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
 


HB1500LRB103 05064 CPF 50078 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. Findings. The General Assembly finds that:

5  (1) The process of acquiring a license or 
6 identification card under the Cannabis Regulation and Tax 
7 Act offers a confusing framework that requires an 
8 applicant to undergo a criminal history record check for 
9 prospective principal officers, board members, and agents 
10 by submitting the applicant's fingerprints to the Illinois 
11 State Police as prescribed by the relevant department. 
12 This process is controlled by the Illinois Department of 
13 Financial and Professional Regulation and the Illinois 
14 Department of Agriculture. The former offers licenses via 
15 a manual licensing platform, while the latter offers an 
16 online electronic application platform.

17  (2) This scenario has since led to exorbitant expense 
18 for licensees seeking to recruit agents who conform to the 
19 background requirements.

20  (3) As such, the current licensing criteria are 
21 cumbersome, leading to a narrowing of the pool of 
22 candidates for selection. Further, trained candidates are 
23 inevitably denied entry into the industry subject to 
24 strict background checks and inconsistent criminal records 
 
 
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1 requirements, which are not provided for in the 
2 pre-badging criteria.

3  (4) The current illegal framework is discriminatory 
4 and violates the spirit of the Fourteenth Amendment of the 
5 United States Constitution. It fails to offer an 
6 equitable, procedurally fair, and just process for Black 
7 and Brown applicants who are seeking to take up agent 
8 roles in dispensing organizations, cultivation centers, 
9 transporting organizations, and infuser organizations.


10 Section 10. The Compassionate Use of Medical Cannabis 
11Program Act is amended by adding Section 103 as follows:

12 (410 ILCS 130/103 new)
13 Sec. 103. Cultivation center agent identification cards; 
14dispensing organization agent identification cards.
15 (a) The Department of Agriculture shall follow the 
16requirements set forth in Section 20-35 of the Cannabis 
17Regulation and Tax Act regarding the administration of 
18cultivation center agent identification cards under this Act.
19 (b) The Department of Financial and Professional 
20Regulation shall follow the requirements set forth in Section 
2115-40 of the Cannabis Regulation and Tax Act regarding the 
22administration of dispensing organization agent identification 
23cards under this Act.

 
 
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1 Section 15. The Cannabis Regulation and Tax Act is amended 
2by changing Sections 5-10, 15-5, and 15-25 and by adding 
3Sections 5-22 and 5-23 as follows:

4 (410 ILCS 705/5-10)

5 Sec. 5-10. Department of Agriculture. The Department of 
6Agriculture shall administer and enforce provisions of this 
7Act relating to the oversight and registration of dispensing 
8organizations, cultivation centers, craft growers, infuser 
9organizations, and transporting organizations and agents, 
10including the issuance of identification cards and 
11establishing limits on potency or serving size for cannabis or 
12cannabis products. The Department of Agriculture may suspend 
13or revoke the license of, or impose other penalties upon 
14dispensing organizations, cultivation centers, craft growers, 
15infuser organizations, transporting organizations, and their 
16principal officers, Agents-in-Charge, and agents for 
17violations of this Act and any rules adopted under this Act. 

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

19 (410 ILCS 705/5-22 new)
20 Sec. 5-22. Licensing and identification cards.
21 (a) The Department of Agriculture shall issue dispensing 
22organization agent identification cards, cultivation center 
23agent identification cards, craft grower agent identification 
24cards, and infuser organization agent identification cards 
 
 
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1under this Act via an online application portal.
2 (b) A State agency that issues a license under this Act 
3shall offer pre-badging approval process guidelines to 
4candidates for the license, pending the completion of the 
5background checks in accordance with Section 5-23.
6 (c) A State agency that issues a license under this Act 
7shall offer an expedited licensing process upon payment of a 
8required licensing fee.
9 (d) Notwithstanding any other provision of law, and in 
10accordance with subsection (b) of Section 5-23, a person 
11seeking employment at a cannabis business establishment may 
12pay for or otherwise obtain for himself or herself, without 
13any assistance from a cannabis business establishment, any 
14required background check, responsible vendor training, or 
15agent identification card required under this Act. Any agent 
16identification card that is paid for or otherwise obtained by 
17the agent belongs to him or her and may be used by him or her 
18as an agent identification card for a cannabis business 
19establishment other than that for which the agent 
20identification card was issued. However, if a licensed 
21cannabis business establishment pays for an employee's agent 
22identification card, the cannabis business establishment may 
23retain and control access to the agent identification card.
24 (e) Notwithstanding any other provision of law, a cannabis 
25business establishment may not enter into a non-compete 
26agreement with a potential or current employee as a condition 
 
 
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1of the cannabis business establishment employing that 
2employee.

3 (410 ILCS 705/5-23 new)
4 Sec. 5-23. Background checks.
5 (a) Except as provided under subsection (b), the 
6Department of Agriculture, through the Illinois State Police, 
7regarding dispensing organizations, cultivation centers, 
8infuser organization, and craft growers, shall carry out 
9initial background checks for all prospective principal 
10officers, board members, and agents of a cannabis business 
11establishment prior to licensing, including the issuance of 
12identification cards.
13 (b) Notwithstanding any other provision of law, and in 
14accordance with subsection (d) of Section 5-22, a person 
15seeking employment at a cannabis business establishment may 
16pay for or otherwise obtain any required background check as a 
17condition of receiving a required dispensing organization 
18agent identification card, cultivation center agent 
19identification card, craft grower agent identification card, 
20or infuser organization agent identification card from the 
21Department of Agriculture.
22 (c) The Illinois State Police shall charge a prescribed 
23fee for an expedited criminal history record check, which 
24shall be deposited into the State Police Services Fund and 
25shall not exceed the actual cost of the State and national 
 
 
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1criminal history record check.
2 (d) The Department of Agriculture shall provide 
3information on background check requirements on the online 
4application portal for the consideration of applicants prior 
5to the commencement of the application's processing. For the 
6purposes of this subsection, the Illinois State Police shall 
7flag as unqualified an applicant with a criminal conviction of 
8murder, sexual harassment, child molestation, rape, or robbery 
9with violence.
10 (e) The Department of Agriculture shall ensure a fair and 
11just background check, including an exemption from strict 
12background check requirements for applicants with no prior 
13felony records.
14 (f) The Department of Agriculture shall review background 
15check requirements to eliminate all discriminatory criteria 
16that may inevitably deny certain citizens access to the 
17application for licensing and agent identification cards.
18 (g) The Department of Agriculture shall provide a process 
19for appeal of an application denial based on erroneous or 
20discriminatory background consideration.
21 (h) All applicants for licensure under this Act with 
22criminal convictions shall be subject to the provisions of 
23Sections 2105-131, 2105-135, and 2105-205 of the Department of 
24Professional Regulation Law of the Civil Administrative Code 
25of Illinois subject to any controlling exemption.

 
 
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1 (410 ILCS 705/15-5)

2 Sec. 15-5. Authority. 
3 (a) In this Article, "Department" means the Department of 
4Agriculture Financial and Professional Regulation.
5 (b) It is the duty of the Department to administer and 
6enforce the provisions of this Act relating to the licensure 
7and oversight of dispensing organizations and dispensing 
8organization agents unless otherwise provided in this Act.
9 (c) No person shall operate a dispensing organization for 
10the purpose of serving purchasers of cannabis or cannabis 
11products without a license issued under this Article by the 
12Department. No person shall be an officer, director, manager, 
13or employee of a dispensing organization without having been 
14issued a dispensing organization agent card by the Department.
15 (d) Subject to the provisions of this Act, the Department 
16may exercise the following powers and duties:
17  (1) Prescribe forms to be issued for the 
18 administration and enforcement of this Article.
19  (2) Examine, inspect, and investigate the premises, 
20 operations, and records of dispensing organization 
21 applicants and licensees.
22  (3) Conduct investigations of possible violations of 
23 this Act pertaining to dispensing organizations and 
24 dispensing organization agents.
25  (4) Conduct hearings on proceedings to refuse to issue 
26 or renew licenses or to revoke, suspend, place on 
 
 
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1 probation, reprimand, or otherwise discipline a license 
2 under this Article or take other nondisciplinary action.
3  (5) Adopt rules required for the administration of 
4 this Article.

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

6 (410 ILCS 705/15-25)

7 Sec. 15-25. Awarding of Conditional Adult Use Dispensing 
8Organization Licenses prior to January 1, 2021. 
9 (a) The Department shall issue up to 75 Conditional Adult 
10Use Dispensing Organization Licenses before May 1, 2020.
11 (b) The Department shall make the application for a 
12Conditional Adult Use Dispensing Organization License 
13available no later than October 1, 2019 and shall accept 
14applications no later than January 1, 2020.
15 (c) To ensure the geographic dispersion of Conditional 
16Adult Use Dispensing Organization License holders, the 
17following number of licenses shall be awarded in each BLS 
18Region as determined by each region's percentage of the 
19State's population: 
20  (1) Bloomington: 1
21  (2) Cape Girardeau: 1
22  (3) Carbondale-Marion: 1
23  (4) Champaign-Urbana: 1
24  (5) Chicago-Naperville-Elgin: 47
25  (6) Danville: 1
 
 
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1  (7) Davenport-Moline-Rock Island: 1
2  (8) Decatur: 1
3  (9) Kankakee: 1
4  (10) Peoria: 3
5  (11) Rockford: 2
6  (12) St. Louis: 4
7  (13) Springfield: 1
8  (14) Northwest Illinois nonmetropolitan: 3
9  (15) West Central Illinois nonmetropolitan: 3
10  (16) East Central Illinois nonmetropolitan: 2
11  (17) South Illinois nonmetropolitan: 2
12 (d) An applicant seeking issuance of a Conditional Adult 
13Use Dispensing Organization License shall submit an 
14application on forms provided by the Department. An applicant 
15must meet the following requirements:
16  (1) Payment of a nonrefundable application fee of 
17 $5,000 for each license for which the applicant is 
18 applying, which shall be deposited into the Cannabis 
19 Regulation Fund;
20  (2) Certification that the applicant will comply with 
21 the requirements contained in this Act;
22  (3) The legal name of the proposed dispensing 
23 organization;
24  (4) A statement that the dispensing organization 
25 agrees to respond to the Department's supplemental 
26 requests for information; 
 
 
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1  (5) From each principal officer, a statement 
2 indicating whether that person:
3   (A) has previously held or currently holds an 
4 ownership interest in a cannabis business 
5 establishment in Illinois; or
6   (B) has held an ownership interest in a dispensing 
7 organization or its equivalent in another state or 
8 territory of the United States that had the dispensing 
9 organization registration or license suspended, 
10 revoked, placed on probationary status, or subjected 
11 to other disciplinary action;
12  (6) Disclosure of whether any principal officer has 
13 ever filed for bankruptcy or defaulted on spousal support 
14 or child support obligation;
15  (7) A resume for each principal officer, including 
16 whether that person has an academic degree, certification, 
17 or relevant experience with a cannabis business 
18 establishment or in a related industry;
19  (8) A description of the training and education that 
20 will be provided to dispensing organization agents;
21  (9) A copy of the proposed operating bylaws;
22  (10) A copy of the proposed business plan that 
23 complies with the requirements in this Act, including, at 
24 a minimum, the following:
25   (A) A description of services to be offered; and 
26   (B) A description of the process of dispensing 
 
 
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1 cannabis;
2  (11) A copy of the proposed security plan that 
3 complies with the requirements in this Article, including: 
4   (A) The process or controls that will be 
5 implemented to monitor the dispensary, secure the 
6 premises, agents, and currency, and prevent the 
7 diversion, theft, or loss of cannabis; and 
8   (B) The process to ensure that access to the 
9 restricted access areas is restricted to, registered 
10 agents, service professionals, transporting 
11 organization agents, Department inspectors, and 
12 security personnel;
13  (12) A proposed inventory control plan that complies 
14 with this Section;
15  (13) A proposed floor plan, a square footage estimate, 
16 and a description of proposed security devices, including, 
17 without limitation, cameras, motion detectors, servers, 
18 video storage capabilities, and alarm service providers;
19  (14) The name, address, social security number, and 
20 date of birth of each principal officer and board member 
21 of the dispensing organization; each of those individuals 
22 shall be at least 21 years of age; 
23  (15) Evidence of the applicant's status as a Social 
24 Equity Applicant, if applicable, and whether a Social 
25 Equity Applicant plans to apply for a loan or grant issued 
26 by the Department of Commerce and Economic Opportunity;
 
 
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1  (16) The address, telephone number, and email address 
2 of the applicant's principal place of business, if 
3 applicable. A post office box is not permitted;
4  (17) Written summaries of any information regarding 
5 instances in which a business or not-for-profit that a 
6 prospective board member previously managed or served on 
7 were fined or censured, or any instances in which a 
8 business or not-for-profit that a prospective board member 
9 previously managed or served on had its registration 
10 suspended or revoked in any administrative or judicial 
11 proceeding;
12  (18) A plan for community engagement;
13  (19) Procedures to ensure accurate recordkeeping and 
14 security measures that are in accordance with this Article 
15 and Department rules;
16  (20) The estimated volume of cannabis it plans to 
17 store at the dispensary;
18  (21) A description of the features that will provide 
19 accessibility to purchasers as required by the Americans 
20 with Disabilities Act;
21  (22) A detailed description of air treatment systems 
22 that will be installed to reduce odors;
23  (23) A reasonable assurance that the issuance of a 
24 license will not have a detrimental impact on the 
25 community in which the applicant wishes to locate;
26  (24) The dated signature of each principal officer;
 
 
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1  (25) A description of the enclosed, locked facility 
2 where cannabis will be stored by the dispensing 
3 organization;
4  (26) Signed statements from each dispensing 
5 organization agent stating that he or she will not divert 
6 cannabis;
7  (27) The number of licenses it is applying for in each 
8 BLS Region;
9  (28) A diversity plan that includes a narrative of at 
10 least 2,500 words that establishes a goal of diversity in 
11 ownership, management, employment, and contracting to 
12 ensure that diverse participants and groups are afforded 
13 equality of opportunity;
14  (29) A contract with a private security contractor 
15 agency that is licensed under Section 10-5 of the Private 
16 Detective, Private Alarm, Private Security, Fingerprint 
17 Vendor, and Locksmith Act of 2004 in order for the 
18 dispensary to have adequate security at its facility; and
19  (30) Other information deemed necessary by the 
20 Illinois Cannabis Regulation Oversight Officer to conduct 
21 the disparity and availability study referenced in 
22 subsection (e) of Section 5-45. 
23 (e) (Blank). An applicant who receives a Conditional Adult 
24Use Dispensing Organization License under this Section has 180 
25days from the date of award to identify a physical location for 
26the dispensing organization retail storefront. The applicant 
 
 
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1shall provide evidence that the location is not within 1,500 
2feet of an existing dispensing organization, unless the 
3applicant is a Social Equity Applicant or Social Equity 
4Justice Involved Applicant located or seeking to locate within 
51,500 feet of a dispensing organization licensed under Section 
615-15 or Section 15-20. If an applicant is unable to find a 
7suitable physical address in the opinion of the Department 
8within 180 days of the issuance of the Conditional Adult Use 
9Dispensing Organization License, the Department may extend the 
10period for finding a physical address another 180 days if the 
11Conditional Adult Use Dispensing Organization License holder 
12demonstrates concrete attempts to secure a location and a 
13hardship. If the Department denies the extension or the 
14Conditional Adult Use Dispensing Organization License holder 
15is unable to find a location or become operational within 360 
16days of being awarded a conditional license, the Department 
17shall rescind the conditional license and award it to the next 
18highest scoring applicant in the BLS Region for which the 
19license was assigned, provided the applicant receiving the 
20license: (i) confirms a continued interest in operating a 
21dispensing organization; (ii) can provide evidence that the 
22applicant continues to meet all requirements for holding a 
23Conditional Adult Use Dispensing Organization License set 
24forth in this Act; and (iii) has not otherwise become 
25ineligible to be awarded a dispensing organization license. If 
26the new awardee is unable to accept the Conditional Adult Use 
 
 
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1Dispensing Organization License, the Department shall award 
2the Conditional Adult Use Dispensing Organization License to 
3the next highest scoring applicant in the same manner. The new 
4awardee shall be subject to the same required deadlines as 
5provided in this subsection.
6 (e-5) (Blank). If, within 180 days of being awarded a 
7Conditional Adult Use Dispensing Organization License, a 
8dispensing organization is unable to find a location within 
9the BLS Region in which it was awarded a Conditional Adult Use 
10Dispensing Organization License because no jurisdiction within 
11the BLS Region allows for the operation of an Adult Use 
12Dispensing Organization, the Department of Financial and 
13Professional Regulation may authorize the Conditional Adult 
14Use Dispensing Organization License holder to transfer its 
15license to a BLS Region specified by the Department.
16 (e-10) The Department shall verify that the physical

17location of an applicant's dispensing organization retail

18storefront is suitable for public access, its layout promotes

19the safe dispensing of cannabis, and its location is

20sufficient in size, power allocation, lighting, parking,

21handicapped accessible parking spaces, accessible entry and

22exits as required by the federal Americans with Disabilities

23Act of 1990, product handling, and storage. The applicant

24shall also provide a statement of reasonable assurance that

25the issuance of a license will not have a detrimental impact on

26the community. The applicant shall also provide evidence that

 
 
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1the location is not within 1,500 feet of an existing

2dispensing organization.
3 (e-15) A Conditional Adult Use Dispensing Organization may

4transfer or sell its Conditional Adult Use Dispensing

5Organization License with prior Department approval. The

6approval may be withheld if the person or entity to whom the

7license is being transferred does not commit to the same or a

8similar community engagement plan provided as part of the

9Conditional Adult Use Dispensing Organization's application

10under paragraph (18) of subsection (d), and such transferee's

11license shall be conditional upon that commitment. A request

12to transfer or sell the Conditional Adult Use Dispensing

13Organization License must be on application forms provided by

14the Department. A request for approval to sell a dispensing

15organization must comply with the following:
16  (1) New application materials shall comply with this

17 Act and any rules adopted under this Act.
18  (2) Application materials shall include a change of

19 ownership fee of $5,000, to be deposited into the Cannabis

20 Regulation Fund.
21  (3) The application materials shall provide proof that

22 the transfer of ownership will not have the effect of

23 granting any owner or principal officer direct or indirect

24 ownership or control of more than 10 Adult Use Adult Use

25 Dispensing Organization Licenses or Conditional Adult Use

26 Dispensing Organization Licenses.
 
 
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1  (4) Each proposed new principal officer shall complete

2 the proposed new principal officer application.
3  (5) If the Department approves the application

4 materials and proposed new principal officer applications,

5 it will perform an inspection before approving the sale

6 and issuing the new Adult Use Dispensing Organization

7 License or Conditional Adult Use Dispensing Organization

8 License.
9  (6) If the sale of the Adult Use Dispensing

10 Organization License or Conditional Adult Use Dispensing

11 Organization License is approved, the Department shall

12 issue a new license number and certificate to the new

13 dispensing organization. The transfer of a dispensing

14 organization's license to a Social Equity Applicant is

15 subject to all other provisions of this Act, relevant

16 provisions of the Compassionate Use of Medical Cannabis

17 Program Act, and administrative rules regarding the

18 transfer of licenses.
19 (e-20) If a Qualified Social Equity Applicant seeks to

20transfer, sell, or grant a cannabis business establishment

21license within 5 years after it was issued to a person or

22entity who does not qualify as a Social Equity Applicant, the

23transfer agreement shall require the new license holder to

24transfer into the Cannabis Business Development Fund an amount

25equal to:
26  (1) any fees that were waived by any State agency

 
 
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1based upon the applicant's status as a Social Equity

2Applicant, if applicable;
3  (2) any outstanding amount owed by the Qualified

4Social Equity Applicant on a loan through the Cannabis

5Business Development Fund, if applicable; and
6  (3) the full amount of any grants that the Qualified

7Social Equity Applicant received from the Department of

8Commerce and Economic Opportunity, if applicable. 
9 (f) A dispensing organization that is awarded a 
10Conditional Adult Use Dispensing Organization License pursuant 
11to the criteria in Section 15-30 shall not purchase, possess, 
12sell, or dispense cannabis or cannabis-infused products until 
13the person has received an Adult Use Dispensing Organization 
14License issued by the Department pursuant to Section 15-36 of 
15this Act.
16 (g) The Department shall conduct a background check of the 
17prospective organization agents in order to carry out this 
18Article. The Illinois State Police shall charge the applicant 
19a fee for conducting the criminal history record check, which 
20shall be deposited into the State Police Services Fund and 
21shall not exceed the actual cost of the record check. Each 
22person applying as a dispensing organization agent shall 
23submit a full set of fingerprints to the Illinois State Police 
24for the purpose of obtaining a State and federal criminal 
25records check. These fingerprints shall be checked against the 
26fingerprint records now and hereafter, to the extent allowed 
 
 
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1by law, filed in the Illinois State Police and Federal Bureau 
2of Identification criminal history records databases. The 
3Illinois State Police shall furnish, following positive 
4identification, all Illinois conviction information to the 
5Department.

6(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 
7102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 
85-13-22.)

9 (410 ILCS 130/100 rep.)
10 Section 20. The Compassionate Use of Medical Cannabis 
11Program Act is amended by repealing Section 100.

12 (410 ILCS 705/5-15 rep.)
13 (410 ILCS 705/5-25 rep.)
14 (410 ILCS 705/5-30 rep.)
15 (410 ILCS 705/5-45 rep.)
16 Section 25. The Cannabis Regulation and Tax Act is amended 
17by repealing Sections 5-15, 5-25, 5-30, and 5-45.


18 Section 99. Effective date. This Act takes effect upon 
19becoming law. 


 
 
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1
INDEX

2
Statutes amended in order of appearance