by a purchase
price that is subject to tax under this Act, collects more from
the purchaser than the required amount of the hemp concentrate
derived product excise tax on the transaction, the purchaser
may request and obtain a refund of that amount from the hemp
concentrate derived product retailer. If, however, that amount
is not refunded to the purchaser for any reason, the hemp
concentrate derived product retailer is liable to pay that
amount to the Department.
(c) Any person purchasing hemp concentrate derived
products subject to tax under this Article as to which there
has been no charge made to the person of the tax imposed by
Section 55-10 shall make payment of the tax imposed by Section
55-10 in the form and manner provided by the Department not
later than the 20th day of the month following the month of
purchase of the hemp concentrate derived products.

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Section 55-25. Registration of hemp concentrate derived
product retailers. Every hemp concentrate derived product
retailer required to collect the tax under this Article shall
apply to the Department for a certificate of registration
under this Article. All applications for registration under
this Article shall be made by electronic means in the form and
manner required by the Department. For that purpose, the
provisions of Section 2a of the Retailers' Occupation Tax Act
are incorporated into this Article to the extent not
inconsistent with this Article. In addition, no certificate of
registration shall be issued under this Article unless the
applicant is licensed under this Act.
Section 55-30. Tax collected as debt owed to State. A hemp
concentrate derived product retailer required to collect the
tax imposed by this Article is liable to the Department for the
tax, whether or not the tax has been collected by the hemp
concentrate derived product retailer, and the tax shall
constitute a debt owed by the hemp concentrate derived product
retailer to this State. To the extent that a hemp concentrate
derived product retailer required to collect the tax imposed
by this Act has actually collected that tax, the tax is held in
trust for the benefit of the Department.
Section 55-35. Return and payment of tax by hemp
concentrate derived product retailer. Each hemp concentrate

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derived product retailer that is required or authorized to
collect the tax imposed by this Article shall make a return to
the Department, by electronic means, on or before the 20th day
of each month for the preceding calendar month stating the
following:
(1) The hemp concentrate derived product retailer's
name.
(2) The address of the hemp concentrate derived
product retailer's principal place of business and the
address of the principal place of business, if that is a
different address, from which the hemp concentrate derived
product retailer engaged in the business of selling hemp
concentrate derived products subject to tax under this
Article.
(3) The total purchase price received by the hemp
concentrate derived product retailer for hemp concentrate
derived products subject to tax under this Article.
(4) The amount of tax due at each rate.
(5) The signature of the cannabis retailer.
(6) Any other information as the Department may
reasonably require.
All returns required to be filed and payments required to
be made under this Article shall be by electronic means. Hemp
concentrate derived product retailers who demonstrate hardship
in paying electronically may petition the Department to waive
the electronic payment requirement.

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Any amount that is required to be shown or reported on any
return or other document under this Article shall, if the
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount if the fractional part of a dollar
is $0.50 or more and decreased to the nearest whole-dollar
amount if the fractional part of a dollar is less than $0.50.
If a total amount of less than $1 is payable, refundable, or
creditable, the amount shall be disregarded if it is less than
$0.50 and shall be increased to $1 if it is $0.50 or more.
The hemp concentrate derived product retailer making the
return provided for in this Section shall also pay to the
Department, in accordance with this Section, the amount of tax
imposed by this Article, less a discount of 1.75%, but not to
exceed $1,000 per return period, which is allowed to reimburse
the hemp concentrate derived product retailer for the expenses
incurred in keeping records, collecting tax, preparing and
filing returns, remitting the tax, and supplying data to the
Department upon request. No discount may be claimed by a hemp
concentrate derived product retailer on returns not timely
filed and for taxes not timely remitted. No discount may be
claimed by a taxpayer for any return that is not filed
electronically. No discount may be claimed by a taxpayer for
any payment that is not made electronically unless a waiver
has been granted under this Section.
Notwithstanding any other provision of this Article
concerning the time within which a hemp concentrate derived

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product retailer may file a return, a hemp concentrate derived
product retailer who ceases to engage in the kind of business
that makes the person responsible for filing returns under
this Article shall file a final return under this Article with
the Department within one month after discontinuing the
business.
Each hemp concentrate derived product retailer shall make
estimated payments to the Department on or before the 7th,
15th, 22nd, and last day of the month during which tax
liability to the Department is incurred. The payments shall be
in an amount not less than the lower of either 22.5% of the
hemp concentrate derived product retailer's actual tax
liability for the month or 25% of the hemp concentrate derived
product retailer's actual tax liability for the same calendar
month of the preceding year. The amount of the quarter-monthly
payments shall be credited against the final tax liability of
the hemp concentrate derived product retailer's return for
that month. If any such quarter-monthly payment is not paid at
the time or in the amount required by this Section, then the
hemp concentrate derived product retailer shall be liable for
penalties and interest on the difference between the minimum
amount due as a payment and the amount of the quarter-monthly
payment actually and timely paid, except insofar as the hemp
concentrate derived product retailer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.

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If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Article, as shown on an
original monthly return, the Department shall, if requested by
the taxpayer, issue to the taxpayer a credit memorandum no
later than 30 days after the date of payment. The credit
evidenced by the credit memorandum may be assigned by the
taxpayer to a similar taxpayer under this Article, in
accordance with reasonable rules to be prescribed by the
Department. If no such request is made, the taxpayer may
credit the excess payment against tax liability subsequently
to be remitted to the Department under this Article, in
accordance with reasonable rules prescribed by the Department.
If the Department subsequently determines that all or any part
of the credit taken was not actually due to the taxpayer, the
taxpayer's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on the difference. If a hemp concentrate derived product
retailer fails to sign a return within 30 days after the proper
notice and demand for signature by the Department is received
by the hemp concentrate derived product retailer, the return
shall be considered valid and any amount shown to be due on the
return shall be deemed assessed.
Section 55-40. Deposit of proceeds. All moneys received by
the Department under this Article shall be paid into the

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Cannabis Regulation Fund.
Section 55-45. Recordkeeping; books and records.
(a) Every hemp concentrate derived product retailer,
whether or not the retailer has obtained a certificate of
registration under Section 55-20, shall keep complete and
accurate records of cannabis held, purchased, sold, or
otherwise disposed of, and shall preserve and keep all
invoices, bills of lading, sales records, and copies of bills
of sale, returns, and other pertinent papers and documents
relating to the purchase, sale, or disposition of hemp
concentrate derived products. The records need not be
maintained on the licensed premises but must be maintained in
the State of Illinois. However, all original invoices or
copies thereof covering purchases of hemp concentrate derived
products must be retained on the licensed premises for a
period of 90 days after such purchase unless the Department
has granted a waiver in response to a written request in cases
where records are kept at a central business location within
the State. The Department shall adopt rules regarding the
eligibility for a waiver, revocation of a waiver, and
requirements and standards for maintenance and accessibility
of records located at a central location under a waiver
provided under this Section.
(b) Books, records, papers, and documents that are
required by this Article to be kept shall, at all times during

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the usual business hours of the day, be subject to inspection
by the Department or its duly authorized agents and employees.
The books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a
notice of tax liability shall be preserved until the
expiration of that period.
Section 55-50. Violations and penalties.
(a) As used in this Section:
"Automated sales suppression device" means a software
program that falsifies the electronic records of an electronic
cash register or other point-of-sale system, including, but
not limited to, transaction data and transaction reports.
"Automated sales suppression device" includes the software
program, any device that carries the software program, or an
Internet link to the software program.
"Phantom-ware" means a hidden programming option embedded
in the operating system of an electronic cash register or
hardwired into an electronic cash register that can be used to
create a second set of records or that can eliminate or
manipulate transaction records in an electronic cash register.
"Electronic cash register" means a device that keeps a
register or supporting documents through the use of an
electronic device or computer system designed to record
transaction data for the purpose of computing, compiling, or
processing retail sales transaction data in any manner.

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"Transaction data" includes: items purchased by a
purchaser; the price of each item; a taxability determination
for each item; a segregated tax amount for each taxed item; the
amount of cash or credit tendered; the net amount returned to
the customer in change; the date and time of the purchase; the
name, address, and identification number of the vendor; and
the receipt or invoice number of the transaction.
"Transaction report" means a report that documents,
without limitation, the sales, taxes, or fees collected, media
totals, and discount voids at an electronic cash register and
that is printed on a cash register tape at the end of a day or
shift, or a report that documents every action at an
electronic cash register and is stored electronically.
(b) When the amount due is under $300, (i) a hemp
concentrate derived product retailer that fails to file a
return, willfully fails or refuses to make any payment to the
Department of the tax imposed by this Article, or files a
fraudulent return, (ii) an officer or agent of a corporation
engaged in the business of selling hemp concentrate derived
products to purchasers located in this State who signs a
fraudulent return filed on behalf of the corporation, or (iii)
an accountant or other agent who knowingly enters false
information on the return of any taxpayer under this Article
is guilty of a Class 4 felony.
(c) When the amount due is $300 or more, (i) a hemp
concentrate derived product retailer who files, or causes to

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be filed, a fraudulent return, (ii) an officer or agent of a
corporation engaged in the business of selling hemp
concentrate derived products to purchasers located in this
State who files or causes to be filed or signs or causes to be
signed a fraudulent return filed on behalf of the corporation,
or (iii) an accountant or other agent who knowingly enters
false information on the return of any taxpayer under this
Article is guilty of a Class 3 felony.
(d) A person who violates any provision of Section 55-20,
fails to keep books and records as required under this
Article, or willfully violates a rule of the Department for
the administration and enforcement of this Article is guilty
of a Class 4 felony. A person commits a separate offense on
each day that he or she engages in business in violation of
Section 55-20 or a rule of the Department for the
administration and enforcement of this Article. If a person
fails to produce the books and records for inspection by the
Department upon request, a prima facie presumption arises that
the person has failed to keep books and records as required
under this Article. A person who is unable to rebut this
presumption is in violation of this Article and is subject to
the penalties provided in this Section.
(e) A person who violates any provision of Sections 55-20,
fails to keep books and records as required under this
Article, or willfully violates a rule of the Department for
the administration and enforcement of this Article is guilty

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of a business offense and may be fined up to $5,000. If a
person fails to produce books and records for inspection by
the Department upon request, a prima facie presumption shall
arise that the person has failed to keep books and records as
required under this Article. A person who is unable to rebut
this presumption is in violation of this Article and is
subject to the penalties provided in this Section. A person
commits a separate offense on each day that the person engages
in business in violation of Section 55-20.
(f) A taxpayer or agent of a taxpayer who, with the intent
to defraud, purports to make a payment due to the Department by
issuing or delivering a check or other order upon a real or
fictitious depository for the payment of money knowing that it
will not be paid by the depository is guilty of a deceptive
practice in violation of Section 17-1 of the Criminal Code of
2012.
(g) A person who fails to keep books and records or fails
to produce books and records for inspection, as required by
Section 55-40, is liable to pay to the Department, for deposit
in the Tax Compliance and Administration Fund, a penalty of
$1,000 for the first failure to keep books and records or
failure to produce books and records for inspection, as
required by Section 55-40, and $3,000 for each subsequent
failure to keep books and records or failure to produce books
and records for inspection, as required by Section 55-40.
(h) A person who knowingly acts as a hemp concentrate

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derived product retailer in this State without first having
obtained a certificate of registration to do so in compliance
with Section 55-20 of this Article shall be guilty of a Class 4
felony.
(i) A person commits the offense of tax evasion under this
Article when he or she knowingly attempts in any manner to
evade or defeat the tax imposed on him or her or on any other
person, or the payment thereof, and he or she commits an
affirmative act in furtherance of the evasion. As used in this
subsection, "affirmative act in furtherance of the evasion"
means an act designed in whole or in part to (i) conceal,
misrepresent, falsify, or manipulate any material fact or (ii)
tamper with or destroy documents or materials related to a
person's tax liability under this Article. Two or more acts of
sales tax evasion may be charged as a single count in any
indictment, information, or complaint and the amount of tax
deficiency may be aggregated for purposes of determining the
amount of tax that is attempted to be or is evaded and the
period between the first and last acts may be alleged as the
date of the offense. Penalties for the offense of tax evasion
under this subsection are as follows:
(1) When the amount of tax, the assessment, or payment
of which is attempted to be or is evaded is less than $500,
a person is guilty of a Class 4 felony.
(2) When the amount of tax, the assessment, or payment
of which is attempted to be or is evaded is $500 or more

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but less than $10,000, a person is guilty of a Class 3
felony.
(3) When the amount of tax, the assessment, or payment
of which is attempted to be or is evaded is $10,000 or more
but less than $100,000, a person is guilty of a Class 2
felony.
(4) When the amount of tax, the assessment, or payment
of which is attempted to be or is evaded is $100,000 or
more, a person is guilty of a Class 1 felony.
A person who knowingly sells, purchases, installs,
transfers, possesses, uses, or accesses an automated sales
suppression device or phantom-ware in this State is guilty of
a Class 3 felony.
A prosecution for any act in violation of this Section may
be commenced at any time within 5 years of the commission of
that act.
(j) The Department may adopt rules to administer the
penalties under this Section.
(k) A person whose principal place of business is in this
State and who is charged with a violation under this Section
shall be tried in the county where the person's principal
place of business is located unless the person asserts a right
to be tried in another venue.
(l) Except as otherwise provided in subsection (g), a
prosecution for a violation described in this Section may be
commenced within 3 years after the commission of the act

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constituting the violation.
Section 55-55. Department administration and enforcement.
(a) The Department shall administer and enforce this
Article, collect all taxes and penalties due under this
Article, dispose of taxes and penalties so collected in the
manner provided in this Article, and determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty under this Article.
(b) In the administration of, and compliance with, this
Article, the Department and persons who are subject to this
Article shall have the same rights, remedies, privileges,
immunities, powers, and duties, shall be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and shall employ the same modes of
procedure as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7,
10a, 11, 12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax
Act and Sections 1, 2-12, 2b, 4, except that the time
limitation provisions shall run from the date when the tax is
due rather than from the date when gross receipts are
received, 5, except that the time limitation provisions on the
issuance of notices of tax liability shall run from the date
when the tax is due rather than from the date when gross
receipts are received and except that in the case of a failure
to file a return required by this Act, no notice of tax
liability shall be issued on and after each July 1 and January

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1 covering tax due with that return during any month or period
more than 6 years before that July 1 or January 1,
respectively, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5j, 6d, 7, 8, 9,
10, 11, and 12 of the Retailers' Occupation Tax Act and all of
the provisions of the Uniform Penalty and Interest Act that
are not inconsistent with this Article, as fully as if those
provisions were set forth in this Article. References in the
incorporated Sections of the Retailers' Occupation Tax Act and
the Use Tax Act to retailers, to sellers, or to persons engaged
in the business of selling tangible personal property mean
hemp concentrate derived product retailers when used in this
Article. References in the incorporated Sections to sales of
tangible personal property mean sales of hemp concentrate
derived products subject to tax under this Article when used
in this Article.
Section 55-60. Arrest; search and seizure without warrant.
An authorized employee of the Department may: (i) arrest
without warrant any person committing in the employee's
presence a violation of any of the provisions of this Article;
(ii) without a search warrant inspect all hemp concentrate
derived products located in any place of business; (iii) seize
any hemp concentrate derived products in the possession of the
retailer in violation of this Act; and (iv) seize any hemp
concentrate derived products on which the tax imposed by
Article 50 of this Act has not been paid. Hemp concentrate

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derived products seized under this Section are subject to
confiscation and forfeiture as provided in Sections 55-65 and
55-70.
Section 55-65. Seizure and forfeiture.
(a) After seizing any hemp concentrate derived products as
provided in Section 55-60, the Department must hold a hearing
and determine whether the retailer was properly registered to
sell the hemp concentrate derived products at the time of its
seizure by the Department. The Department shall give not less
than 20 days' notice of the time and place of the hearing to
the owner of the hemp concentrate derived products, if the
owner is known, and also to the person in whose possession the
hemp concentrate derived products was found, if that person is
known and if the person in possession is not the owner of the
hemp concentrate derived products. If neither the owner nor
the person in possession of the hemp concentrate derived
products is known, the Department must cause publication of
the time and place of the hearing to be made at least once in
each week for 3 weeks successively in a newspaper of general
circulation in the county where the hearing is to be held.
(b) If, as the result of the hearing, the Department
determines that the retailer was not properly registered at
the time the hemp concentrate derived products was seized, the
Department must enter an order declaring the hemp concentrate
derived products confiscated and forfeited to the State, to be

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held by the Department for disposal by it as provided in
Section 55-70. The Department must give notice of the order to
the owner of the hemp concentrate derived products, if the
owner is known, and also to the person in whose possession the
hemp concentrate derived products was found, if that person is
known and if the person in possession is not the owner of the
hemp concentrate derived products. If neither the owner nor
the person in possession of the hemp concentrate derived
products is known, the Department must cause publication of
the order to be made at least once in each week for 3 weeks
successively in a newspaper of general circulation in the
county where the hearing was held.
Section 55-70. Search warrant; issuance and return;
process; confiscation of hemp concentrate derived products;
forfeitures.
(a) If a peace officer of this State or an authorized
officer or employee of the Department has reason to believe
that any violation of this Article or a rule of the Department
for the administration and enforcement of this Article has
occurred and that the person violating this Article or rule
has in that person's possession any hemp concentrate derived
products in violation of this Article or a rule of the
Department for the administration and enforcement of this
Article, that peace officer or officer or employee of the
Department may file or cause to be filed his or her complaint

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in writing, verified by affidavit, with any court within whose
jurisdiction the premises to be searched are situated stating
the facts upon which the belief is founded, the premises to be
searched, and the property to be seized, and the peace officer
or officer or employee of the Department may procure a search
warrant and execute that warrant. Upon the execution of the
search warrant, the peace officer or officer or employee of
the Department executing the search warrant shall make due
return of the warrant to the court issuing the warrant,
together with an inventory of the property taken under the
warrant. The court must then issue process against the owner
of the property if the owner is known; otherwise, process must
be issued against the person in whose possession the property
is found, if that person is known. In case of inability to
serve process upon the owner or the person in possession of the
property at the time of its seizure, notice of the proceedings
before the court must be given in the same manner as required
by the law governing cases of attachment. Upon the return of
the process duly served or upon the posting or publishing of
notice made, as appropriate, the court or jury, if a jury is
demanded, shall proceed to determine whether the property so
seized was held or possessed in violation of this Article or a
rule of the Department for the administration and enforcement
of this Article. If a violation is found, judgment shall be
entered confiscating the property and forfeiting it to the
State and ordering its delivery to the Department. In

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addition, the court may tax and assess the costs of the
proceedings.
(b) When any hemp concentrate derived products have been
declared forfeited to the State by the Department, as provided
in Section 55-65 and this Section, and, when all proceedings
for the judicial review of the Department's decision have
terminated, the Department shall, to the extent that its
decision is sustained on review, destroy or maintain and use
the hemp concentrate derived products in an undercover
capacity.
(c) The Department may, before any destruction of hemp
concentrate derived products, permit the holder of trademark
rights in the hemp concentrate derived products to inspect the
hemp concentrate derived products in order to assist the
Department in any investigation regarding the hemp concentrate
derived products.
Section 55-75. Hemp concentrate derived product retailers;
purchase and possession of hemp concentrate derived products.
Hemp concentrate derived product retailers shall purchase hemp
concentrate derived products for resale only from cannabis or
hemp business establishments as authorized by this Act.
Section 55-80. Rulemaking. The Department may adopt rules
in accordance with the Illinois Administrative Procedure Act
and prescribe forms relating to the administration and

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enforcement of this Article as it deems appropriate.
Article 800. Amendatory Changes
Section 800-5. The Illinois Administrative Procedure Act
is amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; Hemp Cannabinoid
Products Act. To provide for the expeditious and timely
implementation of the Hemp Cannabinoid Products Act, emergency
rules implementing the Hemp Cannabinoid Products Act may be
adopted in accordance with Section 5-45 by the Department of
Agriculture. The adoption of emergency rules authorized by
Section 5-45 and this Section is deemed to be necessary for the
public interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
Section 800-10. The Use Tax Act is amended by changing
Section 9 as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect

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the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under Public Act 102-700. The discount under this
Section is not allowed for the 1.25% portion of taxes paid on
aviation fuel that is subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 1%
rate but for the 0% rate imposed under Public Act 102-700. In
the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this Section,
such discount shall be taken with each such tax remittance
instead of when such retailer files his periodic return. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for retailers whose

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certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,

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and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the

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electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of

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reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products shall file all tax returns and shall make all tax
payments on hemp concentrate, intermediate hemp products, and
hemp concentrate derived products by electronic means in the
manner and form required by the Department.

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Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the

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

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

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

10300SB0776sam001 - 245 - LRB103 03232 RJT 73288 a
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public

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Act 102-700 on sales tax holiday items had not occurred.
Quarter monthly payment status shall be determined under this
paragraph as if the rate reduction to 0% in Public Act 102-700
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption) had not occurred. For quarter monthly payments
due under this paragraph on or after July 1, 2023 and through
June 30, 2024, "25% of the taxpayer's liability for the same
calendar month of the preceding year" shall be determined as
if the rate reduction to 0% in Public Act 102-700 had not
occurred. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due and the amount of
such quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'

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Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly

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

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In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the

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business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to

10300SB0776sam001 - 251 - LRB103 03232 RJT 73288 a
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later

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than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the

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retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and

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the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax

10300SB0776sam001 - 255 - LRB103 03232 RJT 73288 a
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an

10300SB0776sam001 - 256 - LRB103 03232 RJT 73288 a
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall

10300SB0776sam001 - 257 - LRB103 03232 RJT 73288 a
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an

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amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the

10300SB0776sam001 - 259 - LRB103 03232 RJT 73288 a
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the

10300SB0776sam001 - 260 - LRB103 03232 RJT 73288 a
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the

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Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000

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2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000

10300SB0776sam001 - 263 - LRB103 03232 RJT 73288 a
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,

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shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois

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Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a

10300SB0776sam001 - 266 - LRB103 03232 RJT 73288 a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000

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2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion

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Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the

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Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may

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assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 102-700, Article 60, Section 60-15, eff.
4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
7-28-23.)
Section 800-15. The Service Use Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax and supplying data to the Department on request. When
determining the discount allowed under this Section,
servicemen shall include the amount of tax that would have
been due at the 1% rate but for the 0% rate imposed under this

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amendatory Act of the 102nd General Assembly. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General

10300SB0776sam001 - 272 - LRB103 03232 RJT 73288 a
Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the

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calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other

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provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products shall file all tax returns and shall make all tax
payments on hemp concentrate, intermediate hemp products, and
hemp concentrate derived products by electronic means in the
manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has

10300SB0776sam001 - 275 - LRB103 03232 RJT 73288 a
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.

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Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20

10300SB0776sam001 - 277 - LRB103 03232 RJT 73288 a
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the

10300SB0776sam001 - 278 - LRB103 03232 RJT 73288 a
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other

10300SB0776sam001 - 279 - LRB103 03232 RJT 73288 a
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the

10300SB0776sam001 - 280 - LRB103 03232 RJT 73288 a
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the

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Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department

10300SB0776sam001 - 282 - LRB103 03232 RJT 73288 a
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency

10300SB0776sam001 - 283 - LRB103 03232 RJT 73288 a
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit

10300SB0776sam001 - 284 - LRB103 03232 RJT 73288 a
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000

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2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.

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Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.

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Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, the Department shall pay into
the Tax Compliance and Administration Fund, to be used,
subject to appropriation, to fund additional auditors and
compliance personnel at the Department of Revenue, an amount
equal to 1/12 of 5% of 80% of the cash receipts collected
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by

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the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",

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"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax

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Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax

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Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount

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equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
Section 800-20. The Service Occupation Tax Act is amended
by changing Section 9 as follows:
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax, and supplying
data to the Department on request. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700 this

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amendatory Act of the 102nd General Assembly. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return shall
be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably
require. The return shall include the gross receipts which

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were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under Public Act 102-700 this
amendatory Act of the 102nd General Assembly: (i) food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption);
and (ii) food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Use Tax Act by an entity licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969, or
an entity that holds a permit issued pursuant to the Life Care
Facilities Act. The return shall also include the amount of
tax that would have been due on the items listed in the
previous sentence but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the

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electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as

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otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products shall file all tax returns and shall make all tax
payments on hemp concentrate, intermediate hemp products, and
hemp concentrate derived products by electronic means in the
manner and form required by the Department.

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Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
serviceman may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Service Use Tax as provided in Section 3-72 of

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the Service Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-72 of the
Service Use Tax Act. A Sustainable Aviation Fuel Purchase
Credit certification accepted by a serviceman in accordance
with this paragraph may be used by that serviceman to satisfy
service occupation tax liability (but not in satisfaction of
penalty or interest) in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a sale of aviation fuel. In addition, for a sale of
aviation fuel to qualify to earn the Sustainable Aviation Fuel
Purchase Credit, servicemen must retain in their books and
records a certification from the producer of the aviation fuel
that the aviation fuel sold by the serviceman and for which a
sustainable aviation fuel purchase credit was earned meets the
definition of sustainable aviation fuel under Section 3-72 of
the Service Use Tax Act. The documentation must include detail
sufficient for the Department to determine the number of
gallons of sustainable aviation fuel sold.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February, and March of a given year being
due by April 20 of such year; with the return for April, May,
and June of a given year being due by July 20 of such year;
with the return for July, August, and September of a given year
being due by October 20 of such year, and with the return for

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October, November, and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one 1 month after
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,

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2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those

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payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act, or the Service Use Tax Act, to furnish

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all the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate
on transfers of tangible personal property other than aviation
fuel sold on or after December 1, 2019. This exception for

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aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.

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Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

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may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in
the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of

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the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence

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shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000

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1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000

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2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount

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deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois

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Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the

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Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000

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2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount

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estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net

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revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State treasury Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement

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of gross receipts as shown by the taxpayer's last federal
Federal income tax return. If the total receipts of the
business as reported in the federal Federal income tax return
do not agree with the gross receipts reported to the
Department of Revenue for the same period, the taxpayer shall
attach to his annual return a schedule showing a
reconciliation of the 2 amounts and the reasons for the
difference. The taxpayer's annual return to the Department
shall also disclose the cost of goods sold by the taxpayer
during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used
from stock or taken from stock and given away by the taxpayer
during such year, pay roll information of the taxpayer's
business during such year and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the

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penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to a
serviceman who is not required to file an income tax return
with the United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount

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paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-363, eff. 7-28-23; revised 9-25-23.)
Section 800-25. The Retailers' Occupation Tax Act is
amended by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at
retail in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different

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address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this
Act;

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8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.

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If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax

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liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar

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quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.

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Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of

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

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Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products shall file all tax returns and shall make all tax
payments on hemp concentrate, intermediate hemp products, and
hemp concentrate derived products by electronic means in the
manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities

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under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.

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Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as

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monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or

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(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed

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under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,

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if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting

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return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration
is required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has

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paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the

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receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its

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behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
1% rate but for the 0% rate imposed under Public Act 102-700.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 6.25% rate but for the 1.25% rate imposed on sales
tax holiday items under Public Act 102-700. The discount under
this Section is not allowed for the 1.25% portion of taxes paid
on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
prepayment made pursuant to Section 2d of this Act shall be
included in the amount on which such 2.1% or 1.75% discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return. The discount allowed under this Section is allowed
only for returns that are filed in the manner required by this
Act. The Department may disallow the discount for retailers
whose certificate of registration is revoked at the time the
return is filed, but only if the Department's decision to
revoke the certificate of registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax

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Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the

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month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.

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

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computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's

10300SB0776sam001 - 341 - LRB103 03232 RJT 73288 a
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to

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September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after

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October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be

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liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
If a retailer of motor fuel is entitled to a credit under

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Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.

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Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%

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of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into

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the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to

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the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the

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difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section

10300SB0776sam001 - 351 - LRB103 03232 RJT 73288 a
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit

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1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000

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2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.

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Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.

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Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes

10300SB0776sam001 - 356 - LRB103 03232 RJT 73288 a
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.

10300SB0776sam001 - 357 - LRB103 03232 RJT 73288 a
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to

10300SB0776sam001 - 358 - LRB103 03232 RJT 73288 a
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts

10300SB0776sam001 - 359 - LRB103 03232 RJT 73288 a
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a

10300SB0776sam001 - 360 - LRB103 03232 RJT 73288 a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
Federal income tax return. If the total receipts of the
business as reported in the federal Federal income tax return
do not agree with the gross receipts reported to the
Department of Revenue for the same period, the retailer shall
attach to his annual return a schedule showing a
reconciliation of the 2 amounts and the reasons for the
difference. The retailer's annual return to the Department
shall also disclose the cost of goods sold by the retailer
during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used
from stock or taken from stock and given away by the retailer
during such year, payroll information of the retailer's
business during such year and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly, or annual
returns filed by such retailer as provided for in this
Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:

10300SB0776sam001 - 361 - LRB103 03232 RJT 73288 a
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount

10300SB0776sam001 - 362 - LRB103 03232 RJT 73288 a
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must

10300SB0776sam001 - 363 - LRB103 03232 RJT 73288 a
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,

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Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
eff. 7-28-23; revised 9-27-23.)
Section 800-35. The Counties Code is amended by changing
Section 5-1009 and by adding Section 5-1189 as follows:
(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
Sec. 5-1009. Limitation on home rule powers. Except as
provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1007, and
5-1008, and 5-1189, on and after September 1, 1990, no home
rule county has the authority to impose, pursuant to its home
rule authority, a retailers' occupation tax, service
occupation tax, use tax, sales tax or other tax on the use,
sale or purchase of tangible personal property based on the
gross receipts from such sales or the selling or purchase
price of said tangible personal property. Notwithstanding the
foregoing, this Section does not preempt any home rule imposed
tax such as the following: (1) a tax on alcoholic beverages,
whether based on gross receipts, volume sold or any other
measurement; (2) a tax based on the number of units of
cigarettes or tobacco products; (3) a tax, however measured,
based on the use of a hotel or motel room or similar facility;
(4) a tax, however measured, on the sale or transfer of real
property; (5) a tax, however measured, on lease receipts; (6)

10300SB0776sam001 - 365 - LRB103 03232 RJT 73288 a
a tax on food prepared for immediate consumption and on
alcoholic beverages sold by a business which provides for on
premise consumption of said food or alcoholic beverages; or
(7) other taxes not based on the selling or purchase price or
gross receipts from the use, sale or purchase of tangible
personal property. This Section does not preempt a home rule
county from imposing a tax, however measured, on the use, for
consideration, of a parking lot, garage, or other parking
facility.
On and after December 1, 2019, no home rule county has the
authority to impose, pursuant to its home rule authority, a
tax, however measured, on sales of aviation fuel, as defined
in Section 3 of the Retailers' Occupation Tax Act, unless the
tax revenue is expended for airport-related purposes. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Aviation fuel shall be excluded from tax only for so long as
the revenue use requirements of 49 U.S.C. 47017(b) and 49
U.S.C. 47133 are binding on the county.
This Section is a limitation, pursuant to subsection (g)
of Section 6 of Article VII of the Illinois Constitution, on
the power of home rule units to tax. The changes made to this
Section by Public Act 101-10 are a denial and limitation of
home rule powers and functions under subsection (g) of Section
6 of Article VII of the Illinois Constitution.
(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;

10300SB0776sam001 - 366 - LRB103 03232 RJT 73288 a
102-558, eff. 8-20-21.)
(55 ILCS 5/5-1189 new)
Sec. 5-1189. County Hemp Concentrate derived product
retailers' Occupation Tax Law.
(a) This Section may be referred to as the County Hemp
Concentrate derived product retailers' Occupation Tax Law.
(b) The corporate authorities of any county may, by
ordinance, impose a tax upon all persons engaged in the
business of selling hemp concentrate derived products, as that
term is defined in Section 1-5 of the Hemp Cannabinoid
Products Act, at retail in the county on the gross receipts
from these sales made in the course of that business. If
imposed, the tax shall be imposed only in 0.25% increments.
The tax rate may not exceed: (i) 3.75% of the gross receipts of
sales made in unincorporated areas of the county; and (ii) 3%
of the gross receipts of sales made in a municipality located
in the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department of Revenue shall administer and enforce this
Section; collect all taxes and penalties due under this
Section; dispose of taxes and penalties so collected in the
manner provided in this Section; and determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty under this Section. In the administration of

10300SB0776sam001 - 367 - LRB103 03232 RJT 73288 a
and compliance with this Section, the Department of Revenue
and persons who are subject to this Section shall have the same
rights, remedies, privileges, immunities, powers and duties,
shall be subject to the same conditions, restrictions,
limitations, penalties, and definitions of terms, and shall
employ the same modes of procedure as are described in
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
in respect to all provisions therein other than the State rate
of tax, 2a, 2b, 2c, 2i, 3 except as to the disposition of taxes
and penalties collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12,
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth in this Section.
(c) Persons subject to a tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability under this Section by separately
stating that tax as an additional charge, which charge may be
stated in combination, in a single amount, with any State tax
that sellers are required to collect.
(d) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.

10300SB0776sam001 - 368 - LRB103 03232 RJT 73288 a
(e) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected under this Section for deposit into the
Local Cannabis Retailers' Occupation Tax Trust Fund.
(f) On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to counties from
which retailers have paid taxes or penalties under this
Section during the second preceding calendar month. The amount
to be paid to each county shall be the amount, not including
credit memoranda, collected under this Section from sales made
in the county during the second preceding calendar month, plus
an amount the Department of Revenue determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund

10300SB0776sam001 - 369 - LRB103 03232 RJT 73288 a
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
(g) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after the effective date of this
amendatory Act of the 103rd General Assembly for which a
certified copy is filed with the Department on or before April
1, 2025 shall be administered and enforced by the Department
beginning on July 1, 2025. For ordinances filed with the
Department after April 1, 2025, an ordinance or resolution
imposing or discontinuing a tax under this Section or
effecting a change in the rate thereof shall either (i) be
adopted and a certified copy thereof filed with the Department
on or before the first day of April, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of July next following the adoption and filing; or
(ii) be adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.

10300SB0776sam001 - 370 - LRB103 03232 RJT 73288 a
Section 800-40. The Illinois Municipal Code is amended by
changing Section 8-11-6a and by adding Section 8-11-24 as
follows:
(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
Sec. 8-11-6a. Home rule municipalities; preemption of
certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on
and after September 1, 1990, no home rule municipality has the
authority to impose, pursuant to its home rule authority, a
retailer's occupation tax, service occupation tax, use tax,
sales tax or other tax on the use, sale or purchase of tangible
personal property based on the gross receipts from such sales
or the selling or purchase price of said tangible personal
property. Notwithstanding the foregoing, this Section does not
preempt any home rule imposed tax such as the following: (1) a
tax on alcoholic beverages, whether based on gross receipts,
volume sold or any other measurement; (2) a tax based on the
number of units of cigarettes or tobacco products (provided,
however, that a home rule municipality that has not imposed a
tax based on the number of units of cigarettes or tobacco
products before July 1, 1993, shall not impose such a tax after
that date); (3) a tax, however measured, based on the use of a
hotel or motel room or similar facility; (4) a tax, however
measured, on the sale or transfer of real property; (5) a tax,

10300SB0776sam001 - 371 - LRB103 03232 RJT 73288 a
however measured, on lease receipts; (6) a tax on food
prepared for immediate consumption and on alcoholic beverages
sold by a business which provides for on premise consumption
of said food or alcoholic beverages; or (7) other taxes not
based on the selling or purchase price or gross receipts from
the use, sale or purchase of tangible personal property. This
Section does not preempt a home rule municipality with a
population of more than 2,000,000 from imposing a tax, however
measured, on the use, for consideration, of a parking lot,
garage, or other parking facility. This Section is not
intended to affect any existing tax on food and beverages
prepared for immediate consumption on the premises where the
sale occurs, or any existing tax on alcoholic beverages, or
any existing tax imposed on the charge for renting a hotel or
motel room, which was in effect January 15, 1988, or any
extension of the effective date of such an existing tax by
ordinance of the municipality imposing the tax, which
extension is hereby authorized, in any non-home rule
municipality in which the imposition of such a tax has been
upheld by judicial determination, nor is this Section intended
to preempt the authority granted by Public Act 85-1006. On and
after December 1, 2019, no home rule municipality has the
authority to impose, pursuant to its home rule authority, a
tax, however measured, on sales of aviation fuel, as defined
in Section 3 of the Retailers' Occupation Tax Act, unless the
tax is not subject to the revenue use requirements of 49 U.S.C.

10300SB0776sam001 - 372 - LRB103 03232 RJT 73288 a
47107(b) and 49 U.S.C. 47133, or unless the tax revenue is
expended for airport-related purposes. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Aviation fuel
shall be excluded from tax only if, and for so long as, the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality. This Section is a
limitation, pursuant to subsection (g) of Section 6 of Article
VII of the Illinois Constitution, on the power of home rule
units to tax. The changes made to this Section by Public Act
101-10 are a denial and limitation of home rule powers and
functions under subsection (g) of Section 6 of Article VII of
the Illinois Constitution.
(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
101-593, eff. 12-4-19.)
(65 ILCS 5/8-11-24 new)
Sec. 8-11-24. Municipal Hemp Concentrate derived product
retailers' Occupation Tax Law.
(a) This Section may be referred to as the Municipal Hemp
Concentrate derived product retailers' Occupation Tax Law.
(b) The corporate authorities of any municipality may, by
ordinance, impose a tax upon all persons engaged in the
business of selling hemp concentrate derived products, as that
term is defined in Section 1-5 of the Hemp Cannabinoid
Products Act, at retail in the municipality on the gross

10300SB0776sam001 - 373 - LRB103 03232 RJT 73288 a
receipts from these sales made in the course of that business.
If imposed, the tax may not exceed 3% of the gross receipts
from these sales and shall only be imposed in 1/4% increments.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident of the tax shall be
collected and enforced by the Department of Revenue. The
Department of Revenue shall administer and enforce this
Section; collect all taxes and penalties due under this
Section; dispose of taxes and penalties so collected in the
manner hereinafter provided; and determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty under this Section. In the administration of
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and shall employ the same
modes of procedure as are prescribed in Sections 1, 1a, 1d, 1e,
1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 in respect to all
provisions therein other than the State rate of tax, 2a, 2b,
2c, 2i, 3 except as to the disposition of taxes and penalties
collected, 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this Section.

10300SB0776sam001 - 374 - LRB103 03232 RJT 73288 a
(c) Persons subject to a tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability under this Section by separately
stating that tax as an additional charge, which charge may be
stated in combination, in a single amount, with any State tax
that sellers are required to collect.
(d) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(e) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected under this Section for deposit into the
Local Cannabis Retailers' Occupation Tax Trust Fund.
(f) On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to
municipalities from which retailers have paid taxes or
penalties under this Section during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount, not including credit memoranda, collected
under this Section from sales made in the municipality during
the second preceding calendar month, plus an amount the

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Department of Revenue determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such municipality, and not including any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the municipality, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
(g) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after the effective date of this
amendatory Act of the 103rd General Assembly and for which a
certified copy is filed with the Department on or before April
1, 2025 shall be administered and enforced by the Department

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beginning on July 1, 2025. For ordinances filed with the
Department after April 1, 2025, an ordinance or resolution
imposing or discontinuing a tax under this Section or
effecting a change in the rate thereof shall either (i) be
adopted and a certified copy thereof filed with the Department
on or before the first day of April, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of July next following the adoption and filing; or
(ii) be adopted and a certified copy thereof filed with the
Department on or before the first day of October, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
Section 800-45. The Cannabis Regulation and Tax Act is
amended by changing Sections 1-10, 5-11, 5-45, 10-10, 15-155,
and 55-35 and by adding Sections 15-35.5, 15-35.11, 20-60, and
35-22 as follows:
(410 ILCS 705/1-10)
Sec. 1-10. Definitions. In this Act:
"Adult Use Cultivation Center License" means a license
issued by the Department of Agriculture that permits a person
to act as a cultivation center under this Act and any
administrative rule made in furtherance of this Act.
"Adult Use Dispensing Organization License" means a

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license issued by the Department of Financial and Professional
Regulation that permits a person to act as a dispensing
organization under this Act and any administrative rule made
in furtherance of this Act.
"Advertise" means to engage in promotional activities
including, but not limited to: newspaper, radio, Internet and
electronic media, and television advertising; the distribution
of fliers and circulars; billboard advertising; and the
display of window and interior signs. "Advertise" does not
mean exterior signage displaying only the name of the licensed
cannabis business establishment.
"Application points" means the number of points a
Dispensary Applicant receives on an application for a
Conditional Adult Use Dispensing Organization License.
"BLS Region" means a region in Illinois used by the United
States Bureau of Labor Statistics to gather and categorize
certain employment and wage data. The 17 such regions in
Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
Rockford, St. Louis, Springfield, Northwest Illinois
nonmetropolitan area, West Central Illinois nonmetropolitan
area, East Central Illinois nonmetropolitan area, and South
Illinois nonmetropolitan area.
"By lot" means a randomized method of choosing between 2
or more Eligible Tied Applicants or 2 or more Qualifying

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Applicants.
"Cannabis" means marijuana, hashish, and other substances
that are identified as including any parts of the plant
Cannabis sativa and including derivatives or subspecies, such
as indica, of all strains of cannabis, whether growing or not;
the seeds thereof, the resin extracted from any part of the
plant; and any compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin,
including tetrahydrocannabinol (THC) and all other naturally
produced cannabinol derivatives, whether produced directly or
indirectly by extraction; however, "cannabis" does not include
the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
from it), fiber, oil or cake, or the sterilized seed of the
plant that is incapable of germination. "Cannabis" does not
include industrial hemp as defined and authorized under the
Industrial Hemp Act. "Cannabis" also means cannabis flower,
concentrate, and cannabis-infused products and any product
whether derived from natural or synthetic sources with a THC
concentration greater than the THC limit set forth in the Hemp
Cannabinoid Products Act.
"Cannabis business establishment" means a cultivation
center, craft grower, processing organization, infuser
organization, dispensing organization, or transporting

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organization.
"Cannabis concentrate" means a product derived from
cannabis that is produced by extracting cannabinoids,
including tetrahydrocannabinol (THC), from the plant through
the use of propylene glycol, glycerin, butter, olive oil, or
other typical cooking fats; water, ice, or dry ice; or butane,
propane, CO2, ethanol, or isopropanol and with the intended
use of smoking or making a cannabis-infused product. The use
of any other solvent is expressly prohibited unless and until
it is approved by the Department of Agriculture.
"Cannabis container" means a sealed or resealable,
traceable, container, or package used for the purpose of
containment of cannabis or cannabis-infused product during
transportation.
"Cannabis flower" means marijuana, hashish, and other
substances that are identified as including any parts of the
plant Cannabis sativa and including derivatives or subspecies,
such as indica, of all strains of cannabis; including raw
kief, leaves, and buds, but not resin that has been extracted
from any part of such plant; nor any compound, manufacture,
salt, derivative, mixture, or preparation of such plant, its
seeds, or resin.
"Cannabis-infused product" means a beverage, food, oil,
ointment, tincture, topical formulation, or another product
containing cannabis or cannabis concentrate that is not
intended to be smoked.

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"Cannabis paraphernalia" means equipment, products, or
materials intended to be used for planting, propagating,
cultivating, growing, harvesting, manufacturing, producing,
processing, preparing, testing, analyzing, packaging,
repackaging, storing, containing, concealing, ingesting, or
otherwise introducing cannabis into the human body.
"Cannabis plant monitoring system" or "plant monitoring
system" means a system that includes, but is not limited to,
testing and data collection established and maintained by the
cultivation center, craft grower, or processing organization
and that is available to the Department of Revenue, the
Department of Agriculture, the Department of Financial and
Professional Regulation, and the Illinois State Police for the
purposes of documenting each cannabis plant and monitoring
plant development throughout the life cycle of a cannabis
plant cultivated for the intended use by a customer from seed
planting to final packaging.
"Cannabis testing facility" means an entity registered by
the Department of Agriculture to test cannabis for potency and
contaminants.
"Clone" means a plant section from a female cannabis plant
not yet rootbound, growing in a water solution or other
propagation matrix, that is capable of developing into a new
plant.
"Community College Cannabis Vocational Training Pilot
Program faculty participant" means a person who is 21 years of

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age or older, licensed by the Department of Agriculture, and
is employed or contracted by an Illinois community college to
provide student instruction using cannabis plants at an
Illinois community college Community College.
"Community College Cannabis Vocational Training Pilot
Program faculty participant Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a Community College Cannabis Vocational
Training Pilot Program faculty participant.
"Conditional Adult Use Dispensing Organization License"
means a contingent license awarded to applicants for an Adult
Use Dispensing Organization License that reserves the right to
an Adult Use Dispensing Organization License if the applicant
meets certain conditions described in this Act, but does not
entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products.
"Conditional Adult Use Cultivation Center License" means a
license awarded to top-scoring applicants for an Adult Use
Cultivation Center License that reserves the right to an Adult
Use Cultivation Center License if the applicant meets certain
conditions as determined by the Department of Agriculture by
rule, but does not entitle the recipient to begin growing,
processing, or selling cannabis or cannabis-infused products.
"Craft grower" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to cultivate, dry, cure, and package cannabis and

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perform other necessary activities to make cannabis available
for sale at a dispensing organization or use at a processing
organization. A craft grower may contain up to 5,000 square
feet of canopy space on its premises for plants in the
flowering state. The Department of Agriculture may authorize
an increase or decrease of flowering stage cultivation space
in increments of 3,000 square feet by rule based on market
need, craft grower capacity, and the licensee's history of
compliance or noncompliance, with a maximum space of 14,000
square feet for cultivating plants in the flowering stage,
which must be cultivated in all stages of growth in an enclosed
and secure area. A craft grower may share premises with a
processing organization or a dispensing organization, or both,
provided each licensee stores currency and cannabis or
cannabis-infused products in a separate secured vault to which
the other licensee does not have access or all licensees
sharing a vault share more than 50% of the same ownership.
"Craft grower agent" means a principal officer, board
member, employee, or other agent of a craft grower who is 21
years of age or older.
"Craft Grower Agent Identification Card" means a document
issued by the Department of Agriculture that identifies a
person as a craft grower agent.
"Cultivation center" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to cultivate, process, transport (unless otherwise

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limited by this Act), and perform other necessary activities
to provide cannabis and cannabis-infused products to cannabis
business establishments.
"Cultivation center agent" means a principal officer,
board member, employee, or other agent of a cultivation center
who is 21 years of age or older.
"Cultivation Center Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a cultivation center agent.
"Currency" means currency and coins coin of the United
States.
"Dispensary" means a facility operated by a dispensing
organization at which activities licensed by this Act may
occur.
"Dispensary Applicant" means the Proposed Dispensing
Organization Name as stated on an application for a
Conditional Adult Use Dispensing Organization License.
"Dispensing organization" means a facility operated by an
organization or business that is licensed by the Department of
Financial and Professional Regulation to acquire cannabis from
a cultivation center, craft grower, processing organization,
or another dispensary for the purpose of selling or dispensing
cannabis, cannabis-infused products, cannabis seeds,
paraphernalia, or related supplies under this Act to
purchasers or to qualified registered medical cannabis
patients and caregivers. As used in this Act, "dispensing

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organization" includes a registered medical cannabis
organization as defined in the Compassionate Use of Medical
Cannabis Program Act or its successor Act that has obtained an
Early Approval Adult Use Dispensing Organization License.
"Dispensing organization agent" means a principal officer,
employee, or agent of a dispensing organization who is 21
years of age or older.
"Dispensing organization agent identification card" means
a document issued by the Department of Financial and
Professional Regulation that identifies a person as a
dispensing organization agent.
"Disproportionately Impacted Area" means a census tract or
comparable geographic area that satisfies the following
criteria as determined by the Department of Commerce and
Economic Opportunity, that:
(1) meets at least one of the following criteria:
(A) the area has a poverty rate of at least 20%
according to the latest federal decennial census; or
(B) 75% or more of the children in the area
participate in the federal free lunch program
according to reported statistics from the State Board
of Education; or
(C) at least 20% of the households in the area
receive assistance under the Supplemental Nutrition
Assistance Program; or
(D) the area has an average unemployment rate, as

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determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the United
States Department of Labor, for a period of at least 2
consecutive calendar years preceding the date of the
application; and
(2) has high rates of arrest, conviction, and
incarceration related to the sale, possession, use,
cultivation, manufacture, or transport of cannabis.
"Early Approval Adult Use Cultivation Center License"
means a license that permits a medical cannabis cultivation
center licensed under the Compassionate Use of Medical
Cannabis Program Act as of the effective date of this Act to
begin cultivating, infusing, packaging, transporting (unless
otherwise provided in this Act), processing, and selling
cannabis or cannabis-infused product to cannabis business
establishments for resale to purchasers as permitted by this
Act as of January 1, 2020.
"Early Approval Adult Use Dispensing Organization License"
means a license that permits a medical cannabis dispensing
organization licensed under the Compassionate Use of Medical
Cannabis Program Act as of the effective date of this Act to
begin selling cannabis or cannabis-infused product to
purchasers as permitted by this Act as of January 1, 2020.
"Early Approval Adult Use Dispensing Organization at a
secondary site" means a license that permits a medical

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cannabis dispensing organization licensed under the
Compassionate Use of Medical Cannabis Program Act as of the
effective date of this Act to begin selling cannabis or
cannabis-infused product to purchasers as permitted by this
Act on January 1, 2020 at a different dispensary location from
its existing registered medical dispensary location.
"Eligible Tied Applicant" means a Tied Applicant that is
eligible to participate in the process by which a remaining
available license is distributed by lot pursuant to a Tied
Applicant Lottery.
"Enclosed, locked facility" means a room, greenhouse,
building, or other enclosed area equipped with locks or other
security devices that permit access only by cannabis business
establishment agents working for the licensed cannabis
business establishment or acting pursuant to this Act to
cultivate, process, store, or distribute cannabis.
"Enclosed, locked space" means a closet, room, greenhouse,
building, or other enclosed area equipped with locks or other
security devices that permit access only by authorized
individuals under this Act. "Enclosed, locked space" may
include:
(1) a space within a residential building that (i) is
the primary residence of the individual cultivating 5 or
fewer cannabis plants that are more than 5 inches tall and
(ii) includes sleeping quarters and indoor plumbing. The
space must only be accessible by a key or code that is

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different from any key or code that can be used to access
the residential building from the exterior; or
(2) a structure, such as a shed or greenhouse, that
lies on the same plot of land as a residential building
that (i) includes sleeping quarters and indoor plumbing
and (ii) is used as a primary residence by the person
cultivating 5 or fewer cannabis plants that are more than
5 inches tall, such as a shed or greenhouse. The structure
must remain locked when it is unoccupied by people.
"Financial institution" has the same meaning as "financial
organization" as defined in Section 1501 of the Illinois
Income Tax Act, and also includes the holding companies,
subsidiaries, and affiliates of such financial organizations.
"Flowering stage" means the stage of cultivation where and
when a cannabis plant is cultivated to produce plant material
for cannabis products. This includes mature plants as follows:
(1) if greater than 2 stigmas are visible at each
internode of the plant; or
(2) if the cannabis plant is in an area that has been
intentionally deprived of light for a period of time
intended to produce flower buds and induce maturation,
from the moment the light deprivation began through the
remainder of the marijuana plant growth cycle.
"Individual" means a natural person.
"Infuser organization" or "infuser" means a facility
operated by an organization or business that is licensed by

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the Department of Agriculture to directly incorporate cannabis
or cannabis concentrate into a product formulation to produce
a cannabis-infused product.
"Kief" means the resinous crystal-like trichomes that are
found on cannabis and that are accumulated, resulting in a
higher concentration of cannabinoids, untreated by heat or
pressure, or extracted using a solvent.
"Labor peace agreement" means an agreement between a
cannabis business establishment and any labor organization
recognized under the National Labor Relations Act, referred to
in this Act as a bona fide labor organization, that prohibits
labor organizations and members from engaging in picketing,
work stoppages, boycotts, and any other economic interference
with the cannabis business establishment. This agreement means
that the cannabis business establishment has agreed not to
disrupt efforts by the bona fide labor organization to
communicate with, and attempt to organize and represent, the
cannabis business establishment's employees. The agreement
shall provide a bona fide labor organization access at
reasonable times to areas in which the cannabis business
establishment's employees work, for the purpose of meeting
with employees to discuss their right to representation,
employment rights under State law, and terms and conditions of
employment. This type of agreement shall not mandate a
particular method of election or certification of the bona
fide labor organization.

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"Limited access area" means a room or other area under the
control of a cannabis dispensing organization licensed under
this Act and upon the licensed premises where cannabis sales
occur with access limited to purchasers, dispensing
organization owners and other dispensing organization agents,
or service professionals conducting business with the
dispensing organization, or, if sales to registered qualifying
patients, caregivers, provisional patients, and Opioid
Alternative Pilot Program participants licensed pursuant to
the Compassionate Use of Medical Cannabis Program Act are also
permitted at the dispensary, registered qualifying patients,
caregivers, provisional patients, and Opioid Alternative Pilot
Program participants.
"Member of an impacted family" means an individual who has
a parent, legal guardian, child, spouse, or dependent, or was
a dependent of an individual who, prior to the effective date
of this Act, was arrested for, convicted of, or adjudicated
delinquent for any offense that is eligible for expungement
under this Act.
"Mother plant" means a cannabis plant that is cultivated
or maintained for the purpose of generating clones, and that
will not be used to produce plant material for sale to an
infuser or dispensing organization.
"Ordinary public view" means within the sight line with
normal visual range of a person, unassisted by visual aids,
from a public street or sidewalk adjacent to real property, or

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from within an adjacent property.
"Ownership and control" means ownership of at least 51% of
the business, including corporate stock if a corporation, and
control over the management and day-to-day operations of the
business and an interest in the capital, assets, and profits
and losses of the business proportionate to percentage of
ownership.
"Person" means a natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
"Possession limit" means the amount of cannabis under
Section 10-10 that may be possessed at any one time by a person
21 years of age or older or who is a registered qualifying
medical cannabis patient or caregiver under the Compassionate
Use of Medical Cannabis Program Act.
"Principal officer" includes a cannabis business
establishment applicant or licensed cannabis business
establishment's board member, owner with more than 1% interest
of the total cannabis business establishment or more than 5%
interest of the total cannabis business establishment of a
publicly traded company, president, vice president, secretary,
treasurer, partner, officer, member, manager member, or person
with a profit sharing, financial interest, or revenue sharing
arrangement. The definition includes a person with authority

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to control the cannabis business establishment, a person who
assumes responsibility for the debts of the cannabis business
establishment and who is further defined in this Act.
"Primary residence" means a dwelling where a person
usually stays or stays more often than other locations. It may
be determined by, without limitation, presence, tax filings;
address on an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a Disability
Identification Card; or voter registration. No person may have
more than one primary residence.
"Processing organization" or "processor" means a facility
operated by an organization or business that is licensed by
the Department of Agriculture to either extract constituent
chemicals or compounds to produce cannabis concentrate or
incorporate cannabis or cannabis concentrate into a product
formulation to produce a cannabis product.
"Processing organization agent" means a principal officer,
board member, employee, or agent of a processing organization.
"Processing organization agent identification card" means
a document issued by the Department of Agriculture that
identifies a person as a processing organization agent.
"Purchaser" means a person 21 years of age or older who
acquires cannabis for a valuable consideration. "Purchaser"
does not include a cardholder under the Compassionate Use of
Medical Cannabis Program Act.
"Qualifying Applicant" means an applicant that submitted

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an application pursuant to Section 15-30 that received at
least 85% of 250 application points available under Section
15-30 as the applicant's final score and meets the definition
of "Social Equity Applicant" as set forth under this Section.
"Qualifying Social Equity Justice Involved Applicant"
means an applicant that submitted an application pursuant to
Section 15-30 that received at least 85% of 250 application
points available under Section 15-30 as the applicant's final
score and meets the criteria of either paragraph (1) or (2) of
the definition of "Social Equity Applicant" as set forth under
this Section.
"Qualified Social Equity Applicant" means a Social Equity
Applicant who has been awarded a conditional license under
this Act to operate a cannabis business establishment.
"Resided" means an individual's primary residence was
located within the relevant geographic area as established by
2 of the following:
(1) a signed lease agreement that includes the
applicant's name;
(2) a property deed that includes the applicant's
name;
(3) school records;
(4) a voter registration card;
(5) an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card;

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(6) a paycheck stub;
(7) a utility bill;
(8) tax records; or
(9) any other proof of residency or other information
necessary to establish residence as provided by rule.
"Smoking" means the inhalation of smoke caused by the
combustion of cannabis.
"Social Equity Applicant" means an applicant that is an
Illinois resident that meets one of the following criteria:
(1) an applicant with at least 51% ownership and
control by one or more individuals who have resided for at
least 5 of the preceding 10 years in a Disproportionately
Impacted Area;
(2) an applicant with at least 51% ownership and
control by one or more individuals who:
(i) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under this Act; or
(ii) is a member of an impacted family;
(3) for applicants with a minimum of 10 full-time
employees, an applicant with at least 51% of current
employees who:
(i) currently reside in a Disproportionately
Impacted Area; or
(ii) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is

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eligible for expungement under this Act or member of
an impacted family.
Nothing in this Act shall be construed to preempt or limit
the duties of any employer under the Job Opportunities for
Qualified Applicants Act. Nothing in this Act shall permit an
employer to require an employee to disclose sealed or expunged
offenses, unless otherwise required by law.
"Tetrahydrocannabinol" or "THC" means any naturally
occurring or synthetic tetrahydrocannabinol, including its
salts, isomers, and salts of isomers whenever the existence of
such salts, isomers, and salts of isomers is possible within
the specific chemical designation and any preparation,
mixture, or substance containing, or mixed or infused with,
any detectable amount of tetrahydrocannabinol or
tetrahydrocannabolic acid, including, but not limited to,
delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
tetrahydrocannabipherol, or hexahydrocannabinol, however
derived, or any other substance determined to have similar
intoxicating effects on the mind or body by the Department.
For the purposes of this definition, "isomer" means the
optical, position, and geometric isomers.
"Tied Applicant" means an application submitted by a
Dispensary Applicant pursuant to Section 15-30 that received
the same number of application points under Section 15-30 as
the Dispensary Applicant's final score as one or more

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top-scoring applications in the same BLS Region and would have
been awarded a license but for the one or more other
top-scoring applications that received the same number of
application points. Each application for which a Dispensary
Applicant was required to pay a required application fee for
the application period ending January 2, 2020 shall be
considered an application of a separate Tied Applicant.
"Tied Applicant Lottery" means the process established
under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
Use Dispensing Organization Licenses pursuant to Sections
15-25 and 15-30 among Eligible Tied Applicants.
"Tincture" means a cannabis-infused solution, typically
comprised of alcohol, glycerin, or vegetable oils, derived
either directly from the cannabis plant or from a processed
cannabis extract. A tincture is not an alcoholic liquor as
defined in the Liquor Control Act of 1934. A tincture shall
include a calibrated dropper or other similar device capable
of accurately measuring servings.
"Transporting organization" or "transporter" means an
organization or business that is licensed by the Department of
Agriculture to transport cannabis or cannabis-infused product
on behalf of a cannabis business establishment or a community
college licensed under the Community College Cannabis
Vocational Training Pilot Program.
"Transporting organization agent" means a principal
officer, board member, employee, or agent of a transporting

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organization.
"Transporting organization agent identification card"
means a document issued by the Department of Agriculture that
identifies a person as a transporting organization agent.
"Unit of local government" means any county, city,
village, or incorporated town.
"Vegetative stage" means the stage of cultivation in which
a cannabis plant is propagated to produce additional cannabis
plants or reach a sufficient size for production. This
includes seedlings, clones, mothers, and other immature
cannabis plants as follows:
(1) if the cannabis plant is in an area that has not
been intentionally deprived of light for a period of time
intended to produce flower buds and induce maturation, it
has no more than 2 stigmas visible at each internode of the
cannabis plant; or
(2) any cannabis plant that is cultivated solely for
the purpose of propagating clones and is never used to
produce cannabis.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
(410 ILCS 705/5-11 new)
Sec. 5-11. Hemp and hemp derivatives in medical and adult
use cannabis products.

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(a) In this Section, "industrial hemp" has the meaning
given to it under the Industrial Hemp Act.
(b) Cannabis business establishments that are licensed by
the Department of Agriculture as a craft grow organization or
an infuser organization and that meet the criteria set forth
in this Act as a Social Equity Applicant may infuse medical or
adult use cannabis products pursuant to this Act or the
Compassionate Use of Medicinal Cannabis Program Act with hemp
extract or hemp concentrate derived from industrial hemp as an
ingredient in cannabis-infused products offered for sale at a
dispensary licensed under this Act, including Section 15-35 or
Section 15-35.10.
(c) All hemp obtained through this policy must be used in
extracted form and in infused cannabis products only.
(d) Industrial hemp may be procured from hemp
organizations licensed under the Hemp Cannabinoid Products Act
from within the State or any other state with a regulated
industrial hemp program.
(e) All hemp and hemp derivatives shall be obtained from a
licensed or registered hemp grower or processor, regardless of
the home state of the grower or processor. Cannabis producers
shall provide a copy of the hemp grower's or processor's
state-issued license upon demand of the Department of
Agriculture or the Illinois State Police.
(f) A licensed craft grower organization or infuser
organization that meets the criteria set forth in this Act as a

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Social Equity Applicant must notify the Department of
Agriculture, on forms prescribed by the Department, of the
organization's intention to infuse or process intermediate
hemp products, hemp extract, or hemp concentrate, as those
terms are defined under the Hemp Cannabinoid Products Act.
Hemp concentrate derived product, as that term is defined
under the Hemp Cannabinoid Products Act, infused by a licensed
graft grower organization or infuser organization that meets
the criteria set forth in this Act as a Social Equity Applicant
may not contain more than 10 milligrams per serving or 100
milligrams per packaging of delta-8 tetrahydrocannabinol or
delta-9 tetrahydrocannabinol.
(g) Industrial hemp flower and biomass may be purchased
and extracted by licensed craft growers that meet the criteria
set forth in this Act as a Social Equity Applicant.
(h) Licensed cannabis cultivation centers and licensed
craft growers that meet the criteria set forth in this Act as a
Social Equity Applicant may procure or process industrial hemp
in the form of industrial hemp products, hemp extract, or hemp
concentrate, as those terms are defined under the Hemp
Cannabinoid Products Act. Licensed infusers may procure
industrial hemp in the form of industrial hemp, hemp extract,
or hemp concentrate, as those terms are used under the Hemp
Cannabinoid Products Act. All processed hemp derivatives must
be accompanied by a certificate of analysis showing potency
levels for THC, THCa, CBD, and CBDa, and any other

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cannabinoids required by the Department by rule or guidance.
No hemp concentrate derived product, as that term is defined
under the Hemp Cannabinoid Products Act, shall contain more
than 10 milligrams per serving or 100 milligrams per packaging
of delta-8-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol.
(i) A representative sample of all final products
containing industrial hemp or hemp derivatives must undergo
testing pursuant to the Compassionate Use of Medical Cannabis
Act, the Cannabis Regulation and Tax Act, and any applicable
administrative rules.
(j) Final products containing hemp or hemp derivatives are
subject to the requirements of the Compassionate Use of
Medical Cannabis Act, the Cannabis Regulation and Tax Act, and
any applicable administrative rules.
(410 ILCS 705/5-45)
Sec. 5-45. Illinois Cannabis Regulation Oversight Officer.
(a) The position of Illinois Cannabis Regulation Oversight
Officer is created within the Department of Financial and
Professional Regulation under the Secretary of Financial and
Professional Regulation. The Cannabis Regulation Oversight
Officer serves a coordinating role among State agencies
regarding this Act and the Compassionate Use of Medical
Cannabis Program Act. The Illinois Cannabis Regulation
Oversight Officer shall be appointed by the Governor with the

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advice and consent of the Senate. The term of office of the
Officer shall expire on the third Monday of January in
odd-numbered years provided that he or she shall hold office
until a successor is appointed and qualified. In case of
vacancy in office during the recess of the Senate, the
Governor shall make a temporary appointment until the next
meeting of the Senate, when the Governor shall nominate some
person to fill the office, and any person so nominated who is
confirmed by the Senate shall hold office during the remainder
of the term and until his or her successor is appointed and
qualified.
(b) The Illinois Cannabis Regulation Oversight Officer has
the authority to:
(1) maintain a staff;
(2) make recommendations for administrative and
statutory changes;
(3) collect data both in Illinois and outside Illinois
regarding the regulation of cannabis;
(4) compile or assist in the compilation of any
reports required by this Act;
(5) ensure the coordination of efforts between various
State agencies involved in regulating and taxing the sale
of cannabis in Illinois; and
(6) encourage, promote, suggest, and report best
practices for ensuring diversity in the cannabis industry
in Illinois.

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(c) The Illinois Cannabis Regulation Oversight Officer and
the Officer's staff shall not:
(1) participate in the issuance or award of any
cannabis business establishment license; or
(2) participate in discipline related to any cannabis
business establishment.
The Illinois Cannabis Regulation Officer is not prohibited
from coordinating with and making recommendations to agencies
regarding licensing and disciplinary policies and procedures.
(d) Any funding required for the Illinois Cannabis
Regulation Oversight Officer, its staff, or its activities
shall be drawn from the Cannabis Regulation Fund.
(e) The Illinois Cannabis Regulation Oversight Officer
shall commission and publish one or more disparity and
availability studies that: (1) evaluates whether there exists
discrimination in the State's cannabis industry; and (2) if
so, evaluates the impact of such discrimination on the State
and includes recommendations to the Department of Financial
and Professional Regulation and the Department of Agriculture
for reducing or eliminating any identified barriers to entry
in the cannabis market. Such disparity and availability
studies shall examine each license type issued pursuant to
Sections 15-25, 15-30.1, or 15-35.20, subsection (a) of
Section 30-5, or subsection (a) of Section 35-5, or Article 15
of the Hemp Cannabinoid Products Act, and shall be initiated
within 180 days from the issuance of the first of each license

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authorized by those Sections. The results of each disparity
and availability study shall be reported to the General
Assembly and the Governor no later than 12 months after the
commission of each study.
The Illinois Cannabis Regulation Oversight Officer shall
forward a copy of its findings and recommendations to the
Department of Financial and Professional Regulation, the
Department of Agriculture, the Department of Commerce and
Economic Opportunity, the General Assembly, and the Governor.
(f) The Illinois Cannabis Regulation Oversight Officer may
compile, collect, or otherwise gather data necessary for the
administration of this Act and to carry out the Officer's duty
relating to the recommendation of policy changes. The Illinois
Cannabis Regulation Oversight Officer may direct the
Department of Agriculture, Department of Financial and
Professional Regulation, Department of Public Health,
Department of Human Services, and Department of Commerce and
Economic Opportunity to assist in the compilation, collection,
and data gathering authorized pursuant to this subsection. The
Illinois Cannabis Regulation Oversight Officer shall compile
all of the data into a single report and submit the report to
the Governor and the General Assembly and publish the report
on its website.
(Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21.)
(410 ILCS 705/10-10)

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Sec. 10-10. Possession limit.
(a) Except if otherwise authorized by this Act, for a
person who is 21 years of age or older and a resident of this
State, the possession limit is as follows:
(1) 30 grams of cannabis flower;
(2) no more than 500 milligrams of THC contained in
cannabis-infused product, 500 milligrams of THC contained
in a hemp concentrate derived products, or 500 milligrams
of THC contained in both cannabis-infused products and
hemp concentrate derived products;
(3) 5 grams of cannabis concentrate; and
(4) for registered qualifying patients, any cannabis
produced by cannabis plants grown under subsection (b) of
Section 10-5, provided any amount of cannabis produced in
excess of 30 grams of raw cannabis or its equivalent must
remain secured within the residence or residential
property in which it was grown.
(b) For a person who is 21 years of age or older and who is
not a resident of this State, the possession limit is:
(1) 15 grams of cannabis flower;
(2) 2.5 grams of cannabis concentrate, 250 milligrams
of THC contained in a hemp concentrate derived products,
or 250 milligrams of THC contained in both
cannabis-infused products and hemp concentrate derived
products; and
(3) 250 milligrams of THC contained in a

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cannabis-infused product.
(c) The possession limits found in subsections (a) and (b)
of this Section are to be considered cumulative.
(d) No person shall knowingly obtain, seek to obtain, or
possess an amount of cannabis from a dispensing organization
or craft grower that would cause him or her to exceed the
possession limit under this Section, including cannabis that
is cultivated by a person under this Act or obtained under the
Compassionate Use of Medical Cannabis Program Act.
(e) Cannabis and cannabis-derived substances regulated
under the Industrial Hemp Act are not covered by this Act.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(410 ILCS 705/15-35.5 new)
Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer
Products Safety Committee.
(a) The General Assembly finds that an Intoxicating
Hemp-Derived THC Consumer Products Safety Committee is
necessary to evaluate the public health impacts, product
formulations, manufacturing standards, and consumer safety
standards for intoxicating THC products derived or produced
from the industrial hemp, and make recommendations to the
General Assembly, the Governor, the Attorney General, and
State regulatory agencies on a regulatory framework for the
manufacture, distribution, and sale of hemp-derived THC
consumer products within Illinois.

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(b) The Committee shall consist of the following members:
(1) a member of the Senate, designated by the
President of the Senate;
(2) a member of the House of Representatives,
designated by the Speaker of the House of Representatives;
(3) a member of the Senate, designated by the Minority
Leader of the Senate;
(4) a member of the House of Representative,
designated by the Minority Leader of the House of
Representatives;
(5) the Illinois Cannabis Regulation and Oversight
Officer, or a designee;
(6) the Director of Agriculture, or a designee;
(7) the Secretary of Financial and Professional
Regulation, or a designee;
(8) the Director of Public Health, or a designee;
(9) the Director of Revenue, or a designee;
(10) the Attorney General, or a designee;
(11) the Director of the Illinois State Police, or a
designee;
(12) one member who is an attorney with expertise in
the regulation of cannabis, appointed by the Director of
Agriculture;
(13) one member who is an individual with expertise in
the processing of cannabis, appointed by the Director of
Agriculture;

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(14) one member who is an individual with expertise in
consumer safety over hemp and cannabis product
formulations, appointed by the Director of Public Health;
(15) one member who is a physician with expertise in
the consumer safety impacts of hemp and cannabis product
consumption and its effects on the mind and body,
appointed by the Director of Public Health;
(16) one member who is a laboratory technician or
scientist with expertise in the testing and evaluation of
cannabis product safety, appointed by the Director of
Agriculture;
(17) one member who is an individual with expertise in
consumer product approvals and requirements under the
Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by
the Director of Public Health;
(18) one member who is a school superintendent or
principal, appointed by the State Superintendent of
Education; and
(19) one member who is a college or university
representative with expertise in research and development
of consumer safety standards and products, appointed by
the State Superintendent of Education.
(c) The Committee shall produce a report on or before
January 1, 2025 with recommendations on appropriate consumer
safety standards, including product formulations,
manufacturing standards, advertising standards, and a

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comprehensive regulatory framework for the safe manufacture,
distribution, and sale of hemp-derived THC products within
this State.
(d) The Department of Agriculture, the Department of
Financial and Professional Regulation, the Cannabis Oversight
Officer, the Department of Public Health, the Illinois State
Police, and the Attorney General shall issue a report with any
legislative recommendations, if deemed necessary, to the
General Assembly on or before March 1, 2025 to establish a
regulatory and enforcement framework for hemp-derived THC
products to be manufactured, distributed, and sold to
consumers within this State.
(410 ILCS 705/15-155)
Sec. 15-155. Unlicensed practice; violation; civil
penalty.
(a) In addition to any other penalty provided by law, any
person who practices, offers to practice, attempts to
practice, or holds oneself out to practice as a licensed
dispensing organization owner, principal officer,
agent-in-charge, or agent, cultivates, processes, distributes,
sells, or offers for sale cannabis, cannabis-infused products,
cannabis concentrates, or cannabis flower without being
licensed under this Act shall, in addition to any other
penalty provided by law, pay a civil penalty to the Department
of Financial and Professional Regulation in an amount not to

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exceed $10,000 for each offense as determined by the
Department. Each day a person engages in unlicensed practice
in violation of the provisions of this Section constitutes a
separate offense. The civil penalty shall be assessed by the
Department after a hearing is held in accordance with the
provisions set forth in this Act regarding the provision of a
hearing for the discipline of a licensee.
(b) The Department, the Attorney General, any State or
local law enforcement agency, or any State's Attorney may has
the authority and power to investigate any and all unlicensed
activity.
(b-5) If a person is convicted of unlicensed activity
under this Act, the Hemp Cannabinoid Products Act, or the
Compassionate Use of Medical Cannabis Act, the clerk of the
court in which the conviction is had shall, within 5 days after
the conviction, forward to the Secretary of Financial and
Professional Regulation a report of the conviction, and the
court may recommend the suspension of any licenses awarded to
the convicted person under this Act, the Hemp Cannabinoid
Products Act, or the Compassionate Use of Medical Cannabis
Act.
(b-10) If a person is convicted for a third or subsequent
violation in a 3-year period of unlicensed activity under this
Act, the Hemp Cannabinoid Products Act, or the Compassionate
Use of Medical Cannabis Act, the judge of the court in which
the conviction is had shall require the immediate surrender to

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the clerk of the court of all licenses or conditional licenses
awarded to the convicted person under this Act, the Hemp
Cannabinoid Products Act, or the Compassionate Use of Medical
Cannabis Act, and the clerk of the court shall, within 5 days
after the conviction, forward the surrendered licenses,
together with a report of the conviction, to the Secretary of
Financial and Professional Regulation.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty or
in accordance with the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of this State.
(d) A violation of subsection (a) is an unlawful practice
under Section 2Z of the Consumer Fraud and Deceptive Business
Practices Act. All remedies, penalties, and authority granted
to the Attorney General under that Act shall be available for
the enforcement of this Act.
(e) Nothing in this Section prohibits a unit of local
government from enacting a local law or ordinance to carry out
enforcement activities and assess civil penalties against
unlicensed cannabis sales.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(410 ILCS 705/20-60 new)
Sec. 20-60. Unlicensed practice; violation; civil penalty.

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(a) In addition to any other penalty provided by law, a
person who practices, offers to practice, attempts to
practice, or holds oneself out to practice as a licensed
cultivation center, infuser, craft grower organization, hemp
concentrate infuser, hemp extract enforcer, or hemp processor
or a principal officer, agent-in-charge, or agent or who
cultivates, processes, distributes, sells, or offers for sale
cannabis, cannabis-infused products, cannabis concentrates,
cannabis flower, intermediate hemp products, hemp concentrate,
hemp extract, hemp extract derived products, or hemp
concentrate derived products without being licensed under this
Act, the Hemp Cannabinoid Products Act, or the Compassionate
Use of Medical Cannabis Act shall, in addition to any other
penalty provided by law, pay a civil penalty to the Department
of Agriculture in an amount not to exceed $10,000 for each
offense. Each day any person engages in unlicensed practice in
violation of the provisions of this Section constitutes a
separate offense. The civil penalty shall be assessed by the
Department after a hearing is held under the provisions set
forth in this Act regarding hearings for the discipline of a
licensee.
(b) The Department, the Attorney General, a State or local
law enforcement agency, or a State's Attorney may investigate
any and all unlicensed activity.
(b-5) If a person is convicted of unlicensed activity
under this Act, the Hemp Cannabinoid Products Act, or the

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Compassionate Use of Medical Cannabis Act, the clerk of the
court in which the conviction is had shall, within 5 days after
the conviction, forward to the Director of Agriculture a
report of the conviction, and the court may recommend the
suspension of any licenses awarded to the convicted person
under this Act, the Hemp Cannabinoid Products Act, or the
Compassionate Use of Medical Cannabis Act,
(b-10) If a person is convicted, for a third subsequent
violation in a 3-year period, of unlicensed activity under
this Act, the Hemp Cannabinoid Products Act, or the
Compassionate Use of Medical Cannabis Act, the judge of the
court in which the conviction is had shall require the
surrender to the clerk of the court of all licenses or
conditional license awarded to the convicted person under this
Act, the Hemp Cannabinoid Products Act, or the Compassionate
Use of Medical Cannabis Act, and the clerk of the court shall,
within 5 days after the conviction, forward the surrendered
licenses, together with a report of the conviction, to the
Director of Agriculture.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty or
in accordance with the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of this State.
(d) In addition to any other remedies or penalties

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provided by law, upon a third or subsequent revocation or
suspension of a license, a unit of local government may
suspend or revoke any locally established licenses held by the
person and prohibit the person from further operations and
seize any cannabis or THC product.
(410 ILCS 705/55-35)
Sec. 55-35. Administrative rulemaking.
(a) No later than 180 days after the effective date of this
Act, the Department of Agriculture, the Illinois State Police,
the Department of Financial and Professional Regulation, the
Department of Revenue, the Department of Commerce and Economic
Opportunity, and the Treasurer's Office shall adopt permanent
rules in accordance with their responsibilities under this
Act. The Department of Agriculture, the Illinois State Police,
the Department of Financial and Professional Regulation, the
Department of Revenue, and the Department of Commerce and
Economic Opportunity may adopt rules necessary to regulate
personal cannabis use through the use of emergency rulemaking
in accordance with subsection (gg) of Section 5-45 of the
Illinois Administrative Procedure Act. The General Assembly
finds that the adoption of rules to regulate cannabis use is
deemed an emergency and necessary for the public interest,
safety, and welfare.
(b) The Department of Agriculture rules may address, but
are not limited to, the following matters related to

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cultivation centers, craft growers, infuser organizations, and
transporting organizations with the goal of protecting against
diversion and theft, without imposing an undue burden on the
cultivation centers, craft growers, infuser organizations, or
transporting organizations:
(1) oversight requirements for cultivation centers,
craft growers, infuser organizations, and transporting
organizations;
(2) recordkeeping requirements for cultivation
centers, craft growers, infuser organizations, and
transporting organizations;
(3) security requirements for cultivation centers,
craft growers, infuser organizations, and transporting
organizations, which shall include that each cultivation
center, craft grower, infuser organization, and
transporting organization location must be protected by a
fully operational security alarm system;
(4) standards for enclosed, locked facilities under
this Act;
(5) procedures for suspending or revoking the
identification cards of agents of cultivation centers,
craft growers, infuser organizations, and transporting
organizations that commit violations of this Act or the
rules adopted under this Section;
(6) rules concerning the intrastate transportation of
cannabis from a cultivation center, craft grower, infuser

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organization, and transporting organization to a
dispensing organization;
(7) standards concerning the testing, quality,
cultivation, and processing of cannabis; and
(7.5) standards and rules for the investigation and
enforcement of unregulated and unlicensed sale of
cannabis, cannabis products, and hemp cannabinoid
products; and
(8) any other matters under oversight by the
Department of Agriculture as are necessary for the fair,
impartial, stringent, and comprehensive administration of
this Act.
(b-5) Notwithstanding any standards and rules developed
under paragraph (7.5) of subsection (b), the Department of
Agriculture shall update through official guidance and publish
publicly on its website the cannabinoids that it deems
tetrahydrocannabinol or THC on or before each January 1 and
July 1.
(c) The Department of Financial and Professional
Regulation rules may address, but are not limited to, the
following matters related to dispensing organizations, with
the goal of protecting against diversion and theft, without
imposing an undue burden on the dispensing organizations:
(1) oversight requirements for dispensing
organizations;
(2) recordkeeping requirements for dispensing

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organizations;
(3) security requirements for dispensing
organizations, which shall include that each dispensing
organization location must be protected by a fully
operational security alarm system;
(4) procedures for suspending or revoking the licenses
of dispensing organization agents that commit violations
of this Act or the rules adopted under this Act;
(4.5) standards and rules for the investigation and
enforcement of unregulated and unlicensed sale of
cannabis, cannabis products, and hemp cannabinoid
products; and
(5) any other matters under oversight by the
Department of Financial and Professional Regulation that
are necessary for the fair, impartial, stringent, and
comprehensive administration of this Act.
(d) The Department of Revenue rules may address, but are
not limited to, the following matters related to the payment
of taxes by cannabis business establishments:
(1) recording of sales;
(2) documentation of taxable income and expenses;
(3) transfer of funds for the payment of taxes; or
(4) any other matter under the oversight of the
Department of Revenue.
(e) The Department of Commerce and Economic Opportunity
rules may address, but are not limited to, a loan program or

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grant program to assist Social Equity Applicants access the
capital needed to start a cannabis business establishment. The
names of recipients and the amounts of any moneys received
through a loan program or grant program shall be a public
record.
(f) The Illinois State Police rules may address
enforcement of its authority under this Act. The Illinois
State Police shall not make rules that infringe on the
exclusive authority of the Department of Financial and
Professional Regulation or the Department of Agriculture over
licensees under this Act.
(g) The Department of Human Services shall develop and
disseminate:
(1) educational information about the health risks
associated with the use of cannabis; and
(2) one or more public education campaigns in
coordination with local health departments and community
organizations, including one or more prevention campaigns
directed at children, adolescents, parents, and pregnant
or breastfeeding women, to inform them of the potential
health risks associated with intentional or unintentional
cannabis use.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-538, eff. 8-20-21.)
Section 800-50. The Illinois Vehicle Code is amended by

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changing Sections 2-118.2 and 11-501.2 and by adding Section
11-502.20 as follows:
(625 ILCS 5/2-118.2)
Sec. 2-118.2. Opportunity for hearing; cannabis-related
and hemp concentrate derived products-related suspension under
Section 11-501.9.
(a) A suspension of driving privileges under Section
11-501.9 of this Code shall not become effective until the
person is notified in writing of the impending suspension and
informed that he or she may request a hearing in the circuit
court of venue under subsection (b) of this Section and the
suspension shall become effective as provided in Section
11-501.9.
(b) Within 90 days after the notice of suspension served
under Section 11-501.9, the person may make a written request
for a judicial hearing in the circuit court of venue. The
request to the circuit court shall state the grounds upon
which the person seeks to have the suspension rescinded.
Within 30 days after receipt of the written request or the
first appearance date on the Uniform Traffic Ticket issued for
a violation of Section 11-501 of this Code, or a similar
provision of a local ordinance, the hearing shall be conducted
by the circuit court having jurisdiction. This judicial
hearing, request, or process shall not stay or delay the
suspension. The hearing shall proceed in the court in the same

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manner as in other civil proceedings.
The hearing may be conducted upon a review of the law
enforcement officer's own official reports; provided however,
that the person may subpoena the officer. Failure of the
officer to answer the subpoena shall be considered grounds for
a continuance if in the court's discretion the continuance is
appropriate.
The scope of the hearing shall be limited to the issues of:
(1) Whether the officer had reasonable suspicion to
believe that the person was driving or in actual physical
control of a motor vehicle upon a highway while impaired
by the use of cannabis or hemp concentrate derived
products; and
(2) Whether the person, after being advised by the
officer that the privilege to operate a motor vehicle
would be suspended if the person refused to submit to and
complete field sobriety tests or validated roadside
chemical tests, did refuse to submit to or complete field
sobriety tests or validated roadside chemical tests
authorized under Section 11-501.9; and
(3) Whether the person after being advised by the
officer that the privilege to operate a motor vehicle
would be suspended if the person submitted to field
sobriety tests or validated roadside chemical tests that
disclosed the person was impaired by the use of cannabis
or hemp concentrate derived products, did submit to field

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sobriety tests or validated roadside chemical tests that
disclosed that the person was impaired by the use of
cannabis or hemp concentrate derived products.
Upon the conclusion of the judicial hearing, the circuit
court shall sustain or rescind the suspension and immediately
notify the Secretary of State. Reports received by the
Secretary of State under this Section shall be privileged
information and for use only by the courts, police officers,
and Secretary of State.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
101-593, eff. 12-4-19.)
(625 ILCS 5/11-501.2) (from Ch. 95 1/2, par. 11-501.2)
Sec. 11-501.2. Chemical and other tests.
(a) Upon the trial of any civil or criminal action or
proceeding arising out of an arrest for an offense as defined
in Section 11-501 or a similar local ordinance or proceedings
pursuant to Section 2-118.1, evidence of the concentration of
alcohol, other drug or drugs, or intoxicating compound or
compounds, or any combination thereof in a person's blood or
breath at the time alleged, as determined by analysis of the
person's blood, urine, breath, or other bodily substance,
shall be admissible. Where such test is made the following
provisions shall apply:
1. Chemical analyses of the person's blood, urine,
breath, or other bodily substance to be considered valid

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under the provisions of this Section shall have been
performed according to standards promulgated by the
Illinois State Police by a licensed physician, registered
nurse, trained phlebotomist, licensed paramedic, or other
individual possessing a valid permit issued by that
Department for this purpose. The Director of the Illinois
State Police is authorized to approve satisfactory
techniques or methods, to ascertain the qualifications and
competence of individuals to conduct such analyses, to
issue permits which shall be subject to termination or
revocation at the discretion of that Department and to
certify the accuracy of breath testing equipment. The
Illinois State Police shall prescribe regulations as
necessary to implement this Section.
2. When a person in this State shall submit to a blood
test at the request of a law enforcement officer under the
provisions of Section 11-501.1, only a physician
authorized to practice medicine, a licensed physician
assistant, a licensed advanced practice registered nurse,
a registered nurse, trained phlebotomist, or licensed
paramedic, or other qualified person approved by the
Illinois State Police may withdraw blood for the purpose
of determining the alcohol, drug, or alcohol and drug
content therein. This limitation shall not apply to the
taking of breath, other bodily substance, or urine
specimens.

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When a blood test of a person who has been taken to an
adjoining state for medical treatment is requested by an
Illinois law enforcement officer, the blood may be
withdrawn only by a physician authorized to practice
medicine in the adjoining state, a licensed physician
assistant, a licensed advanced practice registered nurse,
a registered nurse, a trained phlebotomist acting under
the direction of the physician, or licensed paramedic. The
law enforcement officer requesting the test shall take
custody of the blood sample, and the blood sample shall be
analyzed by a laboratory certified by the Illinois State
Police for that purpose.
3. The person tested may have a physician, or a
qualified technician, chemist, registered nurse, or other
qualified person of their own choosing administer a
chemical test or tests in addition to any administered at
the direction of a law enforcement officer. The failure or
inability to obtain an additional test by a person shall
not preclude the admission of evidence relating to the
test or tests taken at the direction of a law enforcement
officer.
4. Upon the request of the person who shall submit to a
chemical test or tests at the request of a law enforcement
officer, full information concerning the test or tests
shall be made available to the person or such person's
attorney.

10300SB0776sam001 - 422 - LRB103 03232 RJT 73288 a
5. Alcohol concentration shall mean either grams of
alcohol per 100 milliliters of blood or grams of alcohol
per 210 liters of breath.
6. Tetrahydrocannabinol concentration means either 5
nanograms or more of delta-9-tetrahydrocannabinol or
delta-8-tetrahydrocannabinol per milliliter of whole blood
or 10 nanograms or more of delta-9-tetrahydrocannabinol or
delta-8-tetrahydrocannabinol per milliliter of other
bodily substance.
(a-5) Law enforcement officials may use validated roadside
chemical tests or standardized field sobriety tests approved
by the National Highway Traffic Safety Administration when
conducting investigations of a violation of Section 11-501 or
similar local ordinance by drivers suspected of driving under
the influence of cannabis or hemp concentrate derived
products. The General Assembly finds that (i) validated
roadside chemical tests are effective means to determine if a
person is under the influence of cannabis or hemp concentrate
derived products and (ii) standardized field sobriety tests
approved by the National Highway Traffic Safety Administration
are divided attention tasks that are intended to determine if
a person is under the influence of cannabis or hemp
concentrate derived products. The purpose of these tests is to
determine the effect of the use of cannabis or hemp
concentrate derived products on a person's capacity to think
and act with ordinary care and therefore operate a motor

10300SB0776sam001 - 423 - LRB103 03232 RJT 73288 a
vehicle safely. Therefore, the results of these validated
roadside chemical tests and standardized field sobriety tests,
appropriately administered, shall be admissible in the trial
of any civil or criminal action or proceeding arising out of an
arrest for a cannabis-related or hemp concentrate derived
products-related offense as defined in Section 11-501 or a
similar local ordinance or proceedings under Section 2-118.1
or 2-118.2. Where a test is made the following provisions
shall apply:
1. The person tested may have a physician, or a
qualified technician, chemist, registered nurse, or other
qualified person of their own choosing administer a
chemical test or tests in addition to the standardized
field sobriety test or tests administered at the direction
of a law enforcement officer. The failure or inability to
obtain an additional test by a person does not preclude
the admission of evidence relating to the test or tests
taken at the direction of a law enforcement officer.
2. Upon the request of the person who shall submit to
validated roadside chemical tests or a standardized field
sobriety test or tests at the request of a law enforcement
officer, full information concerning the test or tests
shall be made available to the person or the person's
attorney.
3. At the trial of any civil or criminal action or
proceeding arising out of an arrest for an offense as

10300SB0776sam001 - 424 - LRB103 03232 RJT 73288 a
defined in Section 11-501 or a similar local ordinance or
proceedings under Section 2-118.1 or 2-118.2 in which the
results of these validated roadside chemical tests or
standardized field sobriety tests are admitted, the person
may present and the trier of fact may consider evidence
that the person lacked the physical capacity to perform
the validated roadside chemical tests or standardized
field sobriety tests.
(b) Upon the trial of any civil or criminal action or
proceeding arising out of acts alleged to have been committed
by any person while driving or in actual physical control of a
vehicle while under the influence of alcohol, the
concentration of alcohol in the person's blood or breath at
the time alleged as shown by analysis of the person's blood,
urine, breath, or other bodily substance shall give rise to
the following presumptions:
1. If there was at that time an alcohol concentration
of 0.05 or less, it shall be presumed that the person was
not under the influence of alcohol.
2. If there was at that time an alcohol concentration
in excess of 0.05 but less than 0.08, such facts shall not
give rise to any presumption that the person was or was not
under the influence of alcohol, but such fact may be
considered with other competent evidence in determining
whether the person was under the influence of alcohol.
3. If there was at that time an alcohol concentration

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of 0.08 or more, it shall be presumed that the person was
under the influence of alcohol.
4. The foregoing provisions of this Section shall not
be construed as limiting the introduction of any other
relevant evidence bearing upon the question whether the
person was under the influence of alcohol.
(b-5) Upon the trial of any civil or criminal action or
proceeding arising out of acts alleged to have been committed
by any person while driving or in actual physical control of a
vehicle while under the influence of alcohol, other drug or
drugs, intoxicating compound or compounds or any combination
thereof, the concentration of cannabis or hemp concentrate
derived products in the person's whole blood or other bodily
substance at the time alleged as shown by analysis of the
person's blood or other bodily substance shall give rise to
the following presumptions:
1. If there was a tetrahydrocannabinol concentration
of 5 nanograms or more in whole blood or 10 nanograms or
more in another an other bodily substance as defined in
this Section, it shall be presumed that the person was
under the influence of cannabis or hemp concentrate
derived product.
2. If there was at that time a tetrahydrocannabinol
concentration of less than 5 nanograms in whole blood or
less than 10 nanograms in another an other bodily
substance, such facts shall not give rise to any

10300SB0776sam001 - 426 - LRB103 03232 RJT 73288 a
presumption that the person was or was not under the
influence of cannabis or hemp concentrate derived
products, but such fact may be considered with other
competent evidence in determining whether the person was
under the influence of cannabis or hemp concentrate
derived product.
(c) 1. If a person under arrest refuses to submit to a
chemical test under the provisions of Section 11-501.1,
evidence of refusal shall be admissible in any civil or
criminal action or proceeding arising out of acts alleged to
have been committed while the person under the influence of
alcohol, other drug or drugs, or intoxicating compound or
compounds, or any combination thereof was driving or in actual
physical control of a motor vehicle.
2. Notwithstanding any ability to refuse under this Code
to submit to these tests or any ability to revoke the implied
consent to these tests, if a law enforcement officer has
probable cause to believe that a motor vehicle driven by or in
actual physical control of a person under the influence of
alcohol, other drug or drugs, or intoxicating compound or
compounds, or any combination thereof has caused the death or
personal injury to another, the law enforcement officer shall
request, and that person shall submit, upon the request of a
law enforcement officer, to a chemical test or tests of his or
her blood, breath, other bodily substance, or urine for the
purpose of determining the alcohol content thereof or the

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presence of any other drug or combination of both.
This provision does not affect the applicability of or
imposition of driver's license sanctions under Section
11-501.1 of this Code.
3. For purposes of this Section, a personal injury
includes any Type A injury as indicated on the traffic crash
report completed by a law enforcement officer that requires
immediate professional attention in either a doctor's office
or a medical facility. A Type A injury includes severe
bleeding wounds, distorted extremities, and injuries that
require the injured party to be carried from the scene.
(d) If a person refuses validated roadside chemical tests
or standardized field sobriety tests under Section 11-501.9 of
this Code, evidence of refusal shall be admissible in any
civil or criminal action or proceeding arising out of acts
committed while the person was driving or in actual physical
control of a vehicle and alleged to have been impaired by the
use of cannabis or hemp concentrate derived products.
(e) Illinois State Police compliance with the changes in
this amendatory Act of the 99th General Assembly concerning
testing of other bodily substances and tetrahydrocannabinol
concentration by Illinois State Police laboratories is subject
to appropriation and until the Illinois State Police adopt
standards and completion validation. Any laboratories that
test for the presence of cannabis or hemp concentrate derived
products or other drugs under this Article, the Snowmobile

10300SB0776sam001 - 428 - LRB103 03232 RJT 73288 a
Registration and Safety Act, or the Boat Registration and
Safety Act must comply with ISO/IEC 17025:2005.
(Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21;
102-982, eff. 7-1-23.)
(625 ILCS 5/11-502.20 new)
Sec. 11-502.20. Possession of hemp concentrate derived
products in a motor vehicle.
(a) No driver may use hemp concentrate derived products
within the passenger area of any motor vehicle upon a highway
in this State.
(b) No driver may possess hemp concentrate derived
products within any area of any motor vehicle upon a highway in
this State except in a secured, sealed or resealable,
child-resistant hemp concentrate derived products container
that is inaccessible.
(c) No passenger may possess hemp concentrate derived
products within any passenger area of any motor vehicle upon a
highway in this State except in a secured, sealed or
resealable, child-resistant hemp concentrate derived products
container that is inaccessible.
(d) Any person who knowingly violates subsection (a), (b),
or (c) of this Section commits a Class A misdemeanor.
Section 800-55. The Juvenile Court Act of 1987 is amended
by changing Section 5-401 as follows:

10300SB0776sam001 - 429 - LRB103 03232 RJT 73288 a
(705 ILCS 405/5-401)
Sec. 5-401. Arrest and taking into custody of a minor.
(1) A law enforcement officer may, without a warrant,
(a) arrest a minor whom the officer with probable
cause believes to be a delinquent minor; or
(b) take into custody a minor who has been adjudged a
ward of the court and has escaped from any commitment
ordered by the court under this Act; or
(c) take into custody a minor whom the officer
reasonably believes has violated the conditions of
probation or supervision ordered by the court.
(2) Whenever a petition has been filed under Section 5-520
and the court finds that the conduct and behavior of the minor
may endanger the health, person, welfare, or property of the
minor or others or that the circumstances of the minor's home
environment may endanger the minor's health, person, welfare
or property, a warrant may be issued immediately to take the
minor into custody.
(3) Except for minors accused of violation of an order of
the court, any minor accused of any act under federal or State
law, or a municipal or county ordinance that would not be
illegal if committed by an adult, cannot be placed in a jail,
municipal lockup, detention center, or secure correctional
facility. Juveniles accused with underage consumption and
underage possession of alcohol, or cannabis, or hemp

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concentrate derived products cannot be placed in a jail,
municipal lockup, detention center, or correctional facility.
(Source: P.A. 103-22, eff. 8-8-23.)
Section 800-60. The Cannabis Control Act is amended by
changing Sections 3, 4, 5, and 5.1 as follows:
(720 ILCS 550/3) (from Ch. 56 1/2, par. 703)
Sec. 3. As used in this Act, unless the context otherwise
requires:
(a) "Cannabis" includes marihuana, hashish and other
substances which are identified as including any parts of the
plant Cannabis Sativa, whether growing or not; the seeds
thereof, the resin extracted from any part of such plant; and
any compound, manufacture, salt, derivative, mixture, or
preparation of such plant, its seeds, or resin, including
tetrahydrocannabinol (THC) and all other cannabinol
derivatives, including its naturally occurring or
synthetically produced ingredients, whether produced directly
or indirectly by extraction, or independently by means of
chemical synthesis or by a combination of extraction and
chemical synthesis; but shall not include the mature stalks of
such plant, fiber produced from such stalks, oil or cake made
from the seeds of such plant, any other compound, manufacture,
salt, derivative, mixture, or preparation of such mature
stalks (except the resin extracted therefrom), fiber, oil or

10300SB0776sam001 - 431 - LRB103 03232 RJT 73288 a
cake, or the sterilized seed of such plant which is incapable
of germination.
(b) "Casual delivery" means the delivery of not more than
10 grams of any substance containing cannabis without
consideration.
(c) "Department" means the Illinois Department of Human
Services (as successor to the Department of Alcoholism and
Substance Abuse) or its successor agency.
(d) "Deliver" or "delivery" means the actual, constructive
or attempted transfer of possession of cannabis, with or
without consideration, whether or not there is an agency
relationship.
(e) (Blank).
(e-5) "Hemp concentrate derived products" means a product
intended for human consumption that is derived from hemp
concentrate and meets the labeling and potency requirements
set forth in this Act of delta-8-tetrahydrocannabinol or
delta-9-tetrahydrocannabinol derived from any naturally
occurring cannabinoids found in hemp.
(f) "Director" means the Director of the Illinois State
Police or his designated agent.
(g) "Local authorities" means a duly organized State,
county, or municipal peace unit or police force.
(h) "Manufacture" means the production, preparation,
propagation, compounding, conversion or processing of
cannabis, either directly or indirectly, by extraction from

10300SB0776sam001 - 432 - LRB103 03232 RJT 73288 a
substances of natural origin, or independently by means of
chemical synthesis, or by a combination of extraction and
chemical synthesis, and includes any packaging or repackaging
of cannabis or labeling of its container, except that this
term does not include the preparation, compounding, packaging,
or labeling of cannabis as an incident to lawful research,
teaching, or chemical analysis and not for sale.
(i) "Person" means any individual, corporation, government
or governmental subdivision or agency, business trust, estate,
trust, partnership or association, or any other entity.
(j) "Produce" or "production" means planting, cultivating,
tending or harvesting.
(k) "State" includes the State of Illinois and any state,
district, commonwealth, territory, insular possession thereof,
and any area subject to the legal authority of the United
States of America.
(l) "Subsequent offense" means an offense under this Act,
the offender of which, prior to his conviction of the offense,
has at any time been convicted under this Act or under any laws
of the United States or of any state relating to cannabis, or
any controlled substance as defined in the Illinois Controlled
Substances Act.
(Source: P.A. 101-593, eff. 12-4-19; 102-538, eff. 8-20-21.)
(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)
Sec. 4. Except as otherwise provided in the Cannabis

10300SB0776sam001 - 433 - LRB103 03232 RJT 73288 a
Regulation and Tax Act, and the Industrial Hemp Act, and the
Hemp Cannabinoid Products Act, it is unlawful for any person
knowingly to possess cannabis, hemp concentrate, intermediate
hemp products, or hemp concentrate derived products.
Any person who violates this Section with respect to:
(a) not more than 10 grams of any substance containing
cannabis, hemp concentrate, intermediate hemp products, or
hemp concentrate derived products or any combination
therein is guilty of a civil law violation punishable by a
minimum fine of $100 and a maximum fine of $200. The
proceeds of the fine shall be payable to the clerk of the
circuit court. Within 30 days after the deposit of the
fine, the clerk shall distribute the proceeds of the fine
as follows:
(1) $10 of the fine to the circuit clerk and $10 of
the fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to
the circuit clerk and each $10 fine distributed to the
law enforcement agency that issued the citation for
the violation shall be used to defer the cost of
automatic expungements under paragraph (2.5) of
subsection (a) of Section 5.2 of the Criminal
Identification Act;
(2) $15 to the county to fund drug addiction
services;
(3) $10 to the Office of the State's Attorneys

10300SB0776sam001 - 434 - LRB103 03232 RJT 73288 a
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law
enforcement agency that issued the citation for the
violation.
With respect to funds designated for the Illinois
State Police, the moneys shall be remitted by the circuit
court clerk to the Illinois State Police within one month
after receipt for deposit into the State Police Operations
Assistance Fund. With respect to funds designated for the
Department of Natural Resources, the Department of Natural
Resources shall deposit the moneys into the Conservation
Police Operations Assistance Fund;
(b) more than 10 grams but not more than 30 grams of
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class B
misdemeanor;
(c) more than 30 grams but not more than 100 grams of
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class A
misdemeanor; provided, that if any offense under this
subsection (c) is a subsequent offense, the offender shall
be guilty of a Class 4 felony;
(d) more than 100 grams but not more than 500 grams of

10300SB0776sam001 - 435 - LRB103 03232 RJT 73288 a
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class 4
felony; provided that if any offense under this subsection
(d) is a subsequent offense, the offender shall be guilty
of a Class 3 felony;
(e) more than 500 grams but not more than 2,000 grams
of any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class 3
felony;
(f) more than 2,000 grams but not more than 5,000
grams of any substance containing cannabis, hemp
concentrate, intermediate hemp products, or hemp
concentrate derived products or any combination therein is
guilty of a Class 2 felony;
(g) more than 5,000 grams of any substance containing
cannabis, hemp concentrate, intermediate hemp products, or
hemp concentrate derived products or any combination
therein is guilty of a Class 1 felony.
Fines and assessments, such as fees or administrative
costs, authorized under this Section shall not be ordered or
imposed against a minor subject to Article III, IV, or V of the
Juvenile Court Act of 1987, or a minor under the age of 18
transferred to adult court or excluded from juvenile court
jurisdiction under Article V of the Juvenile Court Act of

10300SB0776sam001 - 436 - LRB103 03232 RJT 73288 a
1987, or the minor's parent, guardian, or legal custodian.
(Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.)
(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)
Sec. 5. Except as otherwise provided in the Cannabis
Regulation and Tax Act, and the Industrial Hemp Act, and the
Hemp Cannabinoid Products Act, it is unlawful for any person
knowingly to manufacture, deliver, or possess with intent to
deliver, or manufacture, cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products. Any person who violates this Section with respect
to:
(a) not more than 2.5 grams of any substance
containing cannabis, hemp concentrate, intermediate hemp
products, or hemp concentrate derived products or any
combination therein is guilty of a Class B misdemeanor;
(b) more than 2.5 grams but not more than 10 grams of
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class A
misdemeanor;
(c) more than 10 grams but not more than 30 grams of
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class 4
felony;

10300SB0776sam001 - 437 - LRB103 03232 RJT 73288 a
(d) more than 30 grams but not more than 500 grams of
any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class 3
felony for which a fine not to exceed $50,000 may be
imposed;
(e) more than 500 grams but not more than 2,000 grams
of any substance containing cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein is guilty of a Class 2
felony for which a fine not to exceed $100,000 may be
imposed;
(f) more than 2,000 grams but not more than 5,000
grams of any substance containing cannabis, hemp
concentrate, intermediate hemp products, or hemp
concentrate derived products or any combination therein is
guilty of a Class 1 felony for which a fine not to exceed
$150,000 may be imposed;
(g) more than 5,000 grams of any substance containing
cannabis, hemp concentrate, intermediate hemp products, or
hemp concentrate derived products or any combination
therein is guilty of a Class X felony for which a fine not
to exceed $200,000 may be imposed.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)

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Sec. 5.1. Cannabis or hemp cannabinoid trafficking.
(a) Except for purposes authorized by this Act, the
Industrial Hemp Act, or the Cannabis Regulation and Tax Act,
or the Hemp Cannabinoid Products Act, any person who knowingly
brings or causes to be brought into this State for the purpose
of manufacture or delivery or with the intent to manufacture
or deliver 2,500 grams or more of cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein in this State or any other
state or country is guilty of cannabis or hemp cannabinoid
trafficking.
(b) A person convicted of cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products trafficking shall be sentenced to a term of
imprisonment not less than twice the minimum term and fined an
amount as authorized by subsection (f) or (g) of Section 5 of
this Act, based upon the amount of cannabis, hemp concentrate,
intermediate hemp products, or hemp concentrate derived
products or any combination therein brought or caused to be
brought into this State, and not more than twice the maximum
term of imprisonment and fined twice the amount as authorized
by subsection (f) or (g) of Section 5 of this Act, based upon
the amount of cannabis, hemp concentrate, intermediate hemp
products, or hemp concentrate derived products or any
combination therein brought or caused to be brought into this
State.

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(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
Section 800-65. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2Z as follows:
(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
Sec. 2Z. Violations of other Acts. Any person who
knowingly violates the Automotive Repair Act, the Automotive
Collision Repair Act, the Home Repair and Remodeling Act, the
Dance Studio Act, the Physical Fitness Services Act, the
Hearing Instrument Consumer Protection Act, the Illinois Union
Label Act, the Installment Sales Contract Act, the Job
Referral and Job Listing Services Consumer Protection Act, the
Travel Promotion Consumer Protection Act, the Credit Services
Organizations Act, the Automatic Telephone Dialers Act, the
Pay-Per-Call Services Consumer Protection Act, the Telephone
Solicitations Act, the Illinois Funeral or Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care Act, the Safe
and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales
Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
the Predatory Loan Prevention Act, the Mortgage Rescue Fraud
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
Tax Act, the Electronic Mail Act, the Internet Caller
Identification Act, paragraph (6) of subsection (k) of Section
6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,

10300SB0776sam001 - 440 - LRB103 03232 RJT 73288 a
18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
Vehicle Code, Article 3 of the Residential Real Property
Disclosure Act, the Automatic Contract Renewal Act, the
Reverse Mortgage Act, Section 25 of the Youth Mental Health
Protection Act, the Personal Information Protection Act, or
the Student Online Personal Protection Act, or subsection (a)
of Section 15-155 of the Cannabis Regulation and Tax Act
commits an unlawful practice within the meaning of this Act.
(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)
Section 800-70. The Right to Privacy in the Workplace Act
is amended by changing Section 5 as follows:
(820 ILCS 55/5) (from Ch. 48, par. 2855)
Sec. 5. Discrimination for use of lawful products
prohibited.
(a) Except as otherwise specifically provided by law,
including Section 10-50 of the Cannabis Regulation and Tax Act
the Hemp Cannabinoid Products Act, and except as provided in
subsections (b) and (c) of this Section, it shall be unlawful
for an employer to refuse to hire or to discharge any
individual, or otherwise disadvantage any individual, with
respect to compensation, terms, conditions or privileges of
employment because the individual uses lawful products off the
premises of the employer during nonworking and non-call hours.

10300SB0776sam001 - 441 - LRB103 03232 RJT 73288 a
As used in this Section, "lawful products" means products that
are legal under state law. For purposes of this Section, an
employee is deemed on-call when the employee is scheduled with
at least 24 hours' notice by his or her employer to be on
standby or otherwise responsible for performing tasks related
to his or her employment either at the employer's premises or
other previously designated location by his or her employer or
supervisor to perform a work-related task.
(b) This Section does not apply to any employer that is a
non-profit organization that, as one of its primary purposes
or objectives, discourages the use of one or more lawful
products by the general public. This Section does not apply to
the use of those lawful products which impairs an employee's
ability to perform the employee's assigned duties.
(c) It is not a violation of this Section for an employer
to offer, impose or have in effect a health, disability or life
insurance policy that makes distinctions between employees for
the type of coverage or the price of coverage based upon the
employees' use of lawful products provided that:
(1) differential premium rates charged employees
reflect a differential cost to the employer; and
(2) employers provide employees with a statement
delineating the differential rates used by insurance
carriers.
(Source: P.A. 101-27, eff. 6-25-19.)

10300SB0776sam001 - 442 - LRB103 03232 RJT 73288 a
Article 999.
Effective Date