Bill Text: IL HB4161 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Industrial Hemp Act. Changes the short title of the Act to the Hemp Act. Permits the wholesale and retail sale of cannabinoids, hemp concentrate, or any other intermediate hemp cannabinoid products. Provides that no person shall offer or sell cannabinoid products, particularly packaged hemp products, to consumers in the State unless the person applies for and holds a hemp retailer license issued by the Department of Financial and Professional Regulation. Provides that no person shall sell ready-to-eat hemp products to end consumers without applying for and holding a hemp food establishment license issued by the Department of Public Health. Provides that no person shall sell cannabinoid product to any person under the age of 21 unless the person is a medical cardholder registered under the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture may not limit the number of hemp farm licenses. Provides that no person shall cultivate or grow hemp for commercial purposes unless licensed by the Department of Agriculture and subject to the rules of the Department. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Creates in the State treasury a special fund known as the Hemp Social Equity Fund. Provides that 25% of all moneys deposited into the Hemp Regulatory Fund shall be transferred into the Hemp Social Equity Fund. Provides that, beginning on July 1, 2024, a tax is imposed upon purchases of all hemp cannabinoid products (hemp cannabinoid products for inhalation, hemp cannabinoid products for ingestion, and ready-to-eat hemp cannabinoid products) at a rate of 5% of the purchase price of the cannabinoid products. Defines terms. Preempts home rule powers. Amends the State Finance Act, Cannabis Regulation and Tax Act, the Illinois Noxious Weed Law, the Cannabis Control Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2023-10-26 - Added Co-Sponsor Rep. Dave Vella [HB4161 Detail]

Download: Illinois-2023-HB4161-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4161 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
See Index
Amends the Industrial Hemp Act. Changes the short title of the Act to the Hemp Act. Permits the wholesale and retail sale of cannabinoids, hemp concentrate, or any other intermediate hemp cannabinoid products. Provides that no person shall offer or sell cannabinoid products, particularly packaged hemp products, to consumers in the State unless the person applies for and holds a hemp retailer license issued by the Department of Financial and Professional Regulation. Provides that no person shall sell ready-to-eat hemp products to end consumers without applying for and holding a hemp food establishment license issued by the Department of Public Health. Provides that no person shall sell cannabinoid product to any person under the age of 21 unless the person is a medical cardholder registered under the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Agriculture may not limit the number of hemp farm licenses. Provides that no person shall cultivate or grow hemp for commercial purposes unless licensed by the Department of Agriculture and subject to the rules of the Department. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Provides that hemp farms may not create hemp extractions without a processor license. Provides that hemp farms may not engage in retail sales without a hemp retailer license. Creates in the State treasury a special fund known as the Hemp Social Equity Fund. Provides that 25% of all moneys deposited into the Hemp Regulatory Fund shall be transferred into the Hemp Social Equity Fund. Provides that, beginning on July 1, 2024, a tax is imposed upon purchases of all hemp cannabinoid products (hemp cannabinoid products for inhalation, hemp cannabinoid products for ingestion, and ready-to-eat hemp cannabinoid products) at a rate of 5% of the purchase price of the cannabinoid products. Defines terms. Preempts home rule powers. Amends the State Finance Act, Cannabis Regulation and Tax Act, the Illinois Noxious Weed Law, the Cannabis Control Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act to make conforming changes. Effective immediately.
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A BILL FOR
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AN ACT concerning regulation.
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 9
as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under Public Act 102-700 this amendatory Act of the
102nd General Assembly. The discount under this Section is not

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allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. When determining the discount
allowed under this Section, retailers shall include the amount
of tax that would have been due at the 1% rate but for the 0%
rate imposed under Public Act 102-700 this amendatory Act of
the 102nd General Assembly. In the case of retailers who
report and pay the tax on a transaction by transaction basis,
as provided in this Section, such discount shall be taken with
each such tax remittance instead of when such retailer files
his periodic return. The discount allowed under this Section
is allowed only for returns that are filed in the manner
required by this Act. The Department may disallow the discount
for retailers whose certificate of registration is revoked at
the time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final. A retailer need not remit that part of any tax collected
by him to the extent that he is required to remit and does
remit the tax imposed by the Retailers' Occupation Tax Act,
with respect to the sale of the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required

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to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on 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)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly. The
return shall also include the amount of tax that would have
been due on 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) but for the 0% rate imposed under
Public Act 102-700 this amendatory Act of the 102nd General
Assembly.

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On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible

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personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after

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the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to a cannabinoid retail tax under
the Hemp Act shall file all cannabinoid retail tax returns and
shall make all cannabinoid retail tax payments by electronic
means in the manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax

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liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the

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requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the
Service Use Tax Act was $10,000 or more during the preceding 4
complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next
following the month during which such tax liability is
incurred and shall make payments to the Department on or
before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred. On and after October 1,
2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, and the Service Use Tax Act was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the

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month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.

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Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer

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to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly on sales tax holiday items had not occurred.
For quarter monthly payments due on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. Quarter monthly
payment status shall be determined under this paragraph as if
the rate reduction to 0% in Public Act 102-700 this amendatory
Act of the 102nd General Assembly on 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) had not occurred.
For quarter monthly payments due under this paragraph on or
after July 1, 2023 and through June 30, 2024, "25% of the
taxpayer's liability for the same calendar month of the

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preceding year" shall be determined as if the rate reduction
to 0% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly had not occurred. If any such quarter monthly
payment is not paid at the time or in the amount required by
this Section, then the taxpayer shall be liable for penalties
and interest on the difference between the minimum amount due
and the amount of such quarter monthly payment actually and
timely paid, except insofar as the taxpayer has previously
made payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be

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prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a
given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.

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If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or

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trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any

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other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the

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name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of

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applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not

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paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by

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such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net

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revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation

HB4161 - 22 - LRB103 34685 AWJ 64530 b
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of

HB4161 - 23 - LRB103 34685 AWJ 64530 b
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,

HB4161 - 24 - LRB103 34685 AWJ 64530 b
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last

HB4161 - 25 - LRB103 34685 AWJ 64530 b
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on

HB4161 - 26 - LRB103 34685 AWJ 64530 b
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not

HB4161 - 27 - LRB103 34685 AWJ 64530 b
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

HB4161 - 28 - LRB103 34685 AWJ 64530 b
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and

HB4161 - 29 - LRB103 34685 AWJ 64530 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel

HB4161 - 30 - LRB103 34685 AWJ 64530 b
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the net revenue realized
from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to

HB4161 - 31 - LRB103 34685 AWJ 64530 b
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay

HB4161 - 32 - LRB103 34685 AWJ 64530 b
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000

HB4161 - 33 - LRB103 34685 AWJ 64530 b
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount

HB4161 - 34 - LRB103 34685 AWJ 64530 b
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the State and Local
Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net

HB4161 - 35 - LRB103 34685 AWJ 64530 b
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law, and "gasohol" has the meaning given
to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.

HB4161 - 36 - LRB103 34685 AWJ 64530 b
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
102-1019, eff. 1-1-23; revised 12-13-22.)
Section 10. The Service Use Tax Act is amended by changing
Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such

HB4161 - 37 - LRB103 34685 AWJ 64530 b
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax and supplying data to the Department on request. When
determining the discount allowed under this Section,
servicemen shall include the amount of tax that would have
been due at the 1% rate but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such

HB4161 - 38 - LRB103 34685 AWJ 64530 b
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General
Assembly: (i) 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); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen

HB4161 - 39 - LRB103 34685 AWJ 64530 b
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department

HB4161 - 40 - LRB103 34685 AWJ 64530 b
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to a cannabinoid retail tax under

HB4161 - 41 - LRB103 34685 AWJ 64530 b
the Hemp Act shall file all cannabinoid retail tax returns and
shall make all cannabinoid retail tax payments by electronic
means in the manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the

HB4161 - 42 - LRB103 34685 AWJ 64530 b
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for

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October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the

HB4161 - 44 - LRB103 34685 AWJ 64530 b
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall

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pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.

HB4161 - 46 - LRB103 34685 AWJ 64530 b
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.

HB4161 - 47 - LRB103 34685 AWJ 64530 b
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount

HB4161 - 48 - LRB103 34685 AWJ 64530 b
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are

HB4161 - 49 - LRB103 34685 AWJ 64530 b
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be

HB4161 - 50 - LRB103 34685 AWJ 64530 b
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

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2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and

HB4161 - 52 - LRB103 34685 AWJ 64530 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel

HB4161 - 53 - LRB103 34685 AWJ 64530 b
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the net revenue realized
from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to

HB4161 - 54 - LRB103 34685 AWJ 64530 b
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay

HB4161 - 55 - LRB103 34685 AWJ 64530 b
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000

HB4161 - 56 - LRB103 34685 AWJ 64530 b
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount

HB4161 - 57 - LRB103 34685 AWJ 64530 b
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the State and Local
Sales Tax Reform Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net

HB4161 - 58 - LRB103 34685 AWJ 64530 b
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law, and "gasohol" has the meaning given
to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this

HB4161 - 59 - LRB103 34685 AWJ 64530 b
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
Section 15. The Service Occupation Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but

HB4161 - 60 - LRB103 34685 AWJ 64530 b
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. The discount allowed under this
Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return shall
be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably

HB4161 - 61 - LRB103 34685 AWJ 64530 b
require. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly: (i) 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); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the

HB4161 - 62 - LRB103 34685 AWJ 64530 b
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as

HB4161 - 63 - LRB103 34685 AWJ 64530 b
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to a cannabinoid retail tax under
the Hemp Act shall file all cannabinoid retail tax returns and
shall make all cannabinoid retail tax payments by electronic
means in the manner and form required by the Department.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit

HB4161 - 64 - LRB103 34685 AWJ 64530 b
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year;

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with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000

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or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds

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transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file

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returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate

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on transfers of tangible personal property other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had

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been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the

HB4161 - 71 - LRB103 34685 AWJ 64530 b
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in
the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso

HB4161 - 72 - LRB103 34685 AWJ 64530 b
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois

HB4161 - 73 - LRB103 34685 AWJ 64530 b
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000

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1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000

HB4161 - 75 - LRB103 34685 AWJ 64530 b
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the

HB4161 - 76 - LRB103 34685 AWJ 64530 b
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter

HB4161 - 77 - LRB103 34685 AWJ 64530 b
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the net revenue realized
from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,

HB4161 - 78 - LRB103 34685 AWJ 64530 b
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from

HB4161 - 79 - LRB103 34685 AWJ 64530 b
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000

HB4161 - 80 - LRB103 34685 AWJ 64530 b
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2022 and until July 1, 2023,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to

HB4161 - 81 - LRB103 34685 AWJ 64530 b
represent 32% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2023 and
until July 1, 2024, subject to the payment of amounts into the
County and Mass Transit District Fund, the Local Government
Tax Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 64% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning on July
1, 2025, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay

HB4161 - 82 - LRB103 34685 AWJ 64530 b
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law, and "gasohol" has the meaning given
to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State
Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to

HB4161 - 83 - LRB103 34685 AWJ 64530 b
the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening
and closing inventories of such goods for such year, cost of
goods used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who

HB4161 - 84 - LRB103 34685 AWJ 64530 b
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to a
serviceman who is not required to file an income tax return
with the United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do

HB4161 - 85 - LRB103 34685 AWJ 64530 b
not make written objection to the Department to this
arrangement.
(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
Section 20. The Retailers' Occupation Tax Act is amended
by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at
retail in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar

HB4161 - 86 - LRB103 34685 AWJ 64530 b
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
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) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on 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) but for

HB4161 - 87 - LRB103 34685 AWJ 64530 b
the 0% rate imposed under Public Act 102-700 this
amendatory Act of the 102nd General Assembly;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of

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prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the

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calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all

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aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;

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identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all

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cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to a cannabinoid retail tax under
the Hemp Act shall file all cannabinoid retail tax returns and
shall make all cannabinoid retail tax payments by electronic
means in the manner and form required by the Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities

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under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a

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dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business

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which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that

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seller may report the transfer of all aircraft, watercraft,
motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax

HB4161 - 97 - LRB103 34685 AWJ 64530 b
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.

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The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and

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such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration
is required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment

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of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,

HB4161 - 101 - LRB103 34685 AWJ 64530 b
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its
behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
1% rate but for the 0% rate imposed under Public Act 102-700

HB4161 - 102 - LRB103 34685 AWJ 64530 b
this amendatory Act of the 102nd General Assembly. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under Public Act 102-700 this amendatory Act of the
102nd General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
Section 2d of this Act shall be included in the amount on which
such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was

HB4161 - 103 - LRB103 34685 AWJ 64530 b
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and

HB4161 - 104 - LRB103 34685 AWJ 64530 b
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000

HB4161 - 105 - LRB103 34685 AWJ 64530 b
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in

HB4161 - 106 - LRB103 34685 AWJ 64530 b
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly on 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) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
this amendatory Act of the 102nd General Assembly had not
occurred. Quarter monthly payment status shall be determined
under this paragraph as if the rate reduction to 1.25% in
Public Act 102-700 this amendatory Act of the 102nd General
Assembly on sales tax holiday items had not occurred. For
quarter monthly payments due on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for

HB4161 - 107 - LRB103 34685 AWJ 64530 b
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. If any such quarter
monthly payment is not paid at the time or in the amount
required by this Section, then the taxpayer shall be liable
for penalties and interest on the difference between the
minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as
the taxpayer has previously made payments for that month to
the Department in excess of the minimum payments previously
due as provided in this Section. The Department shall make
reasonable rules and regulations to govern the quarter monthly
payment amount and quarter monthly payment dates for taxpayers
who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to

HB4161 - 108 - LRB103 34685 AWJ 64530 b
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after

HB4161 - 109 - LRB103 34685 AWJ 64530 b
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred.
Each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be

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liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
If a retailer of motor fuel is entitled to a credit under

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Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.

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Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%

HB4161 - 113 - LRB103 34685 AWJ 64530 b
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into

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the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to

HB4161 - 115 - LRB103 34685 AWJ 64530 b
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the

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difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section

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13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit

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1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000

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2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.

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Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.

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Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the net revenue realized
from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of

HB4161 - 122 - LRB103 34685 AWJ 64530 b
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the

HB4161 - 123 - LRB103 34685 AWJ 64530 b
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000

HB4161 - 124 - LRB103 34685 AWJ 64530 b
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2022 and until July 1, 2023,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy

HB4161 - 125 - LRB103 34685 AWJ 64530 b
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. Beginning July 1, 2023 and
until July 1, 2024, subject to the payment of amounts into the
County and Mass Transit District Fund, the Local Government
Tax Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 64% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning on July
1, 2025, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project

HB4161 - 126 - LRB103 34685 AWJ 64530 b
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the net revenue realized from the taxes
imposed on motor fuel and gasohol. As used in this paragraph
"motor fuel" has the meaning given to that term in Section 1.1
of the Motor Fuel Tax Law, and "gasohol" has the meaning given
to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
treasury Treasury and 25% shall be reserved in a special
account and used only for the transfer to the Common School
Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a

HB4161 - 127 - LRB103 34685 AWJ 64530 b
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest

HB4161 - 128 - LRB103 34685 AWJ 64530 b
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the

HB4161 - 129 - LRB103 34685 AWJ 64530 b
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of

HB4161 - 130 - LRB103 34685 AWJ 64530 b
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
1-1-23; revised 12-13-22.)
Section 25. The Cannabis Regulation and Tax Act is amended
by changing Sections 1-10 and 10-10 as follows:
(410 ILCS 705/1-10)

HB4161 - 131 - LRB103 34685 AWJ 64530 b
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
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,

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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
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.

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"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
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,

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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
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

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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
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.

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"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 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.

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"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
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

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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
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

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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
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.

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"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
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

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(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,
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.

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"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,
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

HB4161 - 143 - LRB103 34685 AWJ 64530 b
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
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

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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.
"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

HB4161 - 145 - LRB103 34685 AWJ 64530 b
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
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

HB4161 - 146 - LRB103 34685 AWJ 64530 b
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
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

HB4161 - 147 - LRB103 34685 AWJ 64530 b
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
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

HB4161 - 148 - LRB103 34685 AWJ 64530 b
(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
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

HB4161 - 149 - LRB103 34685 AWJ 64530 b
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.
"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

HB4161 - 150 - LRB103 34685 AWJ 64530 b
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 705/10-10)
Sec. 10-10. Possession limit.
(a) Except if otherwise authorized by this Act, for a
person who is 21 years of age or older and a resident of this
State, the possession limit is as follows:
(1) 30 grams of cannabis flower;
(2) no more than 500 milligrams of THC contained in
cannabis-infused product;
(3) 5 grams of cannabis concentrate; and
(4) for registered qualifying patients, any cannabis
produced by cannabis plants grown under subsection (b) of
Section 10-5, provided any amount of cannabis produced in
excess of 30 grams of raw cannabis or its equivalent must
remain secured within the residence or residential
property in which it was grown.
(b) For a person who is 21 years of age or older and who is

HB4161 - 151 - LRB103 34685 AWJ 64530 b
not a resident of this State, the possession limit is:
(1) 15 grams of cannabis flower;
(2) 2.5 grams of cannabis concentrate; and
(3) 250 milligrams of THC contained in a
cannabis-infused product.
(c) The possession limits found in subsections (a) and (b)
of this Section are to be considered cumulative.
(d) No person shall knowingly obtain, seek to obtain, or
possess an amount of cannabis from a dispensing organization
or craft grower that would cause him or her to exceed the
possession limit under this Section, including cannabis that
is cultivated by a person under this Act or obtained under the
Compassionate Use of Medical Cannabis Program Act.
(e) Cannabis and cannabis-derived substances regulated
under the Industrial Hemp Act are not covered by this Act.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
Section 30. The Industrial Hemp Act is amended by changing
Sections 1, 5, 15, 17, 18, and 20 and by adding Sections 3, 6,
7, 10.5, 10.10, 10.15, 10.20, 10.25, 10.30, 10.35, 10.40,
10.45, 10.50, 10.55, 10.60, 10.65, 10.70, 10.75, 10.80, 10.85,
10.90, 10.95, 10.100, 11, 11.5, 11.10, 11.15, 11.20, 12, 13,
15.5, 16, 17.5, 18.5, 28, 30, and 800 as follows:
(505 ILCS 89/1)
Sec. 1. Short title. This Act may be cited as the

HB4161 - 152 - LRB103 34685 AWJ 64530 b
Industrial Hemp Act.
(Source: P.A. 100-1091, eff. 8-26-18.)
(505 ILCS 89/3 new)
Sec. 3. Findings. The General Assembly finds that:
(1) In the interest of allowing law enforcement to focus
on violent and property crimes, generating revenue for
education, substance abuse prevention and treatment, freeing
public resources to invest in communities and other public
purposes, and individual freedom, the use of hemp-derived
cannabinoids should be legal for persons 21 years of age or
older and should be taxed in a manner similar to beer, wine,
spirits, and cannabis.
(2) In the interest of the health and public safety of the
residents of Illinois, hemp-derived cannabinoids should be
regulated in a manner similar to beer, wine, spirits, and
cannabis so that:
(A) persons will have to show proof of age before
purchasing hemp-derived cannabinoids;
(B) selling, distributing, or transferring
hemp-derived cannabinoids to minors and other persons
under 21 years of age shall be illegal;
(C) driving under the influence of hemp-derived
cannabinoids, operating a watercraft under the influence
of hemp-derived cannabinoids and operating a snowmobile
under the influence of hemp-derived cannabinoids shall be

HB4161 - 153 - LRB103 34685 AWJ 64530 b
illegal;
(D) legitimate, taxpaying business people, and not
criminal actors, will conduct the sales of hemp-derived
cannabinoids;
(E) hemp-derived cannabinoids sold in the State will
be tested, labeled, and subject to additional regulation
to ensure that purchasers are informed and protected; and
(F) purchasers shall be informed of any known health
risks associated with the use of hemp-derived
cannabinoids, as concluded by evidence-based, peer
reviewed research.
(3) It is necessary to ensure consistency and fairness in
the application of this Act throughout the State and,
therefore, the matters by this Act are, except as specified in
this Act, matters of statewide concern.
(4) This Act shall not diminish the State's duties and
commitment to purchasers and businesses that operate under the
Cannabis Regulation and Tax Act or alter the protections
granted to them.
(5) This Act shall not diminish the State's duties and
commitment to seriously ill patients registered under the
Compassionate Use of Medical Cannabis Program Act, nor alter
the protections granted to them.
(6) Supporting and encouraging labor neutrality in the
hemp-derived cannabinoid industry and employee workplace
safety is desirable, and employer workplace policies shall be

HB4161 - 154 - LRB103 34685 AWJ 64530 b
interpreted broadly to protect employee safety.
(505 ILCS 89/5)
Sec. 5. Definitions. In this Act:
"Batch" means a specific quantity of a specific
cannabinoid product that is manufactured at the same time and
using the same methods, equipment, and ingredients, that is
uniform and intended to meet specifications for identity,
strength, purity, and composition, and that is manufactured,
packaged, and labeled according to a single batch production
record executed and documented during the same cycle of
manufacture and produced by a continuous process.
"Batch cycle" means a specific quantity of a specific
cannabinoid product that is manufactured using the same
methods, equipment, and ingredients, that is uniform and
intended to meet specifications for identity, strength,
purity, and composition, and that is manufactured, packaged,
and labeled according to a batch cycle production record
executed and documented during the same cycle of manufacture.
"Cannabinoid menu item" means a restaurant-type food that
incorporates ready-to-eat cannabinoids included on a menu or
menu board or offered as a self-service food or food on
display.
"Cannabinoid retail tax" means a tax of 5% that is
assessed on the final retail sale of all products that contain
cannabinoids.

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"Cottage hemp cannabinoid product" means a type of hemp
cannabinoid product available for human consumption, including
time/temperature control for safety food as that term is
defined in Section 1-201.10 of the 2017 Food Code of the United
States Public Health Service of the Food and Drug
Administration, that utilize intermediate hemp products as an
input and is produced by a cottage hemp food operator and
contains THC levels below 0.3% by weight.
"Cottage hemp food operator" means an individual who
produces food or drink, other than foods and drinks listed as
prohibited by Section 4 of the Food Handling Regulation
Enforcement Act, that incorporate intermediate hemp products
in a kitchen located in that person's primary domestic
residence or another appropriately designed and equipped
kitchen on a farm for direct sale by the individual, a family
member, or employee.
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Disproportionately impacted area" means a census tract or
comparable geographic area that satisfies the following
criteria, as determined by the Department of Commerce and
Economic Opportunity, that meets at least one of the following
criteria:
(1) 20% or more of the households in the area have
incomes at or below 185% of the poverty guidelines updated
periodically in the Federal Register by the U.S.

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Department of Health and Human Services under the
authority of 42 U.S.C. 9902(2);
(2) 75% or more of the children in the area
participate in the National School Lunch Program according
to reported statistics from the State Board of Education;
(3) at least 20% of the households in the area receive
assistance under the Supplemental Nutrition Assistance
Program; or
(4) the area has an average unemployment rate, as
determined by the Illinois Department of Employment
Security, that is more than 120% of the national
employment 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 has high rates or arrest, conviction, and
incarceration related to the sale, possession, use,
cultivation, manufacture, or transport of cannabis as
defined under the Cannabis Regulation and Tax Act.
"Full-panel test" means a test that includes potency
testing and tests for contaminants, such as pesticides, heavy
metals, mold, and residual solvents.
"Hemp" or "industrial hemp" means the plant Cannabis
sativa L. and any part of that plant, including the seeds
thereof and all derivatives, extracts, cannabinoids, isomers,
acids, salts, and salts of isomers, whether growing or not,
with a total THC delta-9 tetrahydrocannabinol concentration of

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not more than 0.3 percent on a dry-weight basis. "Hemp"
includes industrial hemp, hemp cannabinoid products, and
ready-to-eat hemp products dry weight basis and includes any
intermediate or finished product made or derived from
industrial hemp.
"Hemp business establishment" means a hemp farm, hemp
processor, hemp distributor, hemp retailer, hemp food
establishment, or cottage hemp food operator.
"Hemp cannabinoid" means the chemical constituents of hemp
plants that are naturally occurring and biologically active.
"Hemp cannabinoid product" means a finished product for
sale to hemp cannabinoid users or medical patients at hemp
business establishments within the State of Illinois that
contains cannabinoids derived from hemp, is intended for human
consumption by inhalation and ingestion, does not exceed 50
milligrams of THC per serving, and meets the packaging,
labeling, and testing requirements of this Act.
"Hemp cannabinoid user" means a member of the general
public who buys or uses hemp and who is protected by laws
against unfair or fraudulent practices in the marketplace.
"Hemp distributor" means a facility operated by an
organization or business that is licensed by the Department of
Financial and Professional Regulation to import hemp
cannabinoid products from out-of-state and distribute or sell
live hemp products and hemp cannabinoid products to other hemp
business establishments.

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"Hemp farm" means an Illinois farm or facility operated by
an organization or business that is licensed by the Department
of Agriculture to grow hemp.
"Hemp food establishment" means a facility regulated by
the Illinois Department of Public Health that incorporates
intermediate hemp products in the manufacturing, processing,
or preparation of prepackaged or ready-to-eat hemp cannabinoid
products intended for human ingestion and which meets the
requirements of this Act.
"Hemp processor" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to convert raw hemp material into processed hemp
products or intermediate hemp products, including the
extraction, synthesis, or concentration of constituent
chemicals and compounds from raw hemp or intermediate hemp
products.
"Hemp production plan" means a plan submitted by the
Department to the Secretary of the United States Department of
Agriculture pursuant to the federal Agriculture Improvement
Act of 2018, Public Law 115-334, and consistent with the
Domestic Hemp Production Program pursuant to 7 CFR Part 990
wherein the Department establishes its desire to have primary
regulatory authority over the production of hemp.
"Hemp retailer" means a retailer operated by an
organization or business that is licensed by the Department of
Financial and Professional Regulation to sell live hemp

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products or hemp cannabinoid products to hemp cannabinoid
users or medical patients.
"Hemp social equity participant" means an individual who
is an Illinois resident or a business entity located within
Illinois that meets one or a combination of any the following
criteria:
(1) is 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
impacted area; or
(2) is an applicant with at least 51% ownership and
control by at least one individual who:
(A) has been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under the Cannabis Regulation
and Tax Act; or
(B) is a member of an impacted family.
"Human consumption" means consumption by inhalation or
ingestion but does not include topical application.
"Illinois hemp" means hemp grown, processed, or produced
by hemp business establishments licensed and located in the
State of Illinois, including live hemp products, raw hemp
products, intermediate hemp products, and hemp cannabinoid
products. "Illinois hemp" includes hemp cannabinoid and
intermediate hemp products that are only produced in the State
of Illinois and do not incorporate any form of imported hemp.

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"Imported hemp" means hemp that incorporates raw hemp or
intermediate hemp products not produced in Illinois.
"Industrial hemp" includes intermediate or finished
product made or derived from hemp.
"Ingestion" means the process of consuming cannabinoid
products through the mouth, whether by swallowing into the
gastrointestinal system or through tissue absorption.
"Inhalation" means the process of consuming cannabinoid
products through the mouth or nasal passages into the
respiratory system.
"Intermediate hemp products" means products that are made
from processed hemp that may only be sold to hemp business
establishments to be used as ingredients for other
intermediate hemp products or final hemp cannabinoid products
for human consumption by ingestion or inhalation.
"Intermediate hemp products" may include products that contain
more than 0.3% THC.
"Labor peace agreement" means an agreement (i) between a
hemp 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,
work stoppages, boycotts, and any other economic interference
with the cannabis business establishment, (ii) in which the
hemp business establishment has agreed not to disrupt efforts
by the bona fide labor organization to communicate with, and

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attempt to organize and represent, the hemp business
establishment's employees, (iii) that provides 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, and (iv) does not mandate
a particular method of election or certification of the bona
fide labor organization.
"Land area" means a farm as defined in Section 1-60 of the
Property Tax Code in this State or land or facilities under the
control of an institution of higher education.
"Live hemp products" means living plants, plant cuttings,
viable seeds, or tissue culture that can be used to propagate
new hemp plants, that test under 0.3% THC by weight using high
performance liquid chromatography or comparable technologies
capable of identifying THC separately from other cannabinoids,
and that may only be sold or transferred to other hemp farms or
medical patients.
"Medical patient" means an individual who has been issued
a medical card under the Compassionate Use of Medical Cannabis
Program Act.
"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 amendatory Act of the 103rd General Assembly, was

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arrested for, convicted of, or adjudicated delinquent for any
offense that is eligible for expungement under subsection (i)
of Section 5.2 of the Criminal Identification Act.
"Menu" means the primary writing of the establishment from
which a customer makes an order selection, including, but not
limited to, breakfast, lunch, and dinner menus, dessert menus,
beverage menus, other specialty menus, electronic menus, menu
boards, and menus published on the Internet.
"Person" means any individual, partnership, firm,
corporation, company, society, association, the State or any
department, agency, or subdivision thereof, or any other
entity.
"Potency test" means a test on hemp-derived products that
measures the amount of cannabinoids, such as THC, in a sample.
"Process" means the conversion of raw industrial hemp
plant material into a form that is presently legal to import
from outside the United States under federal law.
"Processed hemp products" means products that are derived
from hemp that are made for purposes other than human
consumption. "Processed hemp products" include hemp fibers,
hemp hurd, hempcrete, hemp fuels, hemp topicals and lotions,
and other products, such as clothing, plastics, paper, or
textiles that use or may incorporate elements of hemp.
"Raw hemp products" means products that are derived from
hemp that are not processed or refined with any solvents or
chemical reactions. "Raw hemp products" includes hulled hemp

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seed, hemp seed protein powder, hemp seed oil, hemp stalks,
hemp leaves, and artwork incorporating hemp by-products.
"Ready-to-eat hemp cannabinoid product" means a type of
hemp cannabinoid product available for human consumption,
including time or temperature control, or both, for safety
foods, as that term is defined in Section 1-201.10 of the Food
Code 2017 of the United States Public Health Service of the
Food and Drug Administration, that does not exceed 50
milligrams of THC per serving, and that utilize intermediate
hemp products as an input as is produced as a single serving in
a retail food establishment.
"Retail sale" means any sale of cannabinoid products that
would be subject to the Retailers' Occupation Tax Act.
"Serving" means the amount of product intended to be
consumed in a single serving as declared on the label
expressed in a common household measure. "Serving size" does
not include a fraction of a piece, but a fraction may be
indicated by marking or scoring on packaging or labeling.
"THC" means delta-9 tetrahydrocannabinol. "THC" does not
include CBD, CBG, CBN, delta-7 THC, delta-8 THC, delta-10 THC,
THCa, THCv, THCva, and other yet-to-be-discovered
cannabinoids.
(Source: P.A. 102-690, eff. 12-17-21.)
(505 ILCS 89/6 new)
Sec. 6. Sale of hemp cannabinoid products.

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(a) The wholesale and retail sale of cannabinoids, hemp
concentrate, or any other intermediate hemp cannabinoid
product is allowed as provided in this Act.
(b) No person shall offer or sell hemp cannabinoid
products, particularly packaged hemp products, to consumers in
the State of Illinois unless the person applies for and holds a
hemp retailer license issued by the Department of Financial
and Professional Regulation. No person shall sell ready-to-eat
hemp products to end consumers without holding a hemp food
establishment license issued by the Department of Public
Health.
(c) A hemp food establishment that sells amt
ready-to-eat cannabinoid products shall be exclusively
licensed and located in the State of Illinois.
(d) No person shall sell a hemp cannabinoid product to any
person under the age of 21 unless the person is a medical
patient.
(e) No person shall sell, buy for, distribute samples of,
or furnish any cannabinoid product to any person under the age
of 21 except as provided in subsection (d).
(f) For purposes of this Act, a medical patient shall not
be considered an unlawful user solely as a result of his or her
qualifying patient or designated caregiver status. All
products purchased by a qualifying patient at a licensed
organization shall be lawful products and a distinction shall
be made between medical and nonmedical use as a result of the

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qualifying patient's cardholder status.
(g) No person under 21 years of age in the furtherance or
facilitation of obtaining hemp cannabinoid products shall
display or use a false or forged identification card or
transfer, alter, or deface an identification card.
(h) A hemp food establishment or hemp retailer that sells
cannabinoid products intended for inhalation shall post a
clear and conspicuous sign directly adjacent to the display of
the product that states the following: "THE SALE OF
CANNABINOID PRODUCTS INTENDED FOR INHALATION TO PERSONS UNDER
THE AGE OF 21 IS PROHIBITED. PROOF OF AGE IS REQUIRED FOR
PURCHASE.".
(i) Cannabinoid products may not be mailed, shipped, or
otherwise delivered to a purchaser unless, before the delivery
to the purchaser, the hemp retailer obtains confirmation that
the purchaser is 21 years of age or older or is a medical
patient.
(j) Hemp food establishments and hemp retailers shall
require proof of age or proof of valid registration under the
Compassionate Use of Medical Cannabis Program Act from a
purchaser of any cannabinoid products before selling the
product to that person. Hemp food establishments and hemp
retailers shall exercise diligence in the management and
supervision of their premises and in the supervision and
training of their employees to prevent the underage sale of
these products.

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(k) A product containing cannabinoids must not be
considered adulterated or unsafe solely because the product
contains cannabinoids or other material is extracted or
derived from hemp plants.
(l) A person, hemp retailer, or hemp food establishment
that violates subsection (e) is guilty of a violation of this
Act and is subject to a penalty under Section 17 of this Act. A
person under the age of 21 who violates subsection (g) is
guilty of a Class A misdemeanor.
(505 ILCS 89/7 new)
Sec. 7. Inhalable cannabinoid products.
(a) No person shall prepare and sell wholesale packaged
cannabinoid products that are intended for inhalation unless
the person is licensed by the Department as a hemp processor or
hemp distributor. No person shall offer inhalable hemp
cannabinoid products for sale directly to the public unless
the person is licensed as a hemp retailer.
(b) All cannabinoid products that are intended for
inhalation shall be manufactured by a source that meets local,
State, or federal regulatory good manufacturing practices and
health standards from the jurisdiction of origin.
(c) Hemp cannabinoid products intended for inhalation are
not subject to the Tobacco Products Tax Act of 1995.
(505 ILCS 89/10.5 new)

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Sec. 10.5. Licensing and regulation of hemp farms.
(a) The Department of Agriculture may not limit the number
of hemp farm licenses.
(b) No person shall cultivate or grow hemp for commercial
purposes unless licensed by the Department of Agriculture and
subject to the rules adopted by the Department of Agriculture.
Hemp farms may not create hemp extractions without a hemp
processor license. A hemp farm may not engage in retail sales
without a hemp retailer license.
(c) All licensed hemp farms shall be responsible for
ensuring that their harvest of raw hemp products and live hemp
products test under 0.3% THC and maybe sold to other hemp
businesses or persons under the Compassionate Use of Medical
Cannabis Program Act.
(d) Businesses licensed under the Cannabis Regulation and
Tax Act may hold a hemp farm license.
(e) The Department of Agriculture may require hemp farm
applicants to enter into a labor peace agreement with a bona
fide labor organization.
(f) Hemp farm facilities may be located outdoors, in
greenhouses, or indoors and may be located on residentially
zoned properties in accordance with permitted agricultural use
guidelines from local zoning ordinances.
(g) Hemp farms may produce live and raw hemp products.
Live hemp products produced by hemp farms may only be sold and
exchanged with other hemp business establishments or medical

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patients.
(h) Raw hemp products may be sold by hemp farms to
consumers without a hemp retailer's license.
(505 ILCS 89/10.10 new)
Sec. 10.10. Licensing and regulation of hemp processors.
(a) The Department of Agriculture may not limit the number
of hemp processor licenses.
(b) No person shall process hemp unless licensed by the
Department of Agriculture and subject to the rules adopted by
the Department. In addition to processing hemp, licensed hemp
processors may turn hemp plant material into intermediate hemp
products or manufacture hemp products for inhalation or
topical use. Processors may not grow hemp without a hemp farm
license. Processors may not manufacture hemp cannabinoid
products for human ingestion without a hemp food establishment
license. Processors may not engage in retail sales without a
hemp retailer license.
(c) A business licensed under the Cannabis Regulation and
Tax Act may hold a hemp processor license.
(d) The Department of Agriculture may require hemp
processor applicants to enter into a labor peace agreement
with a bona fide labor organization.
(505 ILCS 89/10.15 new)
Sec. 10.15. Regulation of hemp distributors.

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(a) The Department of Financial and Professional
Regulation shall administer and enforce the provisions of this
Act relating to licensing and oversight of hemp distributor
establishments unless otherwise provided in this Act.
(b) No person shall operate a hemp distributor
establishment for the purpose of serving purchasers of raw
hemp products, intermediate hemp products, or hemp cannabinoid
products to other in-state hemp processors, hemp distributors,
hemp food establishments, hemp retailers, or cottage hemp food
operators without a license issued under this Act by the
Department of Financial and Professional Regulation.
(c) Subject to the provisions of this Act, the Department
of Financial and Professional Regulation may exercise the
following powers and duties:
(1) Prescribe forms to be issued for the
administration and enforcement of this Act.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp distributor organization
applicants and licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to hemp distributor establishments.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand, or otherwise discipline a license
holder under this Act or take other nondisciplinary
action.

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(505 ILCS 89/10.20 new)
Sec. 10.20. Hemp distributor license.
(a) As used in this Section, "Department" means the
Department of Financial and Professional Regulation.
(b) The Department may not limit the number of hemp
distributor licenses.
(c) Applicants for a hemp distributor license must submit
all information required by the Department. Failure by an
applicant to submit all required information may result in the
application being disqualified.
(d) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a hemp distributor
establishment.
(e) The Department may refuse to issue an authorization to
any applicant:
(1) who fails to disclose or falsifies any information
called for in the applications;
(2) who has been found guilty of a violation of this
Act, who has had any disciplinary order entered against
the applicant by the Department, who has entered into a
disciplinary or nondisciplinary agreement with the
Department, or whose hemp business establishment license
was suspended, restricted, revoked, or denied in another
state; or

HB4161 - 171 - LRB103 34685 AWJ 64530 b
(3) who has engaged in a pattern or practice of unfair
or illegal practices, methods or activities in the conduct
of owning a hemp business establishment or other business.
The Department may require hemp distributor applicants to
enter into a labor peace agreement with a bona fide labor
organization.
(f) The Department shall deny the license if any principal
officer, board member, or person having a financial or voting
interest of 5% or greater on the license is delinquent in
filing any required tax returns or paying any amounts owed to
the State of Illinois.
(g) The Department shall verify an applicant's compliance
with the requirements of this Act and rules before issuing a
hemp distributor license.
(h) Businesses licensed under the Cannabis Regulation and
Tax Act may hold a hemp distributor license.
(505 ILCS 89/10.25 new)
Sec. 10.25. Operational requirements of hemp distributors.
(a) A hemp distributor establishment shall operate in
accordance with the representations made in its application
and license materials. It shall be in compliance with this Act
and rules.
(b) All live hemp products and hemp cannabinoid products
must be obtained from a hemp farm, hemp retailer, hemp food
establishment, or hemp distributor licensed by the State of

HB4161 - 172 - LRB103 34685 AWJ 64530 b
Illinois or from another similarly licensed out-of-state
entity.
(c) Hemp distributor establishments shall maintain
compliance with State and local building, fire, and zoning
requirements and regulations.
(d) A hemp distributor establishment's license allows for
a hemp distributor to be operated only at a single location.
(e) A hemp distributor establishment that handles or
stores live hemp products for other hemp business
establishments must obtain a separate hemp farm license for
each location.
(f) A hemp distributor establishment shall ensure that any
building or equipment used by the hemp distributor
establishment for the storage or sale of live hemp and hemp
cannabinoid products are maintained in a clean and sanitary
condition appropriate for the products being held and sold.
(g) A hemp distributor establishment shall be free from
infestation by insects, rodents, or pests.
(h) A hemp distributor license does not give the
organization the right to:
(1) grow hemp;
(2) produce or manufacture hemp or hemp cannabinoid
products;
(3) accept or sell hemp cannabinoid products that are
not packaged, tested, and labeled in accordance with this
Act and any rules that may be adopted pursuant to this Act;

HB4161 - 173 - LRB103 34685 AWJ 64530 b
(4) obtain unregistered live hemp or hemp cannabinoid
products;
(5) sell live hemp, intermediate hemp products, or
hemp cannabinoid products to anyone that is not a
registered hemp business establishment;
(6) sell live hemp products or hemp cannabinoid
products to hemp cannabinoid users or medical patients
unless the hemp distributor has also obtained a hemp
retailer license; or
(7) violate any other requirements or prohibitions set
by Department of Financial and Professional Regulation
rules.
(i) A hemp distributor license may be obtained by an
out-of-state entity, if the applicant:
(1) and all principal officers on the application
retains a registered agent or office and agrees to submit
to tax nexus within the State of Illinois for
jurisdictional, regulatory, and enforcement purposes;
(2) agrees to only sell to hemp business
establishments registered live hemp products that are
registered with the Department of Agriculture;
(3) agrees to only sell to hemp business
establishments intermediate hemp products that are tested
in accordance with the rules adopted pursuant to this Act;
(4) agrees to only sell to hemp business
establishments registered hemp cannabinoid products that

HB4161 - 174 - LRB103 34685 AWJ 64530 b
are registered with the State of Illinois; and
(5) maintains a log of all sales to hemp business
establishments located within the State of Illinois to be
submitted for inspection by the Department of Financial
and Professional Regulation.
(j) A hemp distributor establishment has the right to
obtain and concurrently operate a hemp farm, hemp processor,
hemp food establishment, and hemp retail establishment
licenses at its location so long as it is in compliance with
all local regulations and zoning ordinances.
(505 ILCS 89/10.30 new)
Sec. 10.30. Hemp distributor recordkeeping.
(a) A hemp distributor shall keep electronically, or at
the licensed address or place of business located within the
State of Illinois, complete and accurate records of all sales
or other dispositions of live hemp products, intermediate hemp
products, and hemp cannabinoid products sold, whether for
itself or for another, together with a physical inventory made
as of the close of each period for which a return is required,
covering all live hemp products, intermediate hemp products,
and hemp cannabinoid products on hand.
(b) A hemp distributor is required to retain invoices and
bills of lading covering purchases and invoices and duplicate
copies of bills of lading covering sales of live hemp
products, intermediate hemp products, and hemp cannabinoid

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products.
To support deductions on the ground that deliveries of
live hemp products, intermediate hemp products, and hemp
cannabinoid products were made outside of the State of
Illinois, records shall include satisfactory evidence of
delivery to and receipt by out-of-state consignees.
(c) A physical inventory must be taken and a record
thereof preserved as of the close of business on the last
business day of each calendar month.
Hemp distributors shall include an inventory on hand of
all live hemp products, intermediate hemp products, and hemp
cannabinoid products, including those in bond and other
warehouses, and shall designate whether the hemp products are
owned by the hemp distributor or whether such hemp products
are lawfully held by the distributor as agent for another.
(d) A hemp distributor must, at the time of sale of any
live hemp products, intermediate hemp products, and hemp
cannabinoid products, render to the purchaser an invoice
describing the hemp product sold (including the tax rate
category applicable to the product sold), the date of sale, to
whom sold, and the quantity sold. Duplicate copies of all the
invoices must be made and preserved by the hemp distributor
for audit purposes.
When a hemp distributor sells live hemp products,
intermediate hemp products, or hemp cannabinoid products to
another hemp business establishment that is not a cottage hemp

HB4161 - 176 - LRB103 34685 AWJ 64530 b
food operator, each original and duplicate invoice pertaining
to the sale must be printed, stamped, or bear in writing
language substantially as follows: "Hemp products described
herein sold without payment of Illinois cannabinoid retail
hemp tax to holder of Illinois hemp license no. XXX.".
When a hemp distributor sells intermediate hemp products
to a cottage hemp food operator, each original and duplicate
invoice pertaining to the sale must be printed, stamped, or
bear in writing language substantially as follows "Payment of
Illinois cannabinoid retail hemp tax made by vendor issuing
this invoice.".
Failure of any hemp distributor to print, stamp, or write
upon any invoice covering live hemp products, intermediate
hemp products, or hemp cannabinoid products sold in Illinois
any statement relating to payment of the cannabinoid retail
hemp tax shall oblige the Department of Financial and
Professional Regulation to assume that the hemp distributor is
liable for tax with respect to the sales.
No hemp distributor shall sell or deliver any live hemp
products, intermediate hemp products, or hemp cannabinoid
products to another for resale, unless the person to whom lire
hemp products are sold or delivered is authorized to receive
the products under the provisions of the Act. A hemp
distributor must place the license number of the person
receiving the products on all receipts, bills, invoices, and
statements covering the sales or deliveries.

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(e) Hemp distributor establishment records must be
maintained electronically for 3 years and be available for
inspection by the Department of Financial and Professional
Regulation upon request, unless the Department, in writing,
authorizes the records' destruction or disposal at an earlier
date. Books and records must be maintained at the licensed
address that is located within the State of Illinois. The
Department may in its discretion prescribe uniform methods for
keeping the records.
(f) If a hemp distributor closes due to insolvency,
revocation, bankruptcy, or for any other reasons, all records
must be preserved at the expense of the hemp distributor for at
least 3 years in a form and location in Illinois acceptable to
the Department. The hemp distributor shall keep the records
longer if requested by the Department. The hemp distributor
shall notify the Department of the location where the hemp
retailer records are stored or transferred.
(g) A hemp distributor selling intermediate hemp products
to cottage food operators are responsible for maintaining
cottage food registration records and collecting cannabinoid
retail taxes on behalf of the cottage food operator.
(505 ILCS 89/10.35 new)
Sec. 10.35. Regulation of hemp retailers.
(a) As used in this Section, "Department" means the
Department of Financial and Professional Regulation.

HB4161 - 178 - LRB103 34685 AWJ 64530 b
(b) The Department shall administer and enforce the
provisions of this Act relating to licensing and oversight of
hemp retailers unless otherwise provided in this Act.
(c) No person shall operate a hemp retail establishment
for the purpose of serving purchasers of hemp cannabinoid
products without a license issued under this Act 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 Act.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp retailer applicants and
licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to hemp retailer.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand or otherwise discipline a license
holder under this Act or take other nondisciplinary
action.
(e) Businesses licensed under the Cannabis Regulation and
Tax Act may hold a hemp retailer license.
(f) The Department may not limit the number of hemp
retailer licenses.
(g) The Department may not limit the number of hemp

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retailer licenses an individual may hold.
(h) Applicants for a hemp retailer license must submit all
information required by the Department. Failure by an
applicant to submit all required information may result in the
application being disqualified.
(i) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a hemp retailer
establishment.
(j) The Department may refuse to issue a license to any
applicant:
(1) who fails to disclose or falsifies any information
called for in the application;
(2) who has been found guilty of a violation of this
Act, who has had any disciplinary order entered against
the applicant by the Department, who has entered into a
disciplinary or nondisciplinary agreement with the
Department, or whose hemp business establishment license
was suspended, restricted, revoked, or denied in another
state; or
(3) who has engaged in a pattern or practice of unfair
or illegal practices, methods, or activities in the
conduct of owning a hemp business establishment or other
business.
(k) The Department may require hemp retailer applicants to
enter into a labor peace agreement with a bona fide labor

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organization.
(l) The Department shall deny the license if any principal
officer, board member or persons having a financial or voting
interest of 5% or greater on the license is delinquent in
filing any required tax returns or paying any amounts owed to
the State of Illinois.
(m) The Department shall verify an applicant's compliance
with the requirements of this Act and the rules adopted under
this Act before issuing a hemp retailer license.
(505 ILCS 89/10.40 new)
Sec. 10.40. Operational requirements of hemp retailers.
(a) A hemp retailer shall operate in accordance with the
representations made in its application and license materials.
It shall be in compliance with this Act and rules.
(b) All live hemp products and hemp cannabinoid products
must be obtained from a hemp farm, hemp distributor, hemp food
establishment, or another hemp retailer licensed by the State
of Illinois or from another similarly licensed out-of-state
entity.
(c) A hemp retailer establishment that handles or stores
live hemp products for the purpose of selling live hemp
products to medical patients must obtain a separate hemp farm
license for that location.
(d) A hemp retailer establishment that obtains a hemp food
establishment license may prepare and sell ready-to-eat hemp

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cannabinoid products.
(e) A hemp retailer establishment that maintains a hemp
food establishment license may host cottage hemp food
operators on premises for special events lasting no longer
than 3 days.
(f) A hemp retailer establishment shall maintain
compliance with State and local building, fire, and zoning
requirements and regulations.
(g) A hemp retailer license allows for a hemp retailer to
be operated only at a single location.
(h) A hemp retailer establishment shall ensure that any
building or equipment used by the hemp retailer establishment
for the sale of hemp, hemp cannabinoid products, and
ready-to-eat hemp cannabinoid products are maintained in a
clean and sanitary condition.
(i) A hemp retailer establishment shall be free from
infestation by insects, rodents, or pests.
(j) A hemp retailer license does not give the licensee the
right to:
(1) grow hemp;
(2) produce or manufacture hemp or hemp cannabinoid
products;
(3) accept and sell hemp cannabinoid products that are
not packaged, tested, and labeled in accordance with this
Act and any rules that may be adopted pursuant to this Act;
(4) obtain unregistered live hemp or hemp cannabinoid

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products;
(5) sell live hemp to a purchaser unless the purchaser
is registered under the Compassionate Use of Medical
Cannabis Program;
(6) sell hemp cannabinoid products to a purchaser
unless the purchaser is a medical patient or that the
purchaser has been verified to be 21 years of age or older;
or
(7) violate any other requirements or prohibitions set
by Department rules.
(k) A hemp retailer license may be obtained by an
out-of-state entity if the applicant:
(1) and all principal officers on the application
retains a registered agent or office and agree to submit
to tax nexus within the State of Illinois for
jurisdictional, regulatory, and enforcement purposes;
(2) agrees to only sell to residents located within
the State of Illinois registered live hemp products that
are registered with the Department of Agriculture;
(3) agrees to only sell to residents located within
the State of Illinois registered hemp cannabinoid products
that are registered with the State of Illinois; and
(4) maintains a log of all sales to residents located
within the State of Illinois to be submitted for
inspection by the Department.
(l) A hemp retailer has the right to obtain and operate

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hemp farm, hemp distributor, hemp processor, or hemp food
establishments at its location if it is in compliance with all
local regulations and zoning ordinances.
(m) A hemp retailer is responsible for collecting and
remitting cannabinoid retail taxes.
(505 ILCS 89/10.45 new)
Sec. 10.45. Hemp retailer recordkeeping.
(a) Hemp retailer records must be maintained
electronically for 3 years and be available for inspection by
the Department upon request. Required written records include,
but are not limited to, the following:
(1) Operating procedures.
(2) Inventory records, policies, and procedures.
(3) Business records, including, but not limited to:
(A) Assets and liabilities.
(B) Monetary transactions.
(C) Written or electronic accounts, including bank
statements, journals, ledgers and supporting
documents, agreements, checks, invoices, receipts, and
vouchers.
(D) Any other financial accounts reasonably
related to the hemp retailer operations.
(b) If a hemp retailer closes due to insolvency,
revocation, bankruptcy, or for any other reasons, all records
must be preserved at the expense of the hemp retailer for at

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least 3 years in a form and location in Illinois acceptable to
the Department. The hemp retailer shall keep the records
longer if requested by the Department. The hemp retailer shall
notify the Department of the location where the hemp retailer
records are stored or transferred.
(505 ILCS 89/10.50 new)
Sec. 10.50. Regulation of hemp food establishments.
(a) As used in this Section, "Department" means the
Department of Public Health.
(b) The Department shall administer and enforce the
provisions of this Act relating to licensing and oversight of
hemp food establishments unless otherwise provided in this
Act.
(c) No person shall operate a hemp food establishment for
the purpose of serving hemp cannabinoid products for human
ingestion or ready-to-eat hemp cannabinoid products without a
license issued under this Act.
(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 Act.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp food establishment
applicants and licensees.
(3) Conduct investigations of possible violations of

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this Act pertaining to hemp food establishments.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand, or otherwise discipline a license
holder under this Act or take other nondisciplinary
action.
(e) Businesses licensed under the Cannabis Regulation and
Tax Act may hold a hemp food establishment license.
(505 ILCS 89/10.55 new)
Sec. 10.55. Hemp food establishment licenses.
(a) As used in this Section, "Department" means the
Department of Public Health.
(b) The Department may not limit the number of hemp food
establishment licenses.
(c) The Department shall not limit the number of licenses
an individual may hold. Applicants for a hemp food
establishment license must submit all information required by
the Department. Failure by an applicant to submit all required
information may result in the application being disqualified.
(d) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a hemp food
establishment.
(e) The Department may refuse to issue an authorization to
any applicant:

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(1) who fails to disclose or falsifies any information
called for in the application;
(2) who has been found guilty of a violation of this
Act, who has had any disciplinary order entered against
the applicant by the Department, who has entered into a
disciplinary or nondisciplinary agreement with the
Department, or whose hemp business establishment license
was suspended, restricted, revoked, or denied in another
State; or
(3) who has engaged in a pattern or practice of unfair
or illegal practices, methods, or activities in the
conduct of owning a hemp business establishment or other
business.
(f) The Department may require hemp food establishment
applicants to enter into a labor peace agreement with a bona
fide labor organization.
(g) The Department shall deny the license if any principal
officer, board member, or persons having a financial or voting
interest of 5% or greater on the license is delinquent in
filing any required tax returns or paying any amounts owed to
the State of Illinois.
(h) The Department shall verify an applicant's compliance
with the requirements of this Act and rules before issuing a
hemp food establishment license.
(505 ILCS 89/10.60 new)

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Sec. 10.60. Operational requirements of hemp food
establishments.
(a) A hemp food establishment dealing in the manufacture
and sale of food items that does not comply with the existing
State laws related to food handling or does not comply with the
health and food handling regulations of a unit of local
government having jurisdiction over the establishment may be
enjoined from doing business in the following manner: the
Department of Public Health or a local department of health
may seek an injunction in the circuit court for the county in
which the establishment is located. An injunction, if granted,
shall prohibit the hemp food establishment from selling hemp
cannabinoid products for human ingestion until it complies
with any applicable State law or regulations of a unit of local
government. However, no injunction may be sought or granted
before January 1, 2025, to enforce any rule or regulation
requiring a licensed food business to adhere to those rules
and regulations.
(b) The Department of Public Health shall adopt and
enforce rules for the manufacture and processing of hemp
cannabinoid products for human ingestion at a hemp food
establishment, and, for that purpose, it may at all times
enter every building, room, basement, enclosure, or premises
occupied or used, or suspected of being occupied or used, for
the production, preparation, manufacture for sale, storage,
sale, processing, distribution, or transportation and to

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inspect the premises of a hemp food establishment together
with all utensils, fixtures, furniture, and machinery used for
the preparation of these products.
(c) A hemp food establishment shall be under the
operational supervision of a certified food service sanitation
manager in accordance with rules promulgated under this Act.
(d) A hemp food establishment shall operate in accordance
with the representations made in its application and license
materials. It shall be in compliance with this Act and rules.
(e) A hemp food establishment shall comply with the food
handling, preparation, packaging, and labeling provisions of
the Illinois Food, Drug and Cosmetic Act, the Food Handling
Regulation Enforcement Act, and the Sanitary Food Preparation
Act.
(f) A hemp food establishment shall obtain raw hemp
products from a hemp farm or hemp distributor.
(g) A hemp food establishment shall obtain intermediate
hemp products from a hemp distributor.
(h) A hemp food establishment that obtains a hemp retailer
license may prepare and sell ready-to-eat hemp cannabinoid
products.
(i) A hemp food establishment shall maintain compliance
with State and local building, fire, and zoning requirements.
(j) A hemp food establishment license allows for a hemp
food establishment to be operated only at a single location.
(k) A hemp food establishment shall ensure that any

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building or equipment used by the hemp food establishment for
the storage, preparation, or sale of hemp cannabinoid products
for human ingestion and ready-to-eat hemp cannabinoid products
are maintained in a clean and sanitary condition.
(l) A hemp food establishment shall be free from
infestation by insects, rodents, or pests.
(m) A hemp food establishment, when combined with an
on-site hemp retailer license, allows for the preparation and
sale of ready-to-eat hemp cannabinoid products.
(n) A hemp food establishment license does not give the
establishment the right to:
(1) grow hemp;
(2) process hemp;
(3) accept and use intermediate hemp products that are
not packaged, tested, and labeled in accordance with this
Act;
(4) distribute intermediate hemp products to cottage
hemp food operators;
(5) obtain unregistered live hemp or hemp cannabinoid
products;
(6) prepare and sell ready-to-eat hemp cannabinoid
products to a purchaser unless the individual is
registered under the Compassionate Use of Medical Cannabis
Program or that the purchaser has been verified to be 21
years of age or older; or
(7) violate any other requirements or prohibitions set

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by Department of Public Health rules.
(505 ILCS 89/10.65 new)
Sec. 10.65. Recipes and dosing of ready-to-eat hemp
cannabinoid products. In order to sell ready-to-eat hemp
cannabinoid products, a hemp food establishment shall do all
of the following:
(1) Use only intermediate hemp products that have been
fully tested in accordance with this Act.
(2) Keep THC dosing at or below 50 milligrams per
serving.
(3) Submit a standard operating procedure for dosing
to the Department for approval and registration. Such
approval shall be granted within 30 days of submission
unless the Department provides good cause, in writing, for
withholding approval.
(4) Submit the recipe, at the hemp food
establishment's expense, to a third-party testing
laboratory for potency testing to ensure 0.3% THC
compliance on an annual basis.
(5) Use only the varietal or proportional varietals of
ingredients included in the tested recipe for all
subsequent batches of the recipe.
(6) Provide documentation of the annual test results
of the recipe submitted under this paragraph upon
registration and to an inspector upon request during any

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inspection authorized by the Department.
(505 ILCS 89/10.70 new)
Sec. 10.70. Disclosure and labeling of ready-to-eat hemp
cannabinoid products.
(a) Hemp food establishments must ensure that the total
milligram content of each type of Cannabinoid exceeding one
milligram contained in each ready-to-eat hemp cannabinoid menu
item is listed on the menu adjacent to the name or the price of
the associated menu item.
(b) Hemp food establishments must ensure that served
ready-to-eat hemp cannabinoid menu items include a label that:
(1) indicates the total milligram content of the
served item; and
(2) provides a QR code for a link to a web page
containing:
(A) a copy of the testing results of the
intermediate hemp product used;
(B) a copy of the dosing standard operating
procedure; and
(C) a copy of a representative compliance test for
the recipe.
(505 ILCS 89/10.75 new)
Sec. 10.75. Recordkeeping of ready-to-eat hemp cannabinoid
products.

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(a) Hemp food establishment records must be maintained
electronically for 3 years and be available for inspection by
the Department upon request. Required records include, but are
not limited to, the following:
(1) Operating procedures and recipes.
(2) Inventory records, policies, and procedures.
(3) Batch creation logs of intermediate hemp products.
(4) Dosing records of ready-to-eat hemp cannabinoid
products.
(b) If a hemp food establishment closes due to insolvency,
revocation, bankruptcy, or for any other reasons, all records
must be preserved at the expense of the hemp food
establishment for at least 3 years in a form and location in
Illinois acceptable to the Department. The hemp food
establishment shall keep the records longer if requested by
the Department. The hemp food establishment shall notify the
Department of the location where the hemp food establishment
records are stored or transferred.
(505 ILCS 89/10.80 new)
Sec. 10.80. Regulation of cottage hemp food operators.
(a) As used in this Section, "Department" means the
Department of Public Health.
(b) The Department shall administer and enforce the
provisions of this Act relating to licensing and oversight of
cottage hemp food operators unless otherwise provided in this

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Act.
(c) No person shall operate as a cottage hemp food
operator for the purpose of serving purchasers of ready-to-eat
hemp cannabinoid products without a license issued under this
Act.
(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 Act.
(2) Examine, inspect, and investigate the premises,
operations, and records of hemp food establishment
applicants and licensees.
(3) Conduct investigations of possible violations of
this Act pertaining to hemp food establishments.
(4) Conduct hearings on proceedings to refuse to issue
or renew licenses or to revoke, suspend, place on
probation, reprimand, or otherwise discipline a license
holder under this Act or take other nondisciplinary
action.
(505 ILCS 89/10.85 new)
Sec. 10.85. Cottage hemp food operator licenses.
(a) As used in this Section, "Department" means the
Department of Public Health.
(b) The Department may not limit the number of cottage
hemp food operator licenses issued.

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(c) The Department shall not limit the number of licenses
an individual may hold.
(d) The fee for a cottage hemp food operator license is
$75.
(e) An applicant for a cottage hemp food operator license
shall be an individual.
(f) An applicant for a hemp food establishment license
must submit all information required by the Department.
Failure by an applicant to submit all required information may
result in the application being disqualified.
(g) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a hemp food
establishment.
(h) The Department may refuse to issue a license to any
applicant:
(1) who fails to disclose or falsifies any information
called for in the application;
(2) who has been found guilty of a violation of this
Act, who has had any disciplinary order entered against
the applicant by the Department, who has entered into a
disciplinary or nondisciplinary agreement with the
Department, or whose hemp business establishment license
was suspended, restricted, revoked, or denied in another
state; or
(3) who has engaged in a pattern or practice of unfair

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or illegal practices, methods or activities in the conduct
of owning a hemp business establishment or other business.
(i) The Department shall deny the license if the applicant
is delinquent in filing any required tax returns or paying any
amounts owed to the State of Illinois.
(j) The Department shall verify an applicant's compliance
with the requirements of this Act and rules before issuing a
cottage hemp food operator license.
(k) A licensee under the Cannabis Regulation and Tax Act
may not hold a hemp cottage food license.
(505 ILCS 89/10.90 new)
Sec. 10.90. Operational requirements of cottage hemp food
operators.
(a) Cottage hemp food operators must register with a hemp
distributor annually.
(b) Cottage hemp food operators are responsible for paying
cannabinoid retail taxes to their hemp distributor.
(c) Cottage hemp food operators have an annual
intermediate hemp products purchase limit equivalent to 1,000
grams of THC.
(d) Cottage hemp food operators must comply with all
provisions of Section 4 of the Food Handling Regulation
Enforcement Act.
(e) In order to produce cottage hemp cannabinoid products,
the cottage hemp food operator shall:

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(1) use only intermediate hemp products from its
registered distributor that have been fully tested in
accordance with this Act;
(2) attest to following a standard operating procedure
submitted by its licensed hemp distributor for dosing to
the Department of Public Health for approval and
registration;
(3) keep THC dosing at or below 50 milligrams per
serving.
(4) use no more than the equivalent of 1,000 grams of
THC in intermediate hemp products on an annual basis; and
(5) register with a hemp distributor, who is
responsible for collecting and remitting cannabinoid
retail taxes on behalf of the cottage hemp food operator.
(f) In order to sell cottage hemp cannabinoid products,
the cottage hemp food operator shall display at the point of
sale:
(1) A QR code with to links to a web page containing:
(A) A copy of the testing results of the
intermediate hemp product used.
(B) A copy of the registered distributor's dosing
SOP.
(2) Notice in a prominent location that states "This
product was made using tested cannabinoids but was
produced in a home kitchen not inspected by a health
department that may also process common food allergens and

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may not be accurately dosed. If you have safety concerns,
contact your local health department."
Cottage hemp food products may not be sold to other hemp
business establishments.
(g) Cottage hemp cannabinoid products must conform with
the labeling requirements of the Illinois Food, Drug and
Cosmetic Act and the food shall be affixed with a prominent
label that includes the following:
(1) The name of the cottage hemp food operation.
(2) The identifying registration number provided for
the cottage hemp food operation.
(3) A label displaying the total milligram content of
each type of cannabinoid exceeding 1 milligram contained
in each cottage hemp cannabinoid product.
(4) The following phrase in prominent lettering "This
product was made using tested cannabinoids but was
produced in a home kitchen not inspected by a health
department that may also process common food allergens and
may not be accurately dosed. If you have safety concerns,
contact your local health department."
(h) Cottage hemp cannabinoid products produced by a
cottage hemp food operator shall be sold directly to hemp
cannabinoid users or medical patients within the State of
Illinois for their own consumption and not for resale. Sales
directly to consumers include, but are not limited to, sales
at or through:

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(1) farmers markets;
(2) fairs, festivals, public events, or online;
(3) pickup from the private home or farm of the
cottage hemp food operator if the pickup is not prohibited
by ordinance of the unit of local government that applies
equally to all cottage food operations; in a municipality
with a population of 1,000,000 or more, a cottage hemp
food operator shall comply with an ordinance of the
municipality that applies equally to all home-based
businesses;
(4) delivery to the customer;
(5) pickup from a third-party private property with
the consent of the third-party property holder; and
(6) hemp retailer establishments.
(505 ILCS 89/10.95 new)
Sec. 10.95. Fee waivers for hemp social equity
participants.
(a) For hemp social equity participants, the Department of
Financial and Professional Regulation and the Department of
Agriculture shall waive 50% of any nonrefundable permit
application fees, any nonrefundable fees associated with
operating a hemp business establishment, and financial
requirements for a hemp social equity participant who is
applying for the individual's first hemp business
establishment permit.

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(b) If the Department of Financial and Professional
Regulation or the Department of Agriculture determines that an
applicant who applied as a hemp social equity participant is
not eligible for that status, the applicant shall be provided
an additional 10 days to provide alternative evidence that he
or she qualifies as a hemp social equity participant.
Alternatively, the applicant may pay the remainder of the
waived fee and will not be considered as a hemp social equity
participant. If the applicant cannot do either, then the
Departments may keep the initial permit fee.
(505 ILCS 89/10.100 new)
Sec. 10.100. Limitations.
(a) Nothing in this Act:
(1) prohibits the issuance of a license or permit to a
person also holding a hemp business license authorizing
the manufacture, distribution, or retail sale of
cannabinoid products;
(2) allows any agreement between a licensing authority
and license or permit holder that prohibits the license or
permit holder from also holding a cannabinoid
manufacturer, distributor, or retailer license; or
(3) allows the revocation or suspension of a license
or permit, or the imposition of a penalty on a license or
permit holder, due to the license or permit holder also
holding a hemp business license.

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(b) For purposes of this Section, "hemp business license"
means a hemp distributor, hemp cultivator, hemp processor,
hemp retailer, or hemp food establishment license issued by
the applicable Department.
(505 ILCS 89/11 new)
Sec. 11. Independent testing labs.
(a) No laboratory shall handle, test, or analyze hemp or
hemp cannabinoid products unless approved by the Department of
Agriculture in accordance with this Section. In lieu of
Department approval, all laboratories with a valid United
States Drug Enforcement Administration hemp analytical testing
laboratory registration, a current cannabis laboratory license
issued by the Department, or a valid ISO/IEC 17025
certification are considered approved.
(b) Notwithstanding subsection (a), a laboratory may not
be approved to handle, test, or analyze hemp or hemp
cannabinoid products unless the laboratory:
(1) is accredited by a private laboratory accrediting
organization;
(2) is independent from persons involved in the hemp
industry in Illinois, including that no person with a
direct or indirect interest in the laboratory has a direct
or indirect financial, management, or other interest in an
Illinois hemp business entity; and
(3) has employed at least one person to oversee and be

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responsible for the laboratory testing who has earned,
from a college or university accredited by a national or
regional certifying authority, at least:
(A) a master's degree in chemical or biological
sciences and a minimum of 2 years' post degree
laboratory experience; or
(B) a bachelor's degree in chemical or biological
sciences and a minimum of 4 years' post degree
laboratory experience.
(4) Each independent testing laboratory that claims to
be accredited must provide the Department of Agriculture
with a copy of the most recent annual inspection report
granting accreditation and every annual report thereafter.
(c) No more than 30 days prior to harvest, a hemp farm
shall submit to an approved laboratory a sample of hemp to
verify that the THC concentration does not exceed 0.3% on a
dry-weight basis in the following manner:
(1) A sample shall be sent for each separate strain
and for each separate growing area at the Department of
Agriculture's discretion.
(2) A sample must consist of at least one ounce,
weighed at the time of harvest, and consist of full buds,
along with any attached leaves and stems.
(3) Quantitative laboratory determination of THC
concentration on a dry-weight basis must be performed.
(d) A test result with a THC concentration on a dry-weight

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basis that exceeds 0.3% but is less than 0.7% may be retested
at the expense of the licensee. A request for a retest by the
licensee must be received by the Department of Agriculture
within 3 days after initial receipt of the original test
results by the licensee.
(e) All harvested hemp receiving a sample test result with
a THC concentration on a dry-weight basis that exceeds 0.3%
and is not retested at the request of the licensee shall be
destroyed.
(f) All harvested hemp receiving both a sample test result
and a sample retest result with THC concentrations on a
dry-weight basis that exceeds 0.3% shall be destroyed.
(g) All harvested hemp receiving a sample test result with
a THC concentration on a dry-weight basis that equals or
exceeds 1.0% shall be destroyed.
(h) All harvested hemp awaiting test results shall be
stored by the licensee or processor and shall not be processed
or transported until test results are obtained and the hemp is
released by the Department.
(505 ILCS 89/11.5 new)
Sec. 11.5. Laboratory testing of intermediate hemp
products.
(a) Immediately after the manufacturing or processing of
any intermediate hemp product, each batch shall be tested by
an approved laboratory for:

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(1) microbiological contaminants;
(2) mycotoxins;
(3) pesticide active ingredients; and
(4) residual solvents.
An active ingredient analysis shall also be conducted.
(b) The laboratory shall immediately return or dispose of
the intermediate hemp product upon the completion of any
testing, use, or research. If intermediate hemp is disposed
of, it shall be done in compliance with Department of
Agriculture rule.
(c) If a sample of the intermediate hemp product does not
pass the microbiological, mycotoxin, pesticide chemical
residue, or solvent residual test, based on the standards
established by the Department of Agriculture, the following
applies:
(1) If the sample failed the pesticide chemical
residue test, the entire batch from which the sample was
taken shall, if applicable, be recalled as provided by
rule.
(2) If the sample failed any other test, the batch may
be used to make a CO2-based or solvent-based extract. After
processing, the CO2-based or solvent-based extract must
still pass all required tests.
(d) The Department shall establish standards for
microbial, mycotoxin, pesticide residue, solvent residue, or
other standards for the presence of possible contaminants.

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(e) The laboratory shall file with the Department an
electronic copy of each laboratory test result for any batch
that does not pass the microbiological, mycotoxin, or
pesticide chemical residue test at the same time that it
transmits those results to the hemp processor. In addition,
the laboratory shall maintain the laboratory test results for
at least 5 years and make them available at the Department's
request.
(f) The hemp processor or hemp distributor shall provide
to a hemp business establishment the laboratory test results
for each batch of intermediate hemp products purchased by the
hemp business establishment, if sampled. A hemp business
establishment must have these laboratory results available
online or in-person upon request to purchasers.
(505 ILCS 89/11.10 new)
Sec. 11.10. Laboratory testing for hemp cannabinoid
products utilizing extraction methods.
(a) Hemp processors, hemp distributors, and hemp food
establishments must begin a new batch cycle every time a
specific hemp cannabinoid product is made. A manufacturer of
hemp cannabinoid products utilizing hemp cannabinoids directly
extracted from raw hemp or untested intermediate hemp products
and hemp cannabinoid products for human inhalation shall be
tested by the approved laboratory for:
(1) potency;

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(2) microbiological contaminants;
(3) mycotoxins;
(4) pesticide active ingredients; and
(5) residual solvents.
An active ingredient analysis shall also be conducted.
(b) The laboratory shall immediately return or dispose of
the hemp cannabinoid product upon the completion of any
testing, use, or research. If the hemp cannabinoid product is
disposed of, it shall be done in compliance with Department
rule.
(c) If a sample of the hemp cannabinoid does not pass the
microbiological, mycotoxin, pesticide chemical residue, or
solvent residual test, based on the standards established by
the Department, the following applies:
(1) If the sample failed the pesticide chemical
residue test, the entire batch from which the sample was
taken shall, if applicable, be recalled as provided by
rule.
(2) If the sample failed any other test, the batch may
be used to make a CO2-based or solvent-based extract. After
processing, the CO2-based or solvent-based extract must
still pass all required tests.
(d) The Department of Agriculture shall establish
standards for microbial, mycotoxin, pesticide residue, solvent
residue, or other standards for the presence of possible
contaminants which shall be no more strict than comparable

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food or inhalable product testing requirements.
(e) The laboratory shall file with the Department of
Agriculture an electronic copy of each laboratory test result
for any batch that does not pass the microbiological,
mycotoxin, or pesticide chemical residue test at the same time
that it transmits those results to the hemp processor,
distributor or food establishment. In addition, the laboratory
shall maintain the laboratory test results for at least 5
years and make them available at the Department of
Agriculture's request.
(f) The hemp processor, hemp distributor, or hemp food
establishment shall provide to a hemp business establishment
the laboratory test results for each batch of hemp cannabinoid
products purchased by the hemp business establishment, if
sampled. A hemp business establishment must have these
laboratory results available upon request to purchasers.
(505 ILCS 89/11.15 new)
Sec. 11.15. Laboratory testing for hemp cannabinoid
products for human ingestion.
(a) Hemp food establishments using intermediate hemp
products to create hemp cannabinoid products for human
ingestion that have passed testing under Section 11.10 only
need to test for federal compliance if all other ingredients
and inputs to be added into the hemp cannabinoid products are
food grade. The manufacturer of hemp cannabinoid products for

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human ingestion must submit a representative sample of the
batch cycle every time a different intermediate hemp product
batch is used to an independent, accredited laboratory, which
shall be tested by the approved laboratory for potency.
(b) The laboratory shall immediately return or dispose of
the hemp cannabinoid product upon the completion of any
testing, use, or research. If the hemp cannabinoid product is
disposed of, it shall be done in compliance with Department
rule.
(c) If a sample of the hemp cannabinoid does not pass the
0.3% THC compliance test, based on the standards established
by the Department, the following applies:
(1) the batch may be used to make a CO2-based or
solvent-based extract; and
(2) after processing, the CO2-based or solvent-based
extract must pass all required tests.
(d) The hemp distributor or hemp food establishment shall
provide to a hemp business establishment the laboratory test
results for each batch of hemp cannabinoid products purchased
by the hemp business establishment, if sampled. A hemp
business establishment must have these laboratory results
available upon request to purchasers.
(505 ILCS 89/11.20 new)
Sec. 11.20. Laboratory testing for ready-to-eat hemp
cannabinoid products using tested intermediate hemp products.

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(a) Retail hemp food establishments using intermediate
hemp products that have passed testing under Section 11 to
create ready-to-eat hemp cannabinoid products only need to
test for federal compliance if all other ingredients and
inputs to be added into the hemp cannabinoid products are food
grade. The retail hemp food establishment creating the
ready-to-eat hemp cannabinoid product for a manufacturer of a
product regulated under this Section must submit a
representative sample of its registered recipe using its
registered dosing standard operating procedure either (1)
annually or (2) every time a different intermediate hemp
product batch is used to an independent, accredited
laboratory, which shall be tested by the approved laboratory
for potency.
(b) The laboratory shall immediately return or dispose of
ready-to-eat hemp cannabinoid product upon the completion of
any testing, use, or research. If the ready-to-eat hemp
cannabinoid product is disposed of, it shall be done in
compliance with Department rule.
(c) The retail hemp food establishment shall provide to
its customers a copy of its registered recipe, registered
dosing standard operating procedure. A hemp distributor or
hemp food establishment shall provide to a hemp business
establishment the laboratory test results for each batch of
hemp cannabinoid products purchased by the hemp business
establishment, if sampled. A hemp business establishment must

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have these laboratory results available upon request to
purchasers.
(505 ILCS 89/12 new)
Sec. 12. Hemp cannabinoid product packaging and labeling.
(a) A hemp cannabinoid product, except for cottage hemp
cannabinoid products, produced for sale to the general public
shall be registered with the Department on forms provided by
the Department. Each product registration must include a label
and the required registration fee at the rate established by
the Department not exceed $50 per registered product. The
registration fee is for the name of the product offered for
sale and one fee is sufficient for all package sizes.
(b) A hemp cannabinoid product, except for ready-to-eat
hemp cannabinoid products and cottage hemp cannabinoid
products, such as packaged cannabinoid products, shall be
labeled before sale, and each label shall be securely affixed
to the package and shall state in English:
(1) The name and post office box or address of the
relevant hemp distributor, hemp processor, or hemp food
establishment where the item was manufactured.
(2) The common or usual name of the item and the
registered name of the hemp cannabinoid product that was
registered with the Department under subsection (a).
(3) The "use by" date.
(4) Content list, which must include:

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(A) the minimum and maximum percentage content by
weight for any hemp-derived cannabinoid exceeding one
milligram; and
(B) all other ingredients of the product,
including any colors, artificial flavors, and
preservatives, listed in descending order by
predominance of weight shown with common or usual
names.
(5) For hemp cannabinoid products tested under Section
11.10:
(A) the date of testing and packaging and the
identification of the independent testing laboratory;
and
(B) a pass-fail rating based on the laboratory's
microbiological, mycotoxins, and pesticide and solvent
residue analysis.
(6) For hemp cannabinoid products tested under Section
11.15,
(A) the date of Section 50-10 intermediate hemp
product testing, packaging and the identification of
the independent testing laboratory; and
(B) a pass-fail rating based on the laboratory's
microbiological, mycotoxins, and pesticide and solvent
residue analysis of the Section 11.5 intermediate hemp
product.
The required packaging elements of this subsection may be

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satisfied by means of a QR code linking to a website where the
information is available for a consumer.
(c) Packaging for packaged hemp cannabinoid products must
not contain information that:
(1) is false or misleading;
(2) promotes excessive consumption;
(3) depicts a person under 21 years of age consuming
hemp cannabinoids;
(4) includes the image of a cannabis or hemp leaf;
(5) includes images designed or likely to appeal to
minors, including cartoons, toys, animals, or children, or
any other likeness to images, characters; 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;
or
(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 as
authorized by this Act.
(d) All packaged hemp cannabinoid products must contain
warning statements established for purchasers, of a size that
is legible and readily visible to a consumer inspecting a
package, that may not be covered or obscured in any way. The

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Department of Public Health shall define and update
appropriate health warnings for packaging, including specific
labeling or warning requirements for specific hemp cannabinoid
products.
(e) Unless modified by rule to strengthen or respond to
new evidence and science, the following warning applies to all
packaged hemp cannabinoid products unless modified by rule:
"This product contains cannabinoids 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 illegal to operate a motor vehicle
while under the influence of cannabinoids."
(f) Warnings for each of the following product types must
be present on labels when offered for sale to a purchaser:
(1) Hemp cannabinoid products for inhalation must
contain the following statement: "Smoking is hazardous to
your health.".
(2) Hemp cannabinoid products for ingestion must
contain the following statement: "CAUTION: This product
contains cannabinoids, and intoxication following use may
be delayed 2 or more hours. This product was produced in a
facility that may also process common food allergens.".
The warnings required under this subsection may be
satisfied by means of a QR code linking to a website where the
information is available for a consumer.

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(505 ILCS 89/13 new)
Sec. 13. Hemp Social Equity Fund.
(a) The General Assembly finds that in order to address
the disparities described in this Section, aggressive
approaches and targeted technical assistance resources to
support social equity entrepreneurs are required. To carry
this intent, the Hemp Social Equity Fund is created to
directly address the impact of economic disinvestment,
violence, and the historical overuse of criminal justice
response to community and individual needs by providing
resources, funding, and technical assistance for hemp social
equity participants to establish, build, and create ownership
in hemp business establishments.
(b) There is created in the State treasury a special fund,
which shall be held separate and apart from all other State
moneys, to be known as the Hemp Social Equity Fund. 25% of all
moneys deposited into the Hemp Regulatory Fund shall be
transferred into the Hemp Social Equity Fund. The Hemp Social
Equity Fund shall be exclusively used for the following
purposes:
(1) to provide low-interest rate loans to qualified
hemp social equity participants to pay for ordinary and
necessary expenses to start and operate a hemp business
establishment permitted by this Act;
(2) to provide grants to qualified hemp social equity
participants to pay for ordinary and necessary expenses to

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start and operate a hemp business establishment permitted
by this Act;
(3) to compensate the Department of Commerce and
Economic Opportunity for any costs related to the
provision of low-interest loans and grants to qualified
hemp social equity participants;
(4) to pay for education, outreach and technical
assistance that may be provided or targeted to attract and
support hemp social equity participants; and
(5) to support urban and rural farming, medicinal and
food security, and hemp-related criminal justice reform.
(c) Notwithstanding any other provision of law, the Hemp
Social Equity Fund is not subject to sweeps, administrative
charge-backs, or any other fiscal or budgetary maneuver that
would in any way transfer any amounts from the Hemp Social
Equity Fund into any other fund of the State.
(d) The Department of Commerce and Economic Opportunity
shall establish grant and loan programs, subject to
appropriations to the Hemp Social Equity Fund, for the purpose
of providing financial assistance, loans, grants and technical
assistance to hemp social equity participants.
(e) The Department of Commerce and Economic Opportunity
may:
(1) Provide Hemp Social Equity loans and grants from
appropriations from the Hemp Social Equity Fund to assist
qualified hemp social equity participants in gaining entry

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to, and successfully operating in, the State's regulated
hemp-derived cannabinoid marketplace.
(2) Enter into agreements that set forth terms and
conditions of the financial assistance, accept funds or
grants, and engage in cooperation with private entities
and agencies of State or local government to carry out the
purposes of this Section.
(3) Fix, determine, charge and collect any premiums,
fees, charges, costs, and expenses, including application
fees, commitment fees, program fees, financing charges, or
publication fees in connection with its activities under
this Section.
(4) Coordinate assistance under these loan programs
with activities of the Department of Financial and
Professional Regulation, the Department of Agriculture,
and other agencies as needed to maximize the effectiveness
and efficiency of this Act.
(5) Provide staff and administrative and related
support required to administer this Section.
(6) Take whatever actions are necessary or appropriate
to protect the State's interest due to bankruptcy,
default, foreclosure, or noncompliance with the terms and
conditions of financial assistance provided under this
Section, including the ability to recapture funds if the
recipient is found to be noncompliant with the terms and
conditions of the financial assistance agreement.

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(7) Establish application, notification, contract, and
other forms, procedures or rules deemed necessary and
appropriate.
(8) Utilize vendors or contract work to carry out the
purposes of this Act.
(f) Loans made under this Section:
(1) shall only be made if, in the Department's
judgment, the project furthers the goals set forth in this
Act; and
(2) shall be in such principal amount and form and
contain such terms and provisions with respect to
security, insurance, reporting, delinquency charges,
default remedies, and other matters as the Department
shall determine appropriate to protect the public interest
and to be consistent with the purposes of this Section.
The terms and provisions may be less than required for
similar loans not covered by this Section.
(g) Grants made under this Section shall be awarded on a
competitive and annual basis under the Grant Accountability
and Transparency Act. Grants made under this Section shall
further and promote the goals of this Act, including promotion
of hemp social equity participants, job training and workforce
development, and technical assistance to hemp social equity
participants.
(h) Beginning January 1, 2025 and each year thereafter,
the Department shall annually report to the Governor and the

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General Assembly on the outcomes and effectiveness of this
Section that shall include the following:
(1) the number of persons or businesses receiving
financial assistance under this Section;
(2) the amount in financial assistance awarded in the
aggregate, in addition to the amount of loans made that
are outstanding and the amount of grants awarded;
(3) the location of the project engaged in by the
person or business; and
(4) if applicable, the number of new jobs and other
forms of economic output created as a result of the
financial assistance.
(i) The Department of Commerce and Economic Opportunity
shall include engagement with individuals with limited English
proficiency as part of its outreach provided or targeted to
attract and support hemp social equity participants.
(505 ILCS 89/15)
Sec. 15. Rules.
(a) The Department shall submit to the Secretary of the
United States Department of Agriculture a hemp production plan
under which the Department monitors and regulates the
production of industrial hemp in this State. The Department
shall adopt rules incorporating the hemp production plan,
including application and licensing requirements.
(b) The rules set by the Department shall include one

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yearly inspection of a licensed industrial hemp cultivation
operation and allow for additional unannounced inspections of
a licensed industrial hemp cultivation operation at the
Department's discretion.
(c) The Department shall adopt rules necessary for the
administration and enforcement of this Act in accordance with
all applicable State and federal laws and regulations,
including rules concerning standards and criteria for
licensure and registration, for the payment of applicable
fees, signage, and for forms required for the administration
of this Act.
(d) The Department shall adopt rules for the testing of
the industrial hemp THC levels and the disposal of plant
matter exceeding lawful THC levels, including an option for a
cultivator to retest for a minor violation, with the retest
threshold determined by the Department and set in rule. Those
rules may provide for the use of seed certified to meet the THC
levels mandated by this Act as an alternative to testing.
(e) The application form for licenses under this Act shall
be determined by the Department and set by rule within 180 days
after the effective date of this amendatory Act of the 103rd
General Assembly.
(f) The rules adopted by the appropriate regulatory
Department may include one yearly inspection of a licensed
hemp farm, hemp distribution, hemp processing, hemp food
establishment, or hemp retailer and allow for additional

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unannounced inspections of a licensed hemp business
establishment upon good cause.
(g) The Department shall adopt rules necessary for the
administration and enforcement of this Act, including rules
concerning the payment of applicable fees, signage, and forms
required for the administration of this Act. The fee for any
hemp business license or renewal shall not exceed $250.
(h) The Department shall adopt rules for the testing of
the hemp THC levels and the disposal of plant matter exceeding
lawful hemp THC levels, including an option for a cultivator
to retest for a minor violation. Those rules must provide for
the use of seed certified to meet the hemp THC levels mandated
by this Act as an alternative to testing.
(i) The Department shall not limit by rule the quantity of
any hemp licenses. The rules shall require the license
application process to be open indefinitely and shall require
the Department to approve or deny all license applications
within 30 calendar days.
(j) The Department shall expressly permit by rule
individuals who are disallowed from holding an Illinois hemp
license by Section 297B(e)(3)(B)(i) of the Agricultural
Marketing Act of 1946 (7 U.S.C. 1939p) to hold a hemp business
license, work for a hemp business establishment, and produce
Illinois hemp.
(k) If federal rules disallow certain provisions of these
rules, such as those for hemp social equity participants or

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individuals with nonviolent state or federal controlled
substance felony convictions within the last 10 years who are
prohibited from participating in hemp programs or possessing
ownership or controlling management stake in an hemp business
establishment, Illinois hemp business establishments may
legally produce, process, and distribute Illinois hemp within
the State of Illinois if they do not export Illinois hemp.
(Source: P.A. 102-690, eff. 12-17-21.)
(505 ILCS 89/15.5 new)
Sec. 15.5. Publishing information. The Department shall
make available to the public complaints about cannabinoid
products, information regarding a pending administrative
hearing or court case under this Act, and any disciplinary
action taken against a cannabinoid product manufacturer,
processor, or seller.
(505 ILCS 89/16 new)
Sec. 16. Importing intermediate and finished hemp products
into the State of Illinois.
(a) Out-of-state entities that import live hemp products,
intermediate hemp products, or hemp cannabinoid products for
ingestion or inhalation into the State of Illinois to sell to
licensed hemp business establishments must obtain a hemp
distributor permit.
(b) Out-of-state entities may not import into the State of

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Illinois ready-to-eat hemp products or cottage hemp
cannabinoid products.
(c) Out-of-state entities may not sell hemp cannabinoid
products to end consumers within the State of Illinois unless
they obtain a hemp retailer permit and maintain proof of age
verification and shipping manifests for a period of 3 years.
(505 ILCS 89/17)
Sec. 17. Administrative hearings.
(a) Administrative hearings involving licensees under this
Act shall be conducted under the Department's rules governing
formal administrative proceedings.
(b) The following administrative fines may be imposed by
the Department upon any person or entity who violates any
provision of this Act or any rule adopted by any State
department under this Act:
(1) A penalty of $2,500 for a first violation.
(2) A penalty of $5,000 for a second violation at the
same location within 2 years of the first violation.
(3) A penalty of $10,000 for a third or subsequent
violation at the same location within 2 years of the
second or subsequent violation.
Moneys collected by the Department under this Section
shall be deposited into the Hemp Regulatory Fund. Any penalty
of $5,000 or greater that is not paid within 120 days of
issuance of notice from the Department shall be submitted to

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the Department of Revenue for collection as provided under the
Illinois State Collection Act of 1986. The Department may
prohibit any person from selling or distributing a hemp
cannabinoid product for failure to pay an administrative
monetary penalty within 60 days of issuance of notice from the
Department.
(c) All final administrative decisions of the Department
are subject to judicial review under the Administrative Review
Law. The term "administrative decision" has the meaning given
to that term in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 100-1091, eff. 8-26-18.)
(505 ILCS 89/17.5 new)
Sec. 17.5. Temporary restraining order or injunction. The
Director, through the Attorney General, may file a complaint
and apply to the circuit court for, and the court upon hearing
and for cause shown may grant, a temporary restraining order
or a preliminary or permanent injunction restraining any
person from violating this Act.
(505 ILCS 89/18)
Sec. 18. Industrial Hemp Regulatory Fund. There is
created in the State treasury a special fund to be known as the
Industrial Hemp Regulatory Fund. All fees and fines collected
by the Department under this Act shall be deposited into the
Fund. Moneys in the Fund shall be utilized by the Department

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for the purposes of implementation, administration, and
enforcement of this Act.
(Source: P.A. 100-1091, eff. 8-26-18.)
(505 ILCS 89/18.5 new)
Sec. 18.5. Cannabinoid retail tax.
(a) Beginning on July 1, 2024, a tax is imposed upon
purchases for hemp cannabinoid products at a rate of 5% of the
purchase price of the cannabinoid products.
(b) Live hemp products, raw hemp products, processed hemp
products, intermediate hemp products, and cottage hemp
cannabinoid products may not be taxed under this Act.
(c) Cannabinoid products sold for research purposes may
not be taxed under this Act.
(d) The tax imposed under this Act shall be in addition to
all other occupation, privilege, or excise taxes imposed by
the State of Illinois or by any municipal corporation or
political subdivision thereof.
(e) The tax imposed under this Act may not be imposed on
any purchase by a purchaser if the hemp retailer is prohibited
by federal or State constitution, treaty, convention, statute,
or court decision from collecting the tax from the purchaser.
(f) The tax imposed by this Act shall be collected from the
purchaser by the hemp retailer or hemp food establishment and
shall be remitted to the Department on or before the 20th day
of each month for the preceding calendar month stating the

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following:
(1) the hemp retailer's or hemp food establishment's
name;
(2) the address of the hemp retailer's principal place
of business and the address of the principal place of
business (if that is a different address) from which the
hemp retailer engaged in the business of selling
cannabinoid products subject to tax under this Act;
(3) the total purchase price received by the hemp
retailer for hemp subject to tax under this Act;
(4) the amount of tax due;
(5) the signature of the hemp retailer; and
(6) any other information as the Department may
reasonably require.
(g) All returns required to be filed and payments required
to be made under this Act shall be by electronic means.
(h) Any amount that is required to be shown or reported on
any return or other document under this Act shall, if the
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount if the fractional part of a dollar
is $0.50 or more and decreased to the nearest whole-dollar
amount if the fractional part of a dollar is less than $0.50.
If a total amount of less than $1 is payable, refundable, or
creditable, the amount shall be disregarded if it is less than
$0.50 and shall be increased to $1 if it is $0.50 or more.
(i) Any hemp retailer required to collect the tax imposed

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by this Act shall be liable to the Department for the tax,
whether or not the tax has been collected by the hemp retailer,
and any such tax shall constitute a debt owed by the hemp
retailer to this State. To the extent that a hemp retailer
required to collect the tax imposed by this Act has actually
collected that tax, the tax is held in trust for the benefit of
the Department.
(j) Any hemp retailer who ceases to engage in the kind of
business that makes the person responsible for filing returns
under this Act shall file a final return under this Act with
the Department within one month after discontinuing the
business.
(505 ILCS 89/20)
Sec. 20. Hemp products.
(a) Raw hemp products may be sold by any legal business
entity within Illinois, may be purchased by any member of the
general public, and are not subject to hemp cannabinoid
product taxes.
(b) Nothing in this Act shall alter the legality of hemp or
hemp products that are held by a person and presently legal to
possess or own on the effective date of this amendatory Act of
the 103rd General Assembly.
(Source: P.A. 100-1091, eff. 8-26-18.)
(505 ILCS 89/28 new)

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Sec. 28. Local ordinances. Unless otherwise provided under
this Act or otherwise in accordance with State law:
(1) A unit of local government, including a home rule
unit or any non-home rule county within the unincorporated
territory of the county, may enact reasonable zoning
ordinances or resolutions, not in conflict with this Act
or rules adopted pursuant to this Act, regulating hemp
business establishments. No unit of local government,
including a home rule unit or any non-home rule county
within the unincorporated territory of the county, may
prohibit home cultivation or consumption of hemp or
cannabinoid products authorized by this Act.
(2) A unit of local government, including a home rule
unit or any non-home rule county within the unincorporated
territory of the county, may enact ordinances or rules not
in conflict with this Act or with rules adopted pursuant
to this Act governing the time and manner of hemp business
establishment operations through the use of conditional
use permits. A unit of local government, including a home
rule unit, may establish civil penalties for violation of
an ordinance or rules governing the time and manner of
operation of a hemp business establishment or a
conditional use permit in the jurisdiction of the unit of
local government. No unit of local government, including a
home rule unit or non-home rule county within an
unincorporated territory of the county, may unreasonably

HB4161 - 227 - LRB103 34685 AWJ 64530 b
restrict the time or manner of hemp business establishment
operations authorized by this Act. No unit of local
government, including a home rule unit or non-home rule
county within an unincorporated territory of the county,
may restrict the number of hemp business establishment
operations authorized by this Act.
(3) A unit of local government, including a home rule
unit or any non-home rule county within the unincorporated
territory of the county, may not enact minimum distance
limitations between hemp business establishments and
locations it deems sensitive.
(4) A unit of local government, including a home rule
unit, or any non-home rule county within the
unincorporated territory of the county may authorize or
permit the on-premises consumption of cannabinoid products
at or in a dispensing organization or retail tobacco store
(as defined in Section 10 of the Smoke Free Illinois Act)
within its jurisdiction in a manner consistent with this
Act. A dispensing organization or retail tobacco store
authorized or permitted by a unit of local government to
allow on-site consumption shall not be deemed a public
place within the meaning of the Smoke Free Illinois Act.
(5) A unit of local government, including a home rule
unit or any non-home rule county within the unincorporated
territory of the county, may not regulate the activities
described in paragraph (1), (2), or (3) in a manner more

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restrictive than the regulation of those activities by the
State under this Act.
(6) A unit of local government, including a home rule
unit or any non-home rule county within the unincorporated
territory of the county, may not enact ordinances to
prohibit or significantly limit a hemp business
establishment's location.
(505 ILCS 89/30 new)
Sec. 30. Task force; gathering data.
(a) The Director shall establish a task force to publish
one or more disparity and availability studies that:
(1) evaluate the risks and benefits of cannabinoids;
(2) evaluate the availability of hemp and cannabis
products to minors;
(3) evaluate economic development attributable to hemp
and hemp-derived cannabinoids across this State,
especially in communities who have been most impacted by
the War on Drugs; and
(4) evaluate whether there exists discrimination in
this State's hemp industry and, if so, evaluate the impact
of this discrimination on the State, and include
recommendations to the Department for reducing or
eliminating any identified barriers to entry in the hemp
market.
The disparity and availability studies shall examine each

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license type issued pursuant to Sections 10.5, 10.10, and
10.20 and shall be initiated within 180 days from the issuance
of the first of each license authorized by those Sections. The
report must include the task force's legislative
recommendations regarding further cannabinoid research, the
use and availability of cannabinoid products and cannabis
products among minors, and the impact of cannabinoid products
on minority-owned and women-owned business creation.
Additionally, the report must contain an analysis of the
effectiveness of each recommendation. This analysis will
assess the potential impact and outcomes of the proposed
legislative measures. The task force shall make rule
recommendations as part of the report. The results of each
disparity and availability study shall be reported to the
General Assembly and the Governor no later than 12 months
after the commission of each study.
The Director shall forward a copy of the task force's
study and recommendations to the Department of Financial and
Professional Regulation, the Department of Agriculture, and
the Department of Commerce and Economic Opportunity.
(b) The Department may compile, collect, or otherwise
gather data necessary for the administration of this Act and
to carry out the Director's duty relating to the
recommendation of policy changes. The Department of
Agriculture may direct the Department of Financial and
Professional Regulation, Department of Public Health,

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Department of Human Services, and Department of Commerce and
Economic Opportunity to assist in the compilation, collection,
and data gathering authorized under this subsection. The
Director shall compile all of the data into a single report and
submit the report to the Governor and the General Assembly and
publish the report on its website.
(c) If the Director may use a third party to complete the
responsibilities of subsection (a), subsection (b), or both.
If the Director elects to use a third party to complete any
element of this Section, preference shall be given to entities
with experience in increasing diversity in the hemp or
cannabis industry and making policy recommendations to the
General Assembly.
(505 ILCS 89/800 new)
Sec. 800. Home rule preemption. Except as otherwise
provided in this Act, the regulation and permitting of the
activities described in this Act are exclusive powers and
functions of the State. Except as otherwise provided in this
Act, a unit of local government, including a home rule unit,
may not regulate or license the activities described in this
Act. This Act is a denial and limitation of home rule powers
and functions under subsection (h) of Section 6 of Article VII
of the Illinois Constitution.
(505 ILCS 89/10 rep.)

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Section 35. The Industrial Hemp Act is amended by
repealing Section 10.
Section 40. The Illinois Noxious Weed Law is amended by
changing Section 2 as follows:
(505 ILCS 100/2) (from Ch. 5, par. 952)
Sec. 2. As used in this Act:
(1) "Person" means any individual, partnership, firm,
corporation, company, society, association, the State or any
department, agency, or subdivision thereof, or any other
entity.
(2) "Control", "controlled" or "controlling" includes
being in charge of or being in possession, whether as owner,
lessee, renter, or tenant, under statutory authority, or
otherwise.
(3) "Director" means the Director of the Department of
Agriculture of the State of Illinois, or his or her duly
appointed representative.
(4) "Department" means the Department of Agriculture of
the State of Illinois.
(5) "Noxious weed" means any plant which is determined by
the Director, the Dean of the College of Agricultural,
Consumer and Environmental Sciences of the University of
Illinois and the Director of the Agricultural Experiment
Station at the University of Illinois, to be injurious to

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public health, crops, livestock, land or other property.
"Noxious weed" does not include industrial hemp as defined and
authorized under the Industrial Hemp Act.
(6) "Control Authority" means the governing body of each
county, and shall represent all rural areas and cities,
villages and townships within the county boundaries.
(7) "Applicable fund" means the fund current at the time
the work is performed or the money is received.
(Source: P.A. 99-539, eff. 7-8-16; 100-1091, eff. 8-26-18.)
Section 45. The Cannabis Control Act is amended by
changing Sections 4, 5, 5.1, and 8 as follows:
(720 ILCS 550/4) (from Ch. 56 1/2, par. 704)
Sec. 4. Except as otherwise provided in the Cannabis
Regulation and Tax Act and the Industrial Hemp Act, it is
unlawful for any person knowingly to possess cannabis.
Any person who violates this Section with respect to:
(a) not more than 10 grams of any substance containing
cannabis is guilty of a civil law violation punishable by
a minimum fine of $100 and a maximum fine of $200. The
proceeds of the fine shall be payable to the clerk of the
circuit court. Within 30 days after the deposit of the
fine, the clerk shall distribute the proceeds of the fine
as follows:
(1) $10 of the fine to the circuit clerk and $10 of

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the fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to
the circuit clerk and each $10 fine distributed to the
law enforcement agency that issued the citation for
the violation shall be used to defer the cost of
automatic expungements under paragraph (2.5) of
subsection (a) of Section 5.2 of the Criminal
Identification Act;
(2) $15 to the county to fund drug addiction
services;
(3) $10 to the Office of the State's Attorneys
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law
enforcement agency that issued the citation for the
violation.
With respect to funds designated for the Illinois
State Police, the moneys shall be remitted by the circuit
court clerk to the Illinois State Police within one month
after receipt for deposit into the State Police Operations
Assistance Fund. With respect to funds designated for the
Department of Natural Resources, the Department of Natural
Resources shall deposit the moneys into the Conservation
Police Operations Assistance Fund;
(b) more than 10 grams but not more than 30 grams of
any substance containing cannabis is guilty of a Class B

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misdemeanor;
(c) more than 30 grams but not more than 100 grams of
any substance containing cannabis is guilty of a Class A
misdemeanor; provided, that if any offense under this
subsection (c) is a subsequent offense, the offender shall
be guilty of a Class 4 felony;
(d) more than 100 grams but not more than 500 grams of
any substance containing cannabis is guilty of a Class 4
felony; provided that if any offense under this subsection
(d) is a subsequent offense, the offender shall be guilty
of a Class 3 felony;
(e) more than 500 grams but not more than 2,000 grams
of any substance containing cannabis is guilty of a Class
3 felony;
(f) more than 2,000 grams but not more than 5,000
grams of any substance containing cannabis is guilty of a
Class 2 felony;
(g) more than 5,000 grams of any substance containing
cannabis is guilty of a Class 1 felony.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-538, eff. 8-20-21.)
(720 ILCS 550/5) (from Ch. 56 1/2, par. 705)
Sec. 5. Except as otherwise provided in the Cannabis
Regulation and Tax Act and the Industrial Hemp Act, it is
unlawful for any person knowingly to manufacture, deliver, or

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possess with intent to deliver, or manufacture, cannabis. Any
person who violates this Section with respect to:
(a) not more than 2.5 grams of any substance
containing cannabis is guilty of a Class B misdemeanor;
(b) more than 2.5 grams but not more than 10 grams of
any substance containing cannabis is guilty of a Class A
misdemeanor;
(c) more than 10 grams but not more than 30 grams of
any substance containing cannabis is guilty of a Class 4
felony;
(d) more than 30 grams but not more than 500 grams of
any substance containing cannabis is guilty of a Class 3
felony for which a fine not to exceed $50,000 may be
imposed;
(e) more than 500 grams but not more than 2,000 grams
of any substance containing cannabis is guilty of a Class
2 felony for which a fine not to exceed $100,000 may be
imposed;
(f) more than 2,000 grams but not more than 5,000
grams of any substance containing cannabis is guilty of a
Class 1 felony for which a fine not to exceed $150,000 may
be imposed;
(g) more than 5,000 grams of any substance containing
cannabis is guilty of a Class X felony for which a fine not
to exceed $200,000 may be imposed.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

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(720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)
Sec. 5.1. Cannabis trafficking.
(a) Except for purposes authorized by this Act, the
Industrial Hemp Act, or the Cannabis Regulation and Tax Act,
any person who knowingly brings or causes to be brought into
this State for the purpose of manufacture or delivery or with
the intent to manufacture or deliver 2,500 grams or more of
cannabis in this State or any other state or country is guilty
of cannabis trafficking.
(b) A person convicted of cannabis trafficking shall be
sentenced to a term of imprisonment not less than twice the
minimum term and fined an amount as authorized by subsection
(f) or (g) of Section 5 of this Act, based upon the amount of
cannabis brought or caused to be brought into this State, and
not more than twice the maximum term of imprisonment and fined
twice the amount as authorized by subsection (f) or (g) of
Section 5 of this Act, based upon the amount of cannabis
brought or caused to be brought into this State.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(720 ILCS 550/8) (from Ch. 56 1/2, par. 708)
Sec. 8. Except as otherwise provided in the Cannabis
Regulation and Tax Act and the Industrial Hemp Act, it is
unlawful for any person knowingly to produce the Cannabis
sativa plant or to possess such plants unless production or

HB4161 - 237 - LRB103 34685 AWJ 64530 b
possession has been authorized pursuant to the provisions of
Section 11 or 15.2 of the Act. Any person who violates this
Section with respect to production or possession of:
(a) Not more than 5 plants is guilty of a civil
violation punishable by a minimum fine of $100 and a
maximum fine of $200. The proceeds of the fine are payable
to the clerk of the circuit court. Within 30 days after the
deposit of the fine, the clerk shall distribute the
proceeds of the fine as follows:
(1) $10 of the fine to the circuit clerk and $10 of
the fine to the law enforcement agency that issued the
citation; the proceeds of each $10 fine distributed to
the circuit clerk and each $10 fine distributed to the
law enforcement agency that issued the citation for
the violation shall be used to defer the cost of
automatic expungements under paragraph (2.5) of
subsection (a) of Section 5.2 of the Criminal
Identification Act;
(2) $15 to the county to fund drug addiction
services;
(3) $10 to the Office of the State's Attorneys
Appellate Prosecutor for use in training programs;
(4) $10 to the State's Attorney; and
(5) any remainder of the fine to the law
enforcement agency that issued the citation for the
violation.

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With respect to funds designated for the Illinois
State Police, the moneys shall be remitted by the circuit
court clerk to the State Treasurer within one month after
receipt for deposit into the State Police Operations
Assistance Fund. With respect to funds designated for the
Department of Natural Resources, the Department of Natural
Resources shall deposit the moneys into the Conservation
Police Operations Assistance Fund.
(b) More than 5, but not more than 20 plants, is guilty
of a Class 4 felony.
(c) More than 20, but not more than 50 plants, is
guilty of a Class 3 felony.
(d) More than 50, but not more than 200 plants, is
guilty of a Class 2 felony for which a fine not to exceed
$100,000 may be imposed and for which liability for the
cost of conducting the investigation and eradicating such
plants may be assessed. Compensation for expenses incurred
in the enforcement of this provision shall be transmitted
to and deposited in the treasurer's office at the level of
government represented by the Illinois law enforcement
agency whose officers or employees conducted the
investigation or caused the arrest or arrests leading to
the prosecution, to be subsequently made available to that
law enforcement agency as expendable receipts for use in
the enforcement of laws regulating controlled substances
and cannabis. If such seizure was made by a combination of

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law enforcement personnel representing different levels of
government, the court levying the assessment shall
determine the allocation of such assessment. The proceeds
of assessment awarded to the State treasury shall be
deposited in a special fund known as the Drug Traffic
Prevention Fund.
(e) More than 200 plants is guilty of a Class 1 felony
for which a fine not to exceed $100,000 may be imposed and
for which liability for the cost of conducting the
investigation and eradicating such plants may be assessed.
Compensation for expenses incurred in the enforcement of
this provision shall be transmitted to and deposited in
the treasurer's office at the level of government
represented by the Illinois law enforcement agency whose
officers or employees conducted the investigation or
caused the arrest or arrests leading to the prosecution,
to be subsequently made available to that law enforcement
agency as expendable receipts for use in the enforcement
of laws regulating controlled substances and cannabis. If
such seizure was made by a combination of law enforcement
personnel representing different levels of government, the
court levying the assessment shall determine the
allocation of such assessment. The proceeds of assessment
awarded to the State treasury shall be deposited in a
special fund known as the Drug Traffic Prevention Fund.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;

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102-145, eff. 7-23-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
Section 50. The State Finance Act is amended by changing
Section 5.890 and adding Section 5.1015 as follows:
(30 ILCS 105/5.890)
Sec. 5.890. The Industrial Hemp Regulatory Fund.
(Source: P.A. 100-1091, eff. 8-26-18; 101-81, eff. 7-12-19.)
(30 ILCS 105/5.1015 new)
Sec. 5.1015. The Hemp Social Equity Fund.
Section 99. Effective date. This Act takes effect upon
becoming law.
HB4161 - 241 - LRB103 34685 AWJ 64530 b
INDEX
Statutes amended in order of appearance
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442
410 ILCS 705/1-10
410 ILCS 705/10-10
505 ILCS 89/1
505 ILCS 89/3 new
505 ILCS 89/5
505 ILCS 89/6 new
505 ILCS 89/7 new
505 ILCS 89/10.5 new
505 ILCS 89/10.10 new
505 ILCS 89/10.15 new
505 ILCS 89/10.20 new
505 ILCS 89/10.25 new
505 ILCS 89/10.30 new
505 ILCS 89/10.35 new
505 ILCS 89/10.40 new
505 ILCS 89/10.45 new
505 ILCS 89/10.50 new
505 ILCS 89/10.55 new
505 ILCS 89/10.60 new
HB4161 - 242 - LRB103 34685 AWJ 64530 b
505 ILCS 89/10.65 new
505 ILCS 89/10.70 new
505 ILCS 89/10.75 new
505 ILCS 89/10.80 new
505 ILCS 89/10.85 new
505 ILCS 89/10.90 new
505 ILCS 89/10.95 new
505 ILCS 89/10.100 new
505 ILCS 89/11 new
505 ILCS 89/11.5 new
505 ILCS 89/11.10 new
505 ILCS 89/11.15 new
505 ILCS 89/11.20 new
505 ILCS 89/12 new
505 ILCS 89/13 new
505 ILCS 89/15
505 ILCS 89/15.5 new
505 ILCS 89/16 new
505 ILCS 89/17
505 ILCS 89/17.5 new
505 ILCS 89/18
505 ILCS 89/18.5 new
505 ILCS 89/20
505 ILCS 89/28 new
505 ILCS 89/30 new
505 ILCS 89/800 new
HB4161 - 243 - LRB103 34685 AWJ 64530 b