Bill Text: IL HB0032 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Cannabis Regulation and Tax Act. Provides that premises may be shared between up to 3 craft growers, an infuser organization, a cultivation center, a dispensing organization, or any combination thereof, provided that specified requirements are met. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2025-01-07 - Session Sine Die [HB0032 Detail]

Download: Illinois-2023-HB0032-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB0032 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
410 ILCS 705/1-10
410 ILCS 705/15-100
410 ILCS 705/30-30
410 ILCS 705/35-25
Amends the Cannabis Regulation and Tax Act. Provides that premises may be shared between up to 3 craft growers, an infuser organization, a cultivation center, a dispensing organization, or any combination thereof, provided that specified requirements are met. Effective immediately.
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A BILL FOR
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AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Cannabis Regulation and Tax Act is amended
by changing Sections 1-10, 15-100, 30-30, and 35-25 as
follows:
(410 ILCS 705/1-10)
Sec. 1-10. Definitions. In this Act:
"Adult Use Cultivation Center License" means a license
issued by the Department of Agriculture that permits a person
to act as a cultivation center under this Act and any
administrative rule made in furtherance of this Act.
"Adult Use Dispensing Organization License" means a
license issued by the Department of Financial and Professional
Regulation that permits a person to act as a dispensing
organization under this Act and any administrative rule made
in furtherance of this Act.
"Advertise" means to engage in promotional activities
including, but not limited to: newspaper, radio, Internet and
electronic media, and television advertising; the distribution
of fliers and circulars; billboard advertising; and the
display of window and interior signs. "Advertise" does not
mean exterior signage displaying only the name of the licensed

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cannabis business establishment.
"Application points" means the number of points a
Dispensary Applicant receives on an application for a
Conditional Adult Use Dispensing Organization License.
"BLS Region" means a region in Illinois used by the United
States Bureau of Labor Statistics to gather and categorize
certain employment and wage data. The 17 such regions in
Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
Rockford, St. Louis, Springfield, Northwest Illinois
nonmetropolitan area, West Central Illinois nonmetropolitan
area, East Central Illinois nonmetropolitan area, and South
Illinois nonmetropolitan area.
"By lot" means a randomized method of choosing between 2
or more Eligible Tied Applicants or 2 or more Qualifying
Applicants.
"Cannabis" means marijuana, hashish, and other substances
that are identified as including any parts of the plant
Cannabis sativa and including derivatives or subspecies, such
as indica, of all strains of cannabis, whether growing or not;
the seeds thereof, the resin extracted from any part of the
plant; and any compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin,
including tetrahydrocannabinol (THC) and all other naturally
produced cannabinol derivatives, whether produced directly or

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indirectly by extraction; however, "cannabis" does not include
the mature stalks of the plant, fiber produced from the
stalks, oil or cake made from the seeds of the plant, any other
compound, manufacture, salt, derivative, mixture, or
preparation of the mature stalks (except the resin extracted
from it), fiber, oil or cake, or the sterilized seed of the
plant that is incapable of germination. "Cannabis" does not
include industrial hemp as defined and authorized under the
Industrial Hemp Act. "Cannabis" also means cannabis flower,
concentrate, and cannabis-infused products.
"Cannabis business establishment" means a cultivation
center, craft grower, processing organization, infuser
organization, dispensing organization, or transporting
organization.
"Cannabis concentrate" means a product derived from
cannabis that is produced by extracting cannabinoids,
including tetrahydrocannabinol (THC), from the plant through
the use of propylene glycol, glycerin, butter, olive oil, or
other typical cooking fats; water, ice, or dry ice; or butane,
propane, CO2, ethanol, or isopropanol and with the intended
use of smoking or making a cannabis-infused product. The use
of any other solvent is expressly prohibited unless and until
it is approved by the Department of Agriculture.
"Cannabis container" means a sealed or resealable,
traceable, container, or package used for the purpose of
containment of cannabis or cannabis-infused product during

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transportation.
"Cannabis flower" means marijuana, hashish, and other
substances that are identified as including any parts of the
plant Cannabis sativa and including derivatives or subspecies,
such as indica, of all strains of cannabis; including raw
kief, leaves, and buds, but not resin that has been extracted
from any part of such plant; nor any compound, manufacture,
salt, derivative, mixture, or preparation of such plant, its
seeds, or resin.
"Cannabis-infused product" means a beverage, food, oil,
ointment, tincture, topical formulation, or another product
containing cannabis or cannabis concentrate that is not
intended to be smoked.
"Cannabis paraphernalia" means equipment, products, or
materials intended to be used for planting, propagating,
cultivating, growing, harvesting, manufacturing, producing,
processing, preparing, testing, analyzing, packaging,
repackaging, storing, containing, concealing, ingesting, or
otherwise introducing cannabis into the human body.
"Cannabis plant monitoring system" or "plant monitoring
system" means a system that includes, but is not limited to,
testing and data collection established and maintained by the
cultivation center, craft grower, or processing organization
and that is available to the Department of Revenue, the
Department of Agriculture, the Department of Financial and
Professional Regulation, and the Illinois State Police for the

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purposes of documenting each cannabis plant and monitoring
plant development throughout the life cycle of a cannabis
plant cultivated for the intended use by a customer from seed
planting to final packaging.
"Cannabis testing facility" means an entity registered by
the Department of Agriculture to test cannabis for potency and
contaminants.
"Clone" means a plant section from a female cannabis plant
not yet rootbound, growing in a water solution or other
propagation matrix, that is capable of developing into a new
plant.
"Community College Cannabis Vocational Training Pilot
Program faculty participant" means a person who is 21 years of
age or older, licensed by the Department of Agriculture, and
is employed or contracted by an Illinois community college to
provide student instruction using cannabis plants at an
Illinois Community College.
"Community College Cannabis Vocational Training Pilot
Program faculty participant Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a Community College Cannabis Vocational
Training Pilot Program faculty participant.
"Conditional Adult Use Dispensing Organization License"
means a contingent license awarded to applicants for an Adult
Use Dispensing Organization License that reserves the right to
an Adult Use Dispensing Organization License if the applicant

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

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center, a dispensing organization, or any combination thereof
a processing organization or a dispensing organization, or
both, provided each licensee stores currency and cannabis or
cannabis-infused products in a separate secured vault to which
the other licensee does not have access or all licensees
sharing a vault share more than 50% of the same ownership.
"Craft grower agent" means a principal officer, board
member, employee, or other agent of a craft grower who is 21
years of age or older.
"Craft Grower Agent Identification Card" means a document
issued by the Department of Agriculture that identifies a
person as a craft grower agent.
"Cultivation center" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to cultivate, process, transport (unless otherwise
limited by this Act), and perform other necessary activities
to provide cannabis and cannabis-infused products to cannabis
business establishments.
"Cultivation center agent" means a principal officer,
board member, employee, or other agent of a cultivation center
who is 21 years of age or older.
"Cultivation Center Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a cultivation center agent.
"Currency" means currency and coin of the United States.
"Dispensary" means a facility operated by a dispensing

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organization at which activities licensed by this Act may
occur.
"Dispensary Applicant" means the Proposed Dispensing
Organization Name as stated on an application for a
Conditional Adult Use Dispensing Organization License.
"Dispensing organization" means a facility operated by an
organization or business that is licensed by the Department of
Financial and Professional Regulation to acquire cannabis from
a cultivation center, craft grower, processing organization,
or another dispensary for the purpose of selling or dispensing
cannabis, cannabis-infused products, cannabis seeds,
paraphernalia, or related supplies under this Act to
purchasers or to qualified registered medical cannabis
patients and caregivers. As used in this Act, "dispensing
organization" includes a registered medical cannabis
organization as defined in the Compassionate Use of Medical
Cannabis Program Act or its successor Act that has obtained an
Early Approval Adult Use Dispensing Organization License.
"Dispensing organization agent" means a principal officer,
employee, or agent of a dispensing organization who is 21
years of age or older.
"Dispensing organization agent identification card" means
a document issued by the Department of Financial and
Professional Regulation that identifies a person as a
dispensing organization agent.
"Disproportionately Impacted Area" means a census tract or

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comparable geographic area that satisfies the following
criteria as determined by the Department of Commerce and
Economic Opportunity, that:
(1) meets at least one of the following criteria:
(A) the area has a poverty rate of at least 20%
according to the latest federal decennial census; or
(B) 75% or more of the children in the area
participate in the federal free lunch program
according to reported statistics from the State Board
of Education; or
(C) at least 20% of the households in the area
receive assistance under the Supplemental Nutrition
Assistance Program; or
(D) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
unemployment average, as determined by the United
States Department of Labor, for a period of at least 2
consecutive calendar years preceding the date of the
application; and
(2) has high rates of arrest, conviction, and
incarceration related to the sale, possession, use,
cultivation, manufacture, or transport of cannabis.
"Early Approval Adult Use Cultivation Center License"
means a license that permits a medical cannabis cultivation
center licensed under the Compassionate Use of Medical

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Cannabis Program Act as of the effective date of this Act to
begin cultivating, infusing, packaging, transporting (unless
otherwise provided in this Act), processing, and selling
cannabis or cannabis-infused product to cannabis business
establishments for resale to purchasers as permitted by this
Act as of January 1, 2020.
"Early Approval Adult Use Dispensing Organization License"
means a license that permits a medical cannabis dispensing
organization licensed under the Compassionate Use of Medical
Cannabis Program Act as of the effective date of this Act to
begin selling cannabis or cannabis-infused product to
purchasers as permitted by this Act as of January 1, 2020.
"Early Approval Adult Use Dispensing Organization at a
secondary site" means a license that permits a medical
cannabis dispensing organization licensed under the
Compassionate Use of Medical Cannabis Program Act as of the
effective date of this Act to begin selling cannabis or
cannabis-infused product to purchasers as permitted by this
Act on January 1, 2020 at a different dispensary location from
its existing registered medical dispensary location.
"Eligible Tied Applicant" means a Tied Applicant that is
eligible to participate in the process by which a remaining
available license is distributed by lot pursuant to a Tied
Applicant Lottery.
"Enclosed, locked facility" means a room, greenhouse,
building, or other enclosed area equipped with locks or other

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security devices that permit access only by cannabis business
establishment agents working for the licensed cannabis
business establishment or acting pursuant to this Act to
cultivate, process, store, or distribute cannabis.
"Enclosed, locked space" means a closet, room, greenhouse,
building, or other enclosed area equipped with locks or other
security devices that permit access only by authorized
individuals under this Act. "Enclosed, locked space" may
include:
(1) a space within a residential building that (i) is
the primary residence of the individual cultivating 5 or
fewer cannabis plants that are more than 5 inches tall and
(ii) includes sleeping quarters and indoor plumbing. The
space must only be accessible by a key or code that is
different from any key or code that can be used to access
the residential building from the exterior; or
(2) a structure, such as a shed or greenhouse, that
lies on the same plot of land as a residential building
that (i) includes sleeping quarters and indoor plumbing
and (ii) is used as a primary residence by the person
cultivating 5 or fewer cannabis plants that are more than
5 inches tall, such as a shed or greenhouse. The structure
must remain locked when it is unoccupied by people.
"Financial institution" has the same meaning as "financial
organization" as defined in Section 1501 of the Illinois
Income Tax Act, and also includes the holding companies,

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subsidiaries, and affiliates of such financial organizations.
"Flowering stage" means the stage of cultivation where and
when a cannabis plant is cultivated to produce plant material
for cannabis products. This includes mature plants as follows:
(1) if greater than 2 stigmas are visible at each
internode of the plant; or
(2) if the cannabis plant is in an area that has been
intentionally deprived of light for a period of time
intended to produce flower buds and induce maturation,
from the moment the light deprivation began through the
remainder of the marijuana plant growth cycle.
"Individual" means a natural person.
"Infuser organization" or "infuser" means a facility
operated by an organization or business that is licensed by
the Department of Agriculture to directly incorporate cannabis
or cannabis concentrate into a product formulation to produce
a cannabis-infused product.
"Kief" means the resinous crystal-like trichomes that are
found on cannabis and that are accumulated, resulting in a
higher concentration of cannabinoids, untreated by heat or
pressure, or extracted using a solvent.
"Labor peace agreement" means an agreement between a
cannabis business establishment and any labor organization
recognized under the National Labor Relations Act, referred to
in this Act as a bona fide labor organization, that prohibits
labor organizations and members from engaging in picketing,

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work stoppages, boycotts, and any other economic interference
with the cannabis business establishment. This agreement means
that the cannabis business establishment has agreed not to
disrupt efforts by the bona fide labor organization to
communicate with, and attempt to organize and represent, the
cannabis business establishment's employees. The agreement
shall provide a bona fide labor organization access at
reasonable times to areas in which the cannabis business
establishment's employees work, for the purpose of meeting
with employees to discuss their right to representation,
employment rights under State law, and terms and conditions of
employment. This type of agreement shall not mandate a
particular method of election or certification of the bona
fide labor organization.
"Limited access area" means a room or other area under the
control of a cannabis dispensing organization licensed under
this Act and upon the licensed premises where cannabis sales
occur with access limited to purchasers, dispensing
organization owners and other dispensing organization agents,
or service professionals conducting business with the
dispensing organization, or, if sales to registered qualifying
patients, caregivers, provisional patients, and Opioid
Alternative Pilot Program participants licensed pursuant to
the Compassionate Use of Medical Cannabis Program Act are also
permitted at the dispensary, registered qualifying patients,
caregivers, provisional patients, and Opioid Alternative Pilot

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Program participants.
"Member of an impacted family" means an individual who has
a parent, legal guardian, child, spouse, or dependent, or was
a dependent of an individual who, prior to the effective date
of this Act, was arrested for, convicted of, or adjudicated
delinquent for any offense that is eligible for expungement
under this Act.
"Mother plant" means a cannabis plant that is cultivated
or maintained for the purpose of generating clones, and that
will not be used to produce plant material for sale to an
infuser or dispensing organization.
"Ordinary public view" means within the sight line with
normal visual range of a person, unassisted by visual aids,
from a public street or sidewalk adjacent to real property, or
from within an adjacent property.
"Ownership and control" means ownership of at least 51% of
the business, including corporate stock if a corporation, and
control over the management and day-to-day operations of the
business and an interest in the capital, assets, and profits
and losses of the business proportionate to percentage of
ownership.
"Person" means a natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.

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"Possession limit" means the amount of cannabis under
Section 10-10 that may be possessed at any one time by a person
21 years of age or older or who is a registered qualifying
medical cannabis patient or caregiver under the Compassionate
Use of Medical Cannabis Program Act.
"Principal officer" includes a cannabis business
establishment applicant or licensed cannabis business
establishment's board member, owner with more than 1% interest
of the total cannabis business establishment or more than 5%
interest of the total cannabis business establishment of a
publicly traded company, president, vice president, secretary,
treasurer, partner, officer, member, manager member, or person
with a profit sharing, financial interest, or revenue sharing
arrangement. The definition includes a person with authority
to control the cannabis business establishment, a person who
assumes responsibility for the debts of the cannabis business
establishment and who is further defined in this Act.
"Primary residence" means a dwelling where a person
usually stays or stays more often than other locations. It may
be determined by, without limitation, presence, tax filings;
address on an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a Disability
Identification Card; or voter registration. No person may have
more than one primary residence.
"Processing organization" or "processor" means a facility
operated by an organization or business that is licensed by

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the Department of Agriculture to either extract constituent
chemicals or compounds to produce cannabis concentrate or
incorporate cannabis or cannabis concentrate into a product
formulation to produce a cannabis product.
"Processing organization agent" means a principal officer,
board member, employee, or agent of a processing organization.
"Processing organization agent identification card" means
a document issued by the Department of Agriculture that
identifies a person as a processing organization agent.
"Purchaser" means a person 21 years of age or older who
acquires cannabis for a valuable consideration. "Purchaser"
does not include a cardholder under the Compassionate Use of
Medical Cannabis Program Act.
"Qualifying Applicant" means an applicant that submitted
an application pursuant to Section 15-30 that received at
least 85% of 250 application points available under Section
15-30 as the applicant's final score and meets the definition
of "Social Equity Applicant" as set forth under this Section.
"Qualifying Social Equity Justice Involved Applicant"
means an applicant that submitted an application pursuant to
Section 15-30 that received at least 85% of 250 application
points available under Section 15-30 as the applicant's final
score and meets the criteria of either paragraph (1) or (2) of
the definition of "Social Equity Applicant" as set forth under
this Section.
"Qualified Social Equity Applicant" means a Social Equity

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Applicant who has been awarded a conditional license under
this Act to operate a cannabis business establishment.
"Resided" means an individual's primary residence was
located within the relevant geographic area as established by
2 of the following:
(1) a signed lease agreement that includes the
applicant's name;
(2) a property deed that includes the applicant's
name;
(3) school records;
(4) a voter registration card;
(5) an Illinois driver's license, an Illinois
Identification Card, or an Illinois Person with a
Disability Identification Card;
(6) a paycheck stub;
(7) a utility bill;
(8) tax records; or
(9) any other proof of residency or other information
necessary to establish residence as provided by rule.
"Smoking" means the inhalation of smoke caused by the
combustion of cannabis.
"Social Equity Applicant" means an applicant that is an
Illinois resident that meets one of the following criteria:
(1) an applicant with at least 51% ownership and
control by one or more individuals who have resided for at
least 5 of the preceding 10 years in a Disproportionately

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Impacted Area;
(2) an applicant with at least 51% ownership and
control by one or more individuals who:
(i) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under this Act; or
(ii) is a member of an impacted family;
(3) for applicants with a minimum of 10 full-time
employees, an applicant with at least 51% of current
employees who:
(i) currently reside in a Disproportionately
Impacted Area; or
(ii) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under this Act or member of
an impacted family.
Nothing in this Act shall be construed to preempt or limit
the duties of any employer under the Job Opportunities for
Qualified Applicants Act. Nothing in this Act shall permit an
employer to require an employee to disclose sealed or expunged
offenses, unless otherwise required by law.
"Tied Applicant" means an application submitted by a
Dispensary Applicant pursuant to Section 15-30 that received
the same number of application points under Section 15-30 as
the Dispensary Applicant's final score as one or more
top-scoring applications in the same BLS Region and would have

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

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"Transporting organization agent identification card"
means a document issued by the Department of Agriculture that
identifies a person as a transporting organization agent.
"Unit of local government" means any county, city,
village, or incorporated town.
"Vegetative stage" means the stage of cultivation in which
a cannabis plant is propagated to produce additional cannabis
plants or reach a sufficient size for production. This
includes seedlings, clones, mothers, and other immature
cannabis plants as follows:
(1) if the cannabis plant is in an area that has not
been intentionally deprived of light for a period of time
intended to produce flower buds and induce maturation, it
has no more than 2 stigmas visible at each internode of the
cannabis plant; or
(2) any cannabis plant that is cultivated solely for
the purpose of propagating clones and is never used to
produce cannabis.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
(410 ILCS 705/15-100)
Sec. 15-100. Security.
(a) A dispensing organization shall implement security
measures to deter and prevent entry into and theft of cannabis

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or currency.
(b) A dispensing organization shall submit any changes to
the floor plan or security plan to the Department for
pre-approval. All cannabis shall be maintained and stored in a
restricted access area during construction.
(c) The dispensing organization shall implement security
measures to protect the premises, purchasers, and dispensing
organization agents including, but not limited to the
following:
(1) Establish a locked door or barrier between the
facility's entrance and the limited access area;
(2) Prevent individuals from remaining on the premises
if they are not engaging in activity permitted by this Act
or rules;
(3) Develop a policy that addresses the maximum
capacity and purchaser flow in the waiting rooms and
limited access areas;
(4) Dispose of cannabis in accordance with this Act
and rules;
(5) During hours of operation, store and dispense all
cannabis from the restricted access area. During
operational hours, cannabis shall be stored in an enclosed
locked room or cabinet and accessible only to specifically
authorized dispensing organization agents;
(6) When the dispensary is closed, store all cannabis
and currency in a reinforced vault room in the restricted

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access area and in a manner as to prevent diversion,
theft, or loss;
(7) Keep the reinforced vault room and any other
equipment or cannabis storage areas securely locked and
protected from unauthorized entry;
(8) Keep an electronic daily log of dispensing
organization agents with access to the reinforced vault
room and knowledge of the access code or combination;
(9) Keep all locks and security equipment in good
working order;
(10) Maintain an operational security and alarm system
at all times;
(11) Prohibit keys, if applicable, from being left in
the locks, or stored or placed in a location accessible to
persons other than specifically authorized personnel;
(12) Prohibit accessibility of security measures,
including combination numbers, passwords, or electronic or
biometric security systems to persons other than
specifically authorized dispensing organization agents;
(13) Ensure that the dispensary interior and exterior
premises are sufficiently lit to facilitate surveillance;
(14) Ensure that trees, bushes, and other foliage
outside of the dispensary premises do not allow for a
person or persons to conceal themselves from sight;
(15) Develop emergency policies and procedures for
securing all product and currency following any instance

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of diversion, theft, or loss of cannabis, and conduct an
assessment to determine whether additional safeguards are
necessary; and
(16) Develop sufficient additional safeguards in
response to any special security concerns, or as required
by the Department.
(d) The Department may request or approve alternative
security provisions that it determines are an adequate
substitute for a security requirement specified in this
Article. Any additional protections may be considered by the
Department in evaluating overall security measures.
(e) A dispensing organization may share premises with up
to 3 craft growers, an infuser organization, a cultivation
center, or any combination thereof a craft grower or an
infuser organization, or both, provided each licensee stores
currency and cannabis or cannabis-infused products in a
separate secured vault to which the other licensee does not
have access or all licensees sharing a vault share more than
50% of the same ownership.
(f) A dispensing organization shall provide additional
security as needed and in a manner appropriate for the
community where it operates.
(g) Restricted access areas.
(1) All restricted access areas must be identified by
the posting of a sign that is a minimum of 12 inches by 12
inches and that states "Do Not Enter - Restricted Access

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Area - Authorized Personnel Only" in lettering no smaller
than one inch in height.
(2) All restricted access areas shall be clearly
described in the floor plan of the premises, in the form
and manner determined by the Department, reflecting walls,
partitions, counters, and all areas of entry and exit. The
floor plan shall show all storage, disposal, and retail
sales areas.
(3) All restricted access areas must be secure, with
locking devices that prevent access from the limited
access areas.
(h) Security and alarm.
(1) A dispensing organization shall have an adequate
security plan and security system to prevent and detect
diversion, theft, or loss of cannabis, currency, or
unauthorized intrusion using commercial grade equipment
installed by an Illinois licensed private alarm contractor
or private alarm contractor agency that shall, at a
minimum, include:
(i) A perimeter alarm on all entry points and
glass break protection on perimeter windows;
(ii) Security shatterproof tinted film on exterior
windows;
(iii) A failure notification system that provides
an audible, text, or visual notification of any
failure in the surveillance system, including, but not

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limited to, panic buttons, alarms, and video
monitoring system. The failure notification system
shall provide an alert to designated dispensing
organization agents within 5 minutes after the
failure, either by telephone or text message;
(iv) A duress alarm, panic button, and alarm, or
holdup alarm and after-hours intrusion detection alarm
that by design and purpose will directly or indirectly
notify, by the most efficient means, the Public Safety
Answering Point for the law enforcement agency having
primary jurisdiction;
(v) Security equipment to deter and prevent
unauthorized entrance into the dispensary, including
electronic door locks on the limited and restricted
access areas that include devices or a series of
devices to detect unauthorized intrusion that may
include a signal system interconnected with a radio
frequency method, cellular, private radio signals or
other mechanical or electronic device.
(2) All security system equipment and recordings shall
be maintained in good working order, in a secure location
so as to prevent theft, loss, destruction, or alterations.
(3) Access to surveillance monitoring recording
equipment shall be limited to persons who are essential to
surveillance operations, law enforcement authorities
acting within their jurisdiction, security system service

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personnel, and the Department. A current list of
authorized dispensing organization agents and service
personnel that have access to the surveillance equipment
must be available to the Department upon request.
(4) All security equipment shall be inspected and
tested at regular intervals, not to exceed one month from
the previous inspection, and tested to ensure the systems
remain functional.
(5) The security system shall provide protection
against theft and diversion that is facilitated or hidden
by tampering with computers or electronic records.
(6) The dispensary shall ensure all access doors are
not solely controlled by an electronic access panel to
ensure that locks are not released during a power outage.
(i) To monitor the dispensary, the dispensing organization
shall incorporate continuous electronic video monitoring
including the following:
(1) All monitors must be 19 inches or greater;
(2) Unobstructed video surveillance of all enclosed
dispensary areas, unless prohibited by law, including all
points of entry and exit that shall be appropriate for the
normal lighting conditions of the area under surveillance.
The cameras shall be directed so all areas are captured,
including, but not limited to, safes, vaults, sales areas,
and areas where cannabis is stored, handled, dispensed, or
destroyed. Cameras shall be angled to allow for facial

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recognition, the capture of clear and certain
identification of any person entering or exiting the
dispensary area and in lighting sufficient during all
times of night or day;
(3) Unobstructed video surveillance of outside areas,
the storefront, and the parking lot, that shall be
appropriate for the normal lighting conditions of the area
under surveillance. Cameras shall be angled so as to allow
for the capture of facial recognition, clear and certain
identification of any person entering or exiting the
dispensary and the immediate surrounding area, and license
plates of vehicles in the parking lot;
(4) 24-hour recordings from all video cameras
available for immediate viewing by the Department upon
request. Recordings shall not be destroyed or altered and
shall be retained for at least 90 days. Recordings shall
be retained as long as necessary if the dispensing
organization is aware of the loss or theft of cannabis or a
pending criminal, civil, or administrative investigation
or legal proceeding for which the recording may contain
relevant information;
(5) The ability to immediately produce a clear, color
still photo from the surveillance video, either live or
recorded;
(6) A date and time stamp embedded on all video
surveillance recordings. The date and time shall be

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synchronized and set correctly and shall not significantly
obscure the picture;
(7) The ability to remain operational during a power
outage and ensure all access doors are not solely
controlled by an electronic access panel to ensure that
locks are not released during a power outage;
(8) All video surveillance equipment shall allow for
the exporting of still images in an industry standard
image format, including .jpg, .bmp, and .gif. Exported
video shall have the ability to be archived in a
proprietary format that ensures authentication of the
video and guarantees that no alteration of the recorded
image has taken place. Exported video shall also have the
ability to be saved in an industry standard file format
that can be played on a standard computer operating
system. All recordings shall be erased or destroyed before
disposal;
(9) The video surveillance system shall be operational
during a power outage with a 4-hour minimum battery
backup;
(10) A video camera or cameras recording at each
point-of-sale location allowing for the identification of
the dispensing organization agent distributing the
cannabis and any purchaser. The camera or cameras shall
capture the sale, the individuals and the computer
monitors used for the sale;

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(11) A failure notification system that provides an
audible and visual notification of any failure in the
electronic video monitoring system; and
(12) All electronic video surveillance monitoring must
record at least the equivalent of 8 frames per second and
be available as recordings to the Department and the
Illinois State Police 24 hours a day via a secure
web-based portal with reverse functionality.
(j) The requirements contained in this Act are minimum
requirements for operating a dispensing organization. The
Department may establish additional requirements by rule.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-538, eff. 8-20-21.)
(410 ILCS 705/30-30)
Sec. 30-30. Craft grower requirements; prohibitions.
(a) The operating documents of a craft grower shall
include procedures for the oversight of the craft grower, a
cannabis plant monitoring system including a physical
inventory recorded weekly, accurate recordkeeping, and a
staffing plan.
(b) A craft grower shall implement a security plan
reviewed by the Illinois State Police that includes, but is
not limited to: facility access controls, perimeter intrusion
detection systems, personnel identification systems, and a
24-hour surveillance system to monitor the interior and

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exterior of the craft grower facility and that is accessible
to authorized law enforcement and the Department of
Agriculture in real time.
(c) All cultivation of cannabis by a craft grower must
take place in an enclosed, locked facility at the physical
address provided to the Department of Agriculture during the
licensing process. The craft grower location shall only be
accessed by the agents working for the craft grower, the
Department of Agriculture staff performing inspections, the
Department of Public Health staff performing inspections,
State and local law enforcement or other emergency personnel,
contractors working on jobs unrelated to cannabis, such as
installing or maintaining security devices or performing
electrical wiring, transporting organization agents as
provided in this Act, or participants in the incubator
program, individuals in a mentoring or educational program
approved by the State, or other individuals as provided by
rule. However, if a craft grower shares a premises with an
infuser or dispensing organization, agents from those other
licensees may access the craft grower portion of the premises
if that is the location of common bathrooms, lunchrooms,
locker rooms, or other areas of the building where work or
cultivation of cannabis is not performed. At no time may an
infuser or dispensing organization agent perform work at a
craft grower without being a registered agent of the craft
grower.

HB0032 - 31 - LRB103 03547 CPF 48553 b
(d) A craft grower may not sell or distribute any cannabis
to any person other than a cultivation center, a craft grower,
an infuser organization, a dispensing organization, or as
otherwise authorized by rule.
(e) A craft grower may not be located in an area zoned for
residential use.
(f) A craft grower may not either directly or indirectly
discriminate in price between different cannabis business
establishments that are purchasing a like grade, strain,
brand, and quality of cannabis or cannabis-infused product.
Nothing in this subsection (f) prevents a craft grower from
pricing cannabis differently based on differences in the cost
of manufacturing or processing, the quantities sold, such as
volume discounts, or the way the products are delivered.
(g) All cannabis harvested by a craft grower and intended
for distribution to a dispensing organization must be entered
into a data collection system, packaged and labeled under
Section 55-21, and, if distribution is to a dispensing
organization that does not share a premises with the
dispensing organization receiving the cannabis, placed into a
cannabis container for transport. All cannabis harvested by a
craft grower and intended for distribution to a cultivation
center, to an infuser organization, or to a craft grower with
which it does not share a premises, must be packaged in a
labeled cannabis container and entered into a data collection
system before transport.

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(h) Craft growers are subject to random inspections by the
Department of Agriculture, local safety or health inspectors,
the Illinois State Police, or as provided by rule.
(i) A craft grower agent shall notify local law
enforcement, the Illinois State Police, and the Department of
Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone, in person, or
written or electronic communication.
(j) A craft grower shall comply with all State and any
applicable federal rules and regulations regarding the use of
pesticides.
(k) A craft grower or craft grower agent shall not
transport cannabis or cannabis-infused products to any other
cannabis business establishment without a transport
organization license unless:
(i) If the craft grower is located in a county with a
population of 3,000,000 or more, the cannabis business
establishment receiving the cannabis is within 2,000 feet
of the property line of the craft grower;
(ii) If the craft grower is located in a county with a
population of more than 700,000 but fewer than 3,000,000,
the cannabis business establishment receiving the cannabis
is within 2 miles of the craft grower; or
(iii) If the craft grower is located in a county with a
population of fewer than 700,000, the cannabis business
establishment receiving the cannabis is within 15 miles of

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the craft grower.
(l) A craft grower may enter into a contract with a
transporting organization to transport cannabis to a
cultivation center, a craft grower, an infuser organization, a
dispensing organization, or a laboratory.
(m) No person or entity shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 3 craft grower licenses. Further, no person or
entity that is employed by, an agent of, or has a contract to
receive payment from or participate in the management of a
craft grower, is a principal officer of a craft grower, or
entity controlled by or affiliated with a principal officer of
a craft grower shall hold any legal, equitable, ownership, or
beneficial interest, directly or indirectly, in a craft grower
license that would result in the person or entity owning or
controlling in combination with any craft grower, principal
officer of a craft grower, or entity controlled or affiliated
with a principal officer of a craft grower by which he, she, or
it is employed, is an agent of, or participates in the
management of more than 3 craft grower licenses.
(n) It is unlawful for any person having a craft grower
license or any officer, associate, member, representative, or
agent of the licensee to offer or deliver money, or anything
else of value, directly or indirectly, to any person having an
Early Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an

HB0032 - 34 - LRB103 03547 CPF 48553 b
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Program Act, or to any
person connected with or in any way representing, or to any
member of the family of, the person holding an Early Approval
Adult Use Dispensing Organization License, a Conditional Adult
Use Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Program Act, or to any stockholders in any
corporation engaged in the retail sale of cannabis, or to any
officer, manager, agent, or representative of the Early
Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Program Act to obtain
preferential placement within the dispensing organization,
including, without limitation, on shelves and in display cases
where purchasers can view products, or on the dispensing
organization's website.
(o) A craft grower shall not be located within 1,500 feet
of another craft grower or a cultivation center, unless the
craft grower shares premises with up to 2 other craft growers,
an infuser organization, a dispensing organization, or any
combination thereof as provided under the definition of "craft

HB0032 - 35 - LRB103 03547 CPF 48553 b
grower" in Section 1-10 or under subsection (e) of Section
15-100 or subsection (l) of Section 35-25.
(p) A craft grower may process cannabis, cannabis
concentrates, and cannabis-infused products.
(q) A craft grower must comply with any other requirements
or prohibitions set by administrative rule of the Department
of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
(410 ILCS 705/35-25)
Sec. 35-25. Infuser organization requirements;
prohibitions.
(a) The operating documents of an infuser shall include
procedures for the oversight of the infuser, an inventory
monitoring system including a physical inventory recorded
weekly, accurate recordkeeping, and a staffing plan.
(b) An infuser shall implement a security plan reviewed by
the Illinois State Police that includes, but is not limited
to: facility access controls, perimeter intrusion detection
systems, personnel identification systems, and a 24-hour
surveillance system to monitor the interior and exterior of
the infuser facility and that is accessible to authorized law
enforcement, the Department of Public Health, and the
Department of Agriculture in real time.

HB0032 - 36 - LRB103 03547 CPF 48553 b
(c) All processing of cannabis by an infuser must take
place in an enclosed, locked facility at the physical address
provided to the Department of Agriculture during the licensing
process. The infuser location shall only be accessed by the
agents working for the infuser, the Department of Agriculture
staff performing inspections, the Department of Public Health
staff performing inspections, State and local law enforcement
or other emergency personnel, contractors working on jobs
unrelated to cannabis, such as installing or maintaining
security devices or performing electrical wiring, transporting
organization agents as provided in this Act, participants in
the incubator program, individuals in a mentoring or
educational program approved by the State, local safety or
health inspectors, or other individuals as provided by rule.
However, if an infuser shares a premises with a craft grower or
dispensing organization, agents from these other licensees may
access the infuser portion of the premises if that is the
location of common bathrooms, lunchrooms, locker rooms, or
other areas of the building where processing of cannabis is
not performed. At no time may a craft grower or dispensing
organization agent perform work at an infuser without being a
registered agent of the infuser.
(d) An infuser may not sell or distribute any cannabis to
any person other than a dispensing organization, or as
otherwise authorized by rule.
(e) An infuser may not either directly or indirectly

HB0032 - 37 - LRB103 03547 CPF 48553 b
discriminate in price between different cannabis business
establishments that are purchasing a like grade, strain,
brand, and quality of cannabis or cannabis-infused product.
Nothing in this subsection (e) prevents an infuser from
pricing cannabis differently based on differences in the cost
of manufacturing or processing, the quantities sold, such
volume discounts, or the way the products are delivered.
(f) All cannabis infused by an infuser and intended for
distribution to a dispensing organization must be entered into
a data collection system, packaged and labeled under Section
55-21, and, if distribution is to a dispensing organization
that does not share a premises with the infuser, placed into a
cannabis container for transport. All cannabis produced by an
infuser and intended for distribution to a cultivation center,
infuser organization, or craft grower with which it does not
share a premises, must be packaged in a labeled cannabis
container and entered into a data collection system before
transport.
(g) Infusers are subject to random inspections by the
Department of Agriculture, the Department of Public Health,
the Illinois State Police, local law enforcement, or as
provided by rule.
(h) An infuser agent shall notify local law enforcement,
the Illinois State Police, and the Department of Agriculture
within 24 hours of the discovery of any loss or theft.
Notification shall be made by phone, in person, or by written

HB0032 - 38 - LRB103 03547 CPF 48553 b
or electronic communication.
(i) An infuser organization may not be located in an area
zoned for residential use.
(j) An infuser or infuser agent shall not transport
cannabis or cannabis-infused products to any other cannabis
business establishment without a transport organization
license unless:
(i) If the infuser is located in a county with a
population of 3,000,000 or more, the cannabis business
establishment receiving the cannabis or cannabis-infused
product is within 2,000 feet of the property line of the
infuser;
(ii) If the infuser is located in a county with a
population of more than 700,000 but fewer than 3,000,000,
the cannabis business establishment receiving the cannabis
or cannabis-infused product is within 2 miles of the
infuser; or
(iii) If the infuser is located in a county with a
population of fewer than 700,000, the cannabis business
establishment receiving the cannabis or cannabis-infused
product is within 15 miles of the infuser.
(k) An infuser may enter into a contract with a
transporting organization to transport cannabis to a
dispensing organization or a laboratory.
(l) An infuser organization may share premises with up to
3 craft growers, a cultivation center, a dispensing

HB0032 - 39 - LRB103 03547 CPF 48553 b
organization, or any combination thereof a craft grower or a
dispensing organization, or both, provided each licensee
stores currency and cannabis or cannabis-infused products in a
separate secured vault to which the other licensee does not
have access or all licensees sharing a vault share more than
50% of the same ownership.
(m) It is unlawful for any person or entity having an
infuser organization license or any officer, associate,
member, representative or agent of such licensee to offer or
deliver money, or anything else of value, directly or
indirectly to any person having an Early Approval Adult Use
Dispensing Organization License, a Conditional Adult Use
Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Program Act, or to any person connected with
or in any way representing, or to any member of the family of,
such person holding an Early Approval Adult Use Dispensing
Organization License, a Conditional Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization license
issued under the Compassionate Use of Medical Cannabis Program
Act, or to any stockholders in any corporation engaged the
retail sales of cannabis, or to any officer, manager, agent,
or representative of the Early Approval Adult Use Dispensing
Organization License, a Conditional Adult Use Dispensing

HB0032 - 40 - LRB103 03547 CPF 48553 b
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization license
issued under the Compassionate Use of Medical Cannabis Program
Act to obtain preferential placement within the dispensing
organization, including, without limitation, on shelves and in
display cases where purchasers can view products, or on the
dispensing organization's website.
(n) At no time shall an infuser organization or an infuser
agent perform the extraction of cannabis concentrate from
cannabis flower.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
Section 99. Effective date. This Act takes effect upon
becoming law.