ILLINOIS SEED TO SALE TRACEABILITY KNOWLEDGE CENTER

Created to provide helpful information about the Illinois Cannabis Industry.

BioTrack is the Illinois Official State Cannabis Traceability System

Illinois Department of Public Health

CANNABIS LICENSE INFO

Information will be updated here as it becomes available. Check back for updates!  Please note; while we aim to keep this pages fully up to date with the latest information, cannabis laws are always changing.  We encourage you to verify these rules and regulations in the official legal text, which we’ve linked throughout the page for your convenience.

On June 25, 2019, Gov. J.B. Pritzker signed into law HB 1438, which ends cannabis prohibition and replaces it with a system to tax and regulate cannabis for adults 21 and over.  In addition to legalizing possession and use for adults, it expands the current medical cannabis licensing system, includes automatic expungement for cannabis offenses, adds the ability for medical patients to grow cannabis at home, and offers significant benefits to communities hit hardest by inequities that were part of the war on cannabis.

The Cannabis Regulation and Tax Act (410 ILCS 705) legalized the use of marijuana in Illinois for non-medicinal purposes, effective January 1, 2020. This is commonly called “adult use” cannabis, distinguishing it from medicinal marijuana or cannabis, which has been legal in Illinois since 2014. The Department of Agriculture continues to be the regulatory entity for medicinal cannabis cultivation centers, and was given similar authority for regulating certain adult use cannabis business establishments by the Cannabis Regulation and Tax Act. The Department is tasked with licensing and regulating adult use cultivation centers, cannabis craft growers, cannabis infusers, cannabis transporters, and Community College Vocational Cannabis Pilot Programs.

Starting January 1, 2020, adults 21 and older may possess cannabis and purchase cannabis products in licensed stores. Possession is limited to:

  • 30 grams of raw cannabis;
  • Cannabis-infused product or products containing no more than 500 mg of THC; and
  • Five grams of cannabis product in concentrated form.

Non-residents may purchase half that amount, or 15 grams of cannabis, 250 mg of THC in a cannabis-infused product, and 2.5 grams of concentrated cannabis product.

 

Rules

The Act also gave the Department the authority to adopt administrative rules through the use of emergency rulemaking.  The emergency rules can be found in the Illinois Register here (the rules start on page number 1466/page 779 of the pdf). Those rules took effect on January 1, 2020 and remained in effect for 180 days. ​The final rules became effective upon filing on June 3, 2020, and can be found here.

Sec. 1-5. Findings.
(a) In the interest of allowing law enforcement to focus on violent and property crimes, generating revenue for education, substance abuse prevention and treatment, freeing public resources to invest in communities and other public purposes, and individual freedom, the General Assembly finds and declares that the use of cannabis should be legal for persons 21 years of age or older and should be taxed in a manner similar to alcohol.
(b) In the interest of the health and public safety of the residents of Illinois, the General Assembly further finds and declares that cannabis should be regulated in a manner similar to alcohol so that:
(1) persons will have to show proof of age before

purchasing cannabis;
(2) selling, distributing, or transferring cannabis

to minors and other persons under 21 years of age shall remain illegal;
(3) driving under the influence of cannabis,

operating a watercraft under the influence of cannabis, and operating a snowmobile under the influence of cannabis shall remain illegal;
(4) legitimate, taxpaying business people, and not

criminal actors, will conduct sales of cannabis;
(5) cannabis sold in this State will be tested,

labeled, and subject to additional regulation to ensure that purchasers are informed and protected; and
(6) purchasers will be informed of any known health

risks associated with the use of cannabis, as concluded by evidence-based, peer reviewed research.
(c) The General Assembly further finds and declares that it is necessary to ensure consistency and fairness in the application of this Act throughout the State and that, therefore, the matters addressed by this Act are, except as specified in this Act, matters of statewide concern.
(d) The General Assembly further finds and declares that this Act shall not diminish the State’s duties and commitment to seriously ill patients registered under the Compassionate Use of Medical Cannabis Program Act, nor alter the protections granted to them.
(e) The General Assembly supports and encourages labor neutrality in the cannabis industry and further finds and declares that employee workplace safety shall not be diminished and employer workplace policies shall be interpreted broadly to protect employee safety.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

 

(410 ILCS 705/1-7)
Sec. 1-7. Lawful user and lawful products. For the purposes of this Act and to clarify the legislative findings on the lawful use of cannabis, a person shall not be considered an unlawful user or addicted to narcotics solely as a result of his or her possession or use of cannabis or cannabis paraphernalia in accordance with this Act.
(Source: P.A. 101-593, eff. 12-4-19.)

(410 ILCS 705/1-10)
Sec. 1-10. Definitions. In this Act:
“Adult Use Cultivation Center License” means a license issued by the Department of Agriculture that permits a person to act as a cultivation center under this Act and any administrative rule made in furtherance of this Act.
“Adult Use Dispensing Organization License” means a license issued by the Department of Financial and Professional Regulation that permits a person to act as a dispensing organization under this Act and any administrative rule made in furtherance of this Act.
“Advertise” means to engage in promotional activities including, but not limited to: newspaper, radio, Internet and electronic media, and television advertising; the distribution of fliers and circulars; billboard advertising; and the display of window and interior signs. “Advertise” does not mean exterior signage displaying only the name of the licensed cannabis business establishment.
“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.
“Cannabis” means marijuana, hashish, and other substances that are identified as including any parts of the plant Cannabis sativa and including derivatives or subspecies, such as indica, of all strains of cannabis, whether growing or not; the seeds thereof, the resin extracted from any part of the plant; and any compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin, including tetrahydrocannabinol (THC) and all other naturally produced cannabinol derivatives, whether produced directly or indirectly by extraction; however, “cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted from it), fiber, oil or cake, or the sterilized seed of the plant that is incapable of germination. “Cannabis” does not include industrial hemp as defined and authorized under the Industrial Hemp Act. “Cannabis” also means cannabis flower, concentrate, and cannabis-infused products.
“Cannabis business establishment” means a cultivation center, craft grower, processing organization, infuser organization, dispensing organization, or transporting organization.
“Cannabis concentrate” means a product derived from cannabis that is produced by extracting cannabinoids, including tetrahydrocannabinol (THC), from the plant through the use of propylene glycol, glycerin, butter, olive oil or other typical cooking fats; water, ice, or dry ice; or butane, propane, CO2, ethanol, or isopropanol and with the intended use of smoking or making a cannabis-infused product. The use of any other solvent is expressly prohibited unless and until it is approved by the Department of Agriculture.
“Cannabis container” means a sealed, 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 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 Department of 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.
“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 Community College Cannabis Vocational Training Pilot Program faculty participant.
“Conditional Adult Use Dispensing Organization License” means a license awarded to top-scoring 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.
“Craft grower” means a facility operated by an organization or business that is licensed by the Department of Agriculture to cultivate, dry, cure, and package cannabis and perform other necessary activities to make cannabis available for sale at a dispensing organization or use at a processing organization. A craft grower may contain up to 5,000 square feet of canopy space on its premises for plants in the flowering state. The Department of Agriculture may authorize an increase or decrease of flowering stage cultivation space in increments of 3,000 square feet by rule based on market need, craft grower capacity, and the licensee’s history of compliance or noncompliance, with a maximum space of 14,000 square feet for cultivating plants in the flowering stage, which must be cultivated in all stages of growth in an enclosed and secure area. A craft grower may share premises with a processing organization or a dispensing organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership.
“Craft grower agent” means a principal officer, board member, employee, or other agent of a craft grower who is 21 years of age or older.
“Craft Grower Agent Identification Card” means a document issued by the Department of Agriculture that identifies a person as a craft grower agent.
“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.
“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%

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 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.
“Enclosed, locked facility” means a room, greenhouse, building, or other enclosed area equipped with locks or other security devices that permit access only by cannabis business establishment agents working for the licensed cannabis business establishment or acting pursuant to this Act to cultivate, process, store, or distribute cannabis.
“Enclosed, locked space” means a closet, room, greenhouse, building or other enclosed area equipped with locks or other security devices that permit access only by authorized individuals under this Act. “Enclosed, locked space” may include:
(1) a space within a residential building that (i) is

the primary residence of the individual cultivating 5 or fewer cannabis plants that are more than 5 inches tall and (ii) includes sleeping quarters and indoor plumbing. The space must only be accessible by a key or code that is different from any key or code that can be used to access the residential building from the exterior; or
(2) a structure, such as a shed or greenhouse, that

lies on the same plot of land as a residential building that (i) includes sleeping quarters and indoor plumbing and (ii) is used as a primary residence by the person cultivating 5 or fewer cannabis plants that are more than 5 inches tall, such as a shed or greenhouse. The structure must remain locked when it is unoccupied by people.
“Financial institution” has the same meaning as “financial organization” as defined in Section 1501 of the Illinois Income Tax Act, and also includes the holding companies, subsidiaries, and affiliates of such financial organizations.
“Flowering stage” means the stage of cultivation where and when a cannabis plant is cultivated to produce plant material for cannabis products. This includes mature plants as follows:
(1) if greater than 2 stigmas are visible at each

internode of the plant; or
(2) if the cannabis plant is in an area that has been

intentionally deprived of light for a period of time intended to produce flower buds and induce maturation, from the moment the light deprivation began through the remainder of the marijuana plant growth cycle.
“Individual” means a natural person.
“Infuser organization” or “infuser” means a facility operated by an organization or business that is licensed by the Department of Agriculture to directly incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis-infused product.
“Kief” means the resinous crystal-like trichomes that are found on cannabis and that are accumulated, resulting in a higher concentration of cannabinoids, untreated by heat or pressure, or extracted using a solvent.
“Labor peace agreement” means an agreement between a cannabis business establishment and any labor organization recognized under the National Labor Relations Act, referred to in this Act as a bona fide labor organization, that prohibits labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the cannabis business establishment. This agreement means that the cannabis business establishment has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the cannabis business establishment’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the cannabis business establishment’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under State law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.
“Limited access area” means a room or other area under the control of a cannabis dispensing organization licensed under this Act and upon the licensed premises where cannabis sales occur with access limited to purchasers, dispensing organization owners and other dispensing organization agents, or service professionals conducting business with the dispensing organization, or, if sales to registered qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants licensed pursuant to the Compassionate Use of Medical Cannabis Program Act are also permitted at the dispensary, registered qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants.
“Member of an impacted family” means an individual who has a parent, legal guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the effective date of this Act, was arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act.
“Mother plant” means a cannabis plant that is cultivated or maintained for the purpose of generating clones, and that will not be used to produce plant material for sale to an infuser or dispensing organization.
“Ordinary public view” means within the sight line with normal visual range of a person, unassisted by visual aids, from a public street or sidewalk adjacent to real property, or from within an adjacent property.
“Ownership and control” means ownership of at least 51% of the business, including corporate stock if a corporation, and control over the management and day-to-day operations of the business and an interest in the capital, assets, and profits and losses of the business proportionate to percentage of ownership.
“Person” means a natural individual, firm, partnership, association, joint stock company, joint venture, public or private corporation, limited liability company, or a receiver, executor, trustee, guardian, or other representative appointed by order of any court.
“Possession limit” means the amount of cannabis under Section 10-10 that may be possessed at any one time by a person 21 years of age or older or who is a registered qualifying medical cannabis patient or caregiver under the Compassionate Use of Medical Cannabis Program Act.
“Principal officer” includes a cannabis business establishment applicant or licensed cannabis business establishment’s board member, owner with more than 1% interest of the total cannabis business establishment or more than 5% interest of the total cannabis business establishment of a publicly traded company, president, vice president, secretary, treasurer, partner, officer, member, manager member, or person with a profit sharing, financial interest, or revenue sharing arrangement. The definition includes a person with authority to control the cannabis business establishment, a person who assumes responsibility for the debts of the cannabis business establishment and who is further defined in this Act.
“Primary residence” means a dwelling where a person usually stays or stays more often than other locations. It may be determined by, without limitation, presence, tax filings; address on an Illinois driver’s license, an Illinois Identification Card, or an Illinois Person with a Disability Identification Card; or voter registration. No person may have more than one primary residence.
“Processing organization” or “processor” means a facility operated by an organization or business that is licensed by the Department of Agriculture to either extract constituent chemicals or compounds to produce cannabis concentrate or incorporate cannabis or cannabis concentrate into a product formulation to produce a cannabis product.
“Processing organization agent” means a principal officer, board member, employee, or agent of a processing organization.
“Processing organization agent identification card” means a document issued by the Department of Agriculture that identifies a person as a processing organization agent.
“Purchaser” means a person 21 years of age or older who acquires cannabis for a valuable consideration. “Purchaser” does not include a cardholder under the Compassionate Use of Medical Cannabis Program Act.
“Qualified Social Equity Applicant” means a Social Equity Applicant who has been awarded a conditional license under this Act to operate a cannabis business establishment.
“Resided” means an individual’s primary residence was located within the relevant geographic area as established by 2 of the following:
(1) a signed lease agreement that includes the

applicant’s name;
(2) a property deed that includes the applicant’s

name;
(3) school records;
(4) a voter registration card;
(5) an Illinois driver’s license, an Illinois

Identification Card, or an Illinois Person with a Disability Identification Card;
(6) a paycheck stub;
(7) a utility bill;
(8) tax records; or
(9) any other proof of residency or other information

necessary to establish residence as provided by rule.
“Smoking” means the inhalation of smoke caused by the combustion of cannabis.
“Social Equity Applicant” means an applicant that is an Illinois resident that meets one of the following criteria:
(1) an applicant with at least 51% ownership and

control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area;
(2) an applicant with at least 51% ownership and

control by one or more individuals who:
(i) have been arrested for, convicted of, or

adjudicated delinquent for any offense that is eligible for expungement under this Act; or
(ii) is a member of an impacted family;
(3) for applicants with a minimum of 10 full-time

employees, an applicant with at least 51% of current employees who:
(i) currently reside in a Disproportionately

Impacted Area; or
(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.
“Tincture” means a cannabis-infused solution, typically comprised of alcohol, glycerin, or vegetable oils, derived either directly from the cannabis plant or from a processed cannabis extract. A tincture is not an alcoholic liquor as defined in the Liquor Control Act of 1934. A tincture shall include a calibrated dropper or other similar device capable of accurately measuring servings.
“Transporting organization” or “transporter” means an organization or business that is licensed by the Department of Agriculture to transport cannabis or cannabis-infused product on behalf of a cannabis business establishment or a community college licensed under the Community College Cannabis Vocational Training Pilot Program.
“Transporting organization agent” means a principal officer, board member, employee, or agent of a transporting organization.
“Transporting organization agent identification card” means a document issued by the Department of Agriculture that identifies a person as a transporting organization agent.
“Unit of local government” means any county, city, village, or incorporated town.
“Vegetative stage” means the stage of cultivation in which a cannabis plant is propagated to produce additional cannabis plants or reach a sufficient size for production. This includes seedlings, clones, mothers, and other immature cannabis plants as follows:
(1) if the cannabis plant is in an area that has not

been intentionally deprived of light for a period of time intended to produce flower buds and induce maturation, it has no more than 2 stigmas visible at each internode of the cannabis plant; or
(2) any cannabis plant that is cultivated solely for

the purpose of propagating clones and is never used to produce cannabis.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

Compassionate Use of Medical Cannabis

Qualifying Conditions for Illinois Medical Cannabis Patients are determined by the state; you can petition to have conditions added to the list of qualifying conditions here.

Caregivers grow and process cannabis on behalf of patients. They cannot charge for cannabis, only recoup the costs of goods.

How can I get an Illinois Medical Cannabis Card?

Minor Qualifying Patients – Please scroll down.

To qualify for a patient registry identification card, a qualifying patient must:

  • Be a resident of the State of Illinois at the time of application and remain a resident during participation in the program;
  • Have a qualifying debilitating medical condition (see below);
  • Have a signed physician certification (unless you are a veteran receiving medical care at a VA facility);
  • Complete the fingerprint-based background check within 30 days of submitting your application and not have been convicted of an excluded offense (a felony under the Illinois Controlled Substances Act, Cannabis Control Act, or Methamphetamine Control and Community Protection Act, or similar provisions in a local ordinance or other jurisdiction), unless the Department waives such a conviction(s);
  • Be at least 18 years of age;
  • Not hold a school bus permit or Commercial Driver’s License; and
  • Not be an active duty law enforcement officer, correctional officer, correctional probation officer, or firefighter.

Registered medical cannabis patients must select a dispensary to purchase their medical cannabis from.  Here is an updated list of registered dispensaries in Illinois.

Physician Written Certification Physician Certifications completed on behalf of qualifying patients applying to the Illinois Department of Public Health, Medical Cannabis Registry Program, shall be provided to the applicant for submission with the application for a registration card. As of June 2018, Physicians no longer need to submit the Physician Certification directly to the Department via mail or email. Whether or not a physician chooses to provide a written physician certification is up to the healthcare practitioner.

Illinois Department of Public Health
Division of Medical Cannabis
535 W. Jefferson Street
Springfield, IL 62761

Qualifying Medical Patient Cannabis Application – Illinois

Instructions to fill out your Medical Cannabis Patient Application – Illinois

Illinois Qualifying Medical Patients must adhere to a background check, which is conducted using a Fingerprint Background check along with the submitted photo with your application.

Fingerprint Background Check – Patient Form – Illinois

Does my condition qualify for Medical Cannabis in Illinois?

  • Agitation of Alzheimer’s disease
  • HIV/AIDS
  • Amyotrophic lateral sclerosis (ALS)
  • Arnold-Chiari malformation
  • Cancer
  • Causalgia
  • Chronic inflammatory demyelinating polyneuropathy
  • Crohn’s disease
  • CRPS (complex regional pain syndrome Type II)
  • Dystonia
  • Fibrous Dysplasia
  • Glaucoma
  • Hepatitis C
  • Hydrocephalus
  • Hydromyelia
  • Interstitial cystitis
  • Lupus
  • Multiple Sclerosis
  • Muscular Dystrophy
  • Myasthenia Gravis
  • Myoclonus
  • Nail-patella syndrome
  • Neurofibromatosis
  • Parkinson’s disease
  • Post-Concussion Syndrome
  • Post-Traumatic Stress Disorder (PTSD)
  • Reflex sympathetic dystrophy
  • Residual limb pain
  • Rheumatoid arthritis
  • Seizures (including those characteristic of Epilepsy)
  • Severe fibromyalgia
  • Sjogren’s syndrome
  • Spinal cord disease (including but not limited to arachnoiditis)
  • Spinal cord injury is damage to the nervous tissue of the spinal cord with objective neurological indication of intractable spasticity
  • Spinocerebellar ataxia
  • Syringomyelia
  • Tarlov cysts
  • Tourette syndrome
  • Traumatic brain injury
  • Cachexia/wasting syndrome

Medical Cannabis Registration Fees in Illinois:

  • $100 – 1-Year Registry Card
  • $200 – 2-Year Registry Card
  • $250 – 3-Year Registry Card

Reduced Application Fees – Patients receiving Social Security Disability Income (SSDI) or Supplemental Security Income (SSI) and veterans may be eligible for a reduced application fee:

  • $50 – 1-Year Registry Card
  • $100 – 2-Year Registry Card
  • $125 – 3-Year Registry Card

How can a minor apply for Medical Cannabis in Illinois?

Minors are subject to a $250 fee for a 3-year registry and are required to have a designated caregiver; one caregiver is included at no charge in the application.  Patients may add a second caregiver for a fee of $750 by completing a caregiver application.  Qualifying patients under the age of 18 are not required to submit a photo or undergo a fingerprint background check.

A physician certification is required as well as a reviewing physician certification.

If a qualifying minor patient turns 18 while their registry identification card is still active, they may apply for an adult registry identification card immediately or during the normal renewal period.

The designated caregiver is required to be specified for a qualifying patient under the age of 18:

  • A qualifying patient under 18 years of age may identify two designated caregivers if both biological parents or two legal guardians have significant decision-making responsibilities over the qualifying patient; or
  • If only one biological parent or legal guardian has significant decision-making responsibilities for the qualifying patient under 18 years of age, then a second designated caregiver may be identified.

Caregivers of registered qualifying minor patients are only able to purchase medical cannabis-infused products from registered dispensing organizations; other types of medical cannabis products are not permitted.

Minor Qualifying Patient Application – Illinois

Instructions for Minor Qualifying Patient Applications – Illinois

How can I become a Caregiver in Illinois?

If your qualifying medical condition restricts you from being able to purchase cannabis by yourself, or you’re a qualifying medical patient under the age of 18, a caregiver may be designated to assist you with purchasing.  Simply fill out a Designated Caregiver Application and submit the required documentation with your patient application.  Patients under the age of 18 are allowed to register 2 designated caregivers for a fee.

Designated Caregiver Application – Illinois

Designated Caregiver Fees

  • $25 – 1-Year Registry Card
  • $50 – 2-Year Registry Card
  • $75 – Caregiver applying for a patient who has already been registered (Expiration dates for caregiver and patient will match)

Dispensaries sell legal cannabis, and cannabis products, to responsible adults in compliance with local regulations.

Illinois Dispensary Licenses

Illinois residents can contact the Illinois Department of Financial and Professional Regulation to inquire about obtaining a dispensary license.  Currently, the state of Illinois has distributed the max number of dispensary licenses and there are no current plans to add more.

What kind of point-of-sale do I need to operate a Dispensary?

Most states require dispensaries to track and trace all of their cannabis-related products for regulatory and compliance reporting requirements. Our Dispensary Point of Sale and inventory management system provides comprehensive seed-to-sale cannabis tracking with a focus on compliant data points.  If your state requires seed-to-sale systems to stay compliant, BioTrack has you covered.  Our system is customized to meet the unique regulatory frameworks in each and every state.

 

Article 15.
License and Regulation of Dispensing Organizations
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-5)
Sec. 15-5. Authority.
(a) In this Article, “Department” means the Department of Financial and Professional Regulation.
(b) It is the duty of the Department to administer and enforce the provisions of this Act relating to the licensure and oversight of dispensing organizations and dispensing organization agents unless otherwise provided in this Act.
(c) No person shall operate a dispensing organization for the purpose of serving purchasers of cannabis or cannabis products without a license issued under this Article by the Department. No person shall be an officer, director, manager, or employee of a dispensing organization without having been issued a dispensing organization agent card by the Department.
(d) Subject to the provisions of this Act, the Department may exercise the following powers and duties:
(1) Prescribe forms to be issued for the

administration and enforcement of this Article.
(2) Examine, inspect, and investigate the premises,

operations, and records of dispensing organization applicants and licensees.
(3) Conduct investigations of possible violations of

this Act pertaining to dispensing organizations and dispensing organization agents.
(4) Conduct hearings on proceedings to refuse to

issue or renew licenses or to revoke, suspend, place on probation, reprimand, or otherwise discipline a license under this Article or take other nondisciplinary action.
(5) Adopt rules required for the administration of

this Article.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-10)
Sec. 15-10. Medical cannabis dispensing organization exemption. This Article does not apply to medical cannabis dispensing organizations registered under the Compassionate Use of Medical Cannabis Pilot Program Act, except where otherwise specified.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-15)
Sec. 15-15. Early Approval Adult Use Dispensing Organization License.
(a) Any medical cannabis dispensing organization holding a valid registration under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act may, within 60 days of the effective date of this Act, apply to the Department for an Early Approval Adult Use Dispensing Organization License to serve purchasers at any medical cannabis dispensing location in operation on the effective date of this Act, pursuant to this Section.
(b) A medical cannabis dispensing organization seeking issuance of an Early Approval Adult Use Dispensing Organization License to serve purchasers at any medical cannabis dispensing location in operation as of the effective date of this Act shall submit an application on forms provided by the Department. The application must be submitted by the same person or entity that holds the medical cannabis dispensing organization registration and include the following:
(1) Payment of a nonrefundable fee of $30,000 to be

deposited into the Cannabis Regulation Fund;
(2) Proof of registration as a medical cannabis

dispensing organization that is in good standing;
(3) Certification that the applicant will comply with

the requirements contained in the Compassionate Use of Medical Cannabis Program Act except as provided in this Act;
(4) The legal name of the dispensing organization;
(5) The physical address of the dispensing

organization;
(6) The name, address, social security number, and

date of birth of each principal officer and board member of the dispensing organization, each of whom must be at least 21 years of age;
(7) A nonrefundable Cannabis Business Development Fee

equal to 3% of the dispensing organization’s total sales between June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to be deposited into the Cannabis Business Development Fund; and
(8) Identification of one of the following Social

Equity Inclusion Plans to be completed by March 31, 2021:
(A) Make a contribution of 3% of total sales from

June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to the Cannabis Business Development Fund. This is in addition to the fee required by item (7) of this subsection (b);
(B) Make a grant of 3% of total sales from June

1, 2018 to June 1, 2019, or $100,000, whichever is less, to a cannabis industry training or education program at an Illinois community college as defined in the Public Community College Act;
(C) Make a donation of $100,000 or more to a

program that provides job training services to persons recently incarcerated or that operates in a Disproportionately Impacted Area;
(D) Participate as a host in a cannabis business

establishment incubator program approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval Adult Use Dispensing Organization License holder agrees to provide a loan of at least $100,000 and mentorship to incubate, for at least a year, a Social Equity Applicant intending to seek a license or a licensee that qualifies as a Social Equity Applicant. As used in this Section, “incubate” means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. The Early Approval Adult Use Dispensing Organization License holder or the same entity holding any other licenses issued pursuant to this Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection. If an Early Approval Adult Use Dispensing Organization License holder fails to find a business to incubate to comply with this subsection before its Early Approval Adult Use Dispensing Organization License expires, it may opt to meet the requirement of this subsection by completing another item from this subsection; or
(E) Participate in a sponsorship program for at

least 2 years approved by the Department of Commerce and Economic Opportunity in which an Early Approval Adult Use Dispensing Organization License holder agrees to provide an interest-free loan of at least $200,000 to a Social Equity Applicant. The sponsor shall not take an ownership stake in any cannabis business establishment receiving sponsorship services to comply with this subsection.
(b-5) Beginning 90 days after the effective date of this amendatory Act of the 102nd General Assembly, an Early Approval Adult Use Dispensing Organization licensee whose license was issued pursuant to this Section may apply to relocate within the same geographic district where its existing associated medical cannabis dispensing organization dispensary licensed under the Compassionate Use of Medical Cannabis Act is authorized to operate. A request to relocate under this subsection is subject to approval by the Department. An Early Approval Adult Use Dispensing Organization’s application to relocate its license under this subsection shall be deemed approved 30 days following the submission of a complete application to relocate, unless sooner approved or denied in writing by the Department. If an application to relocate is denied, the Department shall provide, in writing, the specific reason for denial.
An Early Approval Adult Use Dispensing Organization may request to relocate under this subsection if:
(1) its existing location is within the boundaries of

a unit of local government that prohibits the sale of adult use cannabis; or
(2) the Early Approval Adult Use Dispensing

Organization has obtained the approval of the municipality or, if outside the boundaries of a municipality in an unincorporated area of the county, the approval of the county where the existing license is located to move to another location within that unit of local government.
At no time may an Early Approval Adult Use Dispensing Organization dispensary licensed under this Section operate in a separate facility from its associated medical cannabis dispensing organization dispensary licensed under the Compassionate Use of Medical Cannabis Act. The relocation of an Early Approval Adult Use Dispensing Organization License under this subsection shall be subject to Sections 55-25 and 55-28 of this Act.
(c) The license fee required by paragraph (1) of subsection (b) of this Section shall be in addition to any license fee required for the renewal of a registered medical cannabis dispensing organization license.
(d) Applicants must submit all required information, including the requirements in subsection (b) of this Section, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified.
(e) If the Department receives an application that fails to provide the required elements contained in subsection (b), the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified.
(f) If an applicant meets all the requirements of subsection (b) of this Section, the Department shall issue the Early Approval Adult Use Dispensing Organization License within 14 days of receiving a completed application unless:
(1) The licensee or a principal officer is delinquent

in filing any required tax returns or paying any amounts owed to the State of Illinois;
(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented compliance violations, the licensee is not entitled to an Early Approval Adult Use Dispensing Organization License; or
(3) Any principal officer fails to register and

remain in compliance with this Act or the Compassionate Use of Medical Cannabis Program Act.
(g) A registered medical cannabis dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License may begin selling cannabis, cannabis-infused products, paraphernalia, and related items to purchasers under the rules of this Act no sooner than January 1, 2020.
(h) A dispensing organization holding a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act must maintain an adequate supply of cannabis and cannabis-infused products for purchase by qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants. For the purposes of this subsection, “adequate supply” means a monthly inventory level that is comparable in type and quantity to those medical cannabis products provided to patients and caregivers on an average monthly basis for the 6 months before the effective date of this Act.
(i) If there is a shortage of cannabis or cannabis-infused products, a dispensing organization holding both a dispensing organization license under the Compassionate Use of Medical Cannabis Program Act and this Act shall prioritize serving qualifying patients, caregivers, provisional patients, and Opioid Alternative Pilot Program participants before serving purchasers.
(j) Notwithstanding any law or rule to the contrary, a person that holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act and an Early Approval Adult Use Dispensing Organization License may permit purchasers into a limited access area as that term is defined in administrative rules made under the authority in the Compassionate Use of Medical Cannabis Program Act.
(k) An Early Approval Adult Use Dispensing Organization License is valid until March 31, 2021. A dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply to renew its Early Approval Adult Use Dispensing Organization License on forms provided by the Department. The Department shall renew the Early Approval Adult Use Dispensing Organization License within 60 days of the renewal application being deemed complete if:
(1) the dispensing organization submits an

application and the required nonrefundable renewal fee of $30,000, to be deposited into the Cannabis Regulation Fund;
(2) the Department has not suspended or permanently

revoked the Early Approval Adult Use Dispensing Organization License or a medical cannabis dispensing organization license on the same premises for violations of this Act, the Compassionate Use of Medical Cannabis Program Act, or rules adopted pursuant to those Acts;
(3) the dispensing organization has completed a

Social Equity Inclusion Plan as provided by parts (A), (B), and (C) of paragraph (8) of subsection (b) of this Section or has made substantial progress toward completing a Social Equity Inclusion Plan as provided by parts (D) and (E) of paragraph (8) of subsection (b) of this Section; and
(4) the dispensing organization is in compliance with

this Act and rules.
(l) The Early Approval Adult Use Dispensing Organization License renewed pursuant to subsection (k) of this Section shall expire March 31, 2022. The Early Approval Adult Use Dispensing Organization Licensee shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply for an Adult Use Dispensing Organization License on forms provided by the Department. The Department shall grant an Adult Use Dispensing Organization License within 60 days of an application being deemed complete if the applicant has met all of the criteria in Section 15-36.
(m) If a dispensing organization fails to submit an application for renewal of an Early Approval Adult Use Dispensing Organization License or for an Adult Use Dispensing Organization License before the expiration dates provided in subsections (k) and (l) of this Section, the dispensing organization shall cease serving purchasers and cease all operations until it receives a renewal or an Adult Use Dispensing Organization License, as the case may be.
(n) A dispensing organization agent who holds a valid dispensing organization agent identification card issued under the Compassionate Use of Medical Cannabis Program Act and is an officer, director, manager, or employee of the dispensing organization licensed under this Section may engage in all activities authorized by this Article to be performed by a dispensing organization agent.
(o) If the Department suspends, permanently revokes, or otherwise disciplines the Early Approval Adult Use Dispensing Organization License of a dispensing organization that also holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, the Department may consider the suspension, permanent revocation, or other discipline of the medical cannabis dispensing organization license.
(p) All fees collected pursuant to this Section shall be deposited into the Cannabis Regulation Fund, unless otherwise specified.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)

(410 ILCS 705/15-20)
Sec. 15-20. Early Approval Adult Use Dispensing Organization License; secondary site.
(a) Any medical cannabis dispensing organization holding a valid registration under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act may, within 60 days of the effective date of this Act, apply to the Department for an Early Approval Adult Use Dispensing Organization License to operate a dispensing organization to serve purchasers at a secondary site not within 1,500 feet of another medical cannabis dispensing organization or adult use dispensing organization. The Early Approval Adult Use Dispensing Organization secondary site shall be within any BLS Region that shares territory with the dispensing organization district to which the medical cannabis dispensing organization is assigned under the administrative rules for dispensing organizations under the Compassionate Use of Medical Cannabis Program Act.
(a-5) If, within 360 days of the effective date of this Act, a dispensing organization is unable to find a location within the BLS Regions prescribed in subsection (a) of this Section in which to operate an Early Approval Adult Use Dispensing Organization at a secondary site because no jurisdiction within the prescribed area allows the operation of an Adult Use Cannabis Dispensing Organization, the Department of Financial and Professional Regulation may waive the geographic restrictions of subsection (a) of this Section and specify another BLS Region into which the dispensary may be placed.
(b) (Blank).
(c) A medical cannabis dispensing organization seeking issuance of an Early Approval Adult Use Dispensing Organization License at a secondary site to serve purchasers at a secondary site as prescribed in subsection (a) of this Section shall submit an application on forms provided by the Department. The application must meet or include the following qualifications:
(1) a payment of a nonrefundable application fee of

$30,000;
(2) proof of registration as a medical cannabis

dispensing organization that is in good standing;
(3) submission of the application by the same person

or entity that holds the medical cannabis dispensing organization registration;
(4) the legal name of the medical cannabis dispensing

organization;
(5) the physical address of the medical cannabis

dispensing organization and the proposed physical address of the secondary site;
(6) a copy of the current local zoning ordinance

Sections relevant to dispensary operations and documentation of the approval, the conditional approval or the status of a request for zoning approval from the local zoning office that the proposed dispensary location is in compliance with the local zoning rules;
(7) a plot plan of the dispensary drawn to scale. The

applicant shall submit general specifications of the building exterior and interior layout;
(8) a statement that the dispensing organization

agrees to respond to the Department’s supplemental requests for information;
(9) for the building or land to be used as the

proposed dispensary:
(A) if the property is not owned by the

applicant, a written statement from the property owner and landlord, if any, certifying consent that the applicant may operate a dispensary on the premises; or
(B) if the property is owned by the applicant,

confirmation of ownership;
(10) a copy of the proposed operating bylaws;
(11) a copy of the proposed business plan that

complies with the requirements in this Act, including, at a minimum, the following:
(A) a description of services to be offered; and
(B) a description of the process of dispensing

cannabis;
(12) a copy of the proposed security plan that

complies with the requirements in this Article, including:
(A) a description of the delivery process by

which cannabis will be received from a transporting organization, including receipt of manifests and protocols that will be used to avoid diversion, theft, or loss at the dispensary acceptance point; and
(B) the process or controls that will be

implemented to monitor the dispensary, secure the premises, agents, patients, and currency, and prevent the diversion, theft, or loss of cannabis; and
(C) the process to ensure that access to the

restricted access areas is restricted to, registered agents, service professionals, transporting organization agents, Department inspectors, and security personnel;
(13) a proposed inventory control plan that complies

with this Section;
(14) the name, address, social security number, and

date of birth of each principal officer and board member of the dispensing organization; each of those individuals shall be at least 21 years of age;
(15) a nonrefundable Cannabis Business Development

Fee equal to $200,000, to be deposited into the Cannabis Business Development Fund; and
(16) a commitment to completing one of the following

Social Equity Inclusion Plans in subsection (d).
(d) Before receiving an Early Approval Adult Use Dispensing Organization License at a secondary site, a dispensing organization shall indicate the Social Equity Inclusion Plan that the applicant plans to achieve before the expiration of the Early Approval Adult Use Dispensing Organization License from the list below:
(1) make a contribution of 3% of total sales from

June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to the Cannabis Business Development Fund. This is in addition to the fee required by paragraph (16) of subsection (c) of this Section;
(2) make a grant of 3% of total sales from June 1,

2018 to June 1, 2019, or $100,000, whichever is less, to a cannabis industry training or education program at an Illinois community college as defined in the Public Community College Act;
(3) make a donation of $100,000 or more to a program

that provides job training services to persons recently incarcerated or that operates in a Disproportionately Impacted Area;
(4) participate as a host in a cannabis business

establishment incubator program approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval Adult Use Dispensing Organization License at a secondary site holder agrees to provide a loan of at least $100,000 and mentorship to incubate, for at least a year, a Social Equity Applicant intending to seek a license or a licensee that qualifies as a Social Equity Applicant. In this paragraph (4), “incubate” means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. The Early Approval Adult Use Dispensing Organization License holder or the same entity holding any other licenses issued under this Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection. If an Early Approval Adult Use Dispensing Organization License at a secondary site holder fails to find a business to incubate in order to comply with this subsection before its Early Approval Adult Use Dispensing Organization License at a secondary site expires, it may opt to meet the requirement of this subsection by completing another item from this subsection before the expiration of its Early Approval Adult Use Dispensing Organization License at a secondary site to avoid a penalty; or
(5) participate in a sponsorship program for at least

2 years approved by the Department of Commerce and Economic Opportunity in which an Early Approval Adult Use Dispensing Organization License at a secondary site holder agrees to provide an interest-free loan of at least $200,000 to a Social Equity Applicant. The sponsor shall not take an ownership stake of greater than 10% in any business receiving sponsorship services to comply with this subsection.
(e) The license fee required by paragraph (1) of subsection (c) of this Section is in addition to any license fee required for the renewal of a registered medical cannabis dispensing organization license.
(f) Applicants must submit all required information, including the requirements in subsection (c) of this Section, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified. Principal officers shall not be required to submit to the fingerprint and background check requirements of Section 5-20.
(g) If the Department receives an application that fails to provide the required elements contained in subsection (c), the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified.
(h) Once all required information and documents have been submitted, the Department will review the application. The Department may request revisions and retains final approval over dispensary features. Once the application is complete and meets the Department’s approval, the Department shall conditionally approve the license. Final approval is contingent on the build-out and Department inspection.
(i) Upon submission of the Early Approval Adult Use Dispensing Organization at a secondary site application, the applicant shall request an inspection and the Department may inspect the Early Approval Adult Use Dispensing Organization’s secondary site to confirm compliance with the application and this Act.
(j) The Department shall only issue an Early Approval Adult Use Dispensing Organization License at a secondary site after the completion of a successful inspection.
(k) If an applicant passes the inspection under this Section, the Department shall issue the Early Approval Adult Use Dispensing Organization License at a secondary site within 10 business days unless:
(1) The licensee, any principal officer or board

member of the licensee, or any person having a financial or voting interest of 5% or greater in the licensee is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois; or
(2) The Secretary of Financial and Professional

Regulation determines there is reason, based on documented compliance violations, the licensee is not entitled to an Early Approval Adult Use Dispensing Organization License at its secondary site.
(l) Once the Department has issued a license, the dispensing organization shall notify the Department of the proposed opening date.
(m) A registered medical cannabis dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License at a secondary site may begin selling cannabis, cannabis-infused products, paraphernalia, and related items to purchasers under the rules of this Act no sooner than January 1, 2020.
(n) If there is a shortage of cannabis or cannabis-infused products, a dispensing organization holding both a dispensing organization license under the Compassionate Use of Medical Cannabis Program Act and this Article shall prioritize serving qualifying patients and caregivers before serving purchasers.
(o) An Early Approval Adult Use Dispensing Organization License at a secondary site is valid until March 31, 2021. A dispensing organization that obtains an Early Approval Adult Use Dispensing Organization License at a secondary site shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and inform the license holder that it may renew its Early Approval Adult Use Dispensing Organization License at a secondary site. The Department shall renew an Early Approval Adult Use Dispensing Organization License at a secondary site within 60 days of submission of the renewal application being deemed complete if:
(1) the dispensing organization submits an

application and the required nonrefundable renewal fee of $30,000, to be deposited into the Cannabis Regulation Fund;
(2) the Department has not suspended or permanently

revoked the Early Approval Adult Use Dispensing Organization License or a medical cannabis dispensing organization license held by the same person or entity for violating this Act or rules adopted under this Act or the Compassionate Use of Medical Cannabis Program Act or rules adopted under that Act; and
(3) the dispensing organization has completed a

Social Equity Inclusion Plan provided by paragraph (1), (2), or (3) of subsection (d) of this Section or has made substantial progress toward completing a Social Equity Inclusion Plan provided by paragraph (4) or (5) of subsection (d) of this Section.
(p) The Early Approval Adult Use Dispensing Organization Licensee at a secondary site renewed pursuant to subsection (o) shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and that informs the license holder that it may apply for an Adult Use Dispensing Organization License on forms provided by the Department. The Department shall grant an Adult Use Dispensing Organization License within 60 days of an application being deemed complete if the applicant has meet all of the criteria in Section 15-36.
(q) If a dispensing organization fails to submit an application for renewal of an Early Approval Adult Use Dispensing Organization License or for an Adult Use Dispensing Organization License before the expiration dates provided in subsections (o) and (p) of this Section, the dispensing organization shall cease serving purchasers until it receives a renewal or an Adult Use Dispensing Organization License.
(r) A dispensing organization agent who holds a valid dispensing organization agent identification card issued under the Compassionate Use of Medical Cannabis Program Act and is an officer, director, manager, or employee of the dispensing organization licensed under this Section may engage in all activities authorized by this Article to be performed by a dispensing organization agent.
(s) If the Department suspends, permanently revokes, or otherwise disciplines the Early Approval Adult Use Dispensing Organization License of a dispensing organization that also holds a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, the Department may consider the suspension, permanent revocation, or other discipline as grounds to take disciplinary action against the medical cannabis dispensing organization.
(t) All fees collected pursuant to this Section shall be deposited into the Cannabis Regulation Fund, unless otherwise specified.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-25)
Sec. 15-25. Awarding of Conditional Adult Use Dispensing Organization Licenses prior to January 1, 2021.
(a) The Department shall issue up to 75 Conditional Adult Use Dispensing Organization Licenses before May 1, 2020.
(b) The Department shall make the application for a Conditional Adult Use Dispensing Organization License available no later than October 1, 2019 and shall accept applications no later than January 1, 2020.
(c) To ensure the geographic dispersion of Conditional Adult Use Dispensing Organization License holders, the following number of licenses shall be awarded in each BLS Region as determined by each region’s percentage of the State’s population:
(1) Bloomington: 1
(2) Cape Girardeau: 1
(3) Carbondale-Marion: 1
(4) Champaign-Urbana: 1
(5) Chicago-Naperville-Elgin: 47
(6) Danville: 1
(7) Davenport-Moline-Rock Island: 1
(8) Decatur: 1
(9) Kankakee: 1
(10) Peoria: 3
(11) Rockford: 2
(12) St. Louis: 4
(13) Springfield: 1
(14) Northwest Illinois nonmetropolitan: 3
(15) West Central Illinois nonmetropolitan: 3
(16) East Central Illinois nonmetropolitan: 2
(17) South Illinois nonmetropolitan: 2
(d) An applicant seeking issuance of a Conditional Adult Use Dispensing Organization License shall submit an application on forms provided by the Department. An applicant must meet the following requirements:
(1) Payment of a nonrefundable application fee of

$5,000 for each license for which the applicant is applying, which shall be deposited into the Cannabis Regulation Fund;
(2) Certification that the applicant will comply with

the requirements contained in this Act;
(3) The legal name of the proposed dispensing

organization;
(4) A statement that the dispensing organization

agrees to respond to the Department’s supplemental requests for information;
(5) From each principal officer, a statement

indicating whether that person:
(A) has previously held or currently holds an

ownership interest in a cannabis business establishment in Illinois; or
(B) has held an ownership interest in a

dispensing organization or its equivalent in another state or territory of the United States that had the dispensing organization registration or license suspended, revoked, placed on probationary status, or subjected to other disciplinary action;
(6) Disclosure of whether any principal officer has

ever filed for bankruptcy or defaulted on spousal support or child support obligation;
(7) A resume for each principal officer, including

whether that person has an academic degree, certification, or relevant experience with a cannabis business establishment or in a related industry;
(8) A description of the training and education that

will be provided to dispensing organization agents;
(9) A copy of the proposed operating bylaws;
(10) A copy of the proposed business plan that

complies with the requirements in this Act, including, at a minimum, the following:
(A) A description of services to be offered; and
(B) A description of the process of dispensing

cannabis;
(11) A copy of the proposed security plan that

complies with the requirements in this Article, including:
(A) The process or controls that will be

implemented to monitor the dispensary, secure the premises, agents, and currency, and prevent the diversion, theft, or loss of cannabis; and
(B) The process to ensure that access to the

restricted access areas is restricted to, registered agents, service professionals, transporting organization agents, Department inspectors, and security personnel;
(12) A proposed inventory control plan that complies

with this Section;
(13) A proposed floor plan, a square footage

estimate, and a description of proposed security devices, including, without limitation, cameras, motion detectors, servers, video storage capabilities, and alarm service providers;
(14) The name, address, social security number, and

date of birth of each principal officer and board member of the dispensing organization; each of those individuals shall be at least 21 years of age;
(15) Evidence of the applicant’s status as a Social

Equity Applicant, if applicable, and whether a Social Equity Applicant plans to apply for a loan or grant issued by the Department of Commerce and Economic Opportunity;
(16) The address, telephone number, and email address

of the applicant’s principal place of business, if applicable. A post office box is not permitted;
(17) Written summaries of any information regarding

instances in which a business or not-for-profit that a prospective board member previously managed or served on were fined or censured, or any instances in which a business or not-for-profit that a prospective board member previously managed or served on had its registration suspended or revoked in any administrative or judicial proceeding;
(18) A plan for community engagement;
(19) Procedures to ensure accurate recordkeeping and

security measures that are in accordance with this Article and Department rules;
(20) The estimated volume of cannabis it plans to

store at the dispensary;
(21) A description of the features that will provide

accessibility to purchasers as required by the Americans with Disabilities Act;
(22) A detailed description of air treatment systems

that will be installed to reduce odors;
(23) A reasonable assurance that the issuance of a

license will not have a detrimental impact on the community in which the applicant wishes to locate;
(24) The dated signature of each principal officer;
(25) A description of the enclosed, locked facility

where cannabis will be stored by the dispensing organization;
(26) Signed statements from each dispensing

organization agent stating that he or she will not divert cannabis;
(27) The number of licenses it is applying for in

each BLS Region;
(28) A diversity plan that includes a narrative of at

least 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity;
(29) A contract with a private security contractor

that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 in order for the dispensary to have adequate security at its facility; and
(30) Other information deemed necessary by the

Illinois Cannabis Regulation Oversight Officer to conduct the disparity and availability study referenced in subsection (e) of Section 5-45.
(e) An applicant who receives a Conditional Adult Use Dispensing Organization License under this Section has 180 days from the date of award to identify a physical location for the dispensing organization retail storefront. Before a conditional licensee receives an authorization to build out the dispensing organization from the Department, the Department shall inspect the physical space selected by the conditional licensee. The Department shall verify the site is suitable for public access, the layout promotes the safe dispensing of cannabis, the location is sufficient in size, power allocation, lighting, parking, handicapped accessible parking spaces, accessible entry and exits as required by the Americans with Disabilities Act, product handling, and storage. The applicant shall also provide a statement of reasonable assurance that the issuance of a license will not have a detrimental impact on the community. The applicant shall also provide evidence that the location is not within 1,500 feet of an existing dispensing organization. If an applicant is unable to find a suitable physical address in the opinion of the Department within 180 days of the issuance of the Conditional Adult Use Dispensing Organization License, the Department may extend the period for finding a physical address another 180 days if the Conditional Adult Use Dispensing Organization License holder demonstrates concrete attempts 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 360 days of being awarded a conditional license, the Department shall rescind the conditional license and award it to the next highest scoring applicant in the BLS Region for which the license was assigned, provided the applicant receiving the 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 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 to the next highest scoring applicant in the same manner. The new awardee shall be subject to the same required deadlines as provided in this subsection.
(e-5) 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 Dispensing Organization License because no jurisdiction within the BLS Region allows for the operation of an Adult Use Dispensing Organization, the Department of Financial and Professional Regulation may authorize the Conditional Adult Use Dispensing Organization License holder to transfer its license to a BLS Region specified by the Department.
(f) A dispensing organization that is awarded a Conditional Adult Use Dispensing Organization License pursuant to the criteria in Section 15-30 shall not purchase, possess, sell, or dispense cannabis or cannabis-infused products until the person has received an Adult Use Dispensing Organization License issued by the Department pursuant to Section 15-36 of this Act.
(g) The Department shall conduct a background check of the prospective organization agents in order to carry out this Article. The Department of 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 Department of State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed in the Department of State Police and Federal Bureau of Identification criminal history records databases. The Department of State Police shall furnish, following positive identification, all Illinois conviction information to the Department.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-30)
Sec. 15-30. Selection criteria for conditional licenses awarded under Section 15-25.
(a) Applicants for a Conditional Adult Use Dispensing Organization License must submit all required information, including the information required in Section 15-25, to the Department. Failure by an applicant to submit all required information may result in the application being disqualified.
(b) If the Department receives an application that fails to provide the required elements contained in this Section, the Department shall issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to resubmit the incomplete information. Applications that are still incomplete after this opportunity to cure will not be scored and will be disqualified.
(c) The Department will award up to 250 points to complete applications based on the sufficiency of the applicant’s responses to required information. Applicants will be awarded points based on a determination that the application satisfactorily includes the following elements:
(1) Suitability of Employee Training Plan (15 points).
The plan includes an employee training plan that

demonstrates that employees will understand the rules and laws to be followed by dispensary employees, have knowledge of any security measures and operating procedures of the dispensary, and are able to advise purchasers on how to safely consume cannabis and use individual products offered by the dispensary.
(2) Security and Recordkeeping (65 points).
(A) The security plan accounts for the prevention

of the theft or diversion of cannabis. The security plan demonstrates safety procedures for dispensing organization agents and purchasers, and safe delivery and storage of cannabis and currency. It demonstrates compliance with all security requirements in this Act and rules.
(B) A plan for recordkeeping, tracking, and

monitoring inventory, quality control, and other policies and procedures that will promote standard recordkeeping and discourage unlawful activity. This plan includes the applicant’s strategy to communicate with the Department and the Department of State Police on the destruction and disposal of cannabis. The plan must also demonstrate compliance with this Act and rules.
(C) The security plan shall also detail which

private security contractor licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 the dispensary will contract with in order to provide adequate security at its facility.
(3) Applicant’s Business Plan, Financials, Operating

and Floor Plan (65 points).
(A) The business plan shall describe, at a

minimum, how the dispensing organization will be managed on a long-term basis. This shall include a description of the dispensing organization’s point-of-sale system, purchases and denials of sale, confidentiality, and products and services to be offered. It will demonstrate compliance with this Act and rules.
(B) The operating plan shall include, at a

minimum, best practices for day-to-day dispensary operation and staffing. The operating plan may also include information about employment practices, including information about the percentage of full-time employees who will be provided a living wage.
(C) The proposed floor plan is suitable for

public access, the layout promotes safe dispensing of cannabis, is compliant with the Americans with Disabilities Act and the Environmental Barriers Act, and facilitates safe product handling and storage.
(4) Knowledge and Experience (30 points).
(A) The applicant’s principal officers must

demonstrate experience and qualifications in business management or experience with the cannabis industry. This includes ensuring optimal safety and accuracy in the dispensing and sale of cannabis.
(B) The applicant’s principal officers must

demonstrate knowledge of various cannabis product strains or varieties and describe the types and quantities of products planned to be sold. This includes confirmation of whether the dispensing organization plans to sell cannabis paraphernalia or edibles.
(C) Knowledge and experience may be demonstrated

through experience in other comparable industries that reflect on the applicant’s ability to operate a cannabis business establishment.
(5) Status as a Social Equity Applicant (50 points).
The applicant meets the qualifications for a

Social Equity Applicant as set forth in this Act.
(6) Labor and employment practices (5 points): The

applicant may describe plans to provide a safe, healthy, and economically beneficial working environment for its agents, including, but not limited to, codes of conduct, health care benefits, educational benefits, retirement benefits, living wage standards, and entering a labor peace agreement with employees.
(7) Environmental Plan (5 points): The applicant may

demonstrate an environmental plan of action to minimize the carbon footprint, environmental impact, and resource needs for the dispensary, which may include, without limitation, recycling cannabis product packaging.
(8) Illinois owner (5 points): The applicant is 51%

or more owned and controlled by an Illinois resident, who can prove residency in each of the past 5 years with tax records or 2 of the following:
(A) a signed lease agreement that includes the

applicant’s name;
(B) a property deed that includes the applicant’s

name;
(C) school records;
(D) a voter registration card;
(E) an Illinois driver’s license, an Illinois

Identification Card, or an Illinois Person with a Disability Identification Card;
(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other

information necessary to establish residence as provided by rule.
(9) Status as veteran (5 points): The applicant is

51% or more controlled and owned by an individual or individuals who meet the qualifications of a veteran as defined by Section 45-57 of the Illinois Procurement Code.
(10) A diversity plan (5 points): that includes a

narrative of not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity.
(d) The Department may also award up to 2 bonus points for a plan to engage with the community. The applicant may demonstrate a desire to engage with its community by participating in one or more of, but not limited to, the following actions: (i) establishment of an incubator program designed to increase participation in the cannabis industry by persons who would qualify as Social Equity Applicants; (ii) providing financial assistance to substance abuse treatment centers; (iii) educating children and teens about the potential harms of cannabis use; or (iv) other measures demonstrating a commitment to the applicant’s community. Bonus points will only be awarded if the Department receives applications that receive an equal score for a particular region.
(e) 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.
(f) The Department may, in its discretion, refuse to issue an authorization to any applicant:
(1) Who is unqualified to perform the duties required

of the applicant;
(2) Who fails to disclose or states falsely any

information called for in the application;
(3) Who has been found guilty of a violation of this

Act, or whose medical cannabis dispensing organization, medical cannabis cultivation organization, or Early Approval Adult Use Dispensing Organization License, or Early Approval Adult Use Dispensing Organization License at a secondary site, or Early Approval Cultivation Center License was suspended, restricted, revoked, or denied for just cause, or the applicant’s cannabis business establishment license was suspended, restricted, revoked, or denied in any other state; or
(4) 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.
(g) 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 returns or paying any amounts owed to the State of Illinois.
(h) The Department shall verify an applicant’s compliance with the requirements of this Article and rules before issuing a dispensing organization license.
(i) Should the applicant be awarded a license, 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 Licenses 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 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 re-evaluate its prior decision regarding the awarding of a license, including, but not limited to, suspending or permanently revoking a 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 license by the Department.
(j) If an applicant has not begun operating as a dispensing organization within one year of the issuance of the Conditional Adult Use Dispensing Organization License, 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 license or begin a new selection process to award a Conditional Adult Use Dispensing Organization License.
(k) The Department shall deny an application if granting that application would result in a single person or entity having a direct or indirect financial interest in more than 10 Early Approval Adult Use Dispensing Organization Licenses, Conditional Adult Use Dispensing Organization Licenses, or Adult Use Dispensing Organization Licenses. Any entity that is awarded a license that results in a single person or entity having a direct or indirect financial interest in more than 10 licenses shall forfeit the most recently issued license and suffer a penalty to be determined by the Department, unless the entity declines the license at the time it is awarded.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-30.20)
Sec. 15-30.20. Tied Applicant Lottery; additional requirements; timing.
(a) If awarding a license in a Tied Applicant Lottery would result in a Tied Applicant possessing more than 10 Early Approval Adult Use Dispensing Organization Licenses, Early Approval Adult Use Dispensing Organization Licenses at a secondary site, Conditional Adult Use Dispensing Organization Licenses, Adult Use Dispensing Organization Licenses, or any combination thereof, the Tied Applicant must choose which license to abandon pursuant to subsection (d) of Section 15-36 and notify the Department in writing within 5 business days after the date that the Tied Applicant Lottery is conducted.
(b) The Department shall publish the certified results of a Tied Applicant Lottery within 2 business days after the Tied Applicant Lottery is conducted.
(Source: P.A. 102-98, eff. 7-15-21.)

(410 ILCS 705/15-35)
Sec. 15-35. Qualifying Applicant Lottery for Conditional Adult Use Dispensing Organization Licenses.
(a) In addition to any of the licenses issued under Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, or Section 15-35.10 of this Act, within 10 business days after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released, the Department shall issue up to 55 Conditional Adult Use Dispensing Organization Licenses by 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 under this Section, a Dispensary Applicant must be a Qualifying Applicant.
The licenses issued under this Section shall be awarded 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: 36.
(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.
(a-5) Prior to issuing licenses under subsection (a), the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) 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 shall distribute the available licenses established under this Section subject to the following:
(1) The drawing by lot for all available licenses

issued under this Section shall occur on the same day when practicable.
(2) Within each BLS Region, the first Qualifying

Applicant drawn will have the first right to an available license. The second Qualifying Applicant drawn will have the second right to an available license. The same pattern will continue for each subsequent Qualifying 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 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 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.
(7) If, upon being selected for an available

license established under this Section, a Qualifying Applicant exceeds the limits under paragraph (5) or (6), the Qualifying Applicant must choose which license to abandon and notify the Department in writing within 5 business days. If the Qualifying Applicant does not notify the Department as required, the Department shall refuse to issue the Qualifying 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 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 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. If the Qualifying Applicant or licensees do not notify the Department as required, the Department shall refuse to issue the Qualifying 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 Applicant drawn by lot.
Any and all rights conferred or obtained under this Section shall be limited to the provisions of this Section.
(c) An applicant who receives a Conditional Adult Use Dispensing Organization License under this Section has 180 days from the date it is awarded 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 another 180 days if the Conditional Adult Use Dispensing Organization License holder demonstrates a concrete 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 360 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), 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 Dispensing Organization License 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. 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 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, 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 issuance of a license under this Section 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 under this Section.
(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. A dispensing organization has 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 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.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)

(410 ILCS 705/15-35.10)
Sec. 15-35.10. Social Equity Justice Involved Lottery for Conditional Adult Use Dispensing Organization Licenses.
(a) In addition to any of the licenses issued under Section 15-15, Section 15-20, Section 15-25, Section 15-30.20, or Section 15-35, within 10 business days after the resulting final scores for all scored applications pursuant to Sections 15-25 and 15-30 are released, the Department shall issue up to 55 Conditional Adult Use Dispensing Organization Licenses by 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 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: 36.
(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.
(a-5) Prior to issuing licenses under subsection (a), the Department may adopt rules through emergency rulemaking in accordance with subsection (kk) 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 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 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.
(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 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 another 180 days if the Conditional Adult Use Dispensing Organization License holder demonstrates a concrete 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 360 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 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. 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, 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 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.
(Source: P.A. 102-98, eff. 7-15-21.)

(410 ILCS 705/15-35.20)
Sec. 15-35.20. Conditional Adult Use Dispensing Organization Licenses on or after January 1, 2022.
(a) In addition to any of the licenses issued under Section 15-15, Section 15-20, Section 15-25, Section 15-35, or Section 15-35.10, by January 1, 2022, the Department may publish an application to issue additional Conditional Adult Use Dispensing Organization Licenses, pursuant to the application process adopted under this Section. The Department may adopt rules to issue any Conditional Adult Use Dispensing Organization Licenses under this Section. Such rules may:
(1) Modify or change the BLS Regions as they apply

to this Article or modify or raise the number of Adult Conditional Use Dispensing Organization Licenses assigned to each BLS Region based on the following factors:
(A) Purchaser wait times.
(B) Travel time to the nearest dispensary for

potential purchasers.
(C) Percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, Illinois Behavioral Risk Factor Surveillance System, and tourism data from the Illinois Office of Tourism to ascertain total cannabis consumption in Illinois compared to the amount of sales in licensed dispensing organizations.
(D) Whether there is an adequate supply of

cannabis and cannabis-infused products to serve registered medical cannabis patients.
(E) Population increases or shifts.
(F) Density of dispensing organizations in a

region.
(G) The Department’s capacity to appropriately

regulate additional licenses.
(H) The findings and recommendations from the

disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer in subsection (e) of Section 5-45 to reduce or eliminate any identified barriers to entry in the cannabis industry.
(I) Any other criteria the Department deems

relevant.
(2) Modify or change the licensing application

process to reduce or eliminate the barriers identified in the disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer and make modifications to remedy evidence of discrimination.
(b) At no time shall the Department issue more than 500 Adult Use Dispensing Organization Licenses.
(c) The Department shall issue at least 50 additional Conditional Adult Use Dispensing Organization Licenses on or before December 21, 2022.
(Source: P.A. 102-98, eff. 7-15-21.)

(410 ILCS 705/15-36)
Sec. 15-36. Adult Use Dispensing Organization License.
(a) A person is only eligible to receive an Adult Use Dispensing Organization if the person has been awarded a Conditional Adult Use Dispensing Organization License pursuant to this Act or has renewed its license pursuant to subsection (k) of Section 15-15 or subsection (p) of Section 15-20.
(b) The Department shall not issue an Adult Use Dispensing Organization License until:
(1) the Department has inspected the dispensary site

and proposed operations and verified that they are in compliance with this Act and local zoning laws;
(2) the Conditional Adult Use Dispensing Organization

License holder has paid a license fee of $60,000 or a prorated amount accounting for the difference of time between when the Adult Use Dispensing Organization License is issued and March 31 of the next even-numbered year; and
(3) the Conditional Adult Use Dispensing Organization

License holder has met all the requirements in this Act and rules.
(c) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 10 dispensing organizations licensed under this Article. Further, no person or entity that is:
(1) employed by, is an agent of, or participates in

the management of a dispensing organization or registered medical cannabis dispensing organization;
(2) a principal officer of a dispensing organization

or registered medical cannabis dispensing organization; or
(3) an entity controlled by or affiliated with a

principal officer of a dispensing organization or registered medical cannabis dispensing organization;
shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a dispensing organization that would result in such person or entity owning or participating in the management of more than 10 Early Approval Adult Use Dispensing Organization Licenses, Early Approval Adult Use Dispensing Organization Licenses at a secondary site, Conditional Adult Use Dispensing Organization Licenses, or Adult Use Dispensing Organization Licenses. For the purpose of this subsection, participating in management may include, without limitation, controlling decisions regarding staffing, pricing, purchasing, marketing, store design, hiring, and website design.
(d) The Department shall deny an application if granting that application would result in a person or entity obtaining direct or indirect financial interest 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. If a person or entity is awarded a Conditional Adult Use Dispensing Organization License that would cause the person or entity to be in violation of this subsection, he, she, or it shall choose which license application it wants to abandon and such licenses shall become available to the next qualified applicant in the region in which the abandoned license was awarded.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-40)
Sec. 15-40. Dispensing organization agent identification card; agent training.
(a) The Department shall:
(1) verify the information contained in an

application or renewal for a dispensing organization agent identification card submitted under this Article, and approve or deny an application or renewal, within 30 days of receiving a completed application or renewal application and all supporting documentation required by rule;
(2) issue a dispensing organization agent

identification card to a qualifying agent within 15 business days of approving the application or renewal;
(3) enter the registry identification number of the

dispensing organization where the agent works;
(4) within one year from the effective date of this

Act, allow for an electronic application process and provide a confirmation by electronic or other methods that an application has been submitted; and
(5) collect a $100 nonrefundable fee from the

applicant to be deposited into the Cannabis Regulation Fund.
(b) A dispensing organization agent must keep his or her identification card visible at all times when in the dispensary.
(c) The dispensing organization agent identification cards shall contain the following:
(1) the name of the cardholder;
(2) the date of issuance and expiration date of the

dispensing organization agent identification cards;
(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters that is unique to the cardholder; and
(4) a photograph of the cardholder.
(d) The dispensing organization agent identification cards shall be immediately returned to the dispensing organization upon termination of employment.
(e) The Department shall not issue an agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(f) Any card lost by a dispensing organization agent shall be reported to the Department of State Police and the Department immediately upon discovery of the loss.
(g) An applicant shall be denied a dispensing organization agent identification card renewal if he or she fails to complete the training provided for in this Section.
(h) A dispensing organization agent shall only be required to hold one card for the same employer regardless of what type of dispensing organization license the employer holds.
(i) Cannabis retail sales training requirements.
(1) Within 90 days of September 1, 2019, or 90 days

of employment, whichever is later, all owners, managers, employees, and agents involved in the handling or sale of cannabis or cannabis-infused product employed by an adult use dispensing organization or medical cannabis dispensing organization as defined in Section 10 of the Compassionate Use of Medical Cannabis Program Act shall attend and successfully complete a Responsible Vendor Program.
(2) Each owner, manager, employee, and agent of an

adult use dispensing organization or medical cannabis dispensing organization shall successfully complete the program annually.
(3) Responsible Vendor Program Training modules shall

include at least 2 hours of instruction time approved by the Department including:
(i) Health and safety concerns of cannabis use,

including the responsible use of cannabis, its physical effects, onset of physiological effects, recognizing signs of impairment, and appropriate responses in the event of overconsumption.
(ii) Training on laws and regulations on driving

while under the influence and operating a watercraft or snowmobile while under the influence.
(iii) Sales to minors prohibition. Training shall

cover all relevant Illinois laws and rules.
(iv) Quantity limitations on sales to purchasers.

Training shall cover all relevant Illinois laws and rules.
(v) Acceptable forms of identification. Training

shall include:
(I) How to check identification; and
(II) Common mistakes made in verification;
(vi) Safe storage of cannabis;
(vii) Compliance with all inventory tracking

system regulations;
(viii) Waste handling, management, and disposal;
(ix) Health and safety standards;
(x) Maintenance of records;
(xi) Security and surveillance requirements;
(xii) Permitting inspections by State and local

licensing and enforcement authorities;
(xiii) Privacy issues;
(xiv) Packaging and labeling requirement for

sales to purchasers; and
(xv) Other areas as determined by rule.
(j) Blank.
(k) Upon the successful completion of the Responsible Vendor Program, the provider shall deliver proof of completion either through mail or electronic communication to the dispensing organization, which shall retain a copy of the certificate.
(l) The license of a dispensing organization or medical cannabis dispensing organization whose owners, managers, employees, or agents fail to comply with this Section may be suspended or permanently revoked under Section 15-145 or may face other disciplinary action.
(m) The regulation of dispensing organization and medical cannabis dispensing employer and employee training is an exclusive function of the State, and regulation by a unit of local government, including a home rule unit, is prohibited. This subsection (m) is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.
(n) Persons seeking Department approval to offer the training required by paragraph (3) of subsection (i) may apply for such approval between August 1 and August 15 of each odd-numbered year in a manner prescribed by the Department.
(o) Persons seeking Department approval to offer the training required by paragraph (3) of subsection (i) shall submit a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule. Any changes made to the training module shall be approved by the Department.
(p) The Department shall not unreasonably deny approval of a training module that meets all the requirements of paragraph (3) of subsection (i). A denial of approval shall include a detailed description of the reasons for the denial.
(q) Any person approved to provide the training required by paragraph (3) of subsection (i) shall submit an application for re-approval between August 1 and August 15 of each odd-numbered year and include a nonrefundable application fee of $2,000 to be deposited into the Cannabis Regulation Fund or a fee as may be set by rule.
(r) All persons applying to become or renewing their registrations to be agents, including agents-in-charge and principal officers, shall disclose any disciplinary action taken against them that may have occurred in Illinois, another state, or another country in relation to their employment at a cannabis business establishment or at any cannabis cultivation center, processor, infuser, dispensary, or other cannabis business establishment.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-45)
Sec. 15-45. Renewal.
(a) Adult Use Dispensing Organization Licenses shall expire on March 31 of even-numbered years.
(b) Agent identification cards shall expire one year from the date they are issued.
(c) Licensees and dispensing agents shall submit a renewal application as provided by the Department and pay the required renewal fee. The Department shall require an agent, employee, contracting, and subcontracting diversity report and an environmental impact report with its renewal application. No license or agent identification card shall be renewed if it is currently under revocation or suspension for violation of this Article or any rules that may be adopted under this Article or the licensee, principal officer, board member, person having a financial or voting interest of 5% or greater in the licensee, or agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(d) Renewal fees are:
(1) For a dispensing organization, $60,000, to be

deposited into the Cannabis Regulation Fund.
(2) For an agent identification card, $100, to be

deposited into the Cannabis Regulation Fund.
(e) If a dispensing organization fails to renew its license before expiration, the dispensing organization shall cease operations until the license is renewed.
(f) If a dispensing organization agent fails to renew his or her registration before its expiration, he or she shall cease to perform duties authorized by this Article at a dispensing organization until his or her registration is renewed.
(g) Any dispensing organization that continues to operate or dispensing agent that continues to perform duties authorized by this Article at a dispensing organization that fails to renew its license is subject to penalty as provided in this Article, or any rules that may be adopted pursuant to this Article.
(h) The Department shall not renew a license if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois. The Department shall not renew a dispensing agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-50)
Sec. 15-50. Disclosure of ownership and control.
(a) Each dispensing organization applicant and licensee shall file and maintain a Table of Organization, Ownership and Control with the Department. The Table of Organization, Ownership and Control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or licensee.
(b) The Table of Organization, Ownership and Control shall identify the following information:
(1) The management structure, ownership, and control

of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and his or her percentage ownership interest in the parent company and the dispensing organization.
(2) If the applicant or licensee is a business entity

with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the Table of Organization, Ownership and Control:
(1) The name and percentage of ownership interest of

each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage of

interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.
(d) A dispensing organization with a parent company or companies, or partially owned or controlled by another entity must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. A dispensing organization shall not shield its ownership or control from the Department.
(e) All principal officers must submit a complete online application with the Department within 14 days of the dispensing organization being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.
(f) A principal officer may not allow his or her registration to expire.
(g) A dispensing organization separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.
(h) A principal officer not in compliance with the requirements of this Act shall be removed from his or her position with the dispensing organization or shall otherwise terminate his or her affiliation. Failure to do so may subject the dispensing organization to discipline, suspension, or revocation of its license by the Department.
(i) It is the responsibility of the dispensing organization and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the dispensing organization’s primary or secondary contact information. Any changes must be made to the Department in writing.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-55)
Sec. 15-55. Financial responsibility. Evidence of financial responsibility is a requirement for the issuance, maintenance, or reactivation of a license under this Article. Evidence of financial responsibility shall be used to guarantee that the dispensing organization timely and successfully completes dispensary construction, operates in a manner that provides an uninterrupted supply of cannabis, faithfully pays registration renewal fees, keeps accurate books and records, makes regularly required reports, complies with State tax requirements, and conducts the dispensing organization in conformity with this Act and rules. Evidence of financial responsibility shall be provided by one of the following:
(1) Establishing and maintaining an escrow or surety

account in a financial institution in the amount of $50,000, with escrow terms, approved by the Department, that it shall be payable to the Department in the event of circumstances outlined in this Act and rules.
(A) A financial institution may not return money

in an escrow or surety account to the dispensing organization that established the account or a representative of the organization unless the organization or representative presents a statement issued by the Department indicating that the account may be released.
(B) The escrow or surety account shall not be

canceled on less than 30 days’ notice in writing to the Department, unless otherwise approved by the Department. If an escrow or surety account is canceled and the registrant fails to secure a new account with the required amount on or before the effective date of cancellation, the registrant’s registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the escrow or surety account.
(2) Providing a surety bond in the amount of $50,000,

naming the dispensing organization as principal of the bond, with terms, approved by the Department, that the bond defaults to the Department in the event of circumstances outlined in this Act and rules. Bond terms shall include:
(A) The business name and registration number on

the bond must correspond exactly with the business name and registration number in the Department’s records.
(B) The bond must be written on a form approved

by the Department.
(C) A copy of the bond must be received by the

Department within 90 days after the effective date.
(D) The bond shall not be canceled by a surety on

less than 30 days’ notice in writing to the Department. If a bond is canceled and the registrant fails to file a new bond with the Department in the required amount on or before the effective date of cancellation, the registrant’s registration may be permanently revoked. The total and aggregate liability of the surety on the bond is limited to the amount specified in the bond.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-60)
Sec. 15-60. Changes to a dispensing organization.
(a) A license shall be issued to the specific dispensing organization identified on the application and for the specific location proposed. The license is valid only as designated on the license and for the location for which it is issued.
(b) A dispensing organization may only add principal officers after being approved by the Department.
(c) A dispensing organization shall provide written notice of the removal of a principal officer within 5 business days after removal. The notice shall include the written agreement of the principal officer being removed, unless otherwise approved by the Department, and allocation of ownership shares after removal in an updated ownership chart.
(d) A dispensing organization shall provide a written request to the Department for the addition of principal officers. A dispensing organization shall submit proposed principal officer applications on forms approved by the Department.
(e) All proposed new principal officers shall be subject to the requirements of this Act, this Article, and any rules that may be adopted pursuant to this Act.
(f) The Department may prohibit the addition of a principal officer to a dispensing organization for failure to comply with this Act, this Article, and any rules that may be adopted pursuant to this Act.
(g) A dispensing organization may not assign a license.
(h) A dispensing organization may not transfer a license without prior Department approval. Such approval may be withheld if the person to whom the license is being transferred does not commit to the same or a similar community engagement plan provided as part of the dispensing organization’s application under paragraph (18) of subsection (d) of Section 15-25, and such transferee’s license shall be conditional upon that commitment.
(i) With the addition or removal of principal officers, the Department will review the ownership structure to determine whether the change in ownership has had the effect of a transfer of the license. The dispensing organization shall supply all ownership documents requested by the Department.
(j) A dispensing organization may apply to the Department to approve a sale of the dispensing organization. A request to sell the dispensing organization must be on application forms provided by the Department. A request for an approval to sell a dispensing organization must comply with the following:
(1) New application materials shall comply with this

Act and any rules that may be adopted pursuant to this Act;
(2) Application materials shall include a change of

ownership fee of $5,000 to be deposited into the Cannabis Regulation Fund;
(3) The application materials shall provide proof

that the transfer of ownership will not have the effect of granting any of the owners or principal officers direct or indirect ownership or control of more than 10 adult use dispensing organization licenses;
(4) New principal officers shall each complete the

proposed new principal officer application;
(5) If the Department approves the application

materials and proposed new principal officer applications, it will perform an inspection before approving the sale and issuing the dispensing organization license;
(6) If a new license is approved, the Department will

issue a new license number and certificate to the new dispensing organization.
(k) The dispensing organization shall provide the Department with the personal information for all new dispensing organizations agents as required in this Article and all new dispensing organization agents shall be subject to the requirements of this Article. A dispensing organization agent must obtain an agent identification card from the Department before beginning work at a dispensary.
(l) Before remodeling, expansion, reduction, or other physical, noncosmetic alteration of a dispensary, the dispensing organization must notify the Department and confirm the alterations are in compliance with this Act and any rules that may be adopted pursuant to this Act.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-65)
Sec. 15-65. Administration.
(a) A dispensing organization shall establish, maintain, and comply with written policies and procedures as submitted in the Business, Financial and Operating plan as required in this Article or by rules established by the Department, and approved by the Department, for the security, storage, inventory, and distribution of cannabis. These policies and procedures shall include methods for identifying, recording, and reporting diversion, theft, or loss, and for correcting errors and inaccuracies in inventories. At a minimum, dispensing organizations shall ensure the written policies and procedures provide for the following:
(1) Mandatory and voluntary recalls of cannabis

products. The policies shall be adequate to deal with recalls due to any action initiated at the request of the Department and any voluntary action by the dispensing organization to remove defective or potentially defective cannabis from the market or any action undertaken to promote public health and safety, including:
(i) A mechanism reasonably calculated to contact

purchasers who have, or likely have, obtained the product from the dispensary, including information on the policy for return of the recalled product;
(ii) A mechanism to identify and contact the

adult use cultivation center, craft grower, or infuser that manufactured the cannabis;
(iii) Policies for communicating with the

Department, the Department of Agriculture, and the Department of Public Health within 24 hours of discovering defective or potentially defective cannabis; and
(iv) Policies for destruction of any recalled

cannabis product;
(2) Responses to local, State, or national

emergencies, including natural disasters, that affect the security or operation of a dispensary;
(3) Segregation and destruction of outdated, damaged,

deteriorated, misbranded, or adulterated cannabis. This procedure shall provide for written documentation of the cannabis disposition;
(4) Ensure the oldest stock of a cannabis product is

distributed first. The procedure may permit deviation from this requirement, if such deviation is temporary and appropriate;
(5) Training of dispensing organization agents in the

provisions of this Act and rules, to effectively operate the point-of-sale system and the State’s verification system, proper inventory handling and tracking, specific uses of cannabis or cannabis-infused products, instruction regarding regulatory inspection preparedness and law enforcement interaction, awareness of the legal requirements for maintaining status as an agent, and other topics as specified by the dispensing organization or the Department. The dispensing organization shall maintain evidence of all training provided to each agent in its files that is subject to inspection and audit by the Department. The dispensing organization shall ensure agents receive a minimum of 8 hours of training subject to the requirements in subsection (i) of Section 15-40 annually, unless otherwise approved by the Department;
(6) Maintenance of business records consistent with

industry standards, including bylaws, consents, manual or computerized records of assets and liabilities, audits, monetary transactions, journals, ledgers, and supporting documents, including agreements, checks, invoices, receipts, and vouchers. Records shall be maintained in a manner consistent with this Act and shall be retained for 5 years;
(7) Inventory control, including:
(i) Tracking purchases and denials of sale;
(ii) Disposal of unusable or damaged cannabis as

required by this Act and rules; and
(8) Purchaser education and support, including:
(i) Whether possession of cannabis is illegal

under federal law;
(ii) Current educational information issued by

the Department of Public Health about the health risks associated with the use or abuse of cannabis;
(iii) Information about possible side effects;
(iv) Prohibition on smoking cannabis in public

places; and
(v) Offering any other appropriate purchaser

education or support materials.
(b) Blank.
(c) A dispensing organization shall maintain copies of the policies and procedures on the dispensary premises and provide copies to the Department upon request. The dispensing organization shall review the dispensing organization policies and procedures at least once every 12 months from the issue date of the license and update as needed due to changes in industry standards or as requested by the Department.
(d) A dispensing organization shall ensure that each principal officer and each dispensing organization agent has a current agent identification card in the agent’s immediate possession when the agent is at the dispensary.
(e) A dispensing organization shall provide prompt written notice to the Department, including the date of the event, when a dispensing organization agent no longer is employed by the dispensing organization.
(f) A dispensing organization shall promptly document and report any loss or theft of cannabis from the dispensary to the Department of State Police and the Department. It is the duty of any dispensing organization agent who becomes aware of the loss or theft to report it as provided in this Article.
(g) A dispensing organization shall post the following information in a conspicuous location in an area of the dispensary accessible to consumers:
(1) The dispensing organization’s license;
(2) The hours of operation.
(h) Signage that shall be posted inside the premises.
(1) All dispensing organizations must display a

placard that states the following: “Cannabis consumption can impair cognition and driving, is for adult use only, may be habit forming, and should not be used by pregnant or breastfeeding women.”.
(2) Any dispensing organization that sells edible

cannabis-infused products must display a placard that states the following:
(A) “Edible cannabis-infused products were

produced in a kitchen that may also process common food allergens.”; and
(B) “The effects of cannabis products can vary

from person to person, and it can take as long as two hours to feel the effects of some cannabis-infused products. Carefully review the portion size information and warnings contained on the product packaging before consuming.”.
(3) All of the required signage in this subsection

(h) shall be no smaller than 24 inches tall by 36 inches wide, with typed letters no smaller than 2 inches. The signage shall be clearly visible and readable by customers. The signage shall be placed in the area where cannabis and cannabis-infused products are sold and may be translated into additional languages as needed. The Department may require a dispensary to display the required signage in a different language, other than English, if the Secretary deems it necessary.
(i) A dispensing organization shall prominently post notices inside the dispensing organization that state activities that are strictly prohibited and punishable by law, including, but not limited to:
(1) no minors permitted on the premises unless the

minor is a minor qualifying patient under the Compassionate Use of Medical Cannabis Program Act;
(2) distribution to persons under the age of 21 is

prohibited;
(3) transportation of cannabis or cannabis products

across state lines is prohibited.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-70)
Sec. 15-70. Operational requirements; prohibitions.
(a) A dispensing organization shall operate in accordance with the representations made in its application and license materials. It shall be in compliance with this Act and rules.
(b) A dispensing organization must include the legal name of the dispensary on the packaging of any cannabis product it sells.
(c) All cannabis, cannabis-infused products, and cannabis seeds must be obtained from an Illinois registered adult use cultivation center, craft grower, infuser, or another dispensary.
(d) Dispensing organizations are prohibited from selling any product containing alcohol except tinctures, which must be limited to containers that are no larger than 100 milliliters.
(e) A dispensing organization shall inspect and count product received from a transporting organization, adult use cultivation center, craft grower, infuser organization, or other dispensing organization before dispensing it.
(f) A dispensing organization may only accept cannabis deliveries into a restricted access area. Deliveries may not be accepted through the public or limited access areas unless otherwise approved by the Department.
(g) A dispensing organization shall maintain compliance with State and local building, fire, and zoning requirements or regulations.
(h) A dispensing organization shall submit a list to the Department of the names of all service professionals that will work at the dispensary. The list shall include a description of the type of business or service provided. Changes to the service professional list shall be promptly provided. No service professional shall work in the dispensary until the name is provided to the Department on the service professional list.
(i) A dispensing organization’s license allows for a dispensary to be operated only at a single location.
(j) A dispensary may operate between 6 a.m. and 10 p.m. local time.
(k) A dispensing organization must keep all lighting outside and inside the dispensary in good working order and wattage sufficient for security cameras.
(l) A dispensing organization must keep all air treatment systems that will be installed to reduce odors in good working order.
(m) A dispensing organization must contract with a private security contractor that is licensed under Section 10-5 of the Private Detective, Private Alarm, Private Security, Fingerprint Vendor, and Locksmith Act of 2004 to provide on-site security at all hours of the dispensary’s operation.
(n) A dispensing organization shall ensure that any building or equipment used by a dispensing organization for the storage or sale of cannabis is maintained in a clean and sanitary condition.
(o) The dispensary shall be free from infestation by insects, rodents, or pests.
(p) A dispensing organization shall not:
(1) Produce or manufacture cannabis;
(2) Accept a cannabis product from an adult use

cultivation center, craft grower, infuser, dispensing organization, or transporting organization unless it is pre-packaged and labeled in accordance with this Act and any rules that may be adopted pursuant to this Act;
(3) Obtain cannabis or cannabis-infused products from

outside the State of Illinois;
(4) Sell cannabis or cannabis-infused products to a

purchaser unless the dispensing organization is licensed under the Compassionate Use of Medical Cannabis Program Act, and the individual is registered under the Compassionate Use of Medical Cannabis Program or the purchaser has been verified to be 21 years of age or older;
(5) Enter into an exclusive agreement with any adult

use cultivation center, craft grower, or infuser. Dispensaries shall provide consumers an assortment of products from various cannabis business establishment licensees such that the inventory available for sale at any dispensary from any single cultivation center, craft grower, processor, transporter, or infuser entity shall not be more than 40% of the total inventory available for sale. For the purpose of this subsection, a cultivation center, craft grower, processor, or infuser shall be considered part of the same entity if the licensees share at least one principal officer. The Department may request that a dispensary diversify its products as needed or otherwise discipline a dispensing organization for violating this requirement;
(6) Refuse to conduct business with an adult use

cultivation center, craft grower, transporting organization, or infuser that has the ability to properly deliver the product and is permitted by the Department of Agriculture, on the same terms as other adult use cultivation centers, craft growers, infusers, or transporters with whom it is dealing;
(7) Operate drive-through windows;
(8) Allow for the dispensing of cannabis or

cannabis-infused products in vending machines;
(9) Transport cannabis to residences or other

locations where purchasers may be for delivery;
(10) Enter into agreements to allow persons who are

not dispensing organization agents to deliver cannabis or to transport cannabis to purchasers;
(11) Operate a dispensary if its video surveillance

equipment is inoperative;
(12) Operate a dispensary if the point-of-sale

equipment is inoperative;
(13) Operate a dispensary if the State’s cannabis

electronic verification system is inoperative;
(14) Have fewer than 2 people working at the

dispensary at any time while the dispensary is open;
(15) Be located within 1,500 feet of the property

line of a pre-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;
(16) Sell clones or any other live plant material;
(17) Sell cannabis, cannabis concentrate, or

cannabis-infused products in combination or bundled with each other or any other items for one price, and each item of cannabis, concentrate, or cannabis-infused product must be separately identified by quantity and price on the receipt;
(18) Violate any other requirements or prohibitions

set by Department rules.
(q) It is unlawful for any person having an Early Approval Adult Use Cannabis Dispensing Organization License, a Conditional Adult Use Cannabis Dispensing Organization, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act or any officer, associate, member, representative, or agent of such licensee to accept, receive, or borrow money or anything else of value or accept or receive credit (other than merchandising credit in the ordinary course of business for a period not to exceed 30 days) directly or indirectly from any adult use cultivation center, craft grower, infuser, or transporting organization in exchange for preferential placement on the dispensing organization’s shelves, display cases, or website. This includes anything received or borrowed or from any stockholders, officers, agents, or persons connected with an adult use cultivation center, craft grower, infuser, or transporting organization.
(r) It is unlawful for any person having an Early Approval Adult Use Cannabis Dispensing Organization License, a Conditional Adult Use Cannabis Dispensing Organization, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program to enter into any contract with any person licensed to cultivate, process, or transport cannabis whereby such dispensing organization agrees not to sell any cannabis cultivated, processed, transported, manufactured, or distributed by any other cultivator, transporter, or infuser, and any provision in any contract violative of this Section shall render the whole of such contract void and no action shall be brought thereon in any court.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)

(410 ILCS 705/15-75)
Sec. 15-75. Inventory control system.
(a) A dispensing organization agent-in-charge shall have primary oversight of the dispensing organization’s cannabis inventory verification system, and its point-of-sale system. The inventory point-of-sale system shall be real-time, web-based, and accessible by the Department at any time. The point-of-sale system shall track, at a minimum the date of sale, amount, price, and currency.
(b) A dispensing organization shall establish an account with the State’s verification system that documents:
(1) Each sales transaction at the time of sale and

each day’s beginning inventory, acquisitions, sales, disposal, and ending inventory.
(2) Acquisition of cannabis and cannabis-infused

products from a licensed adult use cultivation center, craft grower, infuser, or transporter, including:
(i) A description of the products, including the

quantity, strain, variety, and batch number of each product received;
(ii) The name and registry identification number

of the licensed adult use cultivation center, craft grower, or infuser providing the cannabis and cannabis-infused products;
(iii) The name and registry identification number

of the licensed adult use cultivation center, craft grower, infuser, or transporting agent delivering the cannabis;
(iv) The name and registry identification number

of the dispensing organization agent receiving the cannabis; and
(v) The date of acquisition.
(3) The disposal of cannabis, including:
(i) A description of the products, including the

quantity, strain, variety, batch number, and reason for the cannabis being disposed;
(ii) The method of disposal; and
(iii) The date and time of disposal.
(c) Upon cannabis delivery, a dispensing organization shall confirm the product’s name, strain name, weight, and identification number on the manifest matches the information on the cannabis product label and package. The product name listed and the weight listed in the State’s verification system shall match the product packaging.
(d) The agent-in-charge shall conduct daily inventory reconciliation documenting and balancing cannabis inventory by confirming the State’s verification system matches the dispensing organization’s point-of-sale system and the amount of physical product at the dispensary.
(1) A dispensing organization must receive Department

approval before completing an inventory adjustment. It shall provide a detailed reason for the adjustment. Inventory adjustment documentation shall be kept at the dispensary for 2 years from the date performed.
(2) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily inventory reconciliation due to mistake, the dispensing organization shall determine how the imbalance occurred and immediately upon discovery take and document corrective action. If the dispensing organization cannot identify the reason for the mistake within 2 calendar days after first discovery, it shall inform the Department immediately in writing of the imbalance and the corrective action taken to date. The dispensing organization shall work diligently to determine the reason for the mistake.
(3) If the dispensing organization identifies an

imbalance in the amount of cannabis after the daily inventory reconciliation or through other means due to theft, criminal activity, or suspected criminal activity, the dispensing organization shall immediately determine how the reduction occurred and take and document corrective action. Within 24 hours after the first discovery of the reduction due to theft, criminal activity, or suspected criminal activity, the dispensing organization shall inform the Department and the Department of State Police in writing.
(4) The dispensing organization shall file an annual

compilation report with the Department, including a financial statement that shall include, but not be limited to, an income statement, balance sheet, profit and loss statement, statement of cash flow, wholesale cost and sales, and any other documentation requested by the Department in writing. The financial statement shall include any other information the Department deems necessary in order to effectively administer this Act and all rules, orders, and final decisions promulgated under this Act. Statements required by this Section shall be filed with the Department within 60 days after the end of the calendar year. The compilation report shall include a letter authored by a licensed certified public accountant that it has been reviewed and is accurate based on the information provided. The dispensing organization, financial statement, and accompanying documents are not required to be audited unless specifically requested by the Department.
(e) A dispensing organization shall:
(1) Maintain the documentation required in this

Section in a secure locked location at the dispensing organization for 5 years from the date on the document;
(2) Provide any documentation required to be

maintained in this Section to the Department for review upon request; and
(3) If maintaining a bank account, retain for a

period of 5 years a record of each deposit or withdrawal from the account.
(f) If a dispensing organization chooses to have a return policy for cannabis and cannabis products, the dispensing organization shall seek prior approval from the Department.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-80)
Sec. 15-80. Storage requirements.
(a) Authorized on-premises storage. A dispensing organization must store inventory on its premises. All inventory stored on the premises must be secured in a restricted access area and tracked consistently with the inventory tracking rules.
(b) A dispensary shall be of suitable size and construction to facilitate cleaning, maintenance, and proper operations.
(c) A dispensary shall maintain adequate lighting, ventilation, temperature, humidity control, and equipment.
(d) Containers storing cannabis that have been tampered with, damaged, or opened shall be labeled with the date opened and quarantined from other cannabis products in the vault until they are disposed.
(e) Cannabis that was tampered with, expired, or damaged shall not be stored at the premises for more than 7 calendar days.
(f) Cannabis samples shall be in a sealed container. Samples shall be maintained in the restricted access area.
(g) The dispensary storage areas shall be maintained in accordance with the security requirements in this Act and rules.
(h) Cannabis must be stored at appropriate temperatures and under appropriate conditions to help ensure that its packaging, strength, quality, and purity are not adversely affected.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-85)
Sec. 15-85. Dispensing cannabis.
(a) Before a dispensing organization agent dispenses cannabis to a purchaser, the agent shall:
(1) Verify the age of the purchaser by checking a

government-issued identification card by use of an electronic reader or electronic scanning device to scan a purchaser’s government-issued identification, if applicable, to determine the purchaser’s age and the validity of the identification;
(2) Verify the validity of the government-issued

identification card by use of an electronic reader or electronic scanning device to scan a purchaser’s government-issued identification, if applicable, to determine the purchaser’s age and the validity of the identification;
(3) Offer any appropriate purchaser education or

support materials;
(4) Enter the following information into the State’s

cannabis electronic verification system:
(i) The dispensing organization agent’s

identification number, or if the agent’s card application is pending the Department’s approval, a temporary and unique identifier until the agent’s card application is approved or denied by the Department;
(ii) The dispensing organization’s identification

number;
(iii) The amount, type (including strain, if

applicable) of cannabis or cannabis-infused product dispensed;
(iv) The date and time the cannabis was dispensed.
(b) A dispensing organization shall refuse to sell cannabis or cannabis-infused products to any person unless the person produces a valid identification showing that the person is 21 years of age or older. A medical cannabis dispensing organization may sell cannabis or cannabis-infused products to a person who is under 21 years of age if the sale complies with the provisions of the Compassionate Use of Medical Cannabis Program Act and rules.
(c) For the purposes of this Section, valid identification must:
(1) Be valid and unexpired;
(2) Contain a photograph and the date of birth of the

person.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19; 102-98, eff. 7-15-21.)

(410 ILCS 705/15-90)
Sec. 15-90. Destruction and disposal of cannabis.
(a) Cannabis and cannabis-infused products must be destroyed by rendering them unusable using methods approved by the Department that comply with this Act and rules.
(b) Cannabis waste rendered unusable must be promptly disposed according to this Act and rules. Disposal of the cannabis waste rendered unusable may be delivered to a permitted solid waste facility for final disposition. Acceptable permitted solid waste facilities include, but are not limited to:
(1) Compostable mixed waste: Compost, anaerobic

digester, or other facility with approval of the jurisdictional health department.
(2) Noncompostable mixed waste: Landfill,

incinerator, or other facility with approval of the jurisdictional health department.
(c) All waste and unusable product shall be weighed, recorded, and entered into the inventory system before rendering it unusable. All waste and unusable cannabis concentrates and cannabis-infused products shall be recorded and entered into the inventory system before rendering it unusable. Verification of this event shall be performed by an agent-in-charge and conducted in an area with video surveillance.
(d) Electronic documentation of destruction and disposal shall be maintained for a period of at least 5 years.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-95)
Sec. 15-95. Agent-in-charge.
(a) Every dispensing organization shall designate, at a minimum, one agent-in-charge for each licensed dispensary. The designated agent-in-charge must hold a dispensing organization agent identification card. Maintaining an agent-in-charge is a continuing requirement for the license, except as provided in subsection (f).
(b) The agent-in-charge shall be a principal officer or a full-time agent of the dispensing organization and shall manage the dispensary. Managing the dispensary includes, but is not limited to, responsibility for opening and closing the dispensary, delivery acceptance, oversight of sales and dispensing organization agents, recordkeeping, inventory, dispensing organization agent training, and compliance with this Act and rules. Participation in affairs also includes the responsibility for maintaining all files subject to audit or inspection by the Department at the dispensary.
(c) The agent-in-charge is responsible for promptly notifying the Department of any change of information required to be reported to the Department.
(d) In determining whether an agent-in-charge manages the dispensary, the Department may consider the responsibilities identified in this Section, the number of dispensing organization agents under the supervision of the agent-in-charge, and the employment relationship between the agent-in-charge and the dispensing organization, including the existence of a contract for employment and any other relevant fact or circumstance.
(e) The agent-in-charge is responsible for notifying the Department of a change in the employment status of all dispensing organization agents within 5 business days after the change, including notice to the Department if the termination of an agent was for diversion of product or theft of currency.
(f) In the event of the separation of an agent-in-charge due to death, incapacity, termination, or any other reason and if the dispensary does not have an active agent-in-charge, the dispensing organization shall immediately contact the Department and request a temporary certificate of authority allowing the continuing operation. The request shall include the name of an interim agent-in-charge until a replacement is identified, or shall include the name of the replacement. The Department shall issue the temporary certificate of authority promptly after it approves the request. If a dispensing organization fails to promptly request a temporary certificate of authority after the separation of the agent-in-charge, its registration shall cease until the Department approves the temporary certificate of authority or registers a new agent-in-charge. No temporary certificate of authority shall be valid for more than 90 days. The succeeding agent-in-charge shall register with the Department in compliance with this Article. Once the permanent succeeding agent-in-charge is registered with the Department, the temporary certificate of authority is void. No temporary certificate of authority shall be issued for the separation of an agent-in-charge due to disciplinary action by the Department related to his or her conduct on behalf of the dispensing organization.
(g) The dispensing organization agent-in-charge registration shall expire one year from the date it is issued. The agent-in-charge’s registration shall be renewed annually. The Department shall review the dispensing organization’s compliance history when determining whether to grant the request to renew.
(h) Upon termination of an agent-in-charge’s employment, the dispensing organization shall immediately reclaim the dispensing agent identification card. The dispensing organization shall promptly return the identification card to the Department.
(i) The Department may deny an application or renewal or discipline or revoke an agent-in-charge identification card for any of the following reasons:
(1) Submission of misleading, incorrect, false, or

fraudulent information in the application or renewal application;
(2) Violation of the requirements of this Act or

rules;
(3) Fraudulent use of the agent-in-charge

identification card;
(4) Selling, distributing, transferring in any

manner, or giving cannabis to any unauthorized person;
(5) Theft of cannabis, currency, or any other items

from a dispensary;
(6) Tampering with, falsifying, altering, modifying,

or duplicating an agent-in-charge identification card;
(7) Tampering with, falsifying, altering, or

modifying the surveillance video footage, point-of-sale system, or the State’s verification system;
(8) Failure to notify the Department immediately upon

discovery that the agent-in-charge identification card has been lost, stolen, or destroyed;
(9) Failure to notify the Department within 5

business days after a change in the information provided in the application for an agent-in-charge identification card;
(10) Conviction of a felony offense in accordance

with Sections 2105-131, 2105-135, and 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois or any incident listed in this Act or rules following the issuance of an agent-in-charge identification card;
(11) Dispensing to purchasers in amounts above the

limits provided in this Act; or
(12) Delinquency in filing any required tax returns

or paying any amounts owed to the State of Illinois.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-100)
Sec. 15-100. Security.
(a) A dispensing organization shall implement security measures to deter and prevent entry into and theft of cannabis or currency.
(b) A dispensing organization shall submit any changes to the floor plan or security plan to the Department for pre-approval. All cannabis shall be maintained and stored in a restricted access area during construction.
(c) The dispensing organization shall implement security measures to protect the premises, purchasers, and dispensing organization agents including, but not limited to the following:
(1) Establish a locked door or barrier between the

facility’s entrance and the limited access area;
(2) Prevent individuals from remaining on the

premises if they are not engaging in activity permitted by this Act or rules;
(3) Develop a policy that addresses the maximum

capacity and purchaser flow in the waiting rooms and limited access areas;
(4) Dispose of cannabis in accordance with this Act

and rules;
(5) During hours of operation, store and dispense all

cannabis from the restricted access area. During operational hours, cannabis shall be stored in an enclosed locked room or cabinet and accessible only to specifically authorized dispensing organization agents;
(6) When the dispensary is closed, store all cannabis

and currency in a reinforced vault room in the restricted access area and in a manner as to prevent diversion, theft, or loss;
(7) Keep the reinforced vault room and any other

equipment or cannabis storage areas securely locked and protected from unauthorized entry;
(8) Keep an electronic daily log of dispensing

organization agents with access to the reinforced vault room and knowledge of the access code or combination;
(9) Keep all locks and security equipment in good

working order;
(10) Maintain an operational security and alarm

system at all times;
(11) Prohibit keys, if applicable, from being left in

the locks, or stored or placed in a location accessible to persons other than specifically authorized personnel;
(12) Prohibit accessibility of security measures,

including combination numbers, passwords, or electronic or biometric security systems to persons other than specifically authorized dispensing organization agents;
(13) Ensure that the dispensary interior and exterior

premises are sufficiently lit to facilitate surveillance;
(14) Ensure that trees, bushes, and other foliage

outside of the dispensary premises do not allow for a person or persons to conceal themselves from sight;
(15) Develop emergency policies and procedures for

securing all product and currency following any instance of diversion, theft, or loss of cannabis, and conduct an assessment to determine whether additional safeguards are necessary; and
(16) Develop sufficient additional safeguards in

response to any special security concerns, or as required by the Department.
(d) The Department may request or approve alternative security provisions that it determines are an adequate substitute for a security requirement specified in this Article. Any additional protections may be considered by the Department in evaluating overall security measures.
(e) A dispensing organization may share premises with a craft grower or an infuser organization, or both, provided each licensee stores currency and cannabis or cannabis-infused products in a separate secured vault to which the other licensee does not have access or all licensees sharing a vault share more than 50% of the same ownership.
(f) A dispensing organization shall provide additional security as needed and in a manner appropriate for the community where it operates.
(g) Restricted access areas.
(1) All restricted access areas must be identified by

the posting of a sign that is a minimum of 12 inches by 12 inches and that states “Do Not Enter – Restricted Access Area – Authorized Personnel Only” in lettering no smaller than one inch in height.
(2) All restricted access areas shall be clearly

described in the floor plan of the premises, in the form and manner determined by the Department, reflecting walls, partitions, counters, and all areas of entry and exit. The floor plan shall show all storage, disposal, and retail sales areas.
(3) All restricted access areas must be secure, with

locking devices that prevent access from the limited access areas.
(h) Security and alarm.
(1) A dispensing organization shall have an adequate

security plan and security system to prevent and detect diversion, theft, or loss of cannabis, currency, or unauthorized intrusion using commercial grade equipment installed by an Illinois licensed private alarm contractor or private alarm contractor agency that shall, at a minimum, include:
(i) A perimeter alarm on all entry points and

glass break protection on perimeter windows;
(ii) Security shatterproof tinted film on

exterior windows;
(iii) A failure notification system that provides

an audible, text, or visual notification of any failure in the surveillance system, including, but not limited to, panic buttons, alarms, and video monitoring system. The failure notification system shall provide an alert to designated dispensing organization agents within 5 minutes after the failure, either by telephone or text message;
(iv) A duress alarm, panic button, and alarm, or

holdup alarm and after-hours intrusion detection alarm that by design and purpose will directly or indirectly notify, by the most efficient means, the Public Safety Answering Point for the law enforcement agency having primary jurisdiction;
(v) Security equipment to deter and prevent

unauthorized entrance into the dispensary, including electronic door locks on the limited and restricted access areas that include devices or a series of devices to detect unauthorized intrusion that may include a signal system interconnected with a radio frequency method, cellular, private radio signals or other mechanical or electronic device.
(2) All security system equipment and recordings

shall be maintained in good working order, in a secure location so as to prevent theft, loss, destruction, or alterations.
(3) Access to surveillance monitoring recording

equipment shall be limited to persons who are essential to surveillance operations, law enforcement authorities acting within their jurisdiction, security system service personnel, and the Department. A current list of authorized dispensing organization agents and service personnel that have access to the surveillance equipment must be available to the Department upon request.
(4) All security equipment shall be inspected and

tested at regular intervals, not to exceed one month from the previous inspection, and tested to ensure the systems remain functional.
(5) The security system shall provide protection

against theft and diversion that is facilitated or hidden by tampering with computers or electronic records.
(6) The dispensary shall ensure all access doors are

not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
(i) To monitor the dispensary, the dispensing organization shall incorporate continuous electronic video monitoring including the following:
(1) All monitors must be 19 inches or greater;
(2) Unobstructed video surveillance of all enclosed

dispensary areas, unless prohibited by law, including all points of entry and exit that shall be appropriate for the normal lighting conditions of the area under surveillance. The cameras shall be directed so all areas are captured, including, but not limited to, safes, vaults, sales areas, and areas where cannabis is stored, handled, dispensed, or destroyed. Cameras shall be angled to allow for facial recognition, the capture of clear and certain identification of any person entering or exiting the dispensary area and in lighting sufficient during all times of night or day;
(3) Unobstructed video surveillance of outside areas,

the storefront, and the parking lot, that shall be appropriate for the normal lighting conditions of the area under surveillance. Cameras shall be angled so as to allow for the capture of facial recognition, clear and certain identification of any person entering or exiting the dispensary and the immediate surrounding area, and license plates of vehicles in the parking lot;
(4) 24-hour recordings from all video cameras

available for immediate viewing by the Department upon request. Recordings shall not be destroyed or altered and shall be retained for at least 90 days. Recordings shall be retained as long as necessary if the dispensing organization is aware of the loss or theft of cannabis or a pending criminal, civil, or administrative investigation or legal proceeding for which the recording may contain relevant information;
(5) The ability to immediately produce a clear, color

still photo from the surveillance video, either live or recorded;
(6) A date and time stamp embedded on all video

surveillance recordings. The date and time shall be synchronized and set correctly and shall not significantly obscure the picture;
(7) The ability to remain operational during a power

outage and ensure all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage;
(8) All video surveillance equipment shall allow for

the exporting of still images in an industry standard image format, including .jpg, .bmp, and .gif. Exported video shall have the ability to be archived in a proprietary format that ensures authentication of the video and guarantees that no alteration of the recorded image has taken place. Exported video shall also have the ability to be saved in an industry standard file format that can be played on a standard computer operating system. All recordings shall be erased or destroyed before disposal;
(9) The video surveillance system shall be

operational during a power outage with a 4-hour minimum battery backup;
(10) A video camera or cameras recording at each

point-of-sale location allowing for the identification of the dispensing organization agent distributing the cannabis and any purchaser. The camera or cameras shall capture the sale, the individuals and the computer monitors used for the sale;
(11) A failure notification system that provides an

audible and visual notification of any failure in the electronic video monitoring system; and
(12) All electronic video surveillance monitoring

must record at least the equivalent of 8 frames per second and be available as recordings to the Department and the Department of State Police 24 hours a day via a secure web-based portal with reverse functionality.
(j) The requirements contained in this Act are minimum requirements for operating a dispensing organization. The Department may establish additional requirements by rule.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-110)
Sec. 15-110. Recordkeeping.
(a) Dispensing organization records must be maintained electronically for 3 years and be available for inspection by the Department upon request. Required written records include, but are not limited to, the following:
(1) Operating procedures;
(2) Inventory records, policies, and procedures;
(3) Security records;
(4) Audit records;
(5) Staff training plans and completion documentation;
(6) Staffing plan; and
(7) Business records, including but not limited to:
(i) Assets and liabilities;
(ii) Monetary transactions;
(iii) Written or electronic accounts, including

bank statements, journals, ledgers, and supporting documents, agreements, checks, invoices, receipts, and vouchers; and
(iv) Any other financial accounts reasonably

related to the dispensary operations.
(b) Storage and transfer of records. If a dispensary closes due to insolvency, revocation, bankruptcy, or for any other reason, all records must be preserved at the expense of the dispensing organization for at least 3 years in a form and location in Illinois acceptable to the Department. The dispensing organization shall keep the records longer if requested by the Department. The dispensing organization shall notify the Department of the location where the dispensary records are stored or transferred.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-120)
Sec. 15-120. Closure of a dispensary.
(a) If a dispensing organization decides not to renew its license or decides to close its business, it shall promptly notify the Department not less than 3 months before the effective date of the closing date or as otherwise authorized by the Department.
(b) The dispensing organization shall work with the Department to develop a closure plan that addresses, at a minimum, the transfer of business records, transfer of cannabis products, and anything else the Department finds necessary.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-125)
Sec. 15-125. Fees. After January 1, 2022, the Department may by rule modify any fee established under this Article.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-135)
Sec. 15-135. Investigations.
(a) Dispensing organizations are subject to random and unannounced dispensary inspections and cannabis testing by the Department, the Department of State Police, and local law enforcement.
(b) The Department and its authorized representatives may enter any place, including a vehicle, in which cannabis is held, stored, dispensed, sold, produced, delivered, transported, manufactured, or disposed of and inspect, in a reasonable manner, the place and all pertinent equipment, containers and labeling, and all things including records, files, financial data, sales data, shipping data, pricing data, personnel data, research, papers, processes, controls, and facility, and inventory any stock of cannabis and obtain samples of any cannabis or cannabis-infused product, any labels or containers for cannabis, or paraphernalia.
(c) The Department may conduct an investigation of an applicant, application, dispensing organization, principal officer, dispensary agent, third party vendor, or any other party associated with a dispensing organization for an alleged violation of this Act or rules or to determine qualifications to be granted a registration by the Department.
(d) The Department may require an applicant or holder of any license issued pursuant to this Article to produce documents, records, or any other material pertinent to the investigation of an application or alleged violations of this Act or rules. Failure to provide the required material may be grounds for denial or discipline.
(e) Every person charged with preparation, obtaining, or keeping records, logs, reports, or other documents in connection with this Act and rules and every person in charge, or having custody, of those documents shall, upon request by the Department, make the documents immediately available for inspection and copying by the Department, the Department’s authorized representative, or others authorized by law to review the documents.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-140)
Sec. 15-140. Citations. The Department may issue nondisciplinary citations for minor violations. Any such citation issued by the Department may be accompanied by a fee. The fee shall not exceed $20,000 per violation. The citation shall be issued to the licensee and shall contain the licensee’s name and address, the licensee’s license number, a brief factual statement, the Sections of the law allegedly violated, and the fee, if any, imposed. The citation must clearly state that the licensee may choose, in lieu of accepting the citation, to request a hearing. If the licensee does not dispute the matter in the citation with the Department within 30 days after the citation is served, then the citation shall become final and not subject to appeal. The penalty shall be a fee or other conditions as established by rule.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-145)
Sec. 15-145. Grounds for discipline.
(a) The Department may deny issuance, refuse to renew or restore, or may reprimand, place on probation, suspend, revoke, or take other disciplinary or nondisciplinary action against any license or agent identification card or may impose a fine for any of the following:
(1) Material misstatement in furnishing information

to the Department;
(2) Violations of this Act or rules;
(3) Obtaining an authorization or license by fraud or

misrepresentation;
(4) A pattern of conduct that demonstrates

incompetence or that the applicant has engaged in conduct or actions that would constitute grounds for discipline under this Act;
(5) Aiding or assisting another person in violating

any provision of this Act or rules;
(6) Failing to respond to a written request for

information by the Department within 30 days;
(7) Engaging in unprofessional, dishonorable, or

unethical conduct of a character likely to deceive, defraud, or harm the public;
(8) Adverse action by another United States

jurisdiction or foreign nation;
(9) A finding by the Department that the licensee,

after having his or her license placed on suspended or probationary status, has violated the terms of the suspension or probation;
(10) Conviction, entry of a plea of guilty, nolo

contendere, or the equivalent in a State or federal court of a principal officer or agent-in-charge of a felony offense in accordance with Sections 2105-131, 2105-135, and 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois;
(11) Excessive use of or addiction to alcohol,

narcotics, stimulants, or any other chemical agent or drug;
(12) A finding by the Department of a discrepancy in

a Department audit of cannabis;
(13) A finding by the Department of a discrepancy in

a Department audit of capital or funds;
(14) A finding by the Department of acceptance of

cannabis from a source other than an Adult Use Cultivation Center, craft grower, infuser, or transporting organization licensed by the Department of Agriculture, or a dispensing organization licensed by the Department;
(15) An inability to operate using reasonable

judgment, skill, or safety due to physical or mental illness or other impairment or disability, including, without limitation, deterioration through the aging process or loss of motor skills or mental incompetence;
(16) Failing to report to the Department within the

time frames established, or if not identified, 14 days, of any adverse action taken against the dispensing organization or an agent by a licensing jurisdiction in any state or any territory of the United States or any foreign jurisdiction, any governmental agency, any law enforcement agency or any court defined in this Section;
(17) Any violation of the dispensing organization’s

policies and procedures submitted to the Department annually as a condition for licensure;
(18) Failure to inform the Department of any change

of address within 10 business days;
(19) Disclosing customer names, personal information,

or protected health information in violation of any State or federal law;
(20) Operating a dispensary before obtaining a

license from the Department;
(21) Performing duties authorized by this Act prior

to receiving a license to perform such duties;
(22) Dispensing cannabis when prohibited by this Act

or rules;
(23) Any fact or condition that, if it had existed at

the time of the original application for the license, would have warranted the denial of the license;
(24) Permitting a person without a valid agent

identification card to perform licensed activities under this Act;
(25) Failure to assign an agent-in-charge as required

by this Article;
(26) Failure to provide the training required by

paragraph (3) of subsection (i) of Section 15-40 within the provided timeframe;
(27) Personnel insufficient in number or unqualified

in training or experience to properly operate the dispensary business;
(28) Any pattern of activity that causes a harmful

impact on the community; and
(29) Failing to prevent diversion, theft, or loss of

cannabis.
(b) All fines and fees imposed under this Section shall be paid within 60 days after the effective date of the order imposing the fine or as otherwise specified in the order.
(c) A circuit court order establishing that an agent-in-charge or principal officer holding an agent identification card is subject to involuntary admission as that term is defined in Section 1-119 or 1-119.1 of the Mental Health and Developmental Disabilities Code shall operate as a suspension of that card.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-150)
Sec. 15-150. Temporary suspension.
(a) The Secretary of Financial and Professional Regulation may temporarily suspend a dispensing organization license or an agent registration without a hearing if the Secretary finds that public safety or welfare requires emergency action. The Secretary shall cause the temporary suspension by issuing a suspension notice in connection with the institution of proceedings for a hearing.
(b) If the Secretary temporarily suspends a license or agent registration without a hearing, the licensee or agent is entitled to a hearing within 45 days after the suspension notice has been issued. The hearing shall be limited to the issues cited in the suspension notice, unless all parties agree otherwise.
(c) If the Department does not hold a hearing with 45 days after the date the suspension notice was issued, then the suspended license or registration shall be automatically reinstated and the suspension vacated.
(d) The suspended licensee or agent may seek a continuance of the hearing date, during which time the suspension remains in effect and the license or registration shall not be automatically reinstated.
(e) Subsequently discovered causes of action by the Department after the issuance of the suspension notice may be filed as a separate notice of violation. The Department is not precluded from filing a separate action against the suspended licensee or agent.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-155)
Sec. 15-155. 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 dispensing organization owner, principal officer, agent-in-charge, or agent 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. 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 has the authority and power to investigate any and all unlicensed activity.
(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.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/15-160)
Sec. 15-160. Notice; hearing.
(a) The Department shall, before disciplining an applicant or licensee, at least 30 days before the date set for the hearing: (i) notify the accused in writing of the charges made and the time and place for the hearing on the charges; (ii) direct him or her to file a written answer to the charges under oath within 20 days after service; and (iii) inform the applicant or licensee that failure to answer will result in a default being entered against the applicant or licensee.
(b) At the time and place fixed in the notice, the hearing officer appointed by the Secretary shall proceed to hear the charges, and the parties or their counsel shall be accorded ample opportunity to present any pertinent statements, testimony, evidence, and arguments. The hearing officer may continue the hearing from time to time. In case the person, after receiving the notice, fails to file an answer, his or her license may, in the discretion of the Secretary, having first received the recommendation of the hearing officer, be suspended, revoked, or placed on probationary status, or be subject to whatever disciplinary action the Secretary considers proper, including a fine, without hearing, if that act or acts charged constitute sufficient grounds for that action under this Act.
(c) The written notice and any notice in the subsequent proceeding may be served by regular mail or email to the licensee’s or applicant’s address of record.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-165)
Sec. 15-165. Subpoenas; oaths. The Department shall have the power to subpoena and bring before it any person and to take testimony either orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed by law in judicial proceedings in civil cases in courts in this State. The Secretary or the hearing officer shall each have the power to administer oaths to witnesses at any hearings that the Department is authorized to conduct.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-170)
Sec. 15-170. Hearing; motion for rehearing.
(a) The hearing officer shall hear evidence in support of the formal charges and evidence produced by the licensee. At the conclusion of the hearing, the hearing officer shall present to the Secretary a written report of his or her findings of fact, conclusions of law, and recommendations.
(b) At the conclusion of the hearing, a copy of the hearing officer’s report shall be served upon the applicant or licensee by the Department, either personally or as provided in this Act for the service of a notice of hearing. Within 20 calendar days after service, the applicant or licensee may present to the Department a motion in writing for rehearing, which shall specify the particular grounds for rehearing. The Department may respond to the motion for rehearing within 20 calendar days after its service on the Department. If no motion for rehearing is filed, then, upon the expiration of the time specified for filing such motion or upon denial of a motion for rehearing, the Secretary may enter an order in accordance with the recommendation of the hearing officer. If the applicant or licensee orders from the reporting service and pays for a transcript of the record within the time for filing a motion for rehearing, the 20-day period within which a motion may be filed shall commence upon the delivery of the transcript to the applicant or licensee.
(c) If the Secretary disagrees in any regard with the report of the hearing officer, the Secretary may issue an order contrary to the report.
(d) Whenever the Secretary is not satisfied that substantial justice has been done, the Secretary may order a rehearing by the same or another hearing officer.
(e) At any point in any investigation or disciplinary proceeding under in this Article, both parties may agree to a negotiated consent order. The consent order shall be final upon signature of the Secretary.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/15-175)
Sec. 15-175. Review under the Administrative Review Law.
(a) All final administrative decisions of the Department hereunder shall be subject to judicial review under the provisions of the Administrative Review Law, and all amendment and modifications thereof. The term “administrative decision” is defined as in Section 3-101 of the Code of Civil Procedure.
(b) Proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides, but if the party is not a resident of Illinois, the venue shall be in Sangamon County.
(c) The Department shall not be required to certify any record to the court, file any answer in court, or otherwise appear in any court in a judicial review proceeding, unless and until the Department has received from the plaintiff payment of the costs of furnishing and certifying the record, which costs shall be determined by the Department. Failure on the part of the plaintiff to file a receipt in court shall be grounds for dismissal of the action.
(Source: P.A. 101-27, eff. 6-25-19.)

Grower (also commonly referred to as Producers or Cultivators) – Cultivators are responsible for growing cannabis. Mature plants are harvested and transferred to a Processor.

Illinois Cultivation Center Licenses

The application window for cultivation center permits has closed.  You can inquire with the Illinois Department of Agriculture for more information.

What kind of tracking system do I need to operate a Cultivation Facility?

Most states require an extensive seed-to-sale cannabis tracking system to monitor cultivation efforts and inventory.  Our cultivation seed-to-sale-tracking solution provides comprehensive data tracking with an emphasis on compliance.  Customized to meet the unique regulatory frameworks in each state, BioTrack also features an all-in-one business tool to help you operate every aspect of the cultivation business by itself, or as part of the vertically-integrated cannabis business.

 

Article 20.
Adult Use Cultivation Centers
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-1)
Sec. 20-1. Definition. In this Article, “Department” means the Department of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-5)
Sec. 20-5. Issuance of licenses. On or after July 1, 2021, the Department of Agriculture by rule may:
(1) Modify or change the number of cultivation center

licenses available, which shall at no time exceed 30 cultivation center licenses. In determining whether to exercise the authority granted by this subsection, the Department of Agriculture must consider the following factors:
(A) The percentage of cannabis sales occurring in

Illinois not in the regulated market using data from the Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, Illinois Behavioral Risk Factor Surveillance System, and tourism data from the Illinois Office of Tourism to ascertain total cannabis consumption in Illinois compared to the amount of sales in licensed dispensing organizations;
(B) Whether there is an adequate supply of

cannabis and cannabis-infused products to serve registered medical cannabis patients;
(C) Whether there is an adequate supply of

cannabis and cannabis-infused products to serve purchasers;
(D) Whether there is an oversupply of cannabis in

Illinois leading to trafficking of cannabis to any other state;
(E) Population increases or shifts;
(F) Changes to federal law;
(G) Perceived security risks of increasing the

number or location of cultivation centers;
(H) The past security records of cultivation

centers;
(I) The Department of Agriculture’s capacity to

appropriately regulate additional licensees;
(J) The findings and recommendations from the

disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer referenced in subsection (e) of Section 5-45 to reduce or eliminate any identified barriers to entry in the cannabis industry; and
(K) Any other criteria the Department of

Agriculture deems relevant.
(2) Modify or change the licensing application

process to reduce or eliminate the barriers identified in the disparity and availability study commission by the Illinois Cannabis Regulation Oversight Officer and shall make modifications to remedy evidence of discrimination.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-10)
Sec. 20-10. Early Approval of Adult Use Cultivation Center License.
(a) Any medical cannabis cultivation center registered and in good standing under the Compassionate Use of Medical Cannabis Program Act as of the effective date of this Act may, within 60 days of the effective date of this Act but no later than 180 days from the effective date of this Act, apply to the Department of Agriculture for an Early Approval Adult Use Cultivation Center License to produce cannabis and cannabis-infused products at its existing facilities as of the effective date of this Act.
(b) A medical cannabis cultivation center seeking issuance of an Early Approval Adult Use Cultivation Center License shall submit an application on forms provided by the Department of Agriculture. The application must meet or include the following qualifications:
(1) Payment of a nonrefundable application fee of

$100,000 to be deposited into the Cannabis Regulation Fund;
(2) Proof of registration as a medical cannabis

cultivation center that is in good standing;
(3) Submission of the application by the same person

or entity that holds the medical cannabis cultivation center registration;
(4) Certification that the applicant will comply with

the requirements of Section 20-30;
(5) The legal name of the cultivation center;
(6) The physical address of the cultivation center;
(7) The name, address, social security number, and

date of birth of each principal officer and board member of the cultivation center; each of those individuals shall be at least 21 years of age;
(8) A nonrefundable Cannabis Business Development Fee

equal to 5% of the cultivation center’s total sales between June 1, 2018 to June 1, 2019 or $750,000, whichever is less, but at not less than $250,000, to be deposited into the Cannabis Business Development Fund; and
(9) A commitment to completing one of the following

Social Equity Inclusion Plans provided for in this subsection (b) before the expiration of the Early Approval Adult Use Cultivation Center License:
(A) A contribution of 5% of the cultivation

center’s total sales from June 1, 2018 to June 1, 2019, or $100,000, whichever is less, to one of the following:
(i) the Cannabis Business Development Fund.

This is in addition to the fee required by item (8) of this subsection (b);
(ii) a cannabis industry training or

education program at an Illinois community college as defined in the Public Community College Act;
(iii) a program that provides job training

services to persons recently incarcerated or that operates in a Disproportionately Impacted Area.
(B) Participate as a host in a cannabis business

incubator program for at least one year approved by the Department of Commerce and Economic Opportunity, and in which an Early Approval Adult Use Cultivation Center License holder agrees to provide a loan of at least $100,000 and mentorship to incubate, for at least a year, a Social Equity Applicant intending to seek a license or a licensee that qualifies as a Social Equity Applicant. As used in this Section, “incubate” means providing direct financial assistance and training necessary to engage in licensed cannabis industry activity similar to that of the host licensee. The Early Approval Adult Use Cultivation Center License holder or the same entity holding any other licenses issued pursuant to this Act shall not take an ownership stake of greater than 10% in any business receiving incubation services to comply with this subsection. If an Early Approval Adult Use Cultivation Center License holder fails to find a business to incubate to comply with this subsection before its Early Approval Adult Use Cultivation Center License expires, it may opt to meet the requirement of this subsection by completing another item from this subsection prior to the expiration of its Early Approval Adult Use Cultivation Center License to avoid a penalty.
(c) An Early Approval Adult Use Cultivation Center License is valid until March 31, 2021. A cultivation center that obtains an Early Approval Adult Use Cultivation Center License shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and inform the license holder that it may renew its Early Approval Adult Use Cultivation Center License. The Department of Agriculture shall grant a renewal of an Early Approval Adult Use Cultivation Center License within 60 days of submission of an application if:
(1) the cultivation center submits an application

and the required renewal fee of $100,000 for an Early Approval Adult Use Cultivation Center License;
(2) the Department of Agriculture has not suspended

the license of the cultivation center or suspended or revoked the license for violating this Act or rules adopted under this Act; and
(3) the cultivation center has completed a Social

Equity Inclusion Plan as required by item (9) of subsection (b) of this Section.
(c-5) The Early Approval Adult Use Cultivation Center License renewed pursuant to subsection (c) of this Section shall expire March 31, 2022. The Early Approval Adult Use Cultivation Center Licensee shall receive written or electronic notice 90 days before the expiration of the license that the license will expire, and inform the license holder that it may apply for an Adult Use Cultivation Center License. The Department of Agriculture shall grant an Adult Use Dispensing Organization License within 60 days of an application being deemed complete if the applicant meets all of the criteria in Section 20-21.
(d) The license fee required by paragraph (1) of subsection (c) of this Section shall be in addition to any license fee required for the renewal of a registered medical cannabis cultivation center license that expires during the effective period of the Early Approval Adult Use Cultivation Center License.
(e) Applicants must submit all required information, including the requirements in subsection (b) of this Section, to the Department of Agriculture. Failure by an applicant to submit all required information may result in the application being disqualified.
(f) If the Department of Agriculture receives an application with missing information, the Department may issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to submit complete information. Applications that are still incomplete after this opportunity to cure may be disqualified.
(g) If an applicant meets all the requirements of subsection (b) of this Section, the Department of Agriculture shall issue the Early Approval Adult Use Cultivation Center License within 14 days of receiving the application unless:
(1) The licensee; principal officer, board member, or

person having a financial or voting interest of 5% or greater in the licensee; or agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois;
(2) The Director of Agriculture determines there is

reason, based on an inordinate number of documented compliance violations, the licensee is not entitled to an Early Approval Adult Use Cultivation Center License; or
(3) The licensee fails to commit to the Social Equity

Inclusion Plan.
(h) A cultivation center may begin producing cannabis and cannabis-infused products once the Early Approval Adult Use Cultivation Center License is approved. A cultivation center that obtains an Early Approval Adult Use Cultivation Center License may begin selling cannabis and cannabis-infused products on December 1, 2019.
(i) An Early Approval Adult Use Cultivation Center License holder must continue to produce and provide an adequate supply of cannabis and cannabis-infused products for purchase by qualifying patients and caregivers. For the purposes of this subsection, “adequate supply” means a monthly production level that is comparable in type and quantity to those medical cannabis products produced for patients and caregivers on an average monthly basis for the 6 months before the effective date of this Act.
(j) If there is a shortage of cannabis or cannabis-infused products, a license holder shall prioritize patients registered under the Compassionate Use of Medical Cannabis Program Act over adult use purchasers.
(k) If an Early Approval Adult Use Cultivation Center licensee fails to submit an application for an Adult Use Cultivation Center License before the expiration of the Early Approval Adult Use Cultivation Center License pursuant to subsection (c-5) of this Section, the cultivation center shall cease adult use cultivation until it receives an Adult Use Cultivation Center License.
(l) A cultivation center agent who holds a valid cultivation center agent identification card issued under the Compassionate Use of Medical Cannabis Program Act and is an officer, director, manager, or employee of the cultivation center licensed under this Section may engage in all activities authorized by this Article to be performed by a cultivation center agent.
(m) If the Department of Agriculture suspends or revokes the Early Approval Adult Use Cultivation Center License of a cultivation center that also holds a medical cannabis cultivation center license issued under the Compassionate Use of Medical Cannabis Program Act, the Department of Agriculture may suspend or revoke the medical cannabis cultivation center license concurrently with the Early Approval Adult Use Cultivation Center License.
(n) All fees or fines collected from an Early Approval Adult Use Cultivation Center License holder as a result of a disciplinary action in the enforcement of this Act shall be deposited into the Cannabis Regulation Fund.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/20-15)
Sec. 20-15. Conditional Adult Use Cultivation Center application.
(a) If the Department of Agriculture makes available additional cultivation center licenses pursuant to Section 20-5, applicants for a Conditional Adult Use Cultivation Center License shall electronically submit the following in such form as the Department of Agriculture may direct:
(1) the nonrefundable application fee set by rule by

the Department of Agriculture, to be deposited into the Cannabis Regulation Fund;
(2) the legal name of the cultivation center;
(3) the proposed physical address of the cultivation

center;
(4) the name, address, social security number, and

date of birth of each principal officer and board member of the cultivation center; each principal officer and board member shall be at least 21 years of age;
(5) the details of any administrative or judicial

proceeding in which any of the principal officers or board members of the cultivation center (i) pled guilty, were convicted, were fined, or had a registration or license suspended or revoked, or (ii) managed or served on the board of a business or non-profit organization that pled guilty, was convicted, was fined, or had a registration or license suspended or revoked;
(6) proposed operating bylaws that include procedures

for the oversight of the cultivation center, including the development and implementation of a plant monitoring system, accurate recordkeeping, staffing plan, and security plan approved by the Department of State Police that are in accordance with the rules issued by the Department of Agriculture under this Act. A physical inventory shall be performed of all plants and cannabis on a weekly basis by the cultivation center;
(7) verification from the Department of State Police

that all background checks of the prospective principal officers, board members, and agents of the cannabis business establishment have been conducted;
(8) a copy of the current local zoning ordinance or

permit and verification that the proposed cultivation center is in compliance with the local zoning rules and distance limitations established by the local jurisdiction;
(9) proposed employment practices, in which the

applicant must demonstrate a plan of action to inform, hire, and educate minorities, women, veterans, and persons with disabilities, engage in fair labor practices, and provide worker protections;
(10) whether an applicant can demonstrate experience

in or business practices that promote economic empowerment in Disproportionately Impacted Areas;
(11) experience with the cultivation of agricultural

or horticultural products, operating an agriculturally related business, or operating a horticultural business;
(12) a description of the enclosed, locked facility

where cannabis will be grown, harvested, manufactured, processed, packaged, or otherwise prepared for distribution to a dispensing organization;
(13) a survey of the enclosed, locked facility,

including the space used for cultivation;
(14) cultivation, processing, inventory, and

packaging plans;
(15) a description of the applicant’s experience with

agricultural cultivation techniques and industry standards;
(16) a list of any academic degrees, certifications,

or relevant experience of all prospective principal officers, board members, and agents of the related business;
(17) the identity of every person having a financial

or voting interest of 5% or greater in the cultivation center operation with respect to which the license is sought, whether a trust, corporation, partnership, limited liability company, or sole proprietorship, including the name and address of each person;
(18) a plan describing how the cultivation center

will address each of the following:
(i) energy needs, including estimates of monthly

electricity and gas usage, to what extent it will procure energy from a local utility or from on-site generation, and if it has or will adopt a sustainable energy use and energy conservation policy;
(ii) water needs, including estimated water draw

and if it has or will adopt a sustainable water use and water conservation policy; and
(iii) waste management, including if it has or

will adopt a waste reduction policy;
(19) a diversity plan that includes a narrative of

not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity;
(20) any other information required by rule;
(21) a recycling plan:
(A) Purchaser packaging, including cartridges,

shall be accepted by the applicant and recycled.
(B) Any recyclable waste generated by the

cannabis cultivation facility shall be recycled per applicable State and local laws, ordinances, and rules.
(C) Any cannabis waste, liquid waste, or

hazardous waste shall be disposed of in accordance with 8 Ill. Adm. Code 1000.460, except, to the greatest extent feasible, all cannabis plant waste will be rendered unusable by grinding and incorporating the cannabis plant waste with compostable mixed waste to be disposed of in accordance with 8 Ill. Adm. Code 1000.460(g)(1);
(22) commitment to comply with local waste

provisions: a cultivation facility must remain in compliance with applicable State and federal environmental requirements, including, but not limited to:
(A) storing, securing, and managing all

recyclables and waste, including organic waste composed of or containing finished cannabis and cannabis products, in accordance with applicable State and local laws, ordinances, and rules; and
(B) disposing liquid waste containing cannabis or

byproducts of cannabis processing in compliance with all applicable State and federal requirements, including, but not limited to, the cannabis cultivation facility’s permits under Title X of the Environmental Protection Act; and
(23) a commitment to a technology standard for

resource efficiency of the cultivation center facility.
(A) A cannabis cultivation facility commits to

use resources efficiently, including energy and water. For the following, a cannabis cultivation facility commits to meet or exceed the technology standard identified in items (i), (ii), (iii), and (iv), which may be modified by rule:
(i) lighting systems, including light bulbs;
(ii) HVAC system;
(iii) water application system to the crop;

and
(iv) filtration system for removing

contaminants from wastewater.
(B) Lighting. The Lighting Power Densities (LPD)

for cultivation space commits to not exceed an average of 36 watts per gross square foot of active and growing space canopy, or all installed lighting technology shall meet a photosynthetic photon efficacy (PPE) of no less than 2.2 micromoles per joule fixture and shall be featured on the DesignLights Consortium (DLC) Horticultural Specification Qualified Products List (QPL). In the event that DLC requirement for minimum efficacy exceeds 2.2 micromoles per joule fixture, that PPE shall become the new standard.
(C) HVAC.
(i) For cannabis grow operations with less

than 6,000 square feet of canopy, the licensee commits that all HVAC units will be high-efficiency ductless split HVAC units, or other more energy efficient equipment.
(ii) For cannabis grow operations with 6,000

square feet of canopy or more, the licensee commits that all HVAC units will be variable refrigerant flow HVAC units, or other more energy efficient equipment.
(D) Water application.
(i) The cannabis cultivation facility commits

to use automated watering systems, including, but not limited to, drip irrigation and flood tables, to irrigate cannabis crop.
(ii) The cannabis cultivation facility

commits to measure runoff from watering events and report this volume in its water usage plan, and that on average, watering events shall have no more than 20% of runoff of water.
(E) Filtration. The cultivator commits that HVAC

condensate, dehumidification water, excess runoff, and other wastewater produced by the cannabis cultivation facility shall be captured and filtered to the best of the facility’s ability to achieve the quality needed to be reused in subsequent watering rounds.
(F) Reporting energy use and efficiency as

required by rule.
(b) Applicants must submit all required information, including the information required in Section 20-10, to the Department of Agriculture. Failure by an applicant to submit all required information may result in the application being disqualified.
(c) If the Department of Agriculture receives an application with missing information, the Department of Agriculture may issue a deficiency notice to the applicant. The applicant shall have 10 calendar days from the date of the deficiency notice to resubmit the incomplete information. Applications that are still incomplete after this opportunity to cure will not be scored and will be disqualified.
(e) A cultivation center that is awarded a Conditional Adult Use Cultivation Center License pursuant to the criteria in Section 20-20 shall not grow, purchase, possess, or sell cannabis or cannabis-infused products until the person has received an Adult Use Cultivation Center License issued by the Department of Agriculture pursuant to Section 20-21 of this Act.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/20-20)
Sec. 20-20. Conditional Adult Use License scoring applications.
(a) The Department of Agriculture shall by rule develop a system to score cultivation center applications to administratively rank applications based on the clarity, organization, and quality of the applicant’s responses to required information. Applicants shall be awarded points based on the following categories:
(1) Suitability of the proposed facility;
(2) Suitability of employee training plan;
(3) Security and recordkeeping;
(4) Cultivation plan;
(5) Product safety and labeling plan;
(6) Business plan;
(7) The applicant’s status as a Social Equity

Applicant, which shall constitute no less than 20% of total available points;
(8) Labor and employment practices, which shall

constitute no less than 2% of total available points;
(9) Environmental plan as described in paragraphs

(18), (21), (22), and (23) of subsection (a) of Section 20-15;
(10) The applicant is 51% or more owned and

controlled by an individual or individuals who have been an Illinois resident for the past 5 years as proved by tax records or 2 of the following:
(A) a signed lease agreement that includes the

applicant’s name;
(B) a property deed that includes the applicant’s

name;
(C) school records;
(D) a voter registration card;
(E) an Illinois driver’s license, an Illinois

Identification Card, or an Illinois Person with a Disability Identification Card;
(F) a paycheck stub;
(G) a utility bill; or
(H) any other proof of residency or other

information necessary to establish residence as provided by rule;
(11) The applicant is 51% or more controlled and

owned by an individual or individuals who meet the qualifications of a veteran as defined by Section 45-57 of the Illinois Procurement Code;
(12) a diversity plan that includes a narrative of

not more than 2,500 words that establishes a goal of diversity in ownership, management, employment, and contracting to ensure that diverse participants and groups are afforded equality of opportunity; and
(13) Any other criteria the Department of Agriculture

may set by rule for points.
(b) The Department may also award bonus points for the applicant’s plan to engage with the community. Bonus points will only be awarded if the Department receives applications that receive an equal score for a particular region.
(c) Should the applicant be awarded a cultivation center license, the information and plans that an applicant provided in its application, including any plans submitted for the acquiring of bonus points, becomes a mandatory condition of the permit. Any variation from or failure to perform such plans may result in discipline, including the revocation or nonrenewal of a license.
(d) Should the applicant be awarded a cultivation center license, it shall pay a fee of $100,000 prior to receiving the license, to be deposited into the Cannabis Regulation Fund. The Department of Agriculture may by rule adjust the fee in this Section after January 1, 2021.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/20-21)
Sec. 20-21. Adult Use Cultivation Center License.
(a) A person or entity is only eligible to receive an Adult Use Cultivation Center License if the person or entity has first been awarded a Conditional Adult Use Cultivation Center License pursuant to this Act or the person or entity has renewed its Early Approval Cultivation Center License pursuant to subsection (c) of Section 20-10.
(b) The Department of Agriculture shall not issue an Adult Use Cultivation Center License until:
(1) the Department of Agriculture has inspected the

cultivation center site and proposed operations and verified that they are in compliance with this Act and local zoning laws;
(2) the Conditional Adult Use Cultivation Center

License holder has paid a registration fee of $100,000 or a prorated amount accounting for the difference of time between when the Adult Use Cultivation Center License is issued and March 31 of the next even-numbered year; and
(3) The Conditional Adult Use Cultivation Center

License holder has met all the requirements in the Act and rules.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-25)
Sec. 20-25. Denial of application. An application for a cultivation center license must be denied if any of the following conditions are met:
(1) the applicant failed to submit the materials

required by this Article;
(2) the applicant would not be in compliance with

local zoning rules;
(3) one or more of the prospective principal officers

or board members causes a violation of Section 20-30;
(4) one or more of the principal officers or board

members is under 21 years of age;
(5) the person has submitted an application for a

permit under this Act that contains false information; or
(6) the licensee, principal officer, board member, or

person having a financial or voting interest of 5% or greater in the licensee, or the agent is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-30)
Sec. 20-30. Cultivation center requirements; prohibitions.
(a) The operating documents of a cultivation center shall include procedures for the oversight of the cultivation center a cannabis plant monitoring system including a physical inventory recorded weekly, accurate recordkeeping, and a staffing plan.
(b) A cultivation center shall implement a security plan reviewed by the Department of State Police that includes, but is not limited to: facility access controls, perimeter intrusion detection systems, personnel identification systems, 24-hour surveillance system to monitor the interior and exterior of the cultivation center facility and accessibility to authorized law enforcement, the Department of Public Health where processing takes place, and the Department of Agriculture in real time.
(c) All cultivation of cannabis by a cultivation center must take place in an enclosed, locked facility at the physical address provided to the Department of Agriculture during the licensing process. The cultivation center location shall only be accessed by the agents working for the cultivation center, the Department of Agriculture staff performing inspections, the Department of Public Health staff performing inspections, local and State law enforcement or other emergency personnel, contractors working on jobs unrelated to cannabis, such as installing or maintaining security devices or performing electrical wiring, transporting organization agents as provided in this Act, individuals in a mentoring or educational program approved by the State, or other individuals as provided by rule.
(d) A cultivation center may not sell or distribute any cannabis or cannabis-infused products to any person other than a dispensing organization, craft grower, infuser organization, transporter, or as otherwise authorized by rule.
(e) A cultivation center may not either directly or indirectly discriminate in price between different dispensing organizations, craft growers, or infuser organizations that are purchasing a like grade, strain, brand, and quality of cannabis or cannabis-infused product. Nothing in this subsection (e) prevents a cultivation centers from pricing cannabis differently based on differences in the cost of manufacturing or processing, the quantities sold, such as volume discounts, or the way the products are delivered.
(f) All cannabis harvested by a cultivation center and intended for distribution to a dispensing organization must be entered into a data collection system, packaged and labeled under Section 55-21, and placed into a cannabis container for transport. All cannabis harvested by a cultivation center and intended for distribution to a craft grower or infuser organization must be packaged in a labeled cannabis container and entered into a data collection system before transport.
(g) Cultivation centers are subject to random inspections by the Department of Agriculture, the Department of Public Health, local safety or health inspectors, and the Department of State Police.
(h) A cultivation center agent shall notify local law enforcement, the Department of State Police, and the Department of Agriculture within 24 hours of the discovery of any loss or theft. Notification shall be made by phone or in person, or by written or electronic communication.
(i) A cultivation center shall comply with all State and any applicable federal rules and regulations regarding the use of pesticides on cannabis plants.
(j) No person or entity shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, of more than 3 cultivation centers licensed under this Article. Further, no person or entity that is employed by, an agent of, has a contract to receive payment in any form from a cultivation center, is a principal officer of a cultivation center, or entity controlled by or affiliated with a principal officer of a cultivation shall hold any legal, equitable, ownership, or beneficial interest, directly or indirectly, in a cultivation that would result in the person or entity owning or controlling in combination with any cultivation center, principal officer of a cultivation center, or entity controlled or affiliated with a principal officer of a cultivation center by which he, she, or it is employed, is an agent of, or participates in the management of, more than 3 cultivation center licenses.
(k) A cultivation center may not contain more than 210,000 square feet of canopy space for plants in the flowering stage for cultivation of adult use cannabis as provided in this Act.
(l) A cultivation center may process cannabis, cannabis concentrates, and cannabis-infused products.
(m) Beginning July 1, 2020, a cultivation center shall not transport cannabis or cannabis-infused products to a craft grower, dispensing organization, infuser organization, or laboratory licensed under this Act, unless it has obtained a transporting organization license.
(n) It is unlawful for any person having a cultivation center license or any officer, associate, member, representative, or agent of such licensee to offer or deliver money, or anything else of value, directly or indirectly to any person having an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any person connected with or in any way representing, or to any member of the family of, such person holding an Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act, or to any stockholders in any corporation engaged in the retail sale of cannabis, or to any officer, manager, agent, or representative of the Early Approval Adult Use Dispensing Organization License, a Conditional Adult Use Dispensing Organization License, an Adult Use Dispensing Organization License, or a medical cannabis dispensing organization license issued under the Compassionate Use of Medical Cannabis Program Act to obtain preferential placement within the dispensing organization, including, without limitation, on shelves and in display cases where purchasers can view products, or on the dispensing organization’s website.
(o) A cultivation center must comply with any other requirements or prohibitions set by administrative rule of the Department of Agriculture.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

(410 ILCS 705/20-35)
Sec. 20-35. Cultivation center agent identification card.
(a) The Department of Agriculture shall:
(1) establish by rule the information required in an

initial application or renewal application for an agent identification card submitted under this Act and the nonrefundable fee to accompany the initial application or renewal application;
(2) verify the information contained in an initial

application or renewal application for an agent identification card submitted under this Act, and approve or deny an application within 30 days of receiving a completed initial application or renewal application and all supporting documentation required by rule;
(3) issue an agent identification card to a

qualifying agent within 15 business days of approving the initial application or renewal application;
(4) enter the license number of the cultivation

center where the agent works; and
(5) allow for an electronic initial application and

renewal application process, and provide a confirmation by electronic or other methods that an application has been submitted. The Department of Agriculture may by rule require prospective agents to file their applications by electronic means and provide notices to the agents by electronic means.
(b) An agent must keep his or her identification card visible at all times when on the property of the cultivation center at which the agent is employed.
(c) The agent identification cards shall contain the following:
(1) the name of the cardholder;
(2) the date of issuance and expiration date of the

identification card;
(3) a random 10-digit alphanumeric identification

number containing at least 4 numbers and at least 4 letters that is unique to the holder;
(4) a photograph of the cardholder; and
(5) the legal name of the cultivation center

employing the agent.
(d) An agent identification card shall be immediately returned to the cultivation center of the agent upon termination of his or her employment.
(e) Any agent identification card lost by a cultivation center agent shall be reported to the Department of State Police and the Department of Agriculture immediately upon discovery of the loss.
(f) The Department of Agriculture shall not issue an agent identification card if the applicant is delinquent in filing any required tax returns or paying any amounts owed to the State of Illinois.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-40)
Sec. 20-40. Cultivation center background checks.
(a) Through the Department of State Police, the Department of Agriculture shall conduct a background check of the prospective principal officers, board members, and agents of a cultivation center applying for a license or identification card under this Act. The Department of State Police shall charge a fee set by rule 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. In order to carry out this provision, each cultivation center prospective principal officer, board member, or agent shall submit a full set of fingerprints to the Department of State Police for the purpose of obtaining a State and federal criminal records check. These fingerprints shall be checked against the fingerprint records now and hereafter, to the extent allowed by law, filed in the Department of State Police and Federal Bureau of Investigation criminal history records databases. The Department of State Police shall furnish, following positive identification, all conviction information to the Department of Agriculture.
(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-45)
Sec. 20-45. Renewal of cultivation center licenses and agent identification cards.
(a) Licenses and identification cards issued under this Act shall be renewed annually. A cultivation center shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department of Agriculture shall grant a renewal within 45 days of submission of a renewal application if:
(1) the cultivation center submits a renewal

application and the required nonrefundable renewal fee of $100,000, or another amount as the Department of Agriculture may set by rule after January 1, 2021, to be deposited into the Cannabis Regulation Fund.
(2) the Department of Agriculture has not suspended

the license of the cultivation center or suspended or revoked the license for violating this Act or rules adopted under this Act;
(3) the cultivation center has continued to operate

in accordance with all plans submitted as part of its application and approved by the Department of Agriculture or any amendments thereto that have been approved by the Department of Agriculture;
(4) the cultivation center has submitted an agent,

employee, contracting, and subcontracting diversity report as required by the Department; and
(5) the cultivation center has submitted an

environmental impact report.
(b) If a cultivation center fails to renew its license before expiration, it shall cease operations until its license is renewed.
(c) If a cultivation center agent fails to renew his or her identification card before its expiration, he or she shall cease to work as an agent of the cultivation center until his or her identification card is renewed.
(d) Any cultivation center that continues to operate, or any cultivation center agent who continues to work as an agent, after the applicable license or identification card has expired without renewal is subject to the penalties provided under Section 45-5.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-50)
Sec. 20-50. Cultivator taxes; returns.
(a) A tax is imposed upon the privilege of cultivating and processing adult use cannabis at the rate of 7% of the gross receipts from the sale of cannabis by a cultivator to a dispensing organization. The sale of any adult use product that contains any amount of cannabis or any derivative thereof is subject to the tax under this Section on the full selling price of the product. The proceeds from this tax shall be deposited into the Cannabis Regulation Fund. This tax shall be paid by the cultivator who makes the first sale and is not the responsibility of a dispensing organization, qualifying patient, or purchaser.
(b) In the administration of and compliance with this Section, the Department of Revenue and persons who are subject to this Section: (i) have the same rights, remedies, privileges, immunities, powers, and duties, (ii) are subject to the same conditions, restrictions, limitations, penalties, and definitions of terms, and (iii) shall employ the same modes of procedure as are set forth in the Cannabis Cultivation Privilege Tax Law and the Uniform Penalty and Interest Act as if those provisions were set forth in this Section.
(c) The tax imposed under this Act shall be in addition to all other occupation or privilege taxes imposed by the State of Illinois or by any municipal corporation or political subdivision thereof.
(Source: P.A. 101-27, eff. 6-25-19.)

(410 ILCS 705/20-55)
Sec. 20-55. Disclosure of ownership and control.
(a) Each Adult Use Cultivation Center applicant and license holder shall file and maintain a Table of Organization, Ownership, and Control with the Department. The Table of Organization, Ownership, and Control shall contain the information required by this Section in sufficient detail to identify all owners, directors, and principal officers, and the title of each principal officer or business entity that, through direct or indirect means, manages, owns, or controls the applicant or license holder.
(b) The Table of Organization, Ownership, and Control shall identify the following information:
(1) The management structure, ownership, and

control of the applicant or license holder including the name of each principal officer or business entity, the office or position held, and the percentage ownership interest, if any. If the business entity has a parent company, the name of each owner, board member, and officer of the parent company and his or her percentage ownership interest in the parent company and the Adult Use Cultivation Center.
(2) If the applicant or licensee is a business

entity with publicly traded stock, the identification of ownership shall be provided as required in subsection (c).
(c) If a business entity identified in subsection (b) is a publicly traded company, the following information shall be provided in the Table of Organization, Ownership, and Control:
(1) The name and percentage of ownership interest

of each individual or business entity with ownership of more than 5% of the voting shares of the entity, to the extent such information is known or contained in 13D or 13G Securities and Exchange Commission filings.
(2) To the extent known, the names and percentage

of interest of ownership of persons who are relatives of one another and who together exercise control over or own more than 10% of the voting shares of the entity.
(d) An Adult Use Cultivation Center with a parent company or companies, or partially owned or controlled by another entity must disclose to the Department the relationship and all owners, board members, officers, or individuals with control or management of those entities. An Adult Use Cultivation Center shall not shield its ownership or control from the Department.
(e) All principal officers must submit a complete online application with the Department within 14 days of the Adult Use Cultivation Center being licensed by the Department or within 14 days of Department notice of approval as a new principal officer.
(f) A principal officer may not allow his or her registration to expire.
(g) An Adult Use Cultivation Center separating with a principal officer must do so under this Act. The principal officer must communicate the separation to the Department within 5 business days.
(h) A principal officer not in compliance with the requirements of this Act shall be removed from his or her position with the Adult Use Cultivation Center or shall otherwise terminate his or her affiliation. Failure to do so may subject the Adult Use Cultivation Center to discipline, suspension, or revocation of its license by the Department.
(i) It is the responsibility of the Adult Use Cultivation Center and its principal officers to promptly notify the Department of any change of the principal place of business address, hours of operation, change in ownership or control, or a change of the Adult Use Cultivation Center’s primary or secondary contact information. Any changes must be made to the Department in writing.
(Source: P.A. 102-98, eff. 7-15-21.)

Laboratories can test cannabis for concentration and contaminants.  Prior to entering the consumer market, all regulated cannabis is required to undergo Quality Assurance testing.

Illinois Laboratory Licenses

Established medical laboratories and cultivation centers in the state of Illinois can fill out the respective application below if they meet the requirements for medical cannabis testing.  Laboratories are licensed by the Illinois Department of Agriculture.

Application for Laboratory Approval to Handle, Test, or Analyze Medical Cannabis in Illinois

Application for Cultivation Center to Approval to Handle, Test, or Analyze Medical Cannabis in Illinois

Processors – Processors take harvested cannabis from Cultivators and create derivative extracts for edibles, concentrates, topicals, and prepacks. Finished products are transported to Dispensaries.

Illinois Cannabis Processor Licenses

In Illinois, processing the cannabis plant into various forms of cannabis-related products is done by the cultivation center.

Illinois Seed-to-Sale Traceability Info

Illinois Medical Cannabis Program is operated by 3 main government agencies:

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