2023 Illinois Compiled Statutes › Chapter 410 - PUBLIC HEALTH › 410 ILCS 705/ - Cannabis Regulation and Tax Act. › Article 20 - Adult Use Cultivation Centers

(410 ILCS 705/Art. 20 heading)
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 Illinois 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 Illinois 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; 102-538, eff. 8-20-21.)
(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 Illinois 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 center 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, the Illinois State Police, or as provided by rule.
(h) A cultivation center agent shall notify local law enforcement, the Illinois State Police, and the Department of Agriculture within 24 hours of the discovery of any loss or theft. Notification shall be made by phone 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; 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)
(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 Illinois 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; 102-538, eff. 8-20-21.)
(410 ILCS 705/20-40)
Sec. 20-40. Cultivation center background checks.
(a) Through the Illinois 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 Illinois 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 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 in the Illinois State Police and Federal Bureau of Investigation criminal history records databases. The Illinois 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; 102-538, eff. 8-20-21.)
(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.)