Bill Text: IL SB3480 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-06-26 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB3480 Detail]

Download: Illinois-2023-SB3480-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3480 Introduced 2/8/2024, by Sen. Adriane Johnson SYNOPSIS AS INTRODUCED:
410 ILCS 130/115
410 ILCS 705/1-10
410 ILCS 705/7-1
Amends the Compassionate Use of Medical Cannabis Program Act. Provides that the Department of Financial and Professional Regulation shall adopt rules to create a registration process for Adult Use Dispensing Organization Social Equity Licenses, as defined in the Cannabis Regulation and Tax Act, to sell cannabis under the Act. Provides that the registration process shall be available to all Adult Use Dispensing Organization Social Equity Licenses within 30 days of the issuance of the Adult Use Dispensing Organization Social Equity License. Amends the Cannabis Regulation and Tax Act. Defines "Adult Use Dispensing Organization Social Equity License". In the findings provisions of the Social Equity in the Cannabis Industry Article of the Act, provides that the General Assembly also finds and recognizes that the dispensaries established under the Compassionate Use of Medical Cannabis Program Act enacted in 2014 have inadvertently placed those dispensaries with an Adult Use Dispensing Organization Social Equity License at a competitive disadvantage. Provides that this competitive imbalance stems primarily from the established dispensaries' existing market presence and their capacity to sell cannabis to a well-established medical patient base at lower prices, a benefit derived from the exemption of certain taxes applicable to medical cannabis sales.
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A BILL FOR
SB3480 LRB103 38152 RLC 68285 b
AN ACT concerning health.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Compassionate Use of Medical Cannabis
Program Act is amended by changing Section 115 as follows:
(410 ILCS 130/115)
Sec. 115. Registration of dispensing organizations.
(a) The Department of Financial and Professional
Regulation may issue up to 60 dispensing organization
registrations for operation. The Department of Financial and
Professional Regulation may not issue less than the 60
registrations if there are qualified applicants who have
applied with the Department of Financial and Professional
Regulation. The organizations shall be geographically
dispersed throughout the State to allow all registered
qualifying patients reasonable proximity and access to a
dispensing organization.
(a-5) The Department of Financial and Professional
Regulation shall adopt rules to create a registration process
for Social Equity Justice Involved Applicants and Qualifying
Applicants, a streamlined application, and a Social Equity
Justice Involved Medical Lottery under Section 115.5 to issue
the remaining available 5 dispensing organization

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registrations for operation.
(a-6) The Department of Financial and Professional
Regulation shall adopt rules to create a registration process
for Adult Use Dispensing Organization Social Equity Licenses,
as defined in the Cannabis Regulation and Tax Act, to sell
cannabis under this Act. The registration process shall be
available to all Adult Use Dispensing Organization Social
Equity Licenses within 30 days of the issuance of the Adult Use
Dispensing Organization Social Equity License.
For purposes of this Section:
"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
Assistance Program; or
(D) the area has an average unemployment rate, as
determined by the Illinois Department of Employment

SB3480 - 3 - LRB103 38152 RLC 68285 b
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 sale, possession, use,
cultivation, manufacture, or transport of cannabis.
"Qualifying Applicant" means an applicant that: (i)
submitted an application pursuant to Section 15-30 of the
Cannabis Regulation and Tax Act that received at least 85% of
250 application points available under Section 15-30 of the
Cannabis Regulation and Tax Act as the applicant's final
score; (ii) received points at the conclusion of the scoring
process for meeting the definition of a "Social Equity
Applicant" as set forth under the Cannabis Regulation and Tax
Act; and (iii) is an applicant that did not receive a
Conditional Adult Use Dispensing Organization License through
a Qualifying Applicant Lottery pursuant to Section 15-35 of
the Cannabis Regulation and Tax Act or any Tied Applicant
Lottery conducted under the Cannabis Regulation and Tax Act.
"Social Equity Justice Involved Applicant" means an
applicant that is an Illinois resident and one of the
following:
(1) an applicant with at least 51% ownership and
control by one or more individuals who have resided for at

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least 5 of the preceding 10 years in a Disproportionately
Impacted Area;
(2) an applicant with at least 51% of ownership and
control by one or more 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) an applicant with at least 51% ownership and
control by one or more members of an impacted family.
(b) A dispensing organization may only operate if it has
been issued a registration from the Department of Financial
and Professional Regulation. The Department of Financial and
Professional Regulation shall adopt rules establishing the
procedures for applicants for dispensing organizations.
(c) When applying for a dispensing organization
registration, the applicant shall submit, at a minimum, the
following in accordance with Department of Financial and
Professional Regulation rules:
(1) a non-refundable application fee established by
rule;
(2) the proposed legal name of the dispensing
organization;
(3) the proposed physical address of the dispensing
organization;
(4) the name, address, and date of birth of each
principal officer and board member of the dispensing

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organization, provided that all those individuals shall be
at least 21 years of age;
(5) (blank);
(6) (blank); and
(7) (blank).
(d) The Department of Financial and Professional
Regulation shall conduct a background check of the prospective
dispensing organization agents in order to carry out this
Section. The Department of State Police shall charge a fee for
conducting the criminal history record check, which shall be
deposited in the State Police Services Fund and shall not
exceed the actual cost of the record check. Each person
applying as a dispensing organization agent shall submit a
full set of fingerprints to the Department of State Police for
the purpose of obtaining a State and federal criminal records
check. These fingerprints shall be checked against the
fingerprint records now and hereafter, to the extent allowed
by law, filed in the Department of State Police and Federal
Bureau of Investigation criminal history records databases.
The Department of State Police shall furnish, following
positive identification, all Illinois conviction information
to the Department of Financial and Professional Regulation.
(e) A dispensing organization must pay a registration fee
set by the Department of Financial and Professional
Regulation.
(f) An application for a medical cannabis dispensing

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organization registration must be denied if any of the
following conditions are met:
(1) the applicant failed to submit the materials
required by this Section, including if the applicant's
plans do not satisfy the security, oversight, or
recordkeeping rules issued by the Department of Financial
and Professional Regulation;
(2) the applicant would not be in compliance with
local zoning rules issued in accordance with Section 140;
(3) the applicant does not meet the requirements of
Section 130;
(4) one or more of the prospective principal officers
or board members has been convicted of an excluded
offense;
(5) one or more of the prospective principal officers
or board members has served as a principal officer or
board member for a registered medical cannabis dispensing
organization that has had its registration revoked; and
(6) one or more of the principal officers or board
members is under 21 years of age.
(Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
Section 10. The Cannabis Regulation and Tax Act is amended
by changing Sections 1-10 and 7-1 as follows:
(410 ILCS 705/1-10)

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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.
"Adult Use Dispensing Organization Social Equity License"
means a license issued by the Department of Financial and
Professional Regulation to a Qualified Social Equity Applicant
with current Ownership and Control that permits a person to
act as a dispensing organization under this Act and any
administrative rule made in furtherance of this Act and the
Compassionate Use of Medical Cannabis Program 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

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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
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

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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
transportation.
"Cannabis flower" means marijuana, hashish, and other
substances that are identified as including any parts of the

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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
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

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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
meets certain conditions described in this Act, but does not
entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products.

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"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 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

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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.
"Dispensary Applicant" means the Proposed Dispensing
Organization Name as stated on an application for a
Conditional Adult Use Dispensing Organization License.

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"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
Economic Opportunity, that:
(1) meets at least one of the following criteria:
(A) the area has a poverty rate of at least 20%

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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
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

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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
business establishment or acting pursuant to this Act to
cultivate, process, store, or distribute cannabis.
"Enclosed, locked space" means a closet, room, greenhouse,

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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
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

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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
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

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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
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

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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
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.

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"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
incorporate cannabis or cannabis concentrate into a product
formulation to produce a cannabis product.
"Processing organization agent" means a principal officer,

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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.
"Resided" means an individual's primary residence was
located within the relevant geographic area as established by
2 of the following:

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(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
control by one or more individuals who:
(i) have been arrested for, convicted of, or
adjudicated delinquent for any offense that is

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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.
"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

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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
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.

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"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
(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 705/7-1)
Sec. 7-1. Findings.
(a) The General Assembly finds that the medical cannabis
industry, established in 2014 through the Compassionate Use of
Medical Cannabis Program Act, has shown that additional
efforts are needed to reduce barriers to ownership. Through
that program, 55 licenses for dispensing organizations and 20
licenses for cultivation centers have been issued. Those
licenses are held by only a small number of businesses, the

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ownership of which does not sufficiently meet the General
Assembly's interest in business ownership that reflects the
population of the State of Illinois and that demonstrates the
need to reduce barriers to entry for individuals and
communities most adversely impacted by the enforcement of
cannabis-related laws.
(b) In the interest of establishing a legal cannabis
industry that is equitable and accessible to those most
adversely impacted by the enforcement of drug-related laws in
this State, including cannabis-related laws, the General
Assembly finds and declares that a social equity program
should be established.
(c) The General Assembly also finds and declares that
individuals who have been arrested or incarcerated due to drug
laws suffer long-lasting negative consequences, including
impacts to employment, business ownership, housing, health,
and long-term financial well-being.
(d) The General Assembly also finds and declares that
family members, especially children, and communities of those
who have been arrested or incarcerated due to drug laws,
suffer from emotional, psychological, and financial harms as a
result of such arrests or incarcerations.
(e) Furthermore, the General Assembly finds and declares
that certain communities have disproportionately suffered the
harms of enforcement of cannabis-related laws. Those
communities face greater difficulties accessing traditional

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banking systems and capital for establishing businesses.
(f) The General Assembly also finds that individuals who
have resided in areas of high poverty suffer negative
consequences, including barriers to entry in employment,
business ownership, housing, health, and long-term financial
well-being.
(g) The General Assembly also finds and declares that
promotion of business ownership by individuals who have
resided in areas of high poverty and high enforcement of
cannabis-related laws furthers an equitable cannabis industry.
(g-1) The General Assembly also finds and recognizes that
the dispensaries established under the Compassionate Use of
Medical Cannabis Program Act enacted in 2014 have
inadvertently placed those dispensaries with an Adult Use
Dispensing Organization Social Equity License at a competitive
disadvantage. This competitive imbalance stems primarily from
the established dispensaries' existing market presence and
their capacity to sell cannabis to a well-established medical
patient base at lower prices, a benefit derived from the
exemption of certain taxes applicable to medical cannabis
sales.
(h) Therefore, in the interest of remedying the harms
resulting from the disproportionate enforcement of
cannabis-related laws, the General Assembly finds and declares
that a social equity program should offer, among other things,
financial assistance and license application benefits to

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