Bill Text: IL SB1723 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB1723 Detail]

Download: Illinois-2023-SB1723-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1723 Introduced 2/9/2023, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
410 ILCS 705/1-10
410 ILCS 705/30-5
410 ILCS 705/30-30
410 ILCS 705/35-31
410 ILCS 705/40-25
410 ILCS 705/60-10
Amends the Cannabis Regulation and Tax Act. Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as "craft", unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower. Makes other changes.
LRB103 28854 CPF 55239 b
A BILL FOR
SB1723 LRB103 28854 CPF 55239 b
AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Cannabis Regulation and Tax Act is amended
by changing Sections 1-10, 30-5, 30-30, 35-31, 40-25, 55-20,
and 60-10 as follows:
(410 ILCS 705/1-10)
Sec. 1-10. Definitions. In this Act:
"Adult Use Cultivation Center License" means a license
issued by the Department of Agriculture that permits a person
to act as a cultivation center under this Act and any
administrative rule made in furtherance of this Act.
"Adult Use Dispensing Organization License" means a
license issued by the Department of Financial and Professional
Regulation that permits a person to act as a dispensing
organization under this Act and any administrative rule made
in furtherance of this Act.
"Advertise" means to engage in promotional activities
including, but not limited to: newspaper, radio, Internet and
electronic media, and television advertising; the distribution
of fliers and circulars; billboard advertising; and the
display of window and interior signs. "Advertise" does not
mean exterior signage displaying only the name of the licensed

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

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

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

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

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meets certain conditions described in this Act, but does not
entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products.
"Conditional Adult Use Cultivation Center License" means a
license awarded to top-scoring applicants for an Adult Use
Cultivation Center License that reserves the right to an Adult
Use Cultivation Center License if the applicant meets certain
conditions as determined by the Department of Agriculture by
rule, but does not entitle the recipient to begin growing,
processing, or selling cannabis or cannabis-infused products.
"Craft grower" means a facility operated by an
organization or business that is licensed by the Department of
Agriculture to cultivate, dry, cure, and package cannabis and
perform other necessary activities to make cannabis available
for sale at a dispensing organization or use at a processing
organization. A craft grower may contain up to 14,000 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,

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

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

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

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

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

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

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

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a parent, legal guardian, child, spouse, or dependent, or was
a dependent of an individual who, prior to the effective date
of this Act, was arrested for, convicted of, or adjudicated
delinquent for any offense that is eligible for expungement
under this Act.
"Mother plant" means a cannabis plant that is cultivated
or maintained for the purpose of generating clones, and that
will not be used to produce plant material for sale to an
infuser or dispensing organization.
"Ordinary public view" means within the sight line with
normal visual range of a person, unassisted by visual aids,
from a public street or sidewalk adjacent to real property, or
from within an adjacent property.
"Ownership and control" means ownership of at least 51% of
the business, including corporate stock if a corporation, and
control over the management and day-to-day operations of the
business and an interest in the capital, assets, and profits
and losses of the business proportionate to percentage of
ownership.
"Person" means a natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian, or other representative appointed
by order of any court.
"Possession limit" means the amount of cannabis under
Section 10-10 that may be possessed at any one time by a person

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

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

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

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control by one or more individuals who:
(i) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under this Act; or
(ii) is a member of an impacted family;
(3) for applicants with a minimum of 10 full-time
employees, an applicant with at least 51% of current
employees who:
(i) currently reside in a Disproportionately
Impacted Area; or
(ii) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is
eligible for expungement under this Act or member of
an impacted family.
Nothing in this Act shall be construed to preempt or limit
the duties of any employer under the Job Opportunities for
Qualified Applicants Act. Nothing in this Act shall permit an
employer to require an employee to disclose sealed or expunged
offenses, unless otherwise required by law.
"Social Equity Justice Involved Applicant" means an
applicant that is an Illinois resident and that:
(1) is at least 51% owned and controlled by one or more
individuals who have resided in a Disproportionately
Impacted Area for at least 5 of the 10 years immediately
preceding the date of application;
(2) is at least 51% owned and controlled by one or more

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individuals who have been 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; or
(3) is at least 51% owned and controlled by one or more
members of an impacted family.
"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
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

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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
intended to produce flower buds and induce maturation, it
has no more than 2 stigmas visible at each internode of the
cannabis plant; or

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(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 705/30-5)
Sec. 30-5. Issuance of licenses.
(a) The Department of Agriculture shall issue up to 40
craft grower licenses by July 1, 2020. Any person or entity
awarded a license pursuant to this subsection shall only hold
one craft grower license and may not sell that license until
after December 21, 2021.
(a-5) The Department of Agriculture shall issue an
additional 30 craft grower licenses on or before May 1, 2023,
cost free, to applicants who submitted craft grower license
applications on or before April 30, 2020 but were not awarded a
license under subsection (a) and who received at least 85% of
the total points available on their applications. Any person
or entity awarded a license under this subsection may sell
that license at any time after it is awarded.
(a-10) The Department of Agriculture shall issue an
additional 30 craft grower licenses on or before September 1,
2023, at no charge, to applicants who submitted craft grower
license applications on or before April 30, 2020 but were not

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awarded a license under subsection (a) or subsection (a-5),
received at least 85% of the total points available on their
applications, and qualify as Social Equity Justice Involved
Applicants. Any applicant awarded a license under this
subsection may sell that license at any time after it is
awarded.
(b) By December 21, 2021, the Department of Agriculture
shall issue up to 60 additional craft grower licenses. Any
person or entity awarded a license pursuant to this Section
subsection shall not hold more than 2 craft grower licenses.
The person or entity awarded a license pursuant to this
subsection or subsection (a) of this Section may sell its
craft grower license subject to the restrictions of this Act
or as determined by administrative rule. Prior to issuing such
licenses, the Department may adopt rules through emergency
rulemaking in accordance with subsection (kk) of Section 5-45
of the Illinois Administrative Procedure Act, to modify or
raise the number of craft grower licenses and modify or change
the licensing application process. The General Assembly finds
that the adoption of rules to regulate cannabis use is deemed
an emergency and necessary for the public interest, safety,
and welfare. In determining whether to exercise the authority
granted by this subsection, the Department of Agriculture must
consider the following factors:
(1) the percentage of cannabis sales occurring in
Illinois not in the regulated market using data from the

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Substance Abuse and Mental Health Services Administration,
National Survey on Drug Use and Health, Illinois
Behavioral Risk Factor Surveillance System, and tourism
data from the Illinois Office of Tourism to ascertain
total cannabis consumption in Illinois compared to the
amount of sales in licensed dispensing organizations;
(2) whether there is an adequate supply of cannabis
and cannabis-infused products to serve registered medical
cannabis patients;
(3) whether there is an adequate supply of cannabis
and cannabis-infused products to serve purchasers;
(4) whether there is an oversupply of cannabis in
Illinois leading to trafficking of cannabis to states
where the sale of cannabis is not permitted by law;
(5) population increases or shifts;
(6) the density of craft growers in any area of the
State;
(7) perceived security risks of increasing the number
or location of craft growers;
(8) the past safety record of craft growers;
(9) the Department of Agriculture's capacity to
appropriately regulate additional licensees;
(10) (blank); and
(11) any other criteria the Department of Agriculture
deems relevant.
(c) After January 1, 2024 2022, the Department of

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Agriculture may by rule modify or raise the number of craft
grower licenses and modify or change the licensing application
process. At no time may the number of craft grower licenses
exceed 150. Any person or entity awarded a license pursuant to
this subsection shall not hold more than 3 craft grower
licenses. A person or entity awarded a license pursuant to
this subsection or subsection (a), (a-5), or (a-10) or
subsection (b) of this Section may sell its craft grower
license or licenses subject to the restrictions of this Act or
as determined by administrative rule.
(d) Upon the completion of the disparity and availability
study pertaining to craft growers by the Cannabis Regulation
Oversight Officer pursuant to subsection (e) of Section 5-45,
the Department may modify or change the licensing application
process to reduce or eliminate barriers from and remedy
evidence of discrimination identified in the disparity and
availability study.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21.)
(410 ILCS 705/30-30)
Sec. 30-30. Craft grower requirements; prohibitions.
(a) The operating documents of a craft grower shall
include procedures for the oversight of the craft grower, a
cannabis plant monitoring system including a physical
inventory recorded weekly, accurate recordkeeping, and a

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staffing plan.
(b) A craft grower shall implement a security plan
reviewed by the Illinois State Police that includes, but is
not limited to: facility access controls, perimeter intrusion
detection systems, personnel identification systems, and a
24-hour surveillance system to monitor the interior and
exterior of the craft grower facility and that is accessible
to authorized law enforcement and the Department of
Agriculture in real time.
(c) All cultivation of cannabis by a craft grower must
take place in an enclosed, locked facility at the physical
address provided to the Department of Agriculture during the
licensing process. The craft grower location shall only be
accessed by the agents working for the craft grower, the
Department of Agriculture staff performing inspections, the
Department of Public Health staff performing inspections,
State and local law enforcement or other emergency personnel,
contractors working on jobs unrelated to cannabis, such as
installing or maintaining security devices or performing
electrical wiring, transporting organization agents as
provided in this Act, or participants in the incubator
program, individuals in a mentoring or educational program
approved by the State, or other individuals as provided by
rule. However, if a craft grower shares a premises with an
infuser or dispensing organization, agents from those other
licensees may access the craft grower portion of the premises

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if that is the location of common bathrooms, lunchrooms,
locker rooms, or other areas of the building where work or
cultivation of cannabis is not performed. At no time may an
infuser or dispensing organization agent perform work at a
craft grower without being a registered agent of the craft
grower.
(d) A craft grower may not sell or distribute any cannabis
to any person other than a cultivation center, a craft grower,
an infuser organization, a dispensing organization, or as
otherwise authorized by rule.
(e) A craft grower may not be located in an area zoned for
residential use.
(f) A craft grower may not either directly or indirectly
discriminate in price between different cannabis business
establishments that are purchasing a like grade, strain,
brand, and quality of cannabis or cannabis-infused product.
Nothing in this subsection (f) prevents a craft grower from
pricing cannabis differently based on differences in the cost
of manufacturing or processing, the quantities sold, such as
volume discounts, or the way the products are delivered.
(g) All cannabis harvested by a craft grower and intended
for distribution to a dispensing organization must be entered
into a data collection system, packaged and labeled under
Section 55-21, and, if distribution is to a dispensing
organization that does not share a premises with the
dispensing organization receiving the cannabis, placed into a

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cannabis container for transport. All cannabis harvested by a
craft grower and intended for distribution to a cultivation
center, to an infuser organization, or to a craft grower with
which it does not share a premises, must be packaged in a
labeled cannabis container and entered into a data collection
system before transport.
(h) Craft growers are subject to random inspections by the
Department of Agriculture, local safety or health inspectors,
the Illinois State Police, or as provided by rule.
(i) A craft grower agent shall notify local law
enforcement, the Illinois State Police, and the Department of
Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone, in person, or
written or electronic communication.
(j) A craft grower shall comply with all State and any
applicable federal rules and regulations regarding the use of
pesticides.
(k) A craft grower or craft grower agent shall not
transport cannabis or cannabis-infused products to any other
cannabis business establishment without a transport
organization license unless:
(i) If the craft grower is located in a county with a
population of 3,000,000 or more, the cannabis business
establishment receiving the cannabis is within 2,000 feet
of the property line of the craft grower;
(ii) If the craft grower is located in a county with a

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population of more than 700,000 but fewer than 3,000,000,
the cannabis business establishment receiving the cannabis
is within 2 miles of the craft grower; or
(iii) If the craft grower is located in a county with a
population of fewer than 700,000, the cannabis business
establishment receiving the cannabis is within 15 miles of
the craft grower.
(l) A craft grower may enter into a contract with a
transporting organization to transport cannabis to a
cultivation center, a craft grower, an infuser organization, a
dispensing organization, or a laboratory.
(m) No person or entity shall hold any legal, equitable,
ownership, or beneficial interest, directly or indirectly, of
more than 3 craft grower licenses. Further, no person or
entity that is employed by, an agent of, or has a contract to
receive payment from or participate in the management of a
craft grower, is a principal officer of a craft grower, or
entity controlled by or affiliated with a principal officer of
a craft grower shall hold any legal, equitable, ownership, or
beneficial interest, directly or indirectly, in a craft grower
license that would result in the person or entity owning or
controlling in combination with any craft grower, principal
officer of a craft grower, or entity controlled or affiliated
with a principal officer of a craft grower by which he, she, or
it is employed, is an agent of, or participates in the
management of more than 3 craft grower licenses.

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(n) It is unlawful for any person having a craft grower
license or any officer, associate, member, representative, or
agent of the licensee to offer or deliver money, or anything
else of value, directly or indirectly, to any person having an
Early Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Program Act, or to any
person connected with or in any way representing, or to any
member of the family of, the person holding an Early Approval
Adult Use Dispensing Organization License, a Conditional Adult
Use Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Program Act, or to any stockholders in any
corporation engaged in the retail sale of cannabis, or to any
officer, manager, agent, or representative of the Early
Approval Adult Use Dispensing Organization License, a
Conditional Adult Use Dispensing Organization License, an
Adult Use Dispensing Organization License, or a medical
cannabis dispensing organization license issued under the
Compassionate Use of Medical Cannabis Program Act to obtain
preferential placement within the dispensing organization,
including, without limitation, on shelves and in display cases
where purchasers can view products, or on the dispensing

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organization's website.
(o) A craft grower shall not be located within 1,500 feet
of another craft grower or a cultivation center.
(p) A craft grower may process cannabis, cannabis
concentrates, and cannabis-infused products.
(q) A craft grower must comply with any other requirements
or prohibitions set by administrative rule of the Department
of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5-13-22.)
(410 ILCS 705/35-31)
Sec. 35-31. Ensuring an adequate supply of raw materials
to serve infusers.
(a) As used in this Section, "raw materials" includes, but
is not limited to, CO2 hash oil, "crude", "distillate", or any
other cannabis concentrate extracted from cannabis flower by
use of a solvent or a mechanical process.
(b) The Department of Agriculture may by rule design a
method for assessing whether licensed infusers have access to
an adequate supply of reasonably affordable raw materials,
which may include but not be limited to: (i) a survey of
infusers; (ii) a market study on the sales trends of
cannabis-infused products manufactured by infusers; and (iii)
the costs cultivation centers and craft growers assume for the

SB1723 - 31 - LRB103 28854 CPF 55239 b
raw materials they use in any cannabis-infused products they
manufacture.
(b-5) Each adult use cultivation center or Early Approval
Adult Use Cultivation Center License holder licensed under
Article 20 that produces THC oil extract shall set aside a
portion of its total monthly production of THC oil extract to
sell to infuser organizations at market price, quality, and
variety to provide infuser organizations with an adequate
supply for their infusion processes. The portion set aside by
each cultivation center or Early Approval Adult Use
Cultivation Center License holder shall be on a proportionate,
pro rata basis and based upon its total monthly production
compared to the industry total monthly production in the
previous year as determined by the Department of Agriculture.
The total monthly portion of THC oil extract set aside by all
cultivation centers and Early Approval Adult Use Cultivation
Center License holders shall be as follows:
(1) During calendar year 2023, 50,000 grams per month.
(2) During calendar year 2024, 60,000 grams per month.
(3) During calendar year 2025, 70,000 grams per month.
(4) During calendar year 2026, 80,000 grams per month.
(5) During calendar year 2027, 90,000 grams per month.
The price of THC oil extract shall be the average fair
market price as determined quarterly by the Department of
Agriculture or an amount equal to 900% of the U.S. Cannabis
Spot Index's price for cannabis flower if, during any quarter,

SB1723 - 32 - LRB103 28854 CPF 55239 b
the Department fails to establish a fair market price based
upon quality and variety. After January 1, 2024, the monthly
portion of THC oil extract may be adjusted by the Department of
Agriculture based upon market assessments as provided in
subsections (c) and (d).
(c) The Department of Agriculture shall perform an
assessment of whether infusers have access to an adequate
supply of reasonably affordable raw materials that shall start
no sooner than January 1, 2022 and shall conclude no later than
April 1, 2022. The Department of Agriculture may rely on data
from the Illinois Cannabis Regulation Oversight Officer as
part of this assessment.
(d) The Department of Agriculture shall perform an
assessment of whether infusers have access to an adequate
supply of reasonably affordable raw materials that shall start
no sooner than January 1, 2025 2023 and shall conclude no later
than April 1, 2025 2023. The Department of Agriculture may
rely on data from the Cannabis Regulation Oversight Officer as
part of this assessment.
(e) The Department of Agriculture may by rule adopt
measures to ensure infusers have access to an adequate supply
of reasonably affordable raw materials necessary for the
manufacture of cannabis-infused products. Such measures may
include, but not be limited to (i) requiring cultivation
centers and craft growers to set aside a minimum amount of raw
materials for the wholesale market or (ii) enabling infusers

SB1723 - 33 - LRB103 28854 CPF 55239 b
to apply for a processor license to extract raw materials from
cannabis flower.
(f) If the Department of Agriculture determines processor
licenses may be available to infuser organizations based upon
findings made pursuant to subsection (e), infuser
organizations may submit to the Department of Agriculture on
forms provided by the Department of Agriculture the following
information as part of an application to receive a processor
license:
(1) experience with the extraction, processing, or
infusing of oils similar to those derived from cannabis,
or other business practices to be performed by the
infuser;
(2) a description of the applicant's experience with
manufacturing equipment and chemicals to be used in
processing;
(3) expertise in relevant scientific fields;
(4) a commitment that any cannabis waste, liquid
waste, or hazardous waste shall be disposed of in
accordance with 8 Ill. Adm. Code 1000.460, except, to the
greatest extent feasible, all cannabis plant waste will be
rendered unusable by grinding and incorporating the
cannabis plant waste with compostable mixed waste to be
disposed of in accordance with Ill. Adm. Code
1000.460(g)(1); and
(5) any other information the Department of

SB1723 - 34 - LRB103 28854 CPF 55239 b
Agriculture deems relevant.
(g) The Department of Agriculture may only issue an
infuser organization a processor license if, based on the
information pursuant to subsection (f) and any other criteria
set by the Department of Agriculture, which may include but
not be limited an inspection of the site where processing
would occur, the Department of Agriculture is reasonably
certain the infuser organization will process cannabis in a
safe and compliant manner.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(410 ILCS 705/40-25)
Sec. 40-25. Transporting organization requirements;
prohibitions.
(a) The operating documents of a transporting organization
shall include procedures for the oversight of the transporter,
an inventory monitoring system including a physical inventory
recorded weekly, accurate recordkeeping, and a staffing plan.
(b) A transporting organization may not transport cannabis
or cannabis-infused products to any person other than a
cultivation center, a craft grower, an infuser organization, a
dispensing organization, a testing facility, a transporting
organization depot or other transporting organization transfer
facility, or as otherwise authorized by rule. A transporting
organization shall be specifically allowed to use the same
transport vehicle to pick up or deliver cannabis products from

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and to multiple craft growers, processors, and dispensaries
during the transporting organization's pick up and delivery
process.
(c) All cannabis transported by a transporting
organization must be entered into a data collection system and
placed into a cannabis container for transport.
(d) Transporters are subject to random inspections by the
Department of Agriculture, the Department of Public Health,
the Illinois State Police, or as provided by rule.
(e) A transporting organization agent shall notify local
law enforcement, the Illinois State Police, and the Department
of Agriculture within 24 hours of the discovery of any loss or
theft. Notification shall be made by phone, in person, or by
written or electronic communication.
(f) No person under the age of 21 years shall be in a
commercial vehicle or trailer transporting cannabis goods.
(g) No person or individual who is not a transporting
organization agent shall be in a vehicle while transporting
cannabis goods.
(h) Transporters may not use commercial motor vehicles
with a weight rating of over 10,001 pounds.
(i) It is unlawful for any person to offer or deliver
money, or anything else of value, directly or indirectly, to
any of the following persons to obtain preferential placement
within the dispensing organization, including, without
limitation, on shelves and in display cases where purchasers

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can view products, or on the dispensing organization's
website:
(1) a person having a transporting organization
license, or any officer, associate, member,
representative, or agent of the licensee;
(2) a person having an Early Applicant Adult Use
Dispensing Organization License, an Adult Use Dispensing
Organization License, or a medical cannabis dispensing
organization license issued under the Compassionate Use of
Medical Cannabis Program Act;
(3) a person connected with or in any way
representing, or a member of the family of, a person
holding an Early Applicant Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization
license issued under the Compassionate Use of Medical
Cannabis Program Act; or
(4) a stockholder, officer, manager, agent, or
representative of a corporation engaged in the retail sale
of cannabis, an Early Applicant Adult Use Dispensing
Organization License, an Adult Use Dispensing Organization
License, or a medical cannabis dispensing organization
license issued under the Compassionate Use of Medical
Cannabis Program Act.
(j) A transporting organization agent must keep his or her
identification card visible at all times when on the property

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of a cannabis business establishment and during the
transporting of cannabis when acting under his or her duties
as a transportation organization agent. During these times,
the transporting organization agent must also provide the
identification card upon request of any law enforcement
officer engaged in his or her official duties.
(k) A copy of the transporting organization's registration
and a manifest for the delivery shall be present in any vehicle
transporting cannabis.
(l) Cannabis shall be transported so it is not visible or
recognizable from outside the vehicle.
(m) A vehicle transporting cannabis must not bear any
markings to indicate the vehicle contains cannabis or bear the
name or logo of the cannabis business establishment.
(n) Cannabis must be transported in an enclosed, locked
storage compartment or security cage that is secured or
affixed to the vehicle.
(o) The Department of Agriculture may, by rule, impose any
other requirements or prohibitions on the transportation of
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 705/60-10)
Sec. 60-10. Tax imposed.

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(a) Beginning September 1, 2019, a tax is imposed upon the
privilege of cultivating cannabis at the rate of 7% of the
gross receipts from the first sale of cannabis by a
cultivator. The sale of any product that contains any amount
of cannabis or any derivative thereof is subject to the tax
under this Section on the full selling price of the product.
The Department may determine the selling price of the cannabis
when the seller and purchaser are affiliated persons, when the
sale and purchase of cannabis is not an arm's length
transaction, or when cannabis is transferred by a craft grower
to the craft grower's dispensing organization or infuser or
processing organization and a value is not established for the
cannabis. The value determined by the Department shall be
commensurate with the actual price received for products of
like quality, character, and use in the area. If there are no
sales of cannabis of like quality, character, and use in the
same area, then the Department shall establish a reasonable
value based on sales of products of like quality, character,
and use in other areas of the State, taking into consideration
any other relevant factors.
(a-5) The tax imposed under this Article shall not be
assessed against or collected from any craft grower awarded a
craft grower license under this Act until 2 years after the
date that the license is awarded to the craft grower.
(b) The Cannabis Cultivation Privilege Tax imposed under
this Article is solely the responsibility of the cultivator

SB1723 - 39 - LRB103 28854 CPF 55239 b
who makes the first sale and is not the responsibility of a
subsequent purchaser, a dispensing organization, or an
infuser. Persons subject to the tax imposed under this Article
may, however, reimburse themselves for their tax liability
hereunder by separately stating reimbursement for their tax
liability as an additional charge.
(c) The tax imposed under this Article shall be in
addition to all other occupation, privilege, or excise taxes
imposed by the State of Illinois or by any unit of local
government.
(Source: P.A. 101-27, eff. 6-25-19.)