103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB0031
 
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 705/35-31
410 ILCS 705/40-25
410 ILCS 705/55-20
410 ILCS 705/60-10

 Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before December 21, 2023 and an additional 30 craft grower licenses on or before March 15, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes. Effective immediately.



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A BILL FOR
 


HB0031LRB103 03544 CPF 48550 b



1 AN ACT concerning health.


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, 35-31, 40-25, 55-20, 
6and 60-10 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 3,000 square feet by rule based on market 
21need, craft grower capacity, and the licensee's history of 
22compliance or noncompliance, with a maximum space of 14,000 
23square feet for cultivating plants in the flowering stage, 
24which must be cultivated in all stages of growth in an enclosed 
25and secure area. A craft grower may share premises with a 
26processing organization or a dispensing organization, or both, 
 
 
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1provided each licensee stores currency and cannabis or 
2cannabis-infused products in a separate secured vault to which 
3the 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 "Social Equity Justice Involved Applicant" means an 
21applicant that is an Illinois resident that meets the 
22following criteria:
23  (1) an applicant with at least 51% ownership and 
24 control by one or more individuals who have resided for at 
25 least 5 of the preceding 10 years in a Disproportionately 
26 Impacted Area; or
 
 
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1  (2) either:
2   (A) an applicant with at least 51% of ownership 
3 and control by one or more individuals who have been 
4 arrested for, convicted of, or adjudicated delinquent 
5 for any offense that is eligible for expungement under 
6 subsection (i) of Section 5.2 of the Criminal 
7 Identification Act; or
8   (B) an applicant with at least 51% ownership and 
9 control by one or more members of an impacted family. 
10 "Tied Applicant" means an application submitted by a 
11Dispensary Applicant pursuant to Section 15-30 that received 
12the same number of application points under Section 15-30 as 
13the Dispensary Applicant's final score as one or more 
14top-scoring applications in the same BLS Region and would have 
15been awarded a license but for the one or more other 
16top-scoring applications that received the same number of 
17application points. Each application for which a Dispensary 
18Applicant was required to pay a required application fee for 
19the application period ending January 2, 2020 shall be 
20considered an application of a separate Tied Applicant.
21 "Tied Applicant Lottery" means the process established 
22under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult 
23Use Dispensing Organization Licenses pursuant to Sections 
2415-25 and 15-30 among Eligible Tied Applicants. 
25 "Tincture" means a cannabis-infused solution, typically 
26comprised of alcohol, glycerin, or vegetable oils, derived 
 
 
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1either directly from the cannabis plant or from a processed 
2cannabis extract. A tincture is not an alcoholic liquor as 
3defined in the Liquor Control Act of 1934. A tincture shall 
4include a calibrated dropper or other similar device capable 
5of accurately measuring servings.
6 "Transporting organization" or "transporter" means an 
7organization or business that is licensed by the Department of 
8Agriculture to transport cannabis or cannabis-infused product 
9on behalf of a cannabis business establishment or a community 
10college licensed under the Community
College Cannabis 
11Vocational Training Pilot Program.

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

7(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
8102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
95-13-22.)

10 (410 ILCS 705/30-5)

11 Sec. 30-5. Issuance of licenses. 
12 (a) The Department of Agriculture shall issue up to 40 
13craft grower licenses by July 1, 2020. Any person or entity 
14awarded a license pursuant to this subsection shall only hold 
15one craft grower license and may not sell that license until 
16after December 21, 2021.
17 (a-5) The Department of Agriculture shall issue an 
18additional 30 craft grower licenses on or before December 21, 
192023, cost free, to applicants who submitted craft grower 
20license applications on or before April 30, 2020 but were not 
21awarded a license under subsection (a) and who received at 
22least 85% of the total points available on their applications. 
23Any person or entity awarded a license under this subsection 
24may sell that license at any time after it is awarded.
25 (a-10) The Department of Agriculture shall issue an 
 
 
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1additional 30 craft grower licenses on or before March 15, 
22024, cost free, to applicants who submitted craft grower 
3license applications on or before April 30, 2020 but were not 
4awarded a license under subsection (a) or subsection (a-5), 
5received at least 85% of the total points available on their 
6applications, and qualify as Social Equity Justice Involved 
7Applicants. Any applicant awarded a license under this 
8subsection may sell that license at any time after it is 
9awarded. 
10 (b) By December 21, 2021, the Department of Agriculture 
11shall issue up to 60 additional craft grower licenses. Any 
12person or entity awarded a license pursuant to this Section 
13subsection shall not hold more than 2 craft grower licenses. 
14The person or entity awarded a license pursuant to this 
15subsection or subsection (a) of this Section may sell its 
16craft grower license subject to the restrictions of this Act 
17or as determined by administrative rule. Prior to issuing such 
18licenses, the Department may adopt rules through emergency 
19rulemaking in accordance with subsection (kk) of Section 5-45 
20of the Illinois Administrative Procedure Act, to modify or 
21raise the number of craft grower licenses and modify or change 
22the licensing application process. The General Assembly finds 
23that the adoption of rules to regulate cannabis use is deemed 
24an emergency and necessary for the public interest, safety, 
25and welfare. In determining whether to exercise the authority 
26granted by this subsection, the Department of Agriculture must 
 
 
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1consider the following factors:
2  (1) the percentage of cannabis sales occurring in 
3 Illinois not in the regulated market using data from the 
4 Substance Abuse and Mental Health Services Administration, 
5 National Survey on Drug Use and Health, Illinois 
6 Behavioral Risk Factor Surveillance System, and tourism 
7 data from the Illinois Office of Tourism to ascertain 
8 total cannabis consumption in Illinois compared to the 
9 amount of sales in licensed dispensing organizations;
10  (2) whether there is an adequate supply of cannabis 
11 and cannabis-infused products to serve registered medical 
12 cannabis patients;
13  (3) whether there is an adequate supply of cannabis 
14 and cannabis-infused products to serve purchasers;
15  (4) whether there is an oversupply of cannabis in 
16 Illinois leading to trafficking of cannabis to states 
17 where the sale of cannabis is not permitted by law;
18  (5) population increases or shifts;
19  (6) the density of craft growers in any area of the 
20 State; 
21  (7) perceived security risks of increasing the number 
22 or location of craft growers;
23  (8) the past safety record of craft growers;
24  (9) the Department of Agriculture's capacity to 
25 appropriately regulate additional licensees;
26  (10) (blank); and
 
 
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1  (11) any other criteria the Department of Agriculture 
2 deems relevant.
3 (c) After January 1, 2024 2022, the Department of 
4Agriculture may by rule modify or raise the number of craft 
5grower licenses and modify or change the licensing application 
6process. At no time may the number of craft grower licenses 
7exceed 150. Any person or entity awarded a license pursuant to 
8this subsection shall not hold more than 3 craft grower 
9licenses. A person or entity awarded a license pursuant to 
10this subsection or subsections subsection (a), (a-5), or

11(a-10) or subsection (b) of this Section may sell its craft 
12grower license or licenses subject to the restrictions of this 
13Act or as determined by administrative rule.

14 (d) Upon the completion of the disparity and availability 
15study pertaining to craft growers by the Cannabis Regulation 
16Oversight Officer pursuant to subsection (e) of Section 5-45, 
17the Department may modify or change the licensing application 
18process to reduce or eliminate barriers from and remedy 
19evidence of discrimination identified in the disparity and 
20availability study. 
21(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
22102-98, eff. 7-15-21.)

23 (410 ILCS 705/30-30)

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

12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
13102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
145-13-22.)

15 (410 ILCS 705/35-31)

16 Sec. 35-31. Ensuring an adequate supply of raw materials 
17to serve infusers. 
18 (a) As used in this Section, "raw materials" includes, but 
19is not limited to, CO2 hash oil, "crude", "distillate", or any 
20other cannabis concentrate extracted from cannabis flower by 
21use of a solvent or a mechanical process.
22 (b) The Department of Agriculture may by rule design a 
23method for assessing whether licensed infusers have access to 
24an adequate supply of reasonably affordable raw materials, 
25which may include but not be limited to: (i) a survey of 
 
 
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1infusers; (ii) a market study on the sales trends of 
2cannabis-infused products manufactured by infusers; and (iii) 
3the costs cultivation centers and craft growers assume for the 
4raw materials they use in any cannabis-infused products they 
5manufacture. 
6 (b-5) Each adult use cultivation center or Early Approval 
7Adult Use Cultivation Center License holder licensed under 
8Article 20 that produces THC oil extract shall set aside a 
9portion of its total monthly production of THC oil extract to 
10sell to infuser organizations at market price, quality, and 
11variety to provide infuser organizations with an adequate 
12supply for their infusion processes. The portion set aside by 
13each cultivation center or Early Approval Adult Use 
14Cultivation Center License holder shall be on a proportionate, 
15pro rata basis and based upon its total monthly production 
16compared to the industry total monthly production in the 
17previous year as determined by the Department of Agriculture. 
18The total monthly portion of THC oil extract set aside by all 
19cultivation centers and Early Approval Adult Use Cultivation 
20Center License holders shall be as follows: 
21  (1) During calendar year 2023, 50,000 grams per month.
22  (2) During calendar year 2024, 60,000 grams per month.
23  (3) During calendar year 2025, 70,000 grams per month.
24  (4) During calendar year 2026, 80,000 grams per month.
25  (5) During calendar year 2027, 90,000 grams per month. 
26 The price of THC oil extract shall be the average fair 
 
 
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1market price as determined quarterly by the Department of 
2Agriculture or an amount equal to 900% of the U.S. Cannabis 
3Spot Index's price for cannabis flower if, during any quarter, 
4the Department fails to establish a fair market price based 
5upon quality and variety. After January 1, 2024, the monthly 
6portion of THC oil extract may be adjusted by the Department of 
7Agriculture based upon market assessments as provided in 
8subsections (c) and (d). 
9 (c) The Department of Agriculture shall perform an 
10assessment of whether infusers have access to an adequate 
11supply of reasonably affordable raw materials that shall start 
12no sooner than January 1, 2024 2022 and shall conclude no later 
13than April 1, 2024 2022. The Department of Agriculture may 
14rely on data from the Illinois Cannabis Regulation Oversight 
15Officer as part of this assessment.
16 (d) The Department of Agriculture shall perform an 
17assessment of whether infusers have access to an adequate 
18supply of reasonably affordable raw materials that shall start 
19no sooner than January 1, 2025 2023 and shall conclude no later 
20than April 1, 2025 2023. The Department of Agriculture may 
21rely on data from the Cannabis Regulation Oversight Officer as 
22part of this assessment.
23 (e) The Department of Agriculture may by rule adopt 
24measures to ensure infusers have access to an adequate supply 
25of reasonably affordable raw materials necessary for the 
26manufacture of cannabis-infused products. Such measures may 
 
 
HB0031- 33 -LRB103 03544 CPF 48550 b


1include, but not be limited to (i) requiring cultivation 
2centers and craft growers to set aside a minimum amount of raw 
3materials for the wholesale market or (ii) enabling infusers 
4to apply for a processor license to extract raw materials from 
5cannabis flower.
6 (f) If the Department of Agriculture determines processor 
7licenses may be available to infuser organizations based upon 
8findings made pursuant to subsection (e), infuser 
9organizations may submit to the Department of Agriculture on 
10forms provided by the Department of Agriculture the following 
11information as part of an application to receive a processor 
12license: 
13  (1) experience with the extraction, processing, or 
14 infusing of oils similar to those derived from cannabis, 
15 or other business practices to be performed by the 
16 infuser;
17  (2) a description of the applicant's experience with 
18 manufacturing equipment and chemicals to be used in 
19 processing;
20  (3) expertise in relevant scientific fields;
21  (4) a commitment that any cannabis waste, liquid 
22 waste, or hazardous waste shall be disposed of in 
23 accordance with 8 Ill. Adm. Code 1000.460, except, to the 
24 greatest extent feasible, all cannabis plant waste will be 
25 rendered unusable by grinding and incorporating the 
26 cannabis plant waste with compostable mixed waste to be 
 
 
HB0031- 34 -LRB103 03544 CPF 48550 b


1 disposed of in accordance with Ill. Adm. Code 
2 1000.460(g)(1); and
3  (5) any other information the Department of 
4 Agriculture deems relevant.
5 (g) The Department of Agriculture may only issue an 
6infuser organization a processor license if, based on the 
7information pursuant to subsection (f) and any other criteria 
8set by the Department of Agriculture, which may include but 
9not be limited an inspection of the site where processing 
10would occur, the Department of Agriculture is reasonably 
11certain the infuser organization will process cannabis in a 
12safe and compliant manner.

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

14 (410 ILCS 705/40-25)

15 Sec. 40-25. Transporting organization requirements; 
16prohibitions. 
17 (a) The operating documents of a transporting organization 
18shall include procedures for the oversight of the transporter, 
19an inventory monitoring system including a physical inventory 
20recorded weekly, accurate recordkeeping, and a staffing plan.
21 (b) A transporting organization may not transport cannabis 
22or cannabis-infused products to any person other than a 
23cultivation center, a craft grower, an infuser organization, a 
24dispensing organization, a testing facility, a transporting 
25organization depot or other transporting organization transfer 
 
 
HB0031- 35 -LRB103 03544 CPF 48550 b


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

24(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
25102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
265-13-22.)

 
 
HB0031- 38 -LRB103 03544 CPF 48550 b


1 (410 ILCS 705/55-20)

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

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

10 (410 ILCS 705/60-10)

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

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


24 Section 99. Effective date. This Act takes effect upon 
25becoming law.