Bill Text: IL SB3926 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-10 - Referred to Assignments [SB3926 Detail]

Download: Illinois-2023-SB3926-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3926 Introduced 4/10/2024, by Sen. Kimberly A. Lightford SYNOPSIS AS INTRODUCED:
New Act
5 ILCS 100/5-45.55 new
410 ILCS 705/1-10
410 ILCS 705/5-11 new
410 ILCS 705/15-35.5 new
410 ILCS 705/15-35.11 new
410 ILCS 705/15-155
410 ILCS 705/20-60 new
410 ILCS 705/35-22 new
410 ILCS 705/55-35
505 ILCS 89/5
505 ILCS 89/20
815 ILCS 505/2Z from Ch. 121 1/2, par. 262Z
Creates the Hemp Consumer Products Act. Creates a hemp consumer product retailer license and a hemp consumer products processor license. Sets forth provisions concerning definitions; applications; licensure; marketing and sale of hemp consumer products; labeling; transportation of hemp; testing requirements; penalties; the administration and enforcement of the Act and rulemaking, including emergency rulemaking, by the Department of Agriculture; and other matters. Amends the Cannabis Regulation and Tax Act. Creates the Intoxicating Hemp-Derived THC Consumer Products Safety Committee. Requires the Committee to produce a report with recommendations on appropriate consumer safety standards and requires certain Departments to provide legislative recommendations to establish a regulatory and enforcement framework for hemp-derived THC products. Authorizes the issuance of an additional 50 Conditional Adult Use Dispensing Organization Licenses and an additional 50 Conditional Infuser Organization Licenses. Provides that a violation of provisions concerning unlicensed practice is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Sets forth penalties for unlicensed practice as a cultivation center, infuser, or craft grower. Makes other changes. Amends the Illinois Administrative Procedure Act, the Industrial Hemp Act, and the Consumer Fraud and Deceptive Business Practices Act to make conforming changes. Effective immediately.
LRB103 40218 CES 72109 b
A BILL FOR
SB3926 LRB103 40218 CES 72109 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the Hemp
Consumer Products Act.
Section 5. Definitions. In this Act:
"Accreditation body" means an impartial non-profit
organization that operates in conformance with the
International Organization for Standardization
(ISO)/International Electrotechnical Commission (IEC)
standard 17011 and is a signatory to the International
Laboratory Accreditation Cooperation (ILAC) Mutual Recognition
Arrangement (MRA) for Testing.
"Artificially derived cannabinoid" means a cannabinoid
that is created by a chemical reaction that changes the
molecular structure of any chemical substance derived from
Cannabis sativa.
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Hemp consumer product" means a product offered for sale
or distribution that:
(1) contains naturally occurring hemp
phytocannabinoids;

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(2) is intended for consumption by any means,
including, but not limited to, oral ingestion, inhalation,
smoking, or topical absorption;
(3) contains a total tetrahydrocannabinol
concentration of no greater than:
(a) 0.3% for any intermediate or finished plant
product or material, or any hemp consumer product
intended for consumption by inhalation or smoking; or
(b) 0.5 milligrams per serving or individual
product unit, and 2 milligrams per package for
products sold in multiple servings or units, for any
beverage, food, oil, ointment, tincture, topical
formation, or any other product that is intended for
human consumption by means other than inhalation or
smoking; and
(4) contains an amount of total hemp cannabinoid
concentration that is at least 25 times greater than the
amount of total tetrahydrocannabinol concentration per
serving and per package.
"Hemp cannabinoid" means a naturally occurring
phytocannabinoid derived from the hemp plant that does not
have an intoxicating effect on the mind and body, as
determined by the Department by rule, including:
(1) cannabidiol (CBD);
(2) cannabichromene (CBC);
(3) cannabicitran (CBT);

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(4) cannabicyclol (CBL);
(5) cannabielsoin (CBE);
(6) cannabigerol (CBG);
(7) cannabidivarin (CBDV); or
(8) cannabinol (CBN).
"Hemp consumer products processor" means a person or
entity licensed to source industrial hemp plant material from
a licensed hemp cultivator, and process, manufacture, and
distribute finished hemp consumer products to hemp consumer
products retailers under the product forms, product standards,
limits, packaging, labeling, minimum testing, and other
requirements under this Act and the rules and guidance
established by the Department.
"Hemp consumer products retailer" means a person or entity
licensed to sell finished hemp consumer products to consumers
under the product forms, product standards, limits, packaging,
labeling, minimum testing, and other requirements set forth
under this Act and under rules and guidance established by the
Department.
"Scope of accreditation" means a document issued by an
accreditation body that attests to the laboratory's competence
to carry out specific testing and analysis.
"Synthetic cannabinoid" means a cannabinoid-like compound
that was produced using chemical synthesis, chemical
modification, or chemical conversion, including in vitro
biosynthesis or other bioconversion of such a method.

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Synthetic cannabinoids include the conversion of cannabinoids
from one chemical structure to another, such as
tetrahydrocannabinol that was produced by the conversion of
cannabidiol.
"Testing laboratory" means an independent, third-party
laboratory, contracted by a licensee to test hemp consumer
products.
"Tetrahydrocannabinol" or "THC" means any naturally
occurring or synthetic tetrahydrocannabinol, including its
salts, isomers, and salts of isomers whenever the existence of
such salts, isomers, and salts of isomers is possible within
the specific chemical designation and any preparation,
mixture, or substance containing, or mixed or infused with,
any detectable amount of tetrahydrocannabinol or
tetrahydrocannabolic acid, including, but not limited to,
delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,
tetrahydrocannabipherol, or hexahydrocannabinol, however
derived, or any other substance determined to have similar
intoxicating effects on the mind or body by the Department.
For the purposes of this definition, "isomer" means the
optical, position, and geometric isomers.
Section 10. Prohibitions.
(a) No person shall process, manufacture, label,
distribute for sale, sell, offer for sale, market, or

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advertise any hemp consumer product within this State without
obtaining a license under this Act.
(b) No licensee may convert or concentrate cannabinoids to
create isomers of THC, however derived.
(c) No licensee may sell hemp consumer products that were
created using the conversion or concentration of cannabinoids
to create isomers of THC, however derived.
(d) No licensee shall process, manufacture, distribute for
sale, sell, offer for sale, market, or advertise any hemp
consumer product unless the product complies with the
labeling, packaging, minimum testing, and other requirements
of this Act and any administrative rules adopted by the
Department.
(e) A product that has a THC concentration greater than
the limits set forth for hemp consumer products as defined in
this Act shall be regulated as cannabis as defined in the
Cannabis Regulation and Tax Act, whether or not the product is
made with or derived from hemp, industrial hemp, or derived
from natural or synthetic sources.
(f) No product intended for consumption by any means that
is derived from hemp or marketed as hemp shall be distributed
for sale, offered for sale, or sold to a consumer within this
State unless it meets the minimum requirements of this Act.
Section 15. Applications and licensing.
(a) The Department shall create applicable rules,

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guidance, and forms for licensing of hemp consumer products
retailers and hemp consumer products processors.
(b) An application for licensure shall be submitted to the
Department on a form prescribed by the Department, which shall
include:
(1) the name, address, and telephone number of the
applicant;
(2) identification of all real property, buildings,
and facilities that will be used for the processing,
manufacturing, distribution, or retail sale of hemp, as
applicable;
(3) the days and hours of operation;
(4) the federal employer identification number of the
applicant;
(5) for applicants that intend to extract hemp into
hemp consumer products:
(A) identification of all extraction methods that
will be used to carry out the extraction; and
(B) evidence of Good Manufacturing Practices used
in the extraction of hemp and manufacturing of hemp
consumer products, including proof of a qualified
third-party Good Manufacturing Practices audit;
(6) a copy and description of any other license or
licenses issued by state or federal authorities related to
hemp or cannabis operations or ancillary services;
(7) a summary of the sources of industrial, hemp

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materials, hemp consumer products, and hemp extract to be
used, as applicable;
(8) types of hemp consumer products to be manufactured
or sold, and an attestation that all hemp consumer
products will be manufactured or sold in conformance with
this Act and rules and guidelines adopted by the
Department;
(9) an attestation that the applicant's standard
operating procedures will incorporate any language or
requirements provided by the Department to adequately
address quality assurance, security, and a plan to ensure
all hemp and hemp extract obtained meets the requirements
of this Act and rules adopted by the Department;
(10) a description of any other businesses or business
activities conducted on the premises to be licensed;
(11) copies of the organizational documents of the
applicant;
(12) identification of the person or persons with the
ability to direct the activity of the applicant or
licensee, including principals, officers, or others with
such control; and
(13) any other information required by the Department.
(c) Prior to submission, applicants shall verify the truth
and veracity of the information contained in the application.
(d) The Department may reject or deny an application if it
determines that the information contained therein is

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incomplete, false, inaccurate, or omits a material fact.
(e) Applications require a non-refundable application fee
of $1,000 for hemp consumer product processors and $100 for
hemp consumer products retailers.
(f) Licenses shall not be transferable or assignable
without prior written approval of the Department including,
without limitation, to another licensee.
(g) Applications are valid for a period of one year and
must be renewed annually.
(i) An application to renew any license issued under this
Act shall be filed with the Department not more than 90 days
nor less than 30 days prior to the expiration thereof. If a
renewal application is not filed at least 30 days prior to the
expiration thereof, the Department may determine that the
license shall expire and become void on such expiration date.
(h) The Department may revoke any license issued under
this Act for failure to adhere to the requirements of this Act
and the rules adopted by the Department.
(i) Hemp consumer products retailer applicants who submit
a completed application to the Department on or before October
1, 2024 may sell hemp consumer products at retail to consumers
before having a license approved or denied by the Department
so long as the hemp consumer products retail applicant adheres
to all requirements of this Act while the application is under
review.
(1) Upon approval, the hemp consumer products retailer

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may continue to operate in accordance with this Act.
(2) If denied, applicants shall cease to operate as a
hemp consumer products retailer and processor, unless and
until the applicant is later awarded and issued a license
by the Department.
Section 20. Requirements for hemp consumer products
licensees.
(a) The Department shall license and regulate hemp
consumer products processors for the purpose of allowing
processors to obtain and source lawful industrial hemp and
hemp plant materials for manufacturing and processing finished
hemp consumer products in accordance with this Act.
(b) All hemp consumer products processors shall:
(1) extract hemp extract or manufacture hemp consumer
products to Good Manufacturing Practices standards, and
maintain a qualified third-party certification to the
satisfaction of the Department, for the applicable Good
Manufacturing Practices standard or standards for the
duration of the license;
(2) maintain standard operating procedures and quality
control standards to ensure consistency of hemp extract or
hemp consumer products, including, but not limited to,
product purity, strength, and composition;
(3) maintain sufficient records to demonstrate that
any hemp or hemp extract used by the licensee was grown,

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derived, extracted, and transported in accordance with
applicable laws and licensing requirements of the
jurisdiction or jurisdictions from which such hemp or hemp
extract was sourced;
(A) such records shall include any pesticides used
in the growing of such hemp, the dates each shipment
was received, adequate chain of custody to demonstrate
from whom the licensee purchased such hemp or hemp
extract, and certificates of analysis;
(B) for hemp received from an out-of-state grower,
processors shall also maintain records of the
out-of-state grower registration or license number in
the respective jurisdiction;
(4) keep all designated extracting and manufacturing
areas safe and sanitary, including, but not limited to,
ensuring that those areas are adequately lit, cleaned, and
smoke-free and that no food is consumed in those areas;
(5) provide all employees performing extraction or
manufacturing with adequate training and proper safety
equipment;
(6) manufacture hemp consumer products in accordance
with the product forms, limits, and other requirements of
this Act;
(7) test a statistically significant number of hemp
consumer products per lot or batch at a third-party
testing laboratory meeting all the requirements in this

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Act and maintain a certificate of analysis for all samples
tested;
(8) maintain sufficient records pertaining to the
calibration and inspection of instruments used in
extraction and manufacturing of hemp consumer products;
(9) report, in a frequency and manner prescribed by
the Department, the total production and sales of the
licensee during the reporting period;
(10) ensure the security of the licensed premises to
prevent unauthorized individuals from entering the
facility and to prevent hemp extract or hemp consumer
products from being diverted from the facility;
(11) not use, in the extraction or manufacturing of
any hemp consumer products, synthetic cannabinoids,
artificially derived cannabinoids, or
tetrahydrocannabinol created through isomerization;
(12) assign a lot or batch number to each lot of hemp
extract or hemp consumer product that is extracted or
manufactured by a licensee;
(13) maintain records to document and track any
tetrahydrocannabinol extracted from hemp or found within
hemp extract throughout the extraction and manufacturing
process, including records pertaining to the amount used
in hemp consumer products and the disposal of all hemp
extract, tetrahydrocannabinol, or by-product; and
(14) maintain any and all records required by this Act

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for at least 3 years and immediately produce such records
upon request of the Department.
(c) The Department shall license and regulate hemp
consumer products retailers for the purpose of allowing
consumers to obtain and source lawful finished hemp consumer
products, subject to minimum consumer protection safeguards
for sale to consumers in accordance with this Act.
(d) All hemp consumer products retailers shall:
(1) only sell hemp consumer products manufactured,
packaged, labeled and tested in accordance with this Act;
(2) not sell, offer for sale, market, or advertise
cannabis, medical cannabis, or any product that exceeds
the THC limits set forth in this Act;
(3) market, advertise, or hold oneself out as
authorized to sell or dispense cannabis, medical cannabis,
or any product that exceeds the THC limits set forth in
this Act;
(4) post in a manner visible to consumers any and all
signs or posted placards required by the Department,
including posting of the hemp consumer products retailers
license issued by the Department, in a conspicuous
location on the premises of each retail location;
(5) maintain sufficient records of where hemp consumer
products were purchased from for the license period,
including the name of the hemp consumer processor and the
wholesaler or permitted distributor, as applicable; and

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(6) permit announced or unannounced inspections of any
retail location offering hemp consumer products. This
inspection may include taking samples of hemp consumer
products to ensure compliance with all the requirements of
this Act.
(e) All licensees under this Act shall:
(1) monitor complaints from hemp consumer retailers
and consumers and have a mechanism in place to notify the
licensee's supply chain to recall products when directed
by the Department;
(2) notify the Department within 24 hours after
learning of a serious adverse event; and
(3) ensure the proper disposal, beyond reclamation, of
any hemp extract or by-product from the extraction and
manufacture process with a total tetrahydrocannabinol
concentration greater than the THC limits established
under this Act for hemp consumer products. The disposal
shall render the hemp extract or by-product unusable for
any intoxicating purpose.
(f) The Department may conduct announced or unannounced
premises or product inspections, including, but not limited
to, inspection, sampling, and testing of hemp, hemp extract,
hemp consumer products, or any solvents, chemicals, or
materials used by the licensee.
Section 25. Hemp consumer products requirements.

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(a) All hemp consumer products manufactured, processed,
distributed, sold, or offered for sale in this State shall:
(1) be manufactured in accordance with this Act;
(2) be subject to the following minimum requirements:
(a) contain naturally occurring hemp
phytocannabinoids;
(B) be intended for consumption by any means,
including, but not limited to, oral ingestion,
inhalation, smoking, or topical absorption;
(C) contain a total tetrahydrocannabinol
concentration of no greater than:
(i) 0.3% for any intermediate or finished
plant product or material, or any hemp consumer
product intended for consumption by inhalation or
smoking; or
(ii) 0.5 milligrams per serving or individual
product unit, and 2 milligrams per package for
products sold in multiple servings or units, for
any beverage, food, oil, ointment, tincture,
topical formation, or any other product that is
intended for human consumption by means other than
inhalation or smoking;
(4) contain an amount of total hemp cannabinoid
concentration that is at least 25 times greater than
the amount of total tetrahydrocannabinol concentration
per serving and per package;

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(3) not contain liquor, wine, beer, or cider or meet
the definition of alcoholic liquor under the Liquor
Control Act of 1934;
(4) not contain tobacco or nicotine in the product;
(5) accurately reflect testing results and not contain
less than 90% or more than 110% of the concentration of
total cannabinoid content as listed on the product label;
(6) be prepackaged and not added to food or any other
consumable products at the point of sale;
(7) comply with product testing standards set forth in
this Act; and
(8) not contain synthetic cannabinoids, artificially
derived cannabinoids, or cannabinoids created through
isomerization, including tetrahydrocannabinol created
through isomerization.
(b) All concentrated hemp consumer products intended for
inhalation or vaporization shall meet the following additional
requirements:
(1) be a closed system with a prefilled disposable
cartridge that attaches to a rechargeable battery, or a
single-use product that cannot be recharged;
(2) electronic vaporization devices shall have
internal or external temperature controls to prevent
combustion and have a heating element made of inert
material, such as glass, ceramic, or stainless steel, and
not plastic or rubber;

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(3) except for hemp-derived terpenes, excipients and
ingredients must be pharmaceutical grade, unless otherwise
approved by the Department, and shall not include:
(A) synthetic terpenes;
(B) polyethylene glycol (PEG);
(C) vitamin E acetate;
(D) medium chain triglycerides (MCT oil);
(E) medicinal compounds;
(F) illegal or controlled substances;
(G) artificial food coloring;
(H) benzoic acid;
(I) diketones; or
(J) any other compound or ingredient as determined
by the Department in rules;
(4) not contain any flavors or flavoring agents,
except for hemp-derived terpenes; and
(5) include a Department-approved symbol, as set out
by rule, in a manner that is clear and conspicuous.
Section 30. Packaging and labeling of hemp consumer
products.
(a) All hemp consumer products distributed or offered for
retail sale in this State shall include the following
information on the product label or packaging:
(1) information that complies with the requirements in
21 CFR 101 and include a nutritional or supplement fact

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panel that is based on the number of servings within the
container;
(2) a list of all ingredients in descending order of
predominance by weight in the product;
(3) The serving size and number of servings per
package or container, including the milligrams per serving
of:
(A) individual hemp cannabinoids;
(B) total hemp cannabinoids;
(C) individual THC cannabinoids;
(D) total THC;
(E) any other cannabinoids;
(F) an expiration date;
(G) a lot or batch number;
(H) the name of the hemp processor, whether
in-state or out-of-state;
(I) a scannable QR code linked to download the
certificate of analysis and testing results for the
product;
(J) the state or country of origin from which the
hemp used in the product was sourced;
(K) a means for reporting serious adverse events;
and
(L) any other marking, statement, or symbol
required by the Department.
(b) No hemp consumer products offered for retail sale

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shall be made attractive to individuals under 21 years of age,
imitate a candy label, or use cartoons or other images
popularly used to advertise to children or otherwise be
marketed to individuals under 21 years of age.
(c) No hemp consumer product shall be marketed,
advertised, or offered for sale in a manner that would cause a
reasonable consumer:
(1) to be confused as to whether the hemp consumer
product is trademarked, marked or labeled in a manner that
violates any federal trademark law or regulation; or
(2) to believe that a hemp consumer product is
cannabis, or medical cannabis, or that a licensee is
authorized to sell or dispense cannabis or medical
cannabis, as those terms are defined in the Cannabis
Regulation and Tax Act or the Compassionate Use of Medical
Cannabis Program Act.
(d) All hemp consumer products offered for retail sale
shall include the following warnings on the product label or
packaging, in a manner that is clear and conspicuous:
(1) this product must be kept out of the reach of
children and pets;
(2) this product is derived from hemp and may contain
THC which could result in a failed drug test; except that
this warning may be omitted for hemp consumer products
that have a certificate of testing analysis demonstrating
0% THC concentration in the finished product;

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(3) this product has not been evaluated or approved by
the Food and Drug Administration for safety or efficacy;
(4) if you are pregnant or nursing you should consult
your health care provider before use;
(5) for hemp consumer products intended to be inhaled
or vaporized, a warning stating that smoking or vaping is
hazardous to your health; and
(6) any other warning required by the Department.
Section 35. Laboratory testing requirements for hemp
consumer products.
(a) The Department shall approve testing laboratories to
be contracted by licensees under this Act for testing of hemp
consumer products.
(b) All approved testing laboratories shall meet the
following minimum requirements:
(1) maintain ISO/IEC 17025 accreditation for the
premises and for the testing of one or more of the analytes
determined by the department;
(2) maintain a valid scope of accreditation, issued by
an accreditation body, that attests to the laboratory's
competence to perform testing of hemp consumer products;
(3) maintain method validation reports for all testing
performed;
(4) maintain standard operating procedures for the
sampling of hemp consumer products; and

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(5) maintain testing methodologies to ascertain the
presence of synthetic cannabinoids, artificially derived
cannabinoids, or cannabinoids created through
isomerization, including tetrahydrocannabinol created
through isomerization.
(c) Cannabinoid hemp products shall not be sold within
this State if hemp cannabinoid, THC, or other contaminants are
detected at levels greater than provided for by this Act or
rules or guidance adopted by the Department.
(d) Cannabinoid hemp products shall be considered
adulterated and shall not be sold within this State if there is
the presence of synthetic cannabinoids, artificially derived
cannabinoids, or cannabinoids created through isomerization,
including tetrahydrocannabinol created through isomerization.
(e) The Department may impose additional testing
requirements, including, but not limited to, testing for
additional analytes, setting stricter contaminant limits, and
mandating the use of specific sampling methodologies per lot
or batch manufactured.
(f) The Department shall make available a list of required
analytes, their acceptable limits, and approved testing
methods on the Department's website and in any other manner as
determined by the Department.
(g) The total tetrahydrocannabinol concentration for hemp
consumer products shall not exceed the limits established in
this Act.

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(h) If a hemp consumer product fails testing, the
processor may elect to reformulate the failing batch to reduce
the total tetrahydrocannabinol of the batch to comply with the
THC limits established by this Act. If the reformulated batch
still exceeds the THC limits, the processor shall destroy the
batch.
(i) If a hemp consumer product is found to contain levels
of any pathogen, toxicant, residual solvent, metal, or
pesticide not enumerated in this Section or by other State
law, then the product shall not be sold in this State.
Section 40. Advertising requirements. An advertisement for
a hemp consumer product, hemp consumer processor, or hemp
consumer retailer shall not:
(1) include any false or misleading statements,
images, or other content, including, but not limited to,
any health claims;
(2) contain claims that hemp consumption or a hemp
consumer product can, or is intended to, diagnose, cure,
mitigate, treat, or prevent disease;
(3) lead a reasonable consumer to believe that a hemp
consumer product is cannabis or medical cannabis,
including any product that exceeds the THC limits
established under this Act for lawful hemp consumer
products, or that a licensee is authorized to sell or
dispense cannabis or medical cannabis; or

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(4) have the purpose or effect of targeting or being
attractive to individuals under 21 years of age. The use
of images of children or minors consuming hemp consumer
products and the use of words, designs, or brands that
resemble products commonly associated with children,
minors, or marketed to children or minors, is prohibited.
Section 45. Lawful transport of industrial hemp, hemp, and
hemp materials.
(a) Nothing in this Act shall prohibit or interfere with
the lawful transport of industrial hemp, hemp materials, or
hemp products as authorized by the U.S. Department of
Agriculture and the U.S. Food and Drug Administration, and in
compliance with other federal law, regulation, or rule,
through the State of Illinois for delivery to an out-of-state
destination.
(b) No person shall transport industrial hemp, hemp, or
hemp materials within the State, unless the person is duly
authorized under federal law and regulation to transport hemp
and possesses a hemp manifest that includes the following
information:
(1) the name and address of the owner of the hemp;
(2) the point of origin;
(3) the point of delivery, including name and address;
(4) the kind and quantity of packages or, if in bulk,
the total quantity of hemp in the shipment; and

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(5) the date of shipment.
Section 50. Penalties.
(a) Licensees under this Act shall comply with all
applicable laws, rules, and regulations as it relates to such
licensure.
(b) Failure to comply with a requirement of this Act or
rules adopted by the Department may be punishable by a civil
penalty, as follows:
(1) a fine of up to $1,000 for a first violation;
(2) a fine up to $5,000 for a second violation within 3
years; or
(3) a fine of up to $10,000 for a third violation and
each subsequent violation thereafter within a 3-year
period.
(c) If a licensee willfully violates or refuses or
neglects to comply with one or more provisions of this Act, the
Department may limit, suspend, revoke, or annul a license
after providing notice and an opportunity for a hearing to the
licensee. However, a license may be temporarily limited,
suspended, revoked, or annulled without a hearing for a period
not to exceed 30 days, upon notice to the licensee, following a
finding by the Department that the public health, safety, or
welfare is in imminent danger.
(d) A licensee who negligently violates this Act 3 times
in a 5-year period shall be ineligible to process or sell

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cannabinoid hemp for a period of 5 years beginning on the date
of the third violation. The Department may reduce the
suspension for good cause shown.
Section 55. Administration and enforcement; rules;
emergency rules; inspections.
(a) The Department shall administer and enforce this Act
and may adopt rules under the Illinois Administrative
Procedure Act for the purpose of administering and enforcing
this Act.
(b) The Department shall develop rules setting forth
labeling, packaging, and minimum testing requirements of
cannabinoid products.
(c) In order to provide for the expeditious and timely
implementation of the provisions of this Act, the Department
may adopt emergency rules in accordance with Section 5-45 of
the Illinois Administrative Procedure Act to the extent
necessary to administer the Department's responsibilities
under this Act. The adoption of emergency rules authorized by
this subsection (c) is deemed to be necessary for the public
interest, safety, and welfare to regulate consumer safety over
hemp consumer products.
(d) The Department of Public Health, local health
departments, the Illinois State Police, local sheriff's
departments, municipal police departments, and the Department
of Revenue may inspect any business that manufactures,

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processes, or offers for sale cannabinoid products in the
State if a formal complaint is registered with the appropriate
agency in order to ensure compliance with this Act. The
Department may inspect any business that manufactures,
processes, or offers for sale cannabinoid products in the
State to ensure compliance with this Act. The Department may
enter into interagency agreements to regulate and enforce this
Act and any rules or guidance adopted or promulgated.
Section 60. Publishing information. The Department shall
make available to the public complaints about hemp consumer
products or other cannabinoid products in violation of this
Act, information regarding a pending administrative hearing or
court case under this Act, or any disciplinary action taken
against a cannabinoid product manufacturer, processor, or
seller.
Section 65. Temporary restraining order or injunction. The
Director, through the Attorney General or any unit of local
government, may file a complaint and apply to the circuit
court for, and the court upon hearing and for cause shown may
grant, a temporary restraining order or a preliminary or
permanent injunction restraining any person from violating
this Act.
Section 905. The Illinois Administrative Procedure Act is

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amended by adding Section 5-45.55 as follows:
(5 ILCS 100/5-45.55 new)
Sec. 5-45.55. Emergency rulemaking; Hemp Consumer Products
Act. To provide for the expeditious and timely implementation
of the Hemp Consumer Products Act, emergency rules
implementing the Hemp Consumer Products Act may be adopted in
accordance with Section 5-45 by the Department of Agriculture.
The adoption of emergency rules authorized by Section 5-45 and
this Section is deemed to be necessary for the public
interest, safety, and welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 103rd General Assembly.
Section 907. The Cannabis Regulation and Tax Act is
amended by changing Sections 1-10, 5-11, 15-155, and 55-35 and
by adding Sections 15-35.5, 15-35.11, 20-60, and 35-22 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

SB3926 - 27 - LRB103 40218 CES 72109 b
license issued by the Department of Financial and Professional
Regulation that permits a person to act as a dispensing
organization under this Act and any administrative rule made
in furtherance of this Act.
"Advertise" means to engage in promotional activities
including, but not limited to: newspaper, radio, Internet and
electronic media, and television advertising; the distribution
of fliers and circulars; billboard advertising; and the
display of window and interior signs. "Advertise" does not
mean exterior signage displaying only the name of the licensed
cannabis business establishment.
"Application points" means the number of points a
Dispensary Applicant receives on an application for a
Conditional Adult Use Dispensing Organization License.
"BLS Region" means a region in Illinois used by the United
States Bureau of Labor Statistics to gather and categorize
certain employment and wage data. The 17 such regions in
Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
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

SB3926 - 28 - LRB103 40218 CES 72109 b
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, including, but not limited to, any
structural, optical, or geometric isomers of THC, or any
chemical compound that mimics THC; 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 and any product
whether derived from natural or synthetic sources with a THC
concentration greater than the THC limit set forth in the Hemp
Consumer Products Act.
"Cannabis business establishment" means a cultivation

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center, craft grower, processing organization, infuser
organization, dispensing organization, or transporting
organization.
"Cannabis concentrate" means a product derived from
cannabis that is produced by extracting cannabinoids,
including tetrahydrocannabinol (THC), from the plant through
the use of propylene glycol, glycerin, butter, olive oil, or
other typical cooking fats; water, ice, or dry ice; or butane,
propane, CO2, ethanol, or isopropanol and with the intended
use of smoking or making a cannabis-infused product. The use
of any other solvent is expressly prohibited unless and until
it is approved by the Department of Agriculture.
"Cannabis container" means a sealed or resealable,
traceable, container, or package used for the purpose of
containment of cannabis or cannabis-infused product during
transportation.
"Cannabis flower" means marijuana, hashish, and other
substances that are identified as including any parts of the
plant Cannabis sativa and including derivatives or subspecies,
such as indica, of all strains of cannabis; including raw
kief, leaves, and buds, but not resin that has been extracted
from any part of such plant; nor any compound, manufacture,
salt, derivative, mixture, or preparation of such plant, its
seeds, or resin.
"Cannabis-infused product" means a beverage, food, oil,
ointment, tincture, topical formulation, or another product

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containing cannabis or cannabis concentrate that is not
intended to be smoked.
"Cannabis paraphernalia" means equipment, products, or
materials intended to be used for planting, propagating,
cultivating, growing, harvesting, manufacturing, producing,
processing, preparing, testing, analyzing, packaging,
repackaging, storing, containing, concealing, ingesting, or
otherwise introducing cannabis into the human body.
"Cannabis plant monitoring system" or "plant monitoring
system" means a system that includes, but is not limited to,
testing and data collection established and maintained by the
cultivation center, craft grower, or processing organization
and that is available to the Department of Revenue, the
Department of Agriculture, the Department of Financial and
Professional Regulation, and the Illinois State Police for the
purposes of documenting each cannabis plant and monitoring
plant development throughout the life cycle of a cannabis
plant cultivated for the intended use by a customer from seed
planting to final packaging.
"Cannabis testing facility" means an entity registered by
the Department of Agriculture to test cannabis for potency and
contaminants.
"Clone" means a plant section from a female cannabis plant
not yet rootbound, growing in a water solution or other
propagation matrix, that is capable of developing into a new
plant.

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"Community College Cannabis Vocational Training Pilot
Program faculty participant" means a person who is 21 years of
age or older, licensed by the Department of Agriculture, and
is employed or contracted by an Illinois community college to
provide student instruction using cannabis plants at an
Illinois Community College.
"Community College Cannabis Vocational Training Pilot
Program faculty participant Agent Identification Card" means a
document issued by the Department of Agriculture that
identifies a person as a Community College Cannabis Vocational
Training Pilot Program faculty participant.
"Conditional Adult Use Dispensing Organization License"
means a contingent license awarded to applicants for an Adult
Use Dispensing Organization License that reserves the right to
an Adult Use Dispensing Organization License if the applicant
meets certain conditions described in this Act, but does not
entitle the recipient to begin purchasing or selling cannabis
or cannabis-infused products.
"Conditional Adult Use Cultivation Center License" means a
license awarded to top-scoring applicants for an Adult Use
Cultivation Center License that reserves the right to an Adult
Use Cultivation Center License if the applicant meets certain
conditions as determined by the Department of Agriculture by
rule, but does not entitle the recipient to begin growing,
processing, or selling cannabis or cannabis-infused products.
"Conditional Infuser Organization License" means a

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contingent license awarded to applicants for an Infuser
Organization License that reserves the right to an Infuser
Organization License if the applicant meets certain conditions
described in this Act, but does not entitle the recipient to
begin directly incorporating cannabis or cannabis concentrate
into a product formulation to produce a cannabis-infused
product.
"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.

SB3926 - 34 - LRB103 40218 CES 72109 b
"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%

SB3926 - 35 - LRB103 40218 CES 72109 b
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

SB3926 - 36 - LRB103 40218 CES 72109 b
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,

SB3926 - 37 - LRB103 40218 CES 72109 b
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

SB3926 - 38 - LRB103 40218 CES 72109 b
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

SB3926 - 39 - LRB103 40218 CES 72109 b
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

SB3926 - 40 - LRB103 40218 CES 72109 b
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.

SB3926 - 41 - LRB103 40218 CES 72109 b
"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,

SB3926 - 42 - LRB103 40218 CES 72109 b
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:

SB3926 - 43 - LRB103 40218 CES 72109 b
(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

SB3926 - 44 - LRB103 40218 CES 72109 b
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.
"Tetrahydrocannabinol" or "THC" means any naturally
occurring or synthetic tetrahydrocannabinol, including its
salts, isomers, and salts of isomers whenever the existence of
such salts, isomers, and salts of isomers is possible within
the specific chemical designation and any preparation,
mixture, or substance containing, or mixed or infused with,
any detectable amount of tetrahydrocannabinol or
tetrahydrocannabolic acid, including, but not limited to,
delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol,
delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid,

SB3926 - 45 - LRB103 40218 CES 72109 b
tetrahydrocannabipherol, or hexahydrocannabinol, however
derived, or any other substance determined to have similar
intoxicating effects on the mind or body by the Department.
For the purposes of this definition, "isomer" means the
optical, position, and geometric isomers.
"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
include a calibrated dropper or other similar device capable

SB3926 - 46 - LRB103 40218 CES 72109 b
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
(2) any cannabis plant that is cultivated solely for

SB3926 - 47 - LRB103 40218 CES 72109 b
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 705/5-11 new)
Sec. 5-11. Illinois Department of Agriculture policy
regarding hemp and hemp derivatives in medical and adult use
cannabis products.
(a) For purposes of this Section, "industrial hemp" has
the meaning given to it under the Industrial Hemp Act.
(b) Cannabis business establishments licensed by the
Department of Agriculture for cultivation, growing,
processing, manufacturing, or infusing of medical or adult use
cannabis products pursuant to this Act or the Compassionate
Use of Medicinal Cannabis Program Act may use industrial hemp
as an ingredient in cannabis-infused products offered for sale
at licensed dispensaries in Illinois. Hemp flower shall not be
sold to dispensaries.
(c) All hemp obtained through this policy must be used in
extracted form and in infused cannabis products only.
(d) Industrial hemp may be procured from third party
licensed growers or processors from within the State or any
other state with a regulated industrial hemp program.
(e) All hemp and hemp derivatives shall be obtained from a

SB3926 - 48 - LRB103 40218 CES 72109 b
licensed or registered hemp grower or processor, regardless of
the home state of the grower or processor. Cannabis producers
shall provide a copy of the hemp grower's or processor's
state-issued license upon demand of the Department of
Agriculture or the Illinois State Police.
(f) Any licensed cannabis cultivation center or licensed
craft grower that intends to use hemp or hemp derivatives must
apply for, and be issued, a hemp processor's registration
through the Department of Agriculture. Any licensed infuser
that intends to use hemp derivatives must apply for, and be
issued, a hemp processor's registration through the Department
of Agriculture. The Department of Agriculture shall make
available an application form on its website.
(g) Industrial hemp flower and biomass may be purchased
and extracted by licensed cannabis cultivation centers or
licensed craft growers.
(h) Licensed cannabis cultivation centers and licensed
craft growers may procure or process industrial hemp in the
form of distillate or isolate. Licensed infusers may procure
industrial hemp in the form of distillate or isolate. All
processed hemp derivatives must be accompanied by a
certificate of analysis showing potency levels for THC, THCa,
CBD, and CBDa, and any other cannabinoids required by the
Department by rule or guidance.
(i) The delta-9 tetrahydrocannabinol contained in the hemp
and hemp derivatives may not be concentrated above the

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allowable 0.3% threshold.
(j) Hemp and hemp derivatives may not be used to
concentrate or to synthesize intoxicating compounds including,
but not limited to, delta-9 tetrahydrocannabinol or delta-8
tetrahydrocannabinol, unless permitted by the Department by
rule, and shall be subject to the recommendations of the
Intoxicating Hemp-Derived THC Consumer Products Safety
Committee.
(k) A representative sample of all final products
containing industrial hemp or hemp derivatives must undergo
testing pursuant to the Compassionate Use of Medical Cannabis
Act and the Cannabis Regulation and Tax Act and any applicable
administrative rules.
(l) Final products containing hemp or hemp derivatives are
subject to the requirements of the Compassionate Use of
Medical Cannabis Act and the Cannabis Regulation and Tax Act
and any applicable administrative rules.
(410 ILCS 705/15-35.5 new)
Sec. 15-35.5. Intoxicating Hemp-Derived THC Consumer
Products Safety Committee.
(a) The General Assembly finds that an Intoxicating
Hemp-Derived THC Consumer Products Safety Committee is
necessary to evaluate the public health impacts, product
formulations, manufacturing standards, and consumer safety
standards for intoxicating THC products derived or produced

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from the industrial hemp, and make recommendations to the
General Assembly, the Governor, the Attorney General, and
State regulatory agencies on a regulatory framework for the
manufacture, distribution, and sale of hemp-derived THC
consumer products within Illinois.
(b) The Committee shall consist of the following members:
(1) a member of the Senate, designated by the
President of the Senate;
(2) a member of the House of Representatives,
designated by the Speaker of the House of Representatives;
(3) a member of the Senate, designated by the Minority
Leader of the Senate;
(4) a member of the House of Representative,
designated by the Minority Leader of the House of
Representatives;
(5) the Illinois Cannabis Regulation and Oversight
Officer, or a designee;
(6) the Director of Agriculture, or a designee;
(7) the Secretary of Financial and Professional
Regulation, or a designee;
(8) the Director of Public Health, or a designee;
(9) the Director of Revenue, or a designee;
(10) the Attorney General, or a designee;
(11) the Director of the Illinois State Police, or a
designee;
(12) one member who is an attorney with expertise in

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the regulation of cannabis, appointed by the Director of
Agriculture;
(13) one member who is an individual with expertise in
the processing of cannabis, appointed by the Director of
Agriculture;
(14) one member who is an individual with expertise in
consumer safety over hemp and cannabis product
formulations, appointed by the Director of Public Health;
(15) one member who is a physician with expertise in
the consumer safety impacts of hemp and cannabis product
consumption and its effects on the mind and body,
appointed by the Director of Public Health;
(16) one member who is a laboratory technician or
scientist with expertise in the testing and evaluation of
cannabis product safety, appointed by the Director of
Agriculture;
(17) one member who is an individual with expertise in
consumer product approvals and requirements under the
Food, Drug, and Cosmetic Act (21 U.S.C. 9), appointed by
the Director of Public Health;
(18) one member who is a school superintendent or
principal, appointed by the State Superintendent of
Education; and
(19) one member who is a college or university
representative with expertise in research and development
of consumer safety standards and products, appointed by

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the State Superintendent of Education.
(c) The Committee shall produce a report on or before
January 1, 2025 with recommendations on appropriate consumer
safety standards, including product formulations,
manufacturing standards, advertising standards, and a
comprehensive regulatory framework for the safe manufacture,
distribution, and sale of hemp-derived THC products within
this State.
(d) The Department of Agriculture, the Department of
Financial and Professional Regulation, the Cannabis Oversight
Officer, the Department of Public Health, the Department of
State Police, and the Attorney General shall issue a report
with any legislative recommendations, if deemed necessary, to
the General Assembly on or before March 1, 2025 to establish a
regulatory and enforcement framework for hemp-derived THC
products to be manufactured, distributed, and sold to
consumers within this State.
(410 ILCS 705/15-35.11 new)
Sec. 15-35.11. Social Equity Justice Involved Lottery for
an Additional 50 New Conditional Adult Use Dispensing
Organization Licenses.(a) In addition to any of the licenses
issued under this Article, within 10 business days after the
resulting final scores for all scored applications pursuant to
Section 35-15 are released, the Department shall issue up to
50 Conditional Adult Use Dispensing Organization Licenses by

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lot, pursuant to the application process adopted under this
Section. In order to be eligible to be awarded a Conditional
Adult Use Dispensing Organization License by lot, a Dispensary
Applicant must be a Qualifying Social Equity Justice Involved
Applicant.
The licenses issued under this Section shall be awarded on
or before July 1, 2025 in each BLS Region in the following
amounts:
(1) Bloomington: 1.
(2) Cape Girardeau: 1.
(3) Carbondale-Marion: 1.
(4) Champaign-Urbana: 1.
(5) Chicago-Naperville-Elgin: 31.
(6) Danville: 1.
(7) Davenport-Moline-Rock Island: 1.
(8) Decatur: 1.
(9) Kankakee: 1.
(10) Peoria: 2.
(11) Rockford: 1.
(12) St. Louis: 3.
(13) Springfield: 1.
(14) Northwest Illinois nonmetropolitan: 1.
(15) West Central Illinois nonmetropolitan: 1.
(16) East Central Illinois nonmetropolitan: 1.
(17) South Illinois nonmetropolitan: 1.
(b) The Department shall distribute the available licenses

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established under this Section subject to the following:
(1) The drawing by lot for all available licenses
established under this Section shall occur on the same day
when practicable.
(2) Within each BLS Region, the first Qualifying
Social Equity Justice Involved Applicant drawn will have
the first right to an available license. The second
Qualifying Social Equity Justice Involved Applicant drawn
will have the second right to an available license. The
same pattern will continue for each subsequent applicant
drawn.
(3) The process for distributing available licenses
under this Section shall be recorded by the Department in
a format selected by the Department.
(4) A Dispensary Applicant is prohibited from becoming
a Qualifying Social Equity Justice Involved Applicant if a
principal officer resigns after the resulting final scores
for all scored applications pursuant to Sections 15-25 and
15-30 are released.
(5) No Qualifying Social Equity Justice Involved
Applicant may be awarded more than 2 Conditional Adult Use
Dispensing Organization Licenses at the conclusion of a
lottery conducted under this Section.
(6) No individual may be listed as a principal officer
of more than 2 Conditional Adult Use Dispensing
Organization Licenses awarded under this Section.

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(7) If, upon being selected for an available license
established under this Section, a Qualifying Social Equity
Justice Involved Applicant exceeds the limits under
paragraph (5) or (6), the Qualifying Social Equity Justice
Involved Applicant must choose which license to abandon
and notify the Department in writing within 5 business
days on forms prescribed by the Department. If the
Qualifying Social Equity Justice Involved Applicant does
not notify the Department as required, the Department
shall refuse to issue the Qualifying Social Equity Justice
Involved Applicant all available licenses established
under this Section obtained by lot in all BLS Regions.
(8) If, upon being selected for an available license
established under this Section, a Qualifying Social Equity
Justice Involved Applicant has a principal officer who is
a principal officer in more than 10 Early Approval Adult
Use Dispensing Organization Licenses, Conditional Adult
Use Dispensing Organization Licenses, Adult Use Dispensing
Organization Licenses, or any combination thereof, the
licensees and the Qualifying Social Equity Justice
Involved Applicant listing that principal officer must
choose which license to abandon pursuant to subsection (d)
of Section 15-36 and notify the Department in writing
within 5 business days on forms prescribed by the
Department. If the Dispensary Applicant or licensees do
not notify the Department as required, the Department

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shall refuse to issue the Qualifying Social Equity Justice
Involved Applicant all available licenses established
under this Section obtained by lot in all BLS Regions.
(9) All available licenses that have been abandoned
under paragraph (7) or (8) shall be distributed to the
next Qualifying Social Equity Justice Involved Applicant
drawn by lot.
Any and all rights conferred or obtained under this
subsection shall be limited to the provisions of this
subsection.
(c) An applicant who receives a Conditional Adult Use
Dispensing Organization License under this Section has 180
days from the date of the award to identify a physical location
for the dispensing organization's retail storefront. The
applicant shall provide evidence that the location is not
within 1,500 feet of an existing dispensing organization,
unless the applicant is a Social Equity Applicant or Social
Equity Justice Involved Applicant located or seeking to locate
within 1,500 feet of a dispensing organization licensed under
Section 15-15 or Section 15-20. If an applicant is unable to
find a suitable physical address in the opinion of the
Department within 180 days from the issuance of the
Conditional Adult Use Dispensing Organization License, the
Department may extend the period for finding a physical
address an additional 540 days if the Conditional Adult Use
Dispensing Organization License holder demonstrates a concrete

SB3926 - 57 - LRB103 40218 CES 72109 b
attempt to secure a location and a hardship. If the Department
denies the extension or the Conditional Adult Use Dispensing
Organization License holder is unable to find a location or
become operational within 720 days of being awarded a
Conditional Adult Use Dispensing Organization License under
this Section, the Department shall rescind the Conditional
Adult Use Dispensing Organization License and award it
pursuant to subsection (b) and notify the new awardee at the
email address provided in the awardee's application, provided
the applicant receiving the Conditional Adult Use Dispensing
Organization License: (i) confirms a continued interest in
operating a dispensing organization; (ii) can provide evidence
that the applicant continues to meet all requirements for
holding a Conditional Adult Use Dispensing Organization
License set forth in this Act; and (iii) has not otherwise
become ineligible to be awarded a Conditional Adult Use
Dispensing Organization License. If the new awardee is unable
to accept the Conditional Adult Use Dispensing Organization
License, the Department shall award the Conditional Adult Use
Dispensing Organization License pursuant to subsection (b).
The new awardee shall be subject to the same required
deadlines as provided in this subsection.
(d) If, within 180 days of being awarded a Conditional
Adult Use Dispensing Organization License, a dispensing
organization is unable to find a location within the BLS
Region in which it was awarded a Conditional Adult Use

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Dispensing Organization License under this Section because no
jurisdiction within the BLS Region allows for the operation of
an Adult Use Dispensing Organization, the Department may
authorize the Conditional Adult Use Dispensing Organization
License holder to transfer its Conditional Adult Use
Dispensing Organization License to a BLS Region specified by
the Department.
(e) A dispensing organization that is awarded a
Conditional Adult Use Dispensing Organization License under
this Section shall not purchase, possess, sell, or dispense
cannabis or cannabis-infused products until the dispensing
organization has received an Adult Use Dispensing Organization
License issued by the Department pursuant to Section 15-36.
(f) The Department shall conduct a background check of the
prospective dispensing organization agents in order to carry
out this Article. The Illinois State Police shall charge the
applicant a fee for conducting the criminal history record
check, which shall be deposited into 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 Illinois 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 with the Illinois State Police and the Federal
Bureau of Investigation criminal history records databases.

SB3926 - 59 - LRB103 40218 CES 72109 b
The Illinois State Police shall furnish, following positive
identification, all Illinois conviction information to the
Department.
(g) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a dispensing
organization.
(h) The Department may, in its discretion, refuse to issue
an authorization to an applicant who meets any of the
following criteria:
(1) An applicant who is unqualified to perform the
duties required of the applicant.
(2) An applicant who fails to disclose or states
falsely any information called for in the application.
(3) An applicant who has been found guilty of a
violation of this Act, who has had any disciplinary order
entered against the applicant by the Department, who has
entered into a disciplinary or nondisciplinary agreement
with the Department, whose medical cannabis dispensing
organization, medical cannabis cultivation organization,
Early Approval Adult Use Dispensing Organization License,
Early Approval Adult Use Dispensing Organization License
at a secondary site, Early Approval Cultivation Center
License, Conditional Adult Use Dispensing Organization
License, or Adult Use Dispensing Organization License was
suspended, restricted, revoked, or denied for just cause,

SB3926 - 60 - LRB103 40218 CES 72109 b
or whose cannabis business establishment license was
suspended, restricted, revoked, or denied in any other
state.
(4) An applicant who has engaged in a pattern or
practice of unfair or illegal practices, methods, or
activities in the conduct of owning a cannabis business
establishment or other business.
(i) The Department shall deny the license if any principal
officer, board member, or person having a financial or voting
interest of 5% or greater in the licensee is delinquent in
filing any required tax return or paying any amount owed to the
State of Illinois.
(j) The Department shall verify an applicant's compliance
with the requirements of this Article and rules adopted under
this Article before issuing a Conditional Adult Use Dispensing
Organization License.
(k) If an applicant is awarded a Conditional Adult Use
Dispensing Organization License under this Section, the
information and plans provided in the application, including
any plans submitted for bonus points, shall become a condition
of the Conditional Adult Use Dispensing Organization License
and any Adult Use Dispensing Organization License issued to
the holder of the Conditional Adult Use Dispensing
Organization License, except as otherwise provided by this Act
or by rule. Dispensing organizations have a duty to disclose
any material changes to the application. The Department shall

SB3926 - 61 - LRB103 40218 CES 72109 b
review all material changes disclosed by the dispensing
organization and may reevaluate its prior decision regarding
the awarding of a Conditional Adult Use Dispensing
Organization License, including, but not limited to,
suspending or permanently revoking a Conditional Adult Use
Dispensing Organization License. Failure to comply with the
conditions or requirements in the application may subject the
dispensing organization to discipline up to and including
suspension or permanent revocation of its authorization or
Conditional Adult Use Dispensing Organization License by the
Department.
(l) If an applicant has not begun operating as a
dispensing organization within one year after the issuance of
the Conditional Adult Use Dispensing Organization License
under this Section, the Department may permanently revoke the
Conditional Adult Use Dispensing Organization License and
award it to the next highest scoring applicant in the BLS
Region if a suitable applicant indicates a continued interest
in the Conditional Adult Use Dispensing Organization License
or may begin a new selection process to award a Conditional
Adult Use Dispensing Organization License.
(410 ILCS 705/15-155)
Sec. 15-155. Unlicensed practice; violation; civil
penalty.
(a) In addition to any other penalty provided by law, any

SB3926 - 62 - LRB103 40218 CES 72109 b
person who practices, offers to practice, attempts to
practice, or holds oneself out to practice as a licensed
dispensing organization owner, principal officer,
agent-in-charge, or agent, cultivates, processes, distributes,
sells, or offers for sale cannabis, cannabis-infused products,
cannabis concentrates, or cannabis flower without being
licensed under this Act shall, in addition to any other
penalty provided by law, pay a civil penalty to the Department
of Financial and Professional Regulation in an amount not to
exceed $10,000 for each offense as determined by the
Department. Each day a person engages in unlicensed practice
in violation of the provisions of this Section constitutes a
separate offense. The civil penalty shall be assessed by the
Department after a hearing is held in accordance with the
provisions set forth in this Act regarding the provision of a
hearing for the discipline of a licensee.
(b) The Department, the Attorney General, any State or
local law enforcement agency, or any State's Attorney has the
authority and power to investigate any and all unlicensed
activity.
(b-5) Whenever a person is convicted of unlicensed
activity under this Act or the Compassionate Use of Medical
Cannabis Act, it shall be the duty of the clerk of the court in
which the conviction is had, within 5 days after the
conviction, to forward to the Secretary of Financial and
Professional Regulation a report of the conviction, and the

SB3926 - 63 - LRB103 40218 CES 72109 b
court may recommend the suspension of any licenses awarded to
the convicted person under this Act, the Compassionate Use of
Medical Cannabis Act, or the Hemp Consumers Products Act.
(b-10) Whenever a person is convicted, for a third or
subsequent violation in a 3-year period, of unlicensed
activity under this Act or the Compassionate Use of Medical
Cannabis Act, the judge of the court in which the conviction is
had shall require the immediate surrender to the clerk of the
court of all licenses or conditional licenses awarded to the
convicted person under this Act, the Compassionate Use of
Medical Cannabis Act, or the Hemp Consumers Products Act, and
the clerk of the court shall, within 5 days after the
conviction, forward the surrendered licenses, together with a
report of the conviction, to the Secretary of Financial and
Professional Regulation.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty or
in accordance with the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and
execution had thereon in the same manner as any judgment from
any court of this State.
(d) A violation of subsection (a) is an unlawful practice
under Section 2Z of the Consumer Fraud and Deceptive Business
Practices Act. All remedies, penalties, and authority granted
to the Attorney General under that Act shall be available for
the enforcement of this Act.

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(e) Nothing in this Section shall prohibit a unit of local
government from enacting a local law or ordinance to carry out
enforcement activities and assess civil penalties against
unlicensed cannabis sales.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(410 ILCS 705/20-60 new)
Sec. 20-60. Unlicensed practice; violation; civil penalty.
(a) In addition to any other penalty provided by law, any
person who practices, offers to practice, attempts to
practice, or holds oneself out to practice as a licensed
cultivation center, infuser, or craft grower owner, principal
officer, agent-in-charge, or agent or who cultivates,
processes, distributes, sells, or offers for sale cannabis,
cannabis-infused products, cannabis concentrates, or cannabis
flower without being licensed under this Act shall, in
addition to any other penalty provided by law, pay a civil
penalty to the Department of Agriculture in an amount not to
exceed $10,000 for each offense. Each day any person engages
in unlicensed practice in violation of the provisions of this
Section constitutes a separate offense. The civil penalty
shall be assessed by the Department after a hearing is held in
accordance with the provisions set forth in this Act regarding
hearings for the discipline of a licensee.
(b) The Department, the Attorney General, any State or
local law enforcement agency, or any State's Attorney has the

SB3926 - 65 - LRB103 40218 CES 72109 b
authority and power to investigate any and all unlicensed
activity.
(b-5) Whenever a person is convicted of unlicensed
activity under this Act, or the Compassionate Use of Medical
Cannabis Act, it shall be the duty of the clerk of the court in
which the conviction is had, within 5 days after the
conviction, to forward to the Director of Agriculture a report
of the conviction, and the court may recommend the suspension
of any licenses awarded to the convicted person under this
Act, the Compassionate Use of Medical Cannabis Act, or the
Hemp Consumers Products Act.
(b-10) Whenever a person is convicted, for a third
subsequent violation in a 3 -year period, of unlicensed
activity under this Act, or the Compassionate Use of Medical
Cannabis Act, the judge of the court in which the conviction is
had shall require the surrender to the clerk of the court of
all licenses or conditional license awarded to the convicted
person under this Act, the Compassionate Use of Medical
Cannabis Act, or the Hemp Consumers Products Act, and the
clerk of the court shall, within 5 days after the conviction,
forward the surrendered licenses, together with a report of
the conviction, to the Director of Agriculture.
(c) The civil penalty shall be paid within 60 days after
the effective date of the order imposing the civil penalty or
in accordance with the order imposing the civil penalty. The
order shall constitute a judgment and may be filed and

SB3926 - 66 - LRB103 40218 CES 72109 b
execution had thereon in the same manner as any judgment from
any court of this State.
(d) In addition to any other remedies or penalties
provided by law, upon a third or subsequent revocation or
suspension of a license, a unit of local government may
suspend or revoke any locally established licenses held by the
person, and prohibit the person
from further operations and
seize any cannabis or THC product.
(410 ILCS 705/35-22 new)
Sec. 35-22. Social Equity Justice Involved Lottery for 50
New Conditional Infuser Organization Licenses.
(a) In addition to any of the licenses issued under this
Article, within 10 business days after the resulting final
scores for all scored applications pursuant to Section 35-15
are released, the Department shall issue up to 50 Conditional
Infuser Organization Licenses by lot, pursuant to the
application process adopted under this Section. In order to be
eligible to be awarded a Conditional Infuser Organization
License by lot, an Infuser Applicant must be a Qualifying
Social Equity Justice Involved Applicant.
The licenses issued under this Section shall be awarded on
or before July 1, 2025 in each BLS Region in the following
amounts:
(1) Bloomington: 1.
(2) Cape Girardeau: 1.

SB3926 - 67 - LRB103 40218 CES 72109 b
(3) Carbondale-Marion: 1.
(4) Champaign-Urbana: 1.
(5) Chicago-Naperville-Elgin: 31.
(6) Danville: 1.
(7) Davenport-Moline-Rock Island: 1.
(8) Decatur: 1.
(9) Kankakee: 1.
(10) Peoria: 2.
(11) Rockford: 1.
(12) St. Louis: 3.
(13) Springfield: 1.
(14) Northwest Illinois nonmetropolitan: 1.
(15) West Central Illinois nonmetropolitan: 1.
(16) East Central Illinois nonmetropolitan: 1.
(17) South Illinois nonmetropolitan: 1.
(b) The Department shall distribute the available licenses
established under this Section subject to the following:
(1) The drawing by lot for all available licenses
established under this Section shall occur on the same day
when practicable.
(2) Within each BLS Region, the first Qualifying
Social Equity Justice Involved Applicant drawn will have
the first right to an available license. The second
Qualifying Social Equity Justice Involved Applicant drawn
will have the second right to an available license. The
same pattern will continue for each subsequent applicant

SB3926 - 68 - LRB103 40218 CES 72109 b
drawn.
(3) The process for distributing available licenses
under this Section shall be recorded by the Department in
a format selected by the Department.
(4) An Infuser Applicant is prohibited from becoming a
Qualifying Social Equity Justice Involved Applicant if a
principal officer resigns after the resulting final scores
for all scored applications pursuant to Sections 35-15 are
released.
(5) No Qualifying Social Equity Justice Involved
Applicant may be awarded more than 2 Conditional Infuser
Organization Licenses at the conclusion of a lottery
conducted under this Section.
(6) No individual may be listed as a principal officer
of more than 2 Conditional Infuser Organization Licenses
awarded under this Section.
(7) If, upon being selected for an available license
established under this Section, a Qualifying Social Equity
Justice Involved Applicant exceeds the limits under
paragraph (5) or (6), the Qualifying Social Equity Justice
Involved Applicant must choose which license to abandon
and notify the Department in writing within 5 business
days on forms prescribed by the Department. If the
Qualifying Social Equity Justice Involved Applicant does
not notify the Department as required, the Department
shall refuse to issue the Qualifying Social Equity Justice

SB3926 - 69 - LRB103 40218 CES 72109 b
Involved Applicant all available licenses established
under this Section obtained by lot in all BLS Regions.
(8) If, upon being selected for an available license
established under this Section, a Qualifying Social Equity
Justice Involved Applicant has a principal officer who is
a principal officer in more than 10 Early Approval Adult
Use Dispensing Organization Licenses, Conditional Adult
Use Dispensing Organization Licenses, Adult Use Dispensing
Organization Licenses, or any combination thereof, the
licensees and the Qualifying Social Equity Justice
Involved Applicant listing that principal officer must
choose which license to abandon and notify the Department
in writing within 5 business days on forms prescribed by
the Department. If the Infuser Applicant or licensees do
not notify the Department as required, the Department
shall refuse to issue the Qualifying Social Equity Justice
Involved Applicant all available licenses established
under this Section obtained by lot in all BLS Regions.
(9) All available licenses that have been abandoned
under paragraph (7) or (8) shall be distributed to the
next Qualifying Social Equity Justice Involved Applicant
drawn by lot.
Any and all rights conferred or obtained under this
subsection shall be limited to the provisions of this
subsection.
(c) An applicant who receives a Conditional Infuser

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Organization License under this Section has 180 days from the
date of the award to identify a physical location for the
infuser organization's activities. The applicant shall provide
evidence that the location is not within 1,500 feet of an
existing dispensing organization, unless the applicant is a
Social Equity Applicant or Social Equity Justice Involved
Applicant located or seeking to locate within 1,500 feet of a
dispensing organization licensed under Section 15-15 or
Section 15-20. If an applicant is unable to find a suitable
physical address in the opinion of the Department within 180
days from the issuance of the Conditional Infuser Organization
License, the Department may extend the period for finding a
physical address an additional 540 days if the Conditional
Infuser Organization License holder demonstrates a concrete
attempt to secure a location and a hardship. If the Department
denies the extension or the Conditional Infuser Organization
License holder is unable to find a location or become
operational within 720 days of being awarded a Conditional
Infuser Organization License under this Section, the
Department shall rescind the Conditional Infuser Organization
License and award it pursuant to subsection (b) and notify the
new awardee at the email address provided in the awardee's
application, provided the applicant receiving the Conditional
Infuser Organization License: (i) confirms a continued
interest in operating an infuser organization; (ii) can
provide evidence that the applicant continues to meet all

SB3926 - 71 - LRB103 40218 CES 72109 b
requirements for holding a Conditional Infuser Organization
License set forth in this Act; and (iii) has not otherwise
become ineligible to be awarded a Conditional Infuser
Organization License. If the new awardee is unable to accept
the Conditional Infuser Organization License, the Department
shall award the Conditional Infuser Organization License
pursuant to subsection (b). The new awardee shall be subject
to the same required deadlines as provided in this subsection.
(d) If, within 180 days of being awarded a Conditional
Infuser Organization License, a dispensing organization is
unable to find a location within the BLS Region in which it was
awarded a Conditional Infuser Organization License under this
Section because no jurisdiction within the BLS Region allows
for the operation of an Infuser Organization, the Department
may authorize the Conditional Infuser Organization License
holder to transfer its Conditional Infuser Organization
License to a BLS Region specified by the Department.
(e) An infuser organization that is awarded a Conditional
Infuser Organization License under this Section shall not
directly incorporate cannabis or cannabis concentrate into a
product formulation to produce a cannabis-infused product
until the infuser organization has received an Infuser
Organization License issued by the Department pursuant to
Section 35-15.
(f) The Department shall conduct a background check of the
prospective dispensing organization agents in order to carry

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out this Article. The Illinois State Police shall charge the
applicant a fee for conducting the criminal history record
check, which shall be deposited into 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 Illinois 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 with the Illinois State Police and the Federal
Bureau of Investigation criminal history records databases.
The Illinois State Police shall furnish, following positive
identification, all Illinois conviction information to the
Department.
(g) The Department may verify information contained in
each application and accompanying documentation to assess the
applicant's veracity and fitness to operate a dispensing
organization.
(h) The Department may, in its discretion, refuse to issue
an authorization to an applicant who meets any of the
following criteria:
(1) An applicant who is unqualified to perform the
duties required of the applicant.
(2) An applicant who fails to disclose or states
falsely any information called for in the application.
(3) An applicant who has been found guilty of a

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violation of this Act, who has had any disciplinary order
entered against the applicant by the Department, who has
entered into a disciplinary or nondisciplinary agreement
with the Department, whose medical cannabis dispensing
organization, medical cannabis cultivation organization,
Early Approval Adult Use Dispensing Organization License,
Early Approval Adult Use Dispensing Organization License
at a secondary site, Early Approval Cultivation Center
License, Conditional Adult Use Dispensing Organization
License, or Adult Use Dispensing Organization License was
suspended, restricted, revoked, or denied for just cause,
or whose cannabis business establishment license was
suspended, restricted, revoked, or denied in any other
state.
(4) An applicant who has engaged in a pattern or
practice of unfair or illegal practices, methods, or
activities in the conduct of owning a cannabis business
establishment or other business.
(i) The Department shall deny the license if any principal
officer, board member, or person having a financial or voting
interest of 5% or greater in the licensee is delinquent in
filing any required tax return or paying any amount owed to the
State of Illinois.
(j) The Department shall verify an applicant's compliance
with the requirements of this Article and rules adopted under
this Article before issuing a Conditional Infuser Organization

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License.
(k) If an applicant is awarded a Conditional Infuser
Organization License under this Section, the information and
plans provided in the application, including any plans
submitted for bonus points, shall become a condition of the
Conditional Infuser Organization License and any Infuser
Organization License issued to the holder of the Conditional
Infuser Organization License, except as otherwise provided by
this Act or by rule. Dispensing organizations have a duty to
disclose any material changes to the application. The
Department shall review all material changes disclosed by the
dispensing organization and may reevaluate its prior decision
regarding the awarding of a Conditional Infuser Organization
License, including, but not limited to, suspending or
permanently revoking a Conditional Infuser Organization
License. Failure to comply with the conditions or requirements
in the application may subject the dispensing organization to
discipline up to and including suspension or permanent
revocation of its authorization or Conditional Infuser
Organization License by the Department.
(l) If an applicant has not begun operating as a
dispensing organization within one year after the issuance of
the Conditional Infuser Organization License under this
Section, the Department may permanently revoke the Conditional
Infuser Organization License and award it to the next highest
scoring applicant in the BLS Region if a suitable applicant

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indicates a continued interest in the Conditional Infuser
Organization License or may begin a new selection process to
award a Conditional Infuser Organization License.
(410 ILCS 705/55-35)
Sec. 55-35. Administrative rulemaking.
(a) No later than 180 days after the effective date of this
Act, the Department of Agriculture, the Illinois State Police,
the Department of Financial and Professional Regulation, the
Department of Revenue, the Department of Commerce and Economic
Opportunity, and the Treasurer's Office shall adopt permanent
rules in accordance with their responsibilities under this
Act. The Department of Agriculture, the Illinois State Police,
the Department of Financial and Professional Regulation, the
Department of Revenue, and the Department of Commerce and
Economic Opportunity may adopt rules necessary to regulate
personal cannabis use through the use of emergency rulemaking
in accordance with subsection (gg) of Section 5-45 of the
Illinois Administrative Procedure Act. 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.
(b) The Department of Agriculture rules may address, but
are not limited to, the following matters related to
cultivation centers, craft growers, infuser organizations, and
transporting organizations with the goal of protecting against

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diversion and theft, without imposing an undue burden on the
cultivation centers, craft growers, infuser organizations, or
transporting organizations:
(1) oversight requirements for cultivation centers,
craft growers, infuser organizations, and transporting
organizations;
(2) recordkeeping requirements for cultivation
centers, craft growers, infuser organizations, and
transporting organizations;
(3) security requirements for cultivation centers,
craft growers, infuser organizations, and transporting
organizations, which shall include that each cultivation
center, craft grower, infuser organization, and
transporting organization location must be protected by a
fully operational security alarm system;
(4) standards for enclosed, locked facilities under
this Act;
(5) procedures for suspending or revoking the
identification cards of agents of cultivation centers,
craft growers, infuser organizations, and transporting
organizations that commit violations of this Act or the
rules adopted under this Section;
(6) rules concerning the intrastate transportation of
cannabis from a cultivation center, craft grower, infuser
organization, and transporting organization to a
dispensing organization;

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(7) standards concerning the testing, quality,
cultivation, and processing of cannabis; and
(7.5) standards and rules for the investigation and
enforcement of unregulated and unlicensed sale of cannabis
and cannabis products; and
(8) any other matters under oversight by the
Department of Agriculture as are necessary for the fair,
impartial, stringent, and comprehensive administration of
this Act.
(b-5) Notwithstanding any standards and rules developed
under paragraph (7.5) of subsection (b) of this Section, the
Department of Agriculture shall update through official
guidance and publish publicly on its website the cannabinoids
that it deems tetrahydrocannabinol or THC on or before January
1 and July 1 of each calendar year.
(c) The Department of Financial and Professional
Regulation rules may address, but are not limited to, the
following matters related to dispensing organizations, with
the goal of protecting against diversion and theft, without
imposing an undue burden on the dispensing organizations:
(1) oversight requirements for dispensing
organizations;
(2) recordkeeping requirements for dispensing
organizations;
(3) security requirements for dispensing
organizations, which shall include that each dispensing

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organization location must be protected by a fully
operational security alarm system;
(4) procedures for suspending or revoking the licenses
of dispensing organization agents that commit violations
of this Act or the rules adopted under this Act;
(4.5) standards and rules for the investigation and
enforcement of unregulated and unlicensed sale of cannabis
and cannabis products; and
(5) any other matters under oversight by the
Department of Financial and Professional Regulation that
are necessary for the fair, impartial, stringent, and
comprehensive administration of this Act.
(d) The Department of Revenue rules may address, but are
not limited to, the following matters related to the payment
of taxes by cannabis business establishments:
(1) recording of sales;
(2) documentation of taxable income and expenses;
(3) transfer of funds for the payment of taxes; or
(4) any other matter under the oversight of the
Department of Revenue.
(e) The Department of Commerce and Economic Opportunity
rules may address, but are not limited to, a loan program or
grant program to assist Social Equity Applicants access the
capital needed to start a cannabis business establishment. The
names of recipients and the amounts of any moneys received
through a loan program or grant program shall be a public

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record.
(f) The Illinois State Police rules may address
enforcement of its authority under this Act. The Illinois
State Police shall not make rules that infringe on the
exclusive authority of the Department of Financial and
Professional Regulation or the Department of Agriculture over
licensees under this Act.
(g) The Department of Human Services shall develop and
disseminate:
(1) educational information about the health risks
associated with the use of cannabis; and
(2) one or more public education campaigns in
coordination with local health departments and community
organizations, including one or more prevention campaigns
directed at children, adolescents, parents, and pregnant
or breastfeeding women, to inform them of the potential
health risks associated with intentional or unintentional
cannabis use.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
102-538, eff. 8-20-21.)
Section 910. The Industrial Hemp Act is amended by
changing Sections 5 and 20 as follows:
(505 ILCS 89/5)
Sec. 5. Definitions. In this Act:

SB3926 - 80 - LRB103 40218 CES 72109 b
"Department" means the Department of Agriculture.
"Director" means the Director of Agriculture.
"Hemp" or "industrial hemp" means the plant Cannabis
sativa L. and any part of that plant, whether growing or not,
with a delta-9 tetrahydrocannabinol concentration of not more
than 0.3 percent on a dry weight basis and includes any
intermediate or finished product made or derived from
industrial hemp that is not intended for human or animal
consumption by any means.
"Hemp production plan" means a plan submitted by the
Department to the Secretary of the United States Department of
Agriculture pursuant to the federal Agriculture Improvement
Act of 2018, Public Law 115-334, and consistent with the
Domestic Hemp Production Program pursuant to 7 CFR Part 990
wherein the Department establishes its desire to have primary
regulatory authority over the production of hemp.
"Land area" means a farm as defined in Section 1-60 of the
Property Tax Code in this State or land or facilities under the
control of an institution of higher education.
"Person" means any individual, partnership, firm,
corporation, company, society, association, the State or any
department, agency, or subdivision thereof, or any other
entity.
"Process" means the conversion of raw industrial hemp
plant material into a form that is presently legal to import
from outside the United States under federal law.

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"THC" means delta-9 tetrahydrocannabinol.
(Source: P.A. 102-690, eff. 12-17-21.)
(505 ILCS 89/20)
Sec. 20. Hemp products. Nothing in this Act shall alter
the legality of industrial hemp or hemp products not intended
for human or animal consumption that are presently legal to
possess or own. The manufacture, sale, and advertisement of
all hemp or hemp products that are intended for human or animal
consumption by any means are regulated under the Hemp Consumer
Products Act hemp or hemp products that are presently legal to
possess or own.
(Source: P.A. 100-1091, eff. 8-26-18.)
Section 915. The Consumer Fraud and Deceptive Business
Practices Act is amended by changing Section 2Z as follows:
(815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
Sec. 2Z. Violations of other Acts. Any person who
knowingly violates the Automotive Repair Act, the Automotive
Collision Repair Act, the Home Repair and Remodeling Act, the
Dance Studio Act, the Physical Fitness Services Act, the
Hearing Instrument Consumer Protection Act, the Illinois Union
Label Act, the Installment Sales Contract Act, the Job
Referral and Job Listing Services Consumer Protection Act, the
Travel Promotion Consumer Protection Act, the Credit Services

SB3926 - 82 - LRB103 40218 CES 72109 b
Organizations Act, the Automatic Telephone Dialers Act, the
Pay-Per-Call Services Consumer Protection Act, the Telephone
Solicitations Act, the Illinois Funeral or Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care Act, the Safe
and Hygienic Bed Act, the Illinois Pre-Need Cemetery Sales
Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
the Predatory Loan Prevention Act, the Mortgage Rescue Fraud
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Tax
Act, subsection (a) or (b) of Section 3-10 of the Cigarette Use
Tax Act, the Electronic Mail Act, the Internet Caller
Identification Act, paragraph (6) of subsection (k) of Section
6-305 of the Illinois Vehicle Code, Section 11-1431, 18d-115,
18d-120, 18d-125, 18d-135, 18d-150, or 18d-153 of the Illinois
Vehicle Code, Article 3 of the Residential Real Property
Disclosure Act, the Automatic Contract Renewal Act, the
Reverse Mortgage Act, Section 25 of the Youth Mental Health
Protection Act, the Personal Information Protection Act, or
the Student Online Personal Protection Act, or subsection (a)
of Section 15-155 of the Cannabis Regulation and Tax Act
commits an unlawful practice within the meaning of this Act.
(Source: P.A. 100-315, eff. 8-24-17; 100-416, eff. 1-1-18;
100-863, eff. 8-14-18; 101-658, eff. 3-23-21.)