103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB0025
 
Introduced , by Rep. La Shawn K. Ford
 
SYNOPSIS AS INTRODUCED:



410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10

 Amends the Cannabis Regulation and Tax Act. Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as "craft" unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license. Makes other changes.



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A BILL FOR
 


HB0025LRB103 03524 CPF 48530 b



1 AN ACT concerning regulation.


2 Be it enacted by the People of the State of Illinois,

3represented in the General Assembly:



4 Section 5. The Cannabis Regulation and Tax Act is amended 
5by changing Sections 1-10, 30-5, 30-30, 40-25, 55-20, and 
660-10 as follows:

7 (410 ILCS 705/1-10)

8 Sec. 1-10. Definitions. In this Act:
9 "Adult Use Cultivation Center License" means a license 
10issued by the Department of Agriculture that permits a person 
11to act as a cultivation center under this Act and any 
12administrative rule made in furtherance of this Act.
13 "Adult Use Dispensing Organization License" means a 
14license issued by the Department of Financial and Professional 
15Regulation that permits a person to act as a dispensing 
16organization under this Act and any administrative rule made 
17in furtherance of this Act.
18 "Advertise" means to engage in promotional activities 
19including, but not limited to: newspaper, radio, Internet and 
20electronic media, and television advertising; the distribution 
21of fliers and circulars; billboard advertising; and the 
22display of window and interior signs. "Advertise" does not 
23mean exterior signage displaying only the name of the licensed 
 
 
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1cannabis business establishment. 
2 "Application points" means the number of points a 
3Dispensary Applicant receives on an application for a 
4Conditional Adult Use Dispensing Organization License. 
5 "BLS Region" means a region in Illinois used by the United 
6States Bureau of Labor Statistics to gather and categorize 
7certain employment and wage data. The 17 such regions in 
8Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion, 
9Champaign-Urbana, Chicago-Naperville-Elgin, Danville, 
10Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria, 
11Rockford, St. Louis, Springfield, Northwest Illinois 
12nonmetropolitan area, West Central Illinois nonmetropolitan 
13area, East Central Illinois nonmetropolitan area, and South 
14Illinois nonmetropolitan area. 
15 "By lot" means a randomized method of choosing between 2 
16or more Eligible Tied Applicants or 2 or more Qualifying 
17Applicants.
18 "Cannabis" means marijuana, hashish, and other substances 
19that are identified as including any parts of the plant 
20Cannabis sativa and including derivatives or subspecies, such 
21as indica, of all strains of cannabis, whether growing or not; 
22the seeds thereof, the resin extracted from any part of the 
23plant; and any compound, manufacture, salt, derivative, 
24mixture, or preparation of the plant, its seeds, or resin, 
25including tetrahydrocannabinol (THC) and all other naturally 
26produced cannabinol derivatives, whether produced directly or 
 
 
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1indirectly by extraction; however, "cannabis" does not include 
2the mature stalks of the plant, fiber produced from the 
3stalks, oil or cake made from the seeds of the plant, any other 
4compound, manufacture, salt, derivative, mixture, or 
5preparation of the mature stalks (except the resin extracted 
6from it), fiber, oil or cake, or the sterilized seed of the 
7plant that is incapable of germination. "Cannabis" does not 
8include industrial hemp as defined and authorized under the 
9Industrial Hemp Act. "Cannabis" also means cannabis flower, 
10concentrate, and cannabis-infused products.
11 "Cannabis business establishment" means a cultivation 
12center, craft grower, processing organization, infuser 
13organization, dispensing organization, or transporting 
14organization.
15 "Cannabis concentrate" means a product derived from 
16cannabis that is produced by extracting cannabinoids, 
17including tetrahydrocannabinol (THC), from the plant through 
18the use of propylene glycol, glycerin, butter, olive oil, or 
19other typical cooking fats; water, ice, or dry ice; or butane, 
20propane, CO2, ethanol, or isopropanol and with the intended 
21use of smoking or making a cannabis-infused product. The use 
22of any other solvent is expressly prohibited unless and until 
23it is approved by the Department of Agriculture.
24 "Cannabis container" means a sealed or resealable, 
25traceable, container, or package used for the purpose of 
26containment of cannabis or cannabis-infused product during 
 
 
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1transportation.
2 "Cannabis flower" means marijuana, hashish, and other 
3substances that are identified as including any parts of the 
4plant Cannabis sativa and including derivatives or subspecies, 
5such as indica, of all strains of cannabis; including raw 
6kief, leaves, and buds, but not resin that has been extracted 
7from any part of such plant; nor any compound, manufacture, 
8salt, derivative, mixture, or preparation of such plant, its 
9seeds, or resin.
10 "Cannabis-infused product" means a beverage, food, oil, 
11ointment, tincture, topical formulation, or another product 
12containing cannabis or cannabis concentrate that is not 
13intended to be smoked.
14 "Cannabis paraphernalia" means equipment, products, or 
15materials intended to be used for planting, propagating, 
16cultivating, growing, harvesting, manufacturing, producing, 
17processing, preparing, testing, analyzing, packaging, 
18repackaging, storing, containing, concealing, ingesting, or 
19otherwise introducing cannabis into the human body. 
20 "Cannabis plant monitoring system" or "plant monitoring 
21system" means a system that includes, but is not limited to, 
22testing and data collection established and maintained by the 
23cultivation center, craft grower, or processing organization 
24and that is available to the Department of Revenue, the 
25Department of Agriculture, the Department of Financial and 
26Professional Regulation, and the Illinois State Police for the 
 
 
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1purposes of documenting each cannabis plant and monitoring 
2plant development throughout the life cycle of a cannabis 
3plant cultivated for the intended use by a customer from seed 
4planting to final packaging.
5 "Cannabis testing facility" means an entity registered by 
6the Department of Agriculture to test cannabis for potency and 
7contaminants.
8 "Clone" means a plant section from a female cannabis plant 
9not yet rootbound, growing in a water solution or other 
10propagation matrix, that is capable of developing into a new 
11plant.
12 "Community College Cannabis Vocational Training Pilot 
13Program faculty participant" means a person who is 21 years of 
14age or older, licensed by the Department of Agriculture, and 
15is employed or contracted by an Illinois community college to 
16provide student instruction using cannabis plants at an 
17Illinois Community College.
18 "Community College Cannabis Vocational Training Pilot 
19Program faculty participant Agent Identification Card" means a 
20document issued by the Department of Agriculture that 
21identifies a person as a Community College Cannabis Vocational 
22Training Pilot Program faculty participant.
23 "Conditional Adult Use Dispensing Organization License" 
24means a contingent license awarded to applicants for an Adult 
25Use Dispensing Organization License that reserves the right to 
26an Adult Use Dispensing Organization License if the applicant 
 
 
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1meets certain conditions described in this Act, but does not 
2entitle the recipient to begin purchasing or selling cannabis 
3or cannabis-infused products.
4 "Conditional Adult Use Cultivation Center License" means a 
5license awarded to top-scoring applicants for an Adult Use 
6Cultivation Center License that reserves the right to an Adult 
7Use Cultivation Center License if the applicant meets certain 
8conditions as determined by the Department of Agriculture by 
9rule, but does not entitle the recipient to begin growing, 
10processing, or selling cannabis or cannabis-infused products.
11 "Craft grower" means a facility operated by an 
12organization or business that is licensed by the Department of 
13Agriculture to cultivate, dry, cure, and package cannabis and 
14perform other necessary activities to make cannabis available 
15for sale at a dispensing organization or use at a processing 
16organization. A craft grower may contain up to 14,000 5,000 
17square feet of canopy space on its premises for plants in the 
18flowering state. The Department of Agriculture may authorize 
19an increase or decrease of flowering stage cultivation space 
20in increments of 14,000 3,000 square feet by rule based on 
21market need, craft grower capacity, and the licensee's history 
22of compliance or noncompliance, with a maximum space of 56,000 
2314,000 square feet for cultivating plants in the flowering 
24stage, which must be cultivated in all stages of growth in an 
25enclosed and secure area. A craft grower may share premises 
26with a processing organization or a dispensing organization, 
 
 
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1or both, provided each licensee stores currency and cannabis 
2or cannabis-infused products in a separate secured vault to 
3which the other licensee does not have access or all licensees 
4sharing a vault share more than 50% of the same ownership. 
5 "Craft grower agent" means a principal officer, board 
6member, employee, or other agent of a craft grower who is 21 
7years of age or older.
8 "Craft Grower Agent Identification Card" means a document 
9issued by the Department of Agriculture that identifies a 
10person as a craft grower agent.
11 "Cultivation center" means a facility operated by an 
12organization or business that is licensed by the Department of 
13Agriculture to cultivate, process, transport (unless otherwise 
14limited by this Act), and perform other necessary activities 
15to provide cannabis and cannabis-infused products to cannabis 
16business establishments.
17 "Cultivation center agent" means a principal officer, 
18board member, employee, or other agent of a cultivation center 
19who is 21 years of age or older.
20 "Cultivation Center Agent Identification Card" means a 
21document issued by the Department of Agriculture that 
22identifies a person as a cultivation center agent.
23 "Currency" means currency and coin of the United States.
24 "Dispensary" means a facility operated by a dispensing 
25organization at which activities licensed by this Act may 
26occur.
 
 
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1 "Dispensary Applicant" means the Proposed Dispensing 
2Organization Name as stated on an application for a 
3Conditional Adult Use Dispensing Organization License. 
4 "Dispensing organization" means a facility operated by an 
5organization or business that is licensed by the Department of 
6Financial and Professional Regulation to acquire cannabis from 
7a cultivation center, craft grower, processing organization, 
8or another dispensary for the purpose of selling or dispensing 
9cannabis, cannabis-infused products, cannabis seeds, 
10paraphernalia, or related supplies under this Act to 
11purchasers or to qualified registered medical cannabis 
12patients and caregivers. As used in this Act, "dispensing 
13organization" includes a registered medical cannabis 
14organization as defined in the Compassionate Use of Medical 
15Cannabis Program Act or its successor Act that has obtained an 
16Early Approval Adult Use Dispensing Organization License.
17 "Dispensing organization agent" means a principal officer, 
18employee, or agent of a dispensing organization who is 21 
19years of age or older.
20 "Dispensing organization agent identification card" means 
21a document issued by the Department of Financial and 
22Professional Regulation that identifies a person as a 
23dispensing organization agent.
24 "Disproportionately Impacted Area" means a census tract or 
25comparable geographic area that satisfies the following 
26criteria as determined by the Department of Commerce and 
 
 
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1Economic Opportunity, that: 
2  (1) meets at least one of the following criteria: 
3   (A) the area has a poverty rate of at least 20% 
4 according to the latest federal decennial census; or 
5   (B) 75% or more of the children in the area 
6 participate in the federal free lunch program 
7 according to reported statistics from the State Board 
8 of Education; or 
9   (C) at least 20% of the households in the area 
10 receive assistance under the Supplemental Nutrition 
11 Assistance Program; or
12   (D) the area has an average unemployment rate, as 
13 determined by the Illinois Department of Employment 
14 Security, that is more than 120% of the national 
15 unemployment average, as determined by the United 
16 States Department of Labor, for a period of at least 2 
17 consecutive calendar years preceding the date of the 
18 application; and 
19  (2) has high rates of arrest, conviction, and 
20 incarceration related to the sale, possession, use, 
21 cultivation, manufacture, or transport of cannabis.
22 "Early Approval Adult Use Cultivation Center License" 
23means a license that permits a medical cannabis cultivation 
24center licensed under the Compassionate Use of Medical 
25Cannabis Program Act as of the effective date of this Act to 
26begin cultivating, infusing, packaging, transporting (unless 
 
 
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1otherwise provided in this Act), processing, and selling 
2cannabis or cannabis-infused product to cannabis business 
3establishments for resale to purchasers as permitted by this 
4Act as of January 1, 2020.
5 "Early Approval Adult Use Dispensing Organization License" 
6means a license that permits a medical cannabis dispensing 
7organization licensed under the Compassionate Use of Medical 
8Cannabis Program Act as of the effective date of this Act to 
9begin selling cannabis or cannabis-infused product to 
10purchasers as permitted by this Act as of January 1, 2020.
11 "Early Approval Adult Use Dispensing Organization at a 
12secondary site" means a license that permits a medical 
13cannabis dispensing organization licensed under the 
14Compassionate Use of Medical Cannabis Program Act as of the 
15effective date of this Act to begin selling cannabis or 
16cannabis-infused product to purchasers as permitted by this 
17Act on January 1, 2020 at a different dispensary location from 
18its existing registered medical dispensary location.
19 "Eligible Tied Applicant" means a Tied Applicant that is 
20eligible to participate in the process by which a remaining 
21available license is distributed by lot pursuant to a Tied 
22Applicant Lottery. 
23 "Enclosed, locked facility" means a room, greenhouse, 
24building, or other enclosed area equipped with locks or other 
25security devices that permit access only by cannabis business 
26establishment agents working for the licensed cannabis 
 
 
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1business establishment or acting pursuant to this Act to 
2cultivate, process, store, or distribute cannabis.
3 "Enclosed, locked space" means a closet, room, greenhouse, 
4building, or other enclosed area equipped with locks or other 
5security devices that permit access only by authorized 
6individuals under this Act. "Enclosed, locked space" may 
7include:
8  (1) a space within a residential building that (i) is 
9 the primary residence of the individual cultivating 5 or 
10 fewer cannabis plants that are more than 5 inches tall and 
11 (ii) includes sleeping quarters and indoor plumbing. The 
12 space must only be accessible by a key or code that is 
13 different from any key or code that can be used to access 
14 the residential building from the exterior; or
15  (2) a structure, such as a shed or greenhouse, that 
16 lies on the same plot of land as a residential building 
17 that (i) includes sleeping quarters and indoor plumbing 
18 and (ii) is used as a primary residence by the person 
19 cultivating 5 or fewer cannabis plants that are more than 
20 5 inches tall, such as a shed or greenhouse. The structure 
21 must remain locked when it is unoccupied by people. 
22 "Financial institution" has the same meaning as "financial 
23organization" as defined in Section 1501 of the Illinois 
24Income Tax Act, and also includes the holding companies, 
25subsidiaries, and affiliates of such financial organizations. 
26 "Flowering stage" means the stage of cultivation where and 
 
 
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1when a cannabis plant is cultivated to produce plant material 
2for cannabis products. This includes mature plants as follows:
3  (1) if greater than 2 stigmas are visible at each 
4 internode of the plant; or
5  (2) if the cannabis plant is in an area that has been 
6 intentionally deprived of light for a period of time 
7 intended to produce flower buds and induce maturation, 
8 from the moment the light deprivation began through the 
9 remainder of the marijuana plant growth cycle.
10 "Individual" means a natural person.
11 "Infuser organization" or "infuser" means a facility 
12operated by an organization or business that is licensed by 
13the Department of Agriculture to directly incorporate cannabis 
14or cannabis concentrate into a product formulation to produce 
15a cannabis-infused product. 
16 "Kief" means the resinous crystal-like trichomes that are 
17found on cannabis and that are accumulated, resulting in a 
18higher concentration of cannabinoids, untreated by heat or 
19pressure, or extracted using a solvent. 
20 "Labor peace agreement" means an agreement between a 
21cannabis business establishment and any labor organization 
22recognized under the National Labor Relations Act, referred to 
23in this Act as a bona fide labor organization, that prohibits 
24labor organizations and members from engaging in picketing, 
25work stoppages, boycotts, and any other economic interference 
26with the cannabis business establishment. This agreement means 
 
 
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1that the cannabis business establishment has agreed not to 
2disrupt efforts by the bona fide labor organization to 
3communicate with, and attempt to organize and represent, the 
4cannabis business establishment's employees. The agreement 
5shall provide a bona fide labor organization access at 
6reasonable times to areas in which the cannabis business 
7establishment's employees work, for the purpose of meeting 
8with employees to discuss their right to representation, 
9employment rights under State law, and terms and conditions of 
10employment. This type of agreement shall not mandate a 
11particular method of election or certification of the bona 
12fide labor organization.
13 "Limited access area" means a room or other area under the 
14control of a cannabis dispensing organization licensed under 
15this Act and upon the licensed premises where cannabis sales 
16occur with access limited to purchasers, dispensing 
17organization owners and other dispensing organization agents, 
18or service professionals conducting business with the 
19dispensing organization, or, if sales to registered qualifying 
20patients, caregivers, provisional patients, and Opioid 
21Alternative Pilot Program participants licensed pursuant to 
22the Compassionate Use of Medical Cannabis Program Act are also 
23permitted at the dispensary, registered qualifying patients, 
24caregivers, provisional patients, and Opioid Alternative Pilot 
25Program participants. 
26 "Member of an impacted family" means an individual who has 
 
 
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1a parent, legal guardian, child, spouse, or dependent, or was 
2a dependent of an individual who, prior to the effective date 
3of this Act, was arrested for, convicted of, or adjudicated 
4delinquent for any offense that is eligible for expungement 
5under this Act.
6 "Mother plant" means a cannabis plant that is cultivated 
7or maintained for the purpose of generating clones, and that 
8will not be used to produce plant material for sale to an 
9infuser or dispensing organization.
10 "Ordinary public view" means within the sight line with 
11normal visual range of a person, unassisted by visual aids, 
12from a public street or sidewalk adjacent to real property, or 
13from within an adjacent property. 
14 "Ownership and control" means ownership of at least 51% of 
15the business, including corporate stock if a corporation, and 
16control over the management and day-to-day operations of the 
17business and an interest in the capital, assets, and profits 
18and losses of the business proportionate to percentage of 
19ownership.
20 "Person" means a natural individual, firm, partnership, 
21association, joint stock company, joint venture, public or 
22private corporation, limited liability company, or a receiver, 
23executor, trustee, guardian, or other representative appointed 
24by order of any court.
25 "Possession limit" means the amount of cannabis under 
26Section 10-10 that may be possessed at any one time by a person 
 
 
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121 years of age or older or who is a registered qualifying 
2medical cannabis patient or caregiver under the Compassionate 
3Use of Medical Cannabis Program Act.
4 "Principal officer" includes a cannabis business 
5establishment applicant or licensed cannabis business 
6establishment's board member, owner with more than 1% interest 
7of the total cannabis business establishment or more than 5% 
8interest of the total cannabis business establishment of a 
9publicly traded company, president, vice president, secretary, 
10treasurer, partner, officer, member, manager member, or person 
11with a profit sharing, financial interest, or revenue sharing 
12arrangement. The definition includes a person with authority 
13to control the cannabis business establishment, a person who 
14assumes responsibility for the debts of the cannabis business 
15establishment and who is further defined in this Act.
16 "Primary residence" means a dwelling where a person 
17usually stays or stays more often than other locations. It may 
18be determined by, without limitation, presence, tax filings; 
19address on an Illinois driver's license, an Illinois 
20Identification Card, or an Illinois Person with a Disability 
21Identification Card; or voter registration. No person may have 
22more than one primary residence.
23 "Processing organization" or "processor" means a facility 
24operated by an organization or business that is licensed by 
25the Department of Agriculture to either extract constituent 
26chemicals or compounds to produce cannabis concentrate or 
 
 
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1incorporate cannabis or cannabis concentrate into a product 
2formulation to produce a cannabis product. 
3 "Processing organization agent" means a principal officer, 
4board member, employee, or agent of a processing organization.
5 "Processing organization agent identification card" means 
6a document issued by the Department of Agriculture that 
7identifies a person as a processing organization agent.
8 "Purchaser" means a person 21 years of age or older who 
9acquires cannabis for a valuable consideration. "Purchaser" 
10does not include a cardholder under the Compassionate Use of 
11Medical Cannabis Program Act.
12 "Qualifying Applicant" means an applicant that submitted 
13an application pursuant to Section 15-30 that received at 
14least 85% of 250 application points available under Section 
1515-30 as the applicant's final score and meets the definition 
16of "Social Equity Applicant" as set forth under this Section.
17 "Qualifying Social Equity Justice Involved Applicant" 
18means an applicant that submitted an application pursuant to 
19Section 15-30 that received at least 85% of 250 application 
20points available under Section 15-30 as the applicant's final 
21score and meets the criteria of either paragraph (1) or (2) of 
22the definition of "Social Equity Applicant" as set forth under 
23this Section. 
24 "Qualified Social Equity Applicant" means a Social Equity 
25Applicant who has been awarded a conditional license under 
26this Act to operate a cannabis business establishment.
 
 
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1 "Resided" means an individual's primary residence was 
2located within the relevant geographic area as established by 
32 of the following:
4  (1) a signed lease agreement that includes the 
5 applicant's name;
6  (2) a property deed that includes the applicant's 
7 name;
8  (3) school records;
9  (4) a voter registration card;
10  (5) an Illinois driver's license, an Illinois 
11 Identification Card, or an Illinois Person with a 
12 Disability Identification Card;
13  (6) a paycheck stub; 
14  (7) a utility bill; 
15  (8) tax records; or
16  (9) any other proof of residency or other information 
17 necessary to establish residence as provided by rule.
18 "Smoking" means the inhalation of smoke caused by the 
19combustion of cannabis.
20 "Social Equity Applicant" means an applicant that is an 
21Illinois resident that meets one of the following criteria:
22  (1) an applicant with at least 51% ownership and 
23 control by one or more individuals who have resided for at 
24 least 5 of the preceding 10 years in a Disproportionately 
25 Impacted Area; 
26  (2) an applicant with at least 51% ownership and 
 
 
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1 control by one or more individuals who:

2   (i) have been arrested for, convicted of, or 
3 adjudicated delinquent for any offense that is 
4 eligible for expungement under this Act; or

5   (ii) is a member of an impacted family;
6  (3) for applicants with a minimum of 10 full-time 
7 employees, an applicant with at least 51% of current 
8 employees who:
9   (i) currently reside in a Disproportionately 
10 Impacted Area; or
11   (ii) have been arrested for, convicted of, or 
12 adjudicated delinquent for any offense that is 
13 eligible for expungement under this Act or member of 
14 an impacted family.
15 Nothing in this Act shall be construed to preempt or limit 
16the duties of any employer under the Job Opportunities for 
17Qualified Applicants Act. Nothing in this Act shall permit an 
18employer to require an employee to disclose sealed or expunged 
19offenses, unless otherwise required by law.
20 "Tied Applicant" means an application submitted by a 
21Dispensary Applicant pursuant to Section 15-30 that received 
22the same number of application points under Section 15-30 as 
23the Dispensary Applicant's final score as one or more 
24top-scoring applications in the same BLS Region and would have 
25been awarded a license but for the one or more other 
26top-scoring applications that received the same number of 
 
 
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1application points. Each application for which a Dispensary 
2Applicant was required to pay a required application fee for 
3the application period ending January 2, 2020 shall be 
4considered an application of a separate Tied Applicant.
5 "Tied Applicant Lottery" means the process established 
6under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult 
7Use Dispensing Organization Licenses pursuant to Sections 
815-25 and 15-30 among Eligible Tied Applicants. 
9 "Tincture" means a cannabis-infused solution, typically 
10comprised of alcohol, glycerin, or vegetable oils, derived 
11either directly from the cannabis plant or from a processed 
12cannabis extract. A tincture is not an alcoholic liquor as 
13defined in the Liquor Control Act of 1934. A tincture shall 
14include a calibrated dropper or other similar device capable 
15of accurately measuring servings.
16 "Transporting organization" or "transporter" means an 
17organization or business that is licensed by the Department of 
18Agriculture to transport cannabis or cannabis-infused product 
19on behalf of a cannabis business establishment or a community 
20college licensed under the Community
College Cannabis 
21Vocational Training Pilot Program.

22 "Transporting organization agent" means a principal 
23officer, board member, employee, or agent of a transporting 
24organization.
25 "Transporting organization agent identification card" 
26means a document issued by the Department of Agriculture that 
 
 
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1identifies a person as a transporting organization agent.
2 "Unit of local government" means any county, city, 
3village, or incorporated town.
4 "Vegetative stage" means the stage of cultivation in which 
5a cannabis plant is propagated to produce additional cannabis 
6plants or reach a sufficient size for production. This 
7includes seedlings, clones, mothers, and other immature 
8cannabis plants as follows: 
9  (1) if the cannabis plant is in an area that has not 
10 been intentionally deprived of light for a period of time 
11 intended to produce flower buds and induce maturation, it 
12 has no more than 2 stigmas visible at each internode of the 
13 cannabis plant; or 
14  (2) any cannabis plant that is cultivated solely for 
15 the purpose of propagating clones and is never used to 
16 produce cannabis.

17(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
18102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
195-13-22.)

20 (410 ILCS 705/30-5)

21 Sec. 30-5. Issuance of licenses. 
22 (a) The Department of Agriculture shall issue up to 40 
23craft grower licenses by July 1, 2020. Any person or entity 
24awarded a license pursuant to this subsection shall only hold 
25up to 3 one craft grower licenses license and may not sell that 
 
 
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1license until after December 21, 2021.
2 (b) By December 21, 2021, the Department of Agriculture 
3shall issue up to 60 additional craft grower licenses. Any 
4person or entity awarded a license pursuant to this subsection 
5shall not hold more than 6 2 craft grower licenses. The person 
6or entity awarded a license pursuant to this subsection or 
7subsection (a) of this Section may sell its craft grower 
8license subject to the restrictions of this Act or as 
9determined by administrative rule. Prior to issuing such 
10licenses, the Department may adopt rules through emergency 
11rulemaking in accordance with subsection (kk) of Section 5-45 
12of the Illinois Administrative Procedure Act, to modify or 
13raise the number of craft grower licenses and modify or change 
14the licensing application process. The General Assembly finds 
15that the adoption of rules to regulate cannabis use is deemed 
16an emergency and necessary for the public interest, safety, 
17and welfare. In determining whether to exercise the authority 
18granted by this subsection, the Department of Agriculture must 
19consider the following factors:
20  (1) the percentage of cannabis sales occurring in 
21 Illinois not in the regulated market using data from the 
22 Substance Abuse and Mental Health Services Administration, 
23 National Survey on Drug Use and Health, Illinois 
24 Behavioral Risk Factor Surveillance System, and tourism 
25 data from the Illinois Office of Tourism to ascertain 
26 total cannabis consumption in Illinois compared to the 
 
 
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1 amount of sales in licensed dispensing organizations;
2  (2) whether there is an adequate supply of cannabis 
3 and cannabis-infused products to serve registered medical 
4 cannabis patients;
5  (3) whether there is an adequate supply of cannabis 
6 and cannabis-infused products to serve purchasers;
7  (4) whether there is an oversupply of cannabis in 
8 Illinois leading to trafficking of cannabis to states 
9 where the sale of cannabis is not permitted by law;
10  (5) population increases or shifts;
11  (6) the density of craft growers in any area of the 
12 State; 
13  (7) perceived security risks of increasing the number 
14 or location of craft growers;
15  (8) the past safety record of craft growers;
16  (9) the Department of Agriculture's capacity to 
17 appropriately regulate additional licensees;
18  (10) (blank); and
19  (11) any other criteria the Department of Agriculture 
20 deems relevant.
21 (c) After January 1, 2022, the Department of Agriculture 
22may by rule modify or raise the number of craft grower licenses 
23and modify or change the licensing application process. At no 
24time may the number of craft grower licenses exceed 150. Any 
25person or entity awarded a license pursuant to this subsection 
26shall not hold more than 10 3 craft grower licenses. A person 
 
 
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1or entity awarded a license pursuant to this subsection or 
2subsection (a) or subsection (b) of this Section may sell its 
3craft grower license or licenses subject to the restrictions 
4of this Act or as determined by administrative rule.

5 (d) Upon the completion of the disparity and availability 
6study pertaining to craft growers by the Cannabis Regulation 
7Oversight Officer pursuant to subsection (e) of Section 5-45, 
8the Department may modify or change the licensing application 
9process to reduce or eliminate barriers from and remedy 
10evidence of discrimination identified in the disparity and 
11availability study. 
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
13102-98, eff. 7-15-21.)

14 (410 ILCS 705/30-30)

15 Sec. 30-30. Craft grower requirements; prohibitions. 
16 (a) The operating documents of a craft grower shall 
17include procedures for the oversight of the craft grower, a 
18cannabis plant monitoring system including a physical 
19inventory recorded weekly, accurate recordkeeping, and a 
20staffing plan.
21 (b) A craft grower shall implement a security plan 
22reviewed by the Illinois State Police that includes, but is 
23not limited to: facility access controls, perimeter intrusion 
24detection systems, personnel identification systems, and a 
2524-hour surveillance system to monitor the interior and 
 
 
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1exterior of the craft grower facility and that is accessible 
2to authorized law enforcement and the Department of 
3Agriculture in real time. 
4 (c) All cultivation of cannabis by a craft grower must 
5take place in an enclosed, locked facility at the physical 
6address provided to the Department of Agriculture during the 
7licensing process. The craft grower location shall only be 
8accessed by the agents working for the craft grower, the 
9Department of Agriculture staff performing inspections, the 
10Department of Public Health staff performing inspections, 
11State and local law enforcement or other emergency personnel, 
12contractors working on jobs unrelated to cannabis, such as 
13installing or maintaining security devices or performing 
14electrical wiring, transporting organization agents as 
15provided in this Act, or participants in the incubator 
16program, individuals in a mentoring or educational program 
17approved by the State, or other individuals as provided by 
18rule. However, if a craft grower shares a premises with an 
19infuser or dispensing organization, agents from those other 
20licensees may access the craft grower portion of the premises 
21if that is the location of common bathrooms, lunchrooms, 
22locker rooms, or other areas of the building where work or 
23cultivation of cannabis is not performed. At no time may an 
24infuser or dispensing organization agent perform work at a 
25craft grower without being a registered agent of the craft 
26grower.
 
 
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1 (d) A craft grower may not sell or distribute any cannabis 
2to any person other than a cultivation center, a craft grower, 
3an infuser organization, a dispensing organization, or as 
4otherwise authorized by rule.
5 (e) A craft grower may not be located in an area zoned for 
6residential use.
7 (f) A craft grower may not either directly or indirectly 
8discriminate in price between different cannabis business 
9establishments that are purchasing a like grade, strain, 
10brand, and quality of cannabis or cannabis-infused product. 
11Nothing in this subsection (f) prevents a craft grower from 
12pricing cannabis differently based on differences in the cost 
13of manufacturing or processing, the quantities sold, such as 
14volume discounts, or the way the products are delivered.
15 (g) All cannabis harvested by a craft grower and intended 
16for distribution to a dispensing organization must be entered 
17into a data collection system, packaged and labeled under 
18Section 55-21, and, if distribution is to a dispensing 
19organization that does not share a premises with the 
20dispensing organization receiving the cannabis, placed into a 
21cannabis container for transport. All cannabis harvested by a 
22craft grower and intended for distribution to a cultivation 
23center, to an infuser organization, or to a craft grower with 
24which it does not share a premises, must be packaged in a 
25labeled cannabis container and entered into a data collection 
26system before transport.
 
 
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1 (h) Craft growers are subject to random inspections by the 
2Department of Agriculture, local safety or health inspectors, 
3the Illinois State Police, or as provided by rule.
4 (i) A craft grower agent shall notify local law 
5enforcement, the Illinois State Police, and the Department of 
6Agriculture within 24 hours of the discovery of any loss or 
7theft. Notification shall be made by phone, in person, or 
8written or electronic communication.
9 (j) A craft grower shall comply with all State and any 
10applicable federal rules and regulations regarding the use of 
11pesticides.
12 (k) A craft grower or craft grower agent shall not 
13transport cannabis or cannabis-infused products to any other 
14cannabis business establishment without a transport 
15organization license unless:
16  (i) If the craft grower is located in a county with a 
17 population of 3,000,000 or more, the cannabis business 
18 establishment receiving the cannabis is within 2,000 feet 
19 of the property line of the craft grower;
20  (ii) If the craft grower is located in a county with a 
21 population of more than 700,000 but fewer than 3,000,000, 
22 the cannabis business establishment receiving the cannabis 
23 is within 2 miles of the craft grower; or
24  (iii) If the craft grower is located in a county with a 
25 population of fewer than 700,000, the cannabis business 
26 establishment receiving the cannabis is within 15 miles of 
 
 
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1 the craft grower.
2 (l) A craft grower may enter into a contract with a 
3transporting organization to transport cannabis to a 
4cultivation center, a craft grower, an infuser organization, a 
5dispensing organization, or a laboratory.
6 (m) No person or entity shall hold any legal, equitable, 
7ownership, or beneficial interest, directly or indirectly, of 
8more than 10 3 craft grower licenses. Further, no person or 
9entity that is employed by, an agent of, or has a contract to 
10receive payment from or participate in the management of a 
11craft grower, is a principal officer of a craft grower, or 
12entity controlled by or affiliated with a principal officer of 
13a craft grower shall hold any legal, equitable, ownership, or 
14beneficial interest, directly or indirectly, in a craft grower 
15license that would result in the person or entity owning or 
16controlling in combination with any craft grower, principal 
17officer of a craft grower, or entity controlled or affiliated 
18with a principal officer of a craft grower by which he, she, or 
19it is employed, is an agent of, or participates in the 
20management of more than 10 3 craft grower licenses.
21 (n) It is unlawful for any person having a craft grower 
22license or any officer, associate, member, representative, or 
23agent of the licensee to offer or deliver money, or anything 
24else of value, directly or indirectly, to any person having an 
25Early Approval Adult Use Dispensing Organization License, a 
26Conditional Adult Use Dispensing Organization License, an 
 
 
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1Adult Use Dispensing Organization License, or a medical 
2cannabis dispensing organization license issued under the 
3Compassionate Use of Medical Cannabis Program Act, or to any 
4person connected with or in any way representing, or to any 
5member of the family of, the person holding an Early Approval 
6Adult Use Dispensing Organization License, a Conditional Adult 
7Use Dispensing Organization License, an Adult Use Dispensing 
8Organization License, or a medical cannabis dispensing 
9organization license issued under the Compassionate Use of 
10Medical Cannabis Program Act, or to any stockholders in any 
11corporation engaged in the retail sale of cannabis, or to any 
12officer, manager, agent, or representative of the Early 
13Approval Adult Use Dispensing Organization License, a 
14Conditional Adult Use Dispensing Organization License, an 
15Adult Use Dispensing Organization License, or a medical 
16cannabis dispensing organization license issued under the 
17Compassionate Use of Medical Cannabis Program Act to obtain 
18preferential placement within the dispensing organization, 
19including, without limitation, on shelves and in display cases 
20where purchasers can view products, or on the dispensing 
21organization's website.
22 (o) A craft grower shall not be located within 1,500 feet 
23of another craft grower or a cultivation center.
24 (p) A craft grower may process cannabis, cannabis 
25concentrates, and cannabis-infused products.
26 (q) A craft grower must comply with any other requirements 
 
 
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1or prohibitions set by administrative rule of the Department 
2of Agriculture.

3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
4102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
55-13-22.)

6 (410 ILCS 705/40-25)

7 Sec. 40-25. Transporting organization requirements; 
8prohibitions. 
9 (a) The operating documents of a transporting organization 
10shall include procedures for the oversight of the transporter, 
11an inventory monitoring system including a physical inventory 
12recorded weekly, accurate recordkeeping, and a staffing plan.
13 (b) A transporting organization may not transport cannabis 
14or cannabis-infused products to any person other than a 
15cultivation center, a craft grower, an infuser organization, a 
16dispensing organization, a testing facility, a transporting

17organization depot or other transporting organization transfer

18facility, or as otherwise authorized by rule.
19 (c) All cannabis transported by a transporting 
20organization must be entered into a data collection system and 
21placed into a cannabis container for transport. 
22 (d) Transporters are subject to random inspections by the 
23Department of Agriculture, the Department of Public Health, 
24the Illinois State Police, or as provided by rule.
25 (e) A transporting organization agent shall notify local 
 
 
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1law enforcement, the Illinois State Police, and the Department 
2of Agriculture within 24 hours of the discovery of any loss or 
3theft. Notification shall be made by phone, in person, or by 
4written or electronic communication.
5 (f) No person under the age of 21 years shall be in a 
6commercial vehicle or trailer transporting cannabis goods.
7 (g) No person or individual who is not a transporting 
8organization agent shall be in a vehicle while transporting 
9cannabis goods.
10 (h) Transporters may not use commercial motor vehicles 
11with a weight rating of over 10,001 pounds.
12 (i) It is unlawful for any person to offer or deliver 
13money, or anything else of value, directly or indirectly, to 
14any of the following persons to obtain preferential placement 
15within the dispensing organization, including, without 
16limitation, on shelves and in display cases where purchasers 
17can view products, or on the dispensing organization's 
18website:
19  (1) a person having a transporting organization 
20 license, or any officer, associate, member, 
21 representative, or agent of the licensee;
22  (2) a person having an Early Applicant Adult Use 
23 Dispensing Organization License, an Adult Use Dispensing 
24 Organization License, or a medical cannabis dispensing 
25 organization license issued under the Compassionate Use of 
26 Medical Cannabis Program Act;
 
 
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1  (3) a person connected with or in any way 
2 representing, or a member of the family of, a person 
3 holding an Early Applicant Adult Use Dispensing 
4 Organization License, an Adult Use Dispensing Organization 
5 License, or a medical cannabis dispensing organization 
6 license issued under the Compassionate Use of Medical 
7 Cannabis Program Act; or
8  (4) a stockholder, officer, manager, agent, or 
9 representative of a corporation engaged in the retail sale 
10 of cannabis, an Early Applicant Adult Use Dispensing 
11 Organization License, an Adult Use Dispensing Organization 
12 License, or a medical cannabis dispensing organization 
13 license issued under the Compassionate Use of Medical 
14 Cannabis Program Act.
15 (j) A transporting organization agent must keep his or her 
16identification card visible at all times when on the property 
17of a cannabis business establishment and during the 
18transporting of cannabis when acting under his or her duties 
19as a transportation organization agent. During these times, 
20the transporting organization agent must also provide the 
21identification card upon request of any law enforcement 
22officer engaged in his or her official duties.
23 (k) A copy of the transporting organization's registration 
24and a manifest for the delivery shall be present in any vehicle 
25transporting cannabis.
26 (l) Cannabis shall be transported so it is not visible or 
 
 
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1recognizable from outside the vehicle.
2 (m) A vehicle transporting cannabis must not bear any 
3markings to indicate the vehicle contains
cannabis or bear the 
4name or logo of the cannabis business establishment.
5 (n) Cannabis must be transported in an enclosed, locked 
6storage compartment that is secured or affixed to the vehicle. 
7 (o) The Department of Agriculture may, by rule, impose any 
8other requirements or prohibitions on the transportation of 
9cannabis.

10(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
11102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
125-13-22.)

13 (410 ILCS 705/55-20)

14 Sec. 55-20. Advertising and promotions. 
15 (a) No cannabis business establishment nor any other 
16person or entity shall engage in advertising that contains any 
17statement or illustration that:
18  (1) is false or misleading;
19  (2) promotes overconsumption of cannabis or cannabis 
20 products;
21  (3) depicts the actual consumption of cannabis or 
22 cannabis products;
23  (4) depicts a person under 21 years of age consuming 
24 cannabis;
25  (5) makes any health, medicinal, or therapeutic claims 
 
 
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1 about cannabis or cannabis-infused products;
2  (6) includes the image of a cannabis leaf or bud; or
3  (7) includes any image designed or likely to appeal to 
4 minors, including cartoons, toys, animals, or children, or 
5 any other likeness to images, characters, or phrases that 
6 is designed in any manner to be appealing to or encourage 
7 consumption by persons under 21 years of age; or .
8  (8) includes a description of, or reference to, a 
9 cannabis product as "craft" unless the cannabis product or 
10 the raw material used to create the cannabis product is 
11 produced by a craft grower licensed under this Act. 
12 (b) No cannabis business establishment nor any other 
13person or entity shall place or maintain, or cause to be placed 
14or maintained, an advertisement of cannabis or a 
15cannabis-infused product in any form or through any medium:
16  (1) within 1,000 feet of the perimeter of school 
17 grounds, a playground, a recreation center or facility, a 
18 child care center, a public park or public library, or a 
19 game arcade to which admission is not restricted to 
20 persons 21 years of age or older;
21  (2) on or in a public transit vehicle or public 
22 transit shelter;
23  (3) on or in publicly owned or publicly operated 
24 property; or
25  (4) that contains information that:
26   (A) is false or misleading;
 
 
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1   (B) promotes excessive consumption;
2   (C) depicts a person under 21 years of age 
3 consuming cannabis;
4   (D) includes the image of a cannabis leaf; or
5   (E) includes any image designed or likely to 
6 appeal to minors, including cartoons, toys, animals, 
7 or children, or any other likeness to images, 
8 characters, or phrases that are popularly used to 
9 advertise to children, or any imitation of candy 
10 packaging or labeling, or that promotes consumption of 
11 cannabis.
12 (c) Subsections (a) and (b) do not apply to an educational 
13message.
14 (d) Sales promotions. No cannabis business establishment 
15nor any other person or entity may encourage the sale of 
16cannabis or cannabis products by giving away cannabis or 
17cannabis products, by conducting games or competitions related 
18to the consumption of cannabis or cannabis products, or by 
19providing promotional materials or activities of a manner or 
20type that would be appealing to children.

21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

22 (410 ILCS 705/60-10)

23 Sec. 60-10. Tax imposed. 
24 (a) Beginning September 1, 2019, a tax is imposed upon the 
25privilege of cultivating cannabis at the rate of 7% of the 
 
 
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1gross receipts from the first sale of cannabis by a 
2cultivator. The sale of any product that contains any amount 
3of cannabis or any derivative thereof is subject to the tax 
4under this Section on the full selling price of the product. 
5The Department may determine the selling price of the cannabis 
6when the seller and purchaser are affiliated persons, when the 
7sale and purchase of cannabis is not an arm's length 
8transaction, or when cannabis is transferred by a craft grower 
9to the craft grower's dispensing organization or infuser or 
10processing organization and a value is not established for the 
11cannabis. The value determined by the Department shall be 
12commensurate with the actual price received for products of 
13like quality, character, and use in the area. If there are no 
14sales of cannabis of like quality, character, and use in the 
15same area, then the Department shall establish a reasonable 
16value based on sales of products of like quality, character, 
17and use in other areas of the State, taking into consideration 
18any other relevant factors.
19 (b) The Cannabis Cultivation Privilege Tax imposed under 
20this Article is solely the responsibility of the cultivator 
21who makes the first sale and is not the responsibility of a 
22subsequent purchaser, a dispensing organization, or an 
23infuser. Persons subject to the tax imposed under this Article 
24may, however, reimburse themselves for their tax liability 
25hereunder by separately stating reimbursement for their tax 
26liability as an additional charge. 
 
 
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1 (c) The tax imposed under this Article shall be in 
2addition to all other occupation, privilege, or excise taxes 
3imposed by the State of Illinois or by any unit of local 
4government.
5 (d) The Cannabis Cultivation Privilege Tax imposed under 
6this Article shall not be assessed against or collected from 
7any craft grower awarded a license during the first group of 
8licenses issued by the Department of Agriculture under Section 
930-5 until 2 years after the date the craft grower was awarded 
10the license. 

11(Source: P.A. 101-27, eff. 6-25-19.)