Bill Text: IL HB1500 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture shall follow specified requirements of the Cannabis Regulation and Tax Act regarding the administration of cultivation center agent identification cards, and the Department of Financial and Professional Regulation shall follow specified requirements of that Act regarding the administration of dispensing organization agent identification cards. Repeals provisions regarding cultivation center agent identification cards. Amends the Cannabis Regulation and Tax Act. Provides that the Department of Agriculture (rather than the Department of Financial and Professional Regulation) shall issue dispensing organization licenses and agent identification cards. Requires the Department of Agriculture to issue agent identification cards under the Act via an online application portal. Contains provisions requiring, except as otherwise provided, background checks through the Illinois State Police for agent identification cards. Allows a person seeking employment at a cannabis business establishment to pay for or otherwise obtain for himself or herself, without any assistance from a cannabis business establishment, any required background check, responsible vendor training, or agent identification card required under the Act. Provides that any agent identification card that is paid for or otherwise obtained by the agent belongs to him or her and may be used by him or her as an agent identification card for a cannabis business establishment other than that for which the agent identification card was issued. Prohibits cannabis business establishments from entering into a non-compete agreement with a potential or current employee as a condition of the cannabis business establishment employing that employee. Contains other provisions. Repeals provisions regarding Department of Public Health health warnings, the Department of Human Services, the Illinois Cannabis Regulation Oversight Officer, and other provisions. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB1500 Detail]

Download: Illinois-2023-HB1500-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1500 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
See Index
Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture shall follow specified requirements of the Cannabis Regulation and Tax Act regarding the administration of cultivation center agent identification cards, and the Department of Financial and Professional Regulation shall follow specified requirements of that Act regarding the administration of dispensing organization agent identification cards. Repeals provisions regarding cultivation center agent identification cards. Amends the Cannabis Regulation and Tax Act. Provides that the Department of Agriculture (rather than the Department of Financial and Professional Regulation) shall issue dispensing organization licenses and agent identification cards. Requires the Department of Agriculture to issue agent identification cards under the Act via an online application portal. Contains provisions requiring, except as otherwise provided, background checks through the Illinois State Police for agent identification cards. Allows a person seeking employment at a cannabis business establishment to pay for or otherwise obtain for himself or herself, without any assistance from a cannabis business establishment, any required background check, responsible vendor training, or agent identification card required under the Act. Provides that any agent identification card that is paid for or otherwise obtained by the agent belongs to him or her and may be used by him or her as an agent identification card for a cannabis business establishment other than that for which the agent identification card was issued. Prohibits cannabis business establishments from entering into a non-compete agreement with a potential or current employee as a condition of the cannabis business establishment employing that employee. Contains other provisions. Repeals provisions regarding Department of Public Health health warnings, the Department of Human Services, the Illinois Cannabis Regulation Oversight Officer, and other provisions. Effective immediately.
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A BILL FOR
HB1500 LRB103 05064 CPF 50078 b
AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. Findings. The General Assembly finds that:
(1) The process of acquiring a license or
identification card under the Cannabis Regulation and Tax
Act offers a confusing framework that requires an
applicant to undergo a criminal history record check for
prospective principal officers, board members, and agents
by submitting the applicant's fingerprints to the Illinois
State Police as prescribed by the relevant department.
This process is controlled by the Illinois Department of
Financial and Professional Regulation and the Illinois
Department of Agriculture. The former offers licenses via
a manual licensing platform, while the latter offers an
online electronic application platform.
(2) This scenario has since led to exorbitant expense
for licensees seeking to recruit agents who conform to the
background requirements.
(3) As such, the current licensing criteria are
cumbersome, leading to a narrowing of the pool of
candidates for selection. Further, trained candidates are
inevitably denied entry into the industry subject to
strict background checks and inconsistent criminal records

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requirements, which are not provided for in the
pre-badging criteria.
(4) The current illegal framework is discriminatory
and violates the spirit of the Fourteenth Amendment of the
United States Constitution. It fails to offer an
equitable, procedurally fair, and just process for Black
and Brown applicants who are seeking to take up agent
roles in dispensing organizations, cultivation centers,
transporting organizations, and infuser organizations.
Section 10. The Compassionate Use of Medical Cannabis
Program Act is amended by adding Section 103 as follows:
(410 ILCS 130/103 new)
Sec. 103. Cultivation center agent identification cards;
dispensing organization agent identification cards.
(a) The Department of Agriculture shall follow the
requirements set forth in Section 20-35 of the Cannabis
Regulation and Tax Act regarding the administration of
cultivation center agent identification cards under this Act.
(b) The Department of Financial and Professional
Regulation shall follow the requirements set forth in Section
15-40 of the Cannabis Regulation and Tax Act regarding the
administration of dispensing organization agent identification
cards under this Act.

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Section 15. The Cannabis Regulation and Tax Act is amended
by changing Sections 5-10, 15-5, and 15-25 and by adding
Sections 5-22 and 5-23 as follows:
(410 ILCS 705/5-10)
Sec. 5-10. Department of Agriculture. The Department of
Agriculture shall administer and enforce provisions of this
Act relating to the oversight and registration of dispensing
organizations, cultivation centers, craft growers, infuser
organizations, and transporting organizations and agents,
including the issuance of identification cards and
establishing limits on potency or serving size for cannabis or
cannabis products. The Department of Agriculture may suspend
or revoke the license of, or impose other penalties upon
dispensing organizations, cultivation centers, craft growers,
infuser organizations, transporting organizations, and their
principal officers, Agents-in-Charge, and agents for
violations of this Act and any rules adopted under this Act.
(Source: P.A. 101-27, eff. 6-25-19.)
(410 ILCS 705/5-22 new)
Sec. 5-22. Licensing and identification cards.
(a) The Department of Agriculture shall issue dispensing
organization agent identification cards, cultivation center
agent identification cards, craft grower agent identification
cards, and infuser organization agent identification cards

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under this Act via an online application portal.
(b) A State agency that issues a license under this Act
shall offer pre-badging approval process guidelines to
candidates for the license, pending the completion of the
background checks in accordance with Section 5-23.
(c) A State agency that issues a license under this Act
shall offer an expedited licensing process upon payment of a
required licensing fee.
(d) Notwithstanding any other provision of law, and in
accordance with subsection (b) of Section 5-23, a person
seeking employment at a cannabis business establishment may
pay for or otherwise obtain for himself or herself, without
any assistance from a cannabis business establishment, any
required background check, responsible vendor training, or
agent identification card required under this Act. Any agent
identification card that is paid for or otherwise obtained by
the agent belongs to him or her and may be used by him or her
as an agent identification card for a cannabis business
establishment other than that for which the agent
identification card was issued. However, if a licensed
cannabis business establishment pays for an employee's agent
identification card, the cannabis business establishment may
retain and control access to the agent identification card.
(e) Notwithstanding any other provision of law, a cannabis
business establishment may not enter into a non-compete
agreement with a potential or current employee as a condition

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of the cannabis business establishment employing that
employee.
(410 ILCS 705/5-23 new)
Sec. 5-23. Background checks.
(a) Except as provided under subsection (b), the
Department of Agriculture, through the Illinois State Police,
regarding dispensing organizations, cultivation centers,
infuser organization, and craft growers, shall carry out
initial background checks for all prospective principal
officers, board members, and agents of a cannabis business
establishment prior to licensing, including the issuance of
identification cards.
(b) Notwithstanding any other provision of law, and in
accordance with subsection (d) of Section 5-22, a person
seeking employment at a cannabis business establishment may
pay for or otherwise obtain any required background check as a
condition of receiving a required dispensing organization
agent identification card, cultivation center agent
identification card, craft grower agent identification card,
or infuser organization agent identification card from the
Department of Agriculture.
(c) The Illinois State Police shall charge a prescribed
fee for an expedited criminal history record check, which
shall be deposited into the State Police Services Fund and
shall not exceed the actual cost of the State and national

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criminal history record check.
(d) The Department of Agriculture shall provide
information on background check requirements on the online
application portal for the consideration of applicants prior
to the commencement of the application's processing. For the
purposes of this subsection, the Illinois State Police shall
flag as unqualified an applicant with a criminal conviction of
murder, sexual harassment, child molestation, rape, or robbery
with violence.
(e) The Department of Agriculture shall ensure a fair and
just background check, including an exemption from strict
background check requirements for applicants with no prior
felony records.
(f) The Department of Agriculture shall review background
check requirements to eliminate all discriminatory criteria
that may inevitably deny certain citizens access to the
application for licensing and agent identification cards.
(g) The Department of Agriculture shall provide a process
for appeal of an application denial based on erroneous or
discriminatory background consideration.
(h) All applicants for licensure under this Act with
criminal convictions shall be subject to the provisions of
Sections 2105-131, 2105-135, and 2105-205 of the Department of
Professional Regulation Law of the Civil Administrative Code
of Illinois subject to any controlling exemption.

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(410 ILCS 705/15-5)
Sec. 15-5. Authority.
(a) In this Article, "Department" means the Department of
Agriculture Financial and Professional Regulation.
(b) It is the duty of the Department to administer and
enforce the provisions of this Act relating to the licensure
and oversight of dispensing organizations and dispensing
organization agents unless otherwise provided in this Act.
(c) No person shall operate a dispensing organization for
the purpose of serving purchasers of cannabis or cannabis
products without a license issued under this Article by the
Department. No person shall be an officer, director, manager,
or employee of a dispensing organization without having been
issued a dispensing organization agent card by the Department.
(d) Subject to the provisions of this Act, the Department
may exercise the following powers and duties:
(1) Prescribe forms to be issued for the
administration and enforcement of this Article.
(2) Examine, inspect, and investigate the premises,
operations, and records of dispensing organization
applicants and licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to dispensing organizations and
dispensing organization agents.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on

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probation, reprimand, or otherwise discipline a license
under this Article or take other nondisciplinary action.
(5) Adopt rules required for the administration of
this Article.
(Source: P.A. 101-27, eff. 6-25-19.)
(410 ILCS 705/15-25)
Sec. 15-25. Awarding of Conditional Adult Use Dispensing
Organization Licenses prior to January 1, 2021.
(a) The Department shall issue up to 75 Conditional Adult
Use Dispensing Organization Licenses before May 1, 2020.
(b) The Department shall make the application for a
Conditional Adult Use Dispensing Organization License
available no later than October 1, 2019 and shall accept
applications no later than January 1, 2020.
(c) To ensure the geographic dispersion of Conditional
Adult Use Dispensing Organization License holders, the
following number of licenses shall be awarded in each BLS
Region as determined by each region's percentage of the
State's population:
(1) Bloomington: 1
(2) Cape Girardeau: 1
(3) Carbondale-Marion: 1
(4) Champaign-Urbana: 1
(5) Chicago-Naperville-Elgin: 47
(6) Danville: 1

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(7) Davenport-Moline-Rock Island: 1
(8) Decatur: 1
(9) Kankakee: 1
(10) Peoria: 3
(11) Rockford: 2
(12) St. Louis: 4
(13) Springfield: 1
(14) Northwest Illinois nonmetropolitan: 3
(15) West Central Illinois nonmetropolitan: 3
(16) East Central Illinois nonmetropolitan: 2
(17) South Illinois nonmetropolitan: 2
(d) An applicant seeking issuance of a Conditional Adult
Use Dispensing Organization License shall submit an
application on forms provided by the Department. An applicant
must meet the following requirements:
(1) Payment of a nonrefundable application fee of
$5,000 for each license for which the applicant is
applying, which shall be deposited into the Cannabis
Regulation Fund;
(2) Certification that the applicant will comply with
the requirements contained in this Act;
(3) The legal name of the proposed dispensing
organization;
(4) A statement that the dispensing organization
agrees to respond to the Department's supplemental
requests for information;

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(5) From each principal officer, a statement
indicating whether that person:
(A) has previously held or currently holds an
ownership interest in a cannabis business
establishment in Illinois; or
(B) has held an ownership interest in a dispensing
organization or its equivalent in another state or
territory of the United States that had the dispensing
organization registration or license suspended,
revoked, placed on probationary status, or subjected
to other disciplinary action;
(6) Disclosure of whether any principal officer has
ever filed for bankruptcy or defaulted on spousal support
or child support obligation;
(7) A resume for each principal officer, including
whether that person has an academic degree, certification,
or relevant experience with a cannabis business
establishment or in a related industry;
(8) A description of the training and education that
will be provided to dispensing organization agents;
(9) A copy of the proposed operating bylaws;
(10) A copy of the proposed business plan that
complies with the requirements in this Act, including, at
a minimum, the following:
(A) A description of services to be offered; and
(B) A description of the process of dispensing

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cannabis;
(11) A copy of the proposed security plan that
complies with the requirements in this Article, including:
(A) The process or controls that will be
implemented to monitor the dispensary, secure the
premises, agents, and currency, and prevent the
diversion, theft, or loss of cannabis; and
(B) The process to ensure that access to the
restricted access areas is restricted to, registered
agents, service professionals, transporting
organization agents, Department inspectors, and
security personnel;
(12) A proposed inventory control plan that complies
with this Section;
(13) A proposed floor plan, a square footage estimate,
and a description of proposed security devices, including,
without limitation, cameras, motion detectors, servers,
video storage capabilities, and alarm service providers;
(14) The name, address, social security number, and
date of birth of each principal officer and board member
of the dispensing organization; each of those individuals
shall be at least 21 years of age;
(15) Evidence of the applicant's status as a Social
Equity Applicant, if applicable, and whether a Social
Equity Applicant plans to apply for a loan or grant issued
by the Department of Commerce and Economic Opportunity;

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(16) The address, telephone number, and email address
of the applicant's principal place of business, if
applicable. A post office box is not permitted;
(17) Written summaries of any information regarding
instances in which a business or not-for-profit that a
prospective board member previously managed or served on
were fined or censured, or any instances in which a
business or not-for-profit that a prospective board member
previously managed or served on had its registration
suspended or revoked in any administrative or judicial
proceeding;
(18) A plan for community engagement;
(19) Procedures to ensure accurate recordkeeping and
security measures that are in accordance with this Article
and Department rules;
(20) The estimated volume of cannabis it plans to
store at the dispensary;
(21) A description of the features that will provide
accessibility to purchasers as required by the Americans
with Disabilities Act;
(22) A detailed description of air treatment systems
that will be installed to reduce odors;
(23) A reasonable assurance that the issuance of a
license will not have a detrimental impact on the
community in which the applicant wishes to locate;
(24) The dated signature of each principal officer;

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(25) A description of the enclosed, locked facility
where cannabis will be stored by the dispensing
organization;
(26) Signed statements from each dispensing
organization agent stating that he or she will not divert
cannabis;
(27) The number of licenses it is applying for in each
BLS Region;
(28) A diversity plan that includes a narrative of at
least 2,500 words that establishes a goal of diversity in
ownership, management, employment, and contracting to
ensure that diverse participants and groups are afforded
equality of opportunity;
(29) A contract with a private security contractor
agency that is licensed under Section 10-5 of the Private
Detective, Private Alarm, Private Security, Fingerprint
Vendor, and Locksmith Act of 2004 in order for the
dispensary to have adequate security at its facility; and
(30) Other information deemed necessary by the
Illinois Cannabis Regulation Oversight Officer to conduct
the disparity and availability study referenced in
subsection (e) of Section 5-45.
(e) (Blank). An applicant who receives a Conditional Adult
Use Dispensing Organization License under this Section has 180
days from the date of award to identify a physical location for
the dispensing organization retail storefront. The applicant

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shall provide evidence that the location is not within 1,500
feet of an existing dispensing organization, unless the
applicant is a Social Equity Applicant or Social Equity
Justice Involved Applicant located or seeking to locate within
1,500 feet of a dispensing organization licensed under Section
15-15 or Section 15-20. If an applicant is unable to find a
suitable physical address in the opinion of the Department
within 180 days of the issuance of the Conditional Adult Use
Dispensing Organization License, the Department may extend the
period for finding a physical address another 180 days if the
Conditional Adult Use Dispensing Organization License holder
demonstrates concrete attempts to secure a location and a
hardship. If the Department denies the extension or the
Conditional Adult Use Dispensing Organization License holder
is unable to find a location or become operational within 360
days of being awarded a conditional license, the Department
shall rescind the conditional license and award it to the next
highest scoring applicant in the BLS Region for which the
license was assigned, provided the applicant receiving the
license: (i) confirms a continued interest in operating a
dispensing organization; (ii) can provide evidence that the
applicant continues to meet all requirements for holding a
Conditional Adult Use Dispensing Organization License set
forth in this Act; and (iii) has not otherwise become
ineligible to be awarded a dispensing organization license. If
the new awardee is unable to accept the Conditional Adult Use

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Dispensing Organization License, the Department shall award
the Conditional Adult Use Dispensing Organization License to
the next highest scoring applicant in the same manner. The new
awardee shall be subject to the same required deadlines as
provided in this subsection.
(e-5) (Blank). If, within 180 days of being awarded a
Conditional Adult Use Dispensing Organization License, a
dispensing organization is unable to find a location within
the BLS Region in which it was awarded a Conditional Adult Use
Dispensing Organization License because no jurisdiction within
the BLS Region allows for the operation of an Adult Use
Dispensing Organization, the Department of Financial and
Professional Regulation may authorize the Conditional Adult
Use Dispensing Organization License holder to transfer its
license to a BLS Region specified by the Department.
(e-10) The Department shall verify that the physical
location of an applicant's dispensing organization retail
storefront is suitable for public access, its layout promotes
the safe dispensing of cannabis, and its location is
sufficient in size, power allocation, lighting, parking,
handicapped accessible parking spaces, accessible entry and
exits as required by the federal Americans with Disabilities
Act of 1990, product handling, and storage. The applicant
shall also provide a statement of reasonable assurance that
the issuance of a license will not have a detrimental impact on
the community. The applicant shall also provide evidence that

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the location is not within 1,500 feet of an existing
dispensing organization.
(e-15) A Conditional Adult Use Dispensing Organization may
transfer or sell its Conditional Adult Use Dispensing
Organization License with prior Department approval. The
approval may be withheld if the person or entity to whom the
license is being transferred does not commit to the same or a
similar community engagement plan provided as part of the
Conditional Adult Use Dispensing Organization's application
under paragraph (18) of subsection (d), and such transferee's
license shall be conditional upon that commitment. A request
to transfer or sell the Conditional Adult Use Dispensing
Organization License must be on application forms provided by
the Department. A request for approval to sell a dispensing
organization must comply with the following:
(1) New application materials shall comply with this
Act and any rules adopted under this Act.
(2) Application materials shall include a change of
ownership fee of $5,000, to be deposited into the Cannabis
Regulation Fund.
(3) The application materials shall provide proof that
the transfer of ownership will not have the effect of
granting any owner or principal officer direct or indirect
ownership or control of more than 10 Adult Use Adult Use
Dispensing Organization Licenses or Conditional Adult Use
Dispensing Organization Licenses.

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(4) Each proposed new principal officer shall complete
the proposed new principal officer application.
(5) If the Department approves the application
materials and proposed new principal officer applications,
it will perform an inspection before approving the sale
and issuing the new Adult Use Dispensing Organization
License or Conditional Adult Use Dispensing Organization
License.
(6) If the sale of the Adult Use Dispensing
Organization License or Conditional Adult Use Dispensing
Organization License is approved, the Department shall
issue a new license number and certificate to the new
dispensing organization. The transfer of a dispensing
organization's license to a Social Equity Applicant is
subject to all other provisions of this Act, relevant
provisions of the Compassionate Use of Medical Cannabis
Program Act, and administrative rules regarding the
transfer of licenses.
(e-20) If a Qualified Social Equity Applicant seeks to
transfer, sell, or grant a cannabis business establishment
license within 5 years after it was issued to a person or
entity who does not qualify as a Social Equity Applicant, the
transfer agreement shall require the new license holder to
transfer into the Cannabis Business Development Fund an amount
equal to:
(1) any fees that were waived by any State agency

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based upon the applicant's status as a Social Equity
Applicant, if applicable;
(2) any outstanding amount owed by the Qualified
Social Equity Applicant on a loan through the Cannabis
Business Development Fund, if applicable; and
(3) the full amount of any grants that the Qualified
Social Equity Applicant received from the Department of
Commerce and Economic Opportunity, if applicable.
(f) A dispensing organization that is awarded a
Conditional Adult Use Dispensing Organization License pursuant
to the criteria in Section 15-30 shall not purchase, possess,
sell, or dispense cannabis or cannabis-infused products until
the person has received an Adult Use Dispensing Organization
License issued by the Department pursuant to Section 15-36 of
this Act.
(g) The Department shall conduct a background check of the
prospective organization agents in order to carry out this
Article. The Illinois State Police shall charge the applicant
a fee for conducting the criminal history record check, which
shall be deposited into the State Police Services Fund and
shall not exceed the actual cost of the record check. Each
person applying as a dispensing organization agent shall
submit a full set of fingerprints to the Illinois State Police
for the purpose of obtaining a State and federal criminal
records check. These fingerprints shall be checked against the
fingerprint records now and hereafter, to the extent allowed

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by law, filed in the Illinois State Police and Federal Bureau
of Identification criminal history records databases. The
Illinois State Police shall furnish, following positive
identification, all Illinois conviction information to the
Department.
(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 130/100 rep.)
Section 20. The Compassionate Use of Medical Cannabis
Program Act is amended by repealing Section 100.
(410 ILCS 705/5-15 rep.)
(410 ILCS 705/5-25 rep.)
(410 ILCS 705/5-30 rep.)
(410 ILCS 705/5-45 rep.)
Section 25. The Cannabis Regulation and Tax Act is amended
by repealing Sections 5-15, 5-25, 5-30, and 5-45.
Section 99. Effective date. This Act takes effect upon
becoming law.
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INDEX
Statutes amended in order of appearance