Bill Text: IL HB2812 | 2023-2024 | 103rd General Assembly | Introduced

---

Bill Title: Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a medical cannabis container shall be compliant with standards established by the Consumer Product Safety Commission, unless the medical cannabis container carries a warning that it is not recommended for use in households with children. Amends the Use Tax Act and the Cannabis Regulation and Tax Act to make corresponding changes.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2812 Detail]

Download: Illinois-2023-HB2812-Introduced.html

---

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2812 Introduced , by Rep. Bob Morgan SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-10
410 ILCS 130/105
410 ILCS 705/55-21
Amends the Compassionate Use of Medical Cannabis Program Act. Provides that a medical cannabis container shall be compliant with standards established by the Consumer Product Safety Commission, unless the medical cannabis container carries a warning that it is not recommended for use in households with children. Amends the Use Tax Act and the Cannabis Regulation and Tax Act to make corresponding changes.
LRB103 29816 CPF 56224 b
A BILL FOR
HB2812 LRB103 29816 CPF 56224 b
AN ACT concerning safety.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by changing Section
3-10 as follows:
(35 ILCS 105/3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property. In all cases where property
functionally used or consumed is the same as the property that
was purchased at retail, then the tax is imposed on the selling
price of the property. In all cases where property
functionally used or consumed is a by-product or waste product
that has been refined, manufactured, or produced from property
purchased at retail, then the tax is imposed on the lower of
the fair market value, if any, of the specific property so used
in this State or on the selling price of the property purchased
at retail. For purposes of this Section "fair market value"
means the price at which property would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge
of the relevant facts. The fair market value shall be

HB2812 - 2 - LRB103 29816 CPF 56224 b
established by Illinois sales by the taxpayer of the same
property as that functionally used or consumed, or if there
are no such sales by the taxpayer, then comparable sales or
purchases of property of like kind and character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, and (iii) 100% of the proceeds of sales
made thereafter. If, at any time, however, the tax under this
Act on sales of gasohol is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of gasohol made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2023 but applies to 100% of the proceeds of sales made
thereafter.

HB2812 - 3 - LRB103 29816 CPF 56224 b
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1.
Until July 1, 2022 and beginning again on July 1, 2023,
with respect to food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for

HB2812 - 4 - LRB103 29816 CPF 56224 b
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the

HB2812 - 5 - LRB103 29816 CPF 56224 b
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does do not include beverages that contain milk or
milk products, soy, rice or similar milk substitutes, or
greater than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or

HB2812 - 6 - LRB103 29816 CPF 56224 b
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR C.F.R. § 201.66. The
"over-the-counter-drug" label includes:
(A) a A "Drug Facts" panel; or
(B) a A statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
"Prescription Beginning on the effective date of this
amendatory Act of the 98th General Assembly, "prescription and
nonprescription medicines and drugs" includes medical cannabis
purchased by a qualifying patient or a designated caregiver
from a registered dispensing organization under the
Compassionate Use of Medical Cannabis Program Act or a

HB2812 - 7 - LRB103 29816 CPF 56224 b
secondary site dispensary or dispensary under the Cannabis
Regulation and Tax Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use.
(Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;
102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.
4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;
102-700, Article 65, Section 65-5, eff. 4-19-22; revised
5-27-22.)
Section 10. The Compassionate Use of Medical Cannabis
Program Act is amended by changing Section 105 as follows:
(410 ILCS 130/105)
Sec. 105. Requirements; prohibitions; penalties for
cultivation centers.

HB2812 - 8 - LRB103 29816 CPF 56224 b
(a) The operating documents of a registered cultivation
center shall include procedures for the oversight of the
cultivation center, a cannabis plant monitoring system
including a physical inventory recorded weekly, a cannabis
container system including a physical inventory recorded
weekly, accurate record keeping, and a staffing plan.
(b) A registered cultivation center shall implement a
security plan reviewed by the Illinois State Police and
including but not limited to: facility access controls,
perimeter intrusion detection systems, personnel
identification systems, 24-hour surveillance system to monitor
the interior and exterior of the registered cultivation center
facility and accessible to authorized law enforcement and the
Department of Agriculture in real-time.
(c) A registered cultivation center may not be located
within 2,500 feet of the property line of a pre-existing
public or private preschool or elementary or secondary school
or day care center, day care home, group day care home, part
day child care facility, or an area zoned for residential use.
(d) All cultivation of cannabis for distribution to a
registered dispensing organization must take place in an
enclosed, locked facility as it applies to cultivation centers
at the physical address provided to the Department of
Agriculture during the registration process. The cultivation
center location shall only be accessed by the cultivation
center agents working for the registered cultivation center,

HB2812 - 9 - LRB103 29816 CPF 56224 b
Department of Agriculture staff performing inspections,
Department of Public Health staff performing inspections, law
enforcement or other emergency personnel, and contractors
working on jobs unrelated to medical cannabis, such as
installing or maintaining security devices or performing
electrical wiring.
(e) A cultivation center may not sell or distribute any
cannabis to any individual or entity other than another
cultivation center, a dispensing organization registered under
this Act, or a laboratory licensed by the Department of
Agriculture.
(f) All harvested cannabis intended for distribution to a
dispensing organization must be packaged in a labeled medical
cannabis container and entered into a data collection system.
A medical cannabis container shall be compliant with standards
established by the Consumer Product Safety Commission, unless
the medical cannabis container carries a warning that it is
not recommended for use in households with children.
(g) No person who has been convicted of an excluded
offense may be a cultivation center agent.
(h) Registered cultivation centers are subject to random
inspection by the Illinois State Police.
(i) Registered cultivation centers are subject to random
inspections by the Department of Agriculture and the
Department of Public Health.
(j) A cultivation center agent shall notify local law

HB2812 - 10 - LRB103 29816 CPF 56224 b
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 or in-person, or by
written or electronic communication.
(k) A cultivation center shall comply with all State and
federal rules and regulations regarding the use of pesticides.
(Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)
Section 15. The Cannabis Regulation and Tax Act is amended
by changing Section 55-21 as follows:
(410 ILCS 705/55-21)
Sec. 55-21. Cannabis product packaging and labeling.
(a) Each cannabis product produced for sale shall be
registered with the Department of Agriculture on forms
provided by the Department of Agriculture. Each product
registration shall include a label and the required
registration fee at the rate established by the Department of
Agriculture for a comparable medical cannabis product, or as
established by rule. The registration fee is for the name of
the product offered for sale and one fee shall be sufficient
for all package sizes.
(b) All harvested cannabis intended for distribution to a
cannabis enterprise must be packaged in a sealed, labeled
container.
(c) Any product containing cannabis shall be sold in a

HB2812 - 11 - LRB103 29816 CPF 56224 b
sealed, odor-proof, and child-resistant cannabis container
consistent with current standards, including the Consumer
Product Safety Commission standards referenced by the Poison
Prevention Act unless the sale is between or among a craft
grower, infuser, or cultivation center or the medical cannabis
container carries a warning that it is not recommended for use
in households with children.
(d) All cannabis-infused products shall be individually
wrapped or packaged at the original point of preparation. The
packaging of the cannabis-infused product shall conform to the
labeling requirements of the Illinois Food, Drug and Cosmetic
Act, in addition to the other requirements set forth in this
Section.
(e) Each cannabis product shall be labeled before sale and
each label shall be securely affixed to the package and shall
state in legible English and any languages required by the
Department of Agriculture:
(1) the name and post office box of the registered
cultivation center or craft grower where the item was
manufactured;
(2) the common or usual name of the item and the
registered name of the cannabis product that was
registered with the Department of Agriculture under
subsection (a);
(3) a unique serial number that will match the product
with a cultivation center or craft grower batch and lot

HB2812 - 12 - LRB103 29816 CPF 56224 b
number to facilitate any warnings or recalls the
Department of Agriculture, cultivation center, or craft
grower deems appropriate;
(4) the date of final testing and packaging, if
sampled, and the identification of the independent testing
laboratory;
(5) the date of harvest and "use by" date;
(6) the quantity (in ounces or grams) of cannabis
contained in the product;
(7) a pass/fail rating based on the laboratory's
microbiological, mycotoxins, and pesticide and solvent
residue analyses, if sampled;
(8) content list.
(A) A list of the following, including the minimum
and maximum percentage content by weight for
subdivisions (e)(8)(A)(i) through (iv):
(i) delta-9-tetrahydrocannabinol (THC);
(ii) tetrahydrocannabinolic acid (THCA);
(iii) cannabidiol (CBD);
(iv) cannabidiolic acid (CBDA); and
(v) all other ingredients of the item,
including any colors, artificial flavors, and
preservatives, listed in descending order by
predominance of weight shown with common or usual
names.
(B) The acceptable tolerances for the minimum

HB2812 - 13 - LRB103 29816 CPF 56224 b
percentage printed on the label for any of
subdivisions (e)(8)(A)(i) through (iv) shall not be
below 85% or above 115% of the labeled amount.
(f) Packaging must not contain information that:
(1) is false or misleading;
(2) promotes excessive consumption;
(3) depicts a person under 21 years of age consuming
cannabis;
(4) includes the image of a cannabis leaf;
(5) includes any image designed or likely to appeal to
minors, including cartoons, toys, animals, or children, or
any other likeness to images, characters, or phrases that
are popularly used to advertise to children, or any
packaging or labeling that bears reasonable resemblance to
any product available for consumption as a commercially
available candy, or that promotes consumption of cannabis;
(6) contains any seal, flag, crest, coat of arms, or
other insignia likely to mislead the purchaser to believe
that the product has been endorsed, made, or used by the
State of Illinois or any of its representatives except
where authorized by this Act.
(g) Cannabis products produced by concentrating or
extracting ingredients from the cannabis plant shall contain
the following information, where applicable:
(1) If solvents were used to create the concentrate or
extract, a statement that discloses the type of extraction

HB2812 - 14 - LRB103 29816 CPF 56224 b
method, including any solvents or gases used to create the
concentrate or extract; and
(2) Any other chemicals or compounds used to produce
or were added to the concentrate or extract.
(h) All cannabis products must contain warning statements
established for purchasers, of a size that is legible and
readily visible to a consumer inspecting a package, which may
not be covered or obscured in any way. The Department of Public
Health shall define and update appropriate health warnings for
packages including specific labeling or warning requirements
for specific cannabis products.
(i) Unless modified by rule to strengthen or respond to
new evidence and science, the following warnings shall apply
to all cannabis products unless modified by rule: "This
product contains cannabis and is intended for use by adults 21
and over. Its use can impair cognition and may be habit
forming. This product should not be used by pregnant or
breastfeeding women. It is unlawful to sell or provide this
item to any individual, and it may not be transported outside
the State of Illinois. It is illegal to operate a motor vehicle
while under the influence of cannabis. Possession or use of
this product may carry significant legal penalties in some
jurisdictions and under federal law.".
(j) Warnings for each of the following product types must
be present on labels when offered for sale to a purchaser:
(1) Cannabis that may be smoked must contain a

HB2812 - 15 - LRB103 29816 CPF 56224 b
statement that "Smoking is hazardous to your health.".
(2) Cannabis-infused products (other than those
intended for topical application) must contain a statement
"CAUTION: This product contains cannabis, and intoxication
following use may be delayed 2 or more hours. This product
was produced in a facility that cultivates cannabis, and
that may also process common food allergens.".
(3) Cannabis-infused products intended for topical
application must contain a statement "DO NOT EAT" in bold,
capital letters.
(k) Each cannabis-infused product intended for consumption
must be individually packaged, must include the total
milligram content of THC and CBD, and may not include more than
a total of 100 milligrams of THC per package. A package may
contain multiple servings of 10 milligrams of THC, indicated
by scoring, wrapping, or by other indicators designating
individual serving sizes. The Department of Agriculture may
change the total amount of THC allowed for each package, or the
total amount of THC allowed for each serving size, by rule.
(l) No individual other than the purchaser may alter or
destroy any labeling affixed to the primary packaging of
cannabis or cannabis-infused products.
(m) For each commercial weighing and measuring device used
at a facility, the cultivation center or craft grower must:
(1) Ensure that the commercial device is licensed
under the Weights and Measures Act and the associated

HB2812 - 16 - LRB103 29816 CPF 56224 b
administrative rules (8 Ill. Adm. Code 600);
(2) Maintain documentation of the licensure of the
commercial device; and
(3) Provide a copy of the license of the commercial
device to the Department of Agriculture for review upon
request.
(n) It is the responsibility of the Department to ensure
that packaging and labeling requirements, including product
warnings, are enforced at all times for products provided to
purchasers. Product registration requirements and container
requirements may be modified by rule by the Department of
Agriculture.
(o) Labeling, including warning labels, may be modified by
rule by 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.)