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HB4818 - 104th General Assembly

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4818

Introduced , by Rep. Michael Crawford

SYNOPSIS AS INTRODUCED:

410 ILCS 705/1-5
410 ILCS 705/1-10
410 ILCS 705/40-50 new
410 ILCS 705/40-55 new
410 ILCS 705/40-60 new
410 ILCS 705/40-65 new

Amends the Cannabis Regulation and Tax Act. Adds provisions
authorizing the Department of Agriculture to issue a transfer site
endorsement for licensed cannabis transporters with a social equity
designation. Provides that the endorsement allows operation of secure
transfer sites for short-term storage and logistical consolidation of
cannabis or cannabis-infused products. Sets conditions for use, security
requirements, insurance, and compliance standards. Requires coordination
with local zoning authorities and rulemaking by the Department. Makes
related changes to findings and definitions.
LRB104 18149 BDA 31588 b

A BILL FOR

HB4818
LRB104 18149 BDA 31588 b
1

AN ACT concerning health.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Cannabis Regulation and Tax Act is amended
5
by changing Sections 1-5 and 1-10 and by adding Sections
6
40-50, 40-55, 40-60, and 40-65 as follows:

7

(410 ILCS 705/1-5)
8

Sec. 1-5.
Findings.
9

(a) In the interest of allowing law enforcement to focus
10
on violent and property crimes, generating revenue for
11
education, substance abuse prevention and treatment, freeing
12
public resources to invest in communities and other public
13
purposes, and individual freedom, the General Assembly finds
14
and declares that the use of cannabis should be legal for
15
persons 21 years of age or older and should be taxed in a
16
manner similar to alcohol.
17

(b) In the interest of the health and public safety of the
18
residents of Illinois, the General Assembly further finds and
19
declares that cannabis should be regulated in a manner similar
20
to alcohol so that:
21

(1) persons will have to show proof of age before
22

purchasing cannabis;
23

(2) selling, distributing, or transferring cannabis to

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minors and other persons under 21 years of age shall
2

remain illegal;
3

(3) driving under the influence of cannabis, operating
4

a watercraft under the influence of cannabis, and
5

operating a snowmobile under the influence of cannabis
6

shall remain illegal;
7

(4) legitimate, taxpaying business people, and not
8

criminal actors, will conduct sales of cannabis;
9

(5) cannabis sold in this State will be tested,
10

labeled, and subject to additional regulation to ensure
11

that purchasers are informed and protected; and
12

(6) purchasers will be informed of any known health
13

risks associated with the use of cannabis, as concluded by
14

evidence-based, peer reviewed research.
15

(c) The General Assembly further finds and declares that
16
it is necessary to ensure consistency and fairness in the
17
application of this Act throughout the State and that,
18
therefore, the matters addressed by this Act are, except as
19
specified in this Act, matters of statewide concern.
20

(d) The General Assembly further finds and declares that
21
this Act shall not diminish the State's duties and commitment
22
to seriously ill patients registered under the Compassionate
23
Use of Medical Cannabis Program Act, nor alter the protections
24
granted to them.
25

(e) The General Assembly supports and encourages labor
26
neutrality in the cannabis industry and further finds and

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declares that employee workplace safety shall not be
2
diminished and employer workplace policies shall be
3
interpreted broadly to protect employee safety.
4

(f) It is the intent of the General Assembly to reduce
5
transportation inefficiencies, enhance statewide
6
participation by social equity cannabis transporters, improve
7
public safety, and maintain the highest standards of
8
regulatory compliance while promoting fair market access and
9
reduced environmental impact.

10
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

11

(410 ILCS 705/1-10)
12

Sec. 1-10.
Definitions.
In this Act:
13

"Adult Use Cultivation Center License" means a license
14
issued by the Department of Agriculture that permits a person
15
to act as a cultivation center under this Act and any
16
administrative rule made in furtherance of this Act.
17

"Adult Use Dispensing Organization License" means a
18
license issued by the Department of Financial and Professional
19
Regulation that permits a person to act as a dispensing
20
organization under this Act and any administrative rule made
21
in furtherance of this Act.
22

"Advertise" means to engage in promotional activities
23
including, but not limited to: newspaper, radio, Internet and
24
electronic media, and television advertising; the distribution
25
of fliers and circulars; billboard advertising; and the

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display of window and interior signs. "Advertise" does not
2
mean exterior signage displaying only the name of the licensed
3
cannabis business establishment.
4

"Application points" means the number of points a
5
Dispensary Applicant receives on an application for a
6
Conditional Adult Use Dispensing Organization License.
7

"BLS Region" means a region in Illinois used by the United
8
States Bureau of Labor Statistics to gather and categorize
9
certain employment and wage data. The 17 such regions in
10
Illinois are: Bloomington, Cape Girardeau, Carbondale-Marion,
11
Champaign-Urbana, Chicago-Naperville-Elgin, Danville,
12
Davenport-Moline-Rock Island, Decatur, Kankakee, Peoria,
13
Rockford, St. Louis, Springfield, Northwest Illinois
14
nonmetropolitan area, West Central Illinois nonmetropolitan
15
area, East Central Illinois nonmetropolitan area, and South
16
Illinois nonmetropolitan area.
17

"By lot" means a randomized method of choosing between 2
18
or more Eligible Tied Applicants or 2 or more Qualifying
19
Applicants.
20

"Cannabis" means marijuana, hashish, and other substances
21
that are identified as including any parts of the plant
22
Cannabis sativa and including derivatives or subspecies, such
23
as indica, of all strains of cannabis, whether growing or not;
24
the seeds thereof, the resin extracted from any part of the
25
plant; and any compound, manufacture, salt, derivative,
26
mixture, or preparation of the plant, its seeds, or resin,

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including tetrahydrocannabinol (THC) and all other naturally
2
produced cannabinol derivatives, whether produced directly or
3
indirectly by extraction; however, "cannabis" does not include
4
the mature stalks of the plant, fiber produced from the
5
stalks, oil or cake made from the seeds of the plant, any other
6
compound, manufacture, salt, derivative, mixture, or
7
preparation of the mature stalks (except the resin extracted
8
from it), fiber, oil or cake, or the sterilized seed of the
9
plant that is incapable of germination. "Cannabis" does not
10
include industrial hemp as defined and authorized under the
11
Industrial Hemp Act. "Cannabis" also means cannabis flower,
12
concentrate, and cannabis-infused products.
13

"Cannabis business establishment" means a cultivation
14
center, craft grower, processing organization, infuser
15
organization, dispensing organization, or transporting
16
organization.
17

"Cannabis concentrate" means a product derived from
18
cannabis that is produced by extracting cannabinoids,
19
including tetrahydrocannabinol (THC), from the plant through
20
the use of propylene glycol, glycerin, butter, olive oil, or
21
other typical cooking fats; water, ice, or dry ice; or butane,
22
propane, CO
2
, ethanol, or isopropanol and with the intended
23
use of smoking or making a cannabis-infused product. The use
24
of any other solvent is expressly prohibited unless and until
25
it is approved by the Department of Agriculture.
26

"Cannabis container" means a sealed or resealable,

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traceable, container, or package used for the purpose of
2
containment of cannabis or cannabis-infused product during
3
transportation.
4

"Cannabis flower" means marijuana, hashish, and other
5
substances that are identified as including any parts of the
6
plant Cannabis sativa and including derivatives or subspecies,
7
such as indica, of all strains of cannabis; including raw
8
kief, leaves, and buds, but not resin that has been extracted
9
from any part of such plant; nor any compound, manufacture,
10
salt, derivative, mixture, or preparation of such plant, its
11
seeds, or resin.
12

"Cannabis-infused product" means a beverage, food, oil,
13
ointment, tincture, topical formulation, or another product
14
containing cannabis or cannabis concentrate that is not
15
intended to be smoked.
16

"Cannabis paraphernalia" means equipment, products, or
17
materials intended to be used for planting, propagating,
18
cultivating, growing, harvesting, manufacturing, producing,
19
processing, preparing, testing, analyzing, packaging,
20
repackaging, storing, containing, concealing, ingesting, or
21
otherwise introducing cannabis into the human body.
22

"Cannabis plant monitoring system" or "plant monitoring
23
system" means a system that includes, but is not limited to,
24
testing and data collection established and maintained by the
25
cultivation center, craft grower, or processing organization
26
and that is available to the Department of Revenue, the

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Department of Agriculture, the Department of Financial and
2
Professional Regulation, and the Illinois State Police for the
3
purposes of documenting each cannabis plant and monitoring
4
plant development throughout the life cycle of a cannabis
5
plant cultivated for the intended use by a customer from seed
6
planting to final packaging.
7

"Cannabis testing facility" means an entity registered by
8
the Department of Agriculture to test cannabis for potency and
9
contaminants.
10

"Clone" means a plant section from a female cannabis plant
11
not yet rootbound, growing in a water solution or other
12
propagation matrix, that is capable of developing into a new
13
plant.
14

"Community College Cannabis Vocational Training Pilot
15
Program faculty participant" means a person who is 21 years of
16
age or older, licensed by the Department of Agriculture, and
17
is employed or contracted by an Illinois community college to
18
provide student instruction using cannabis plants at an
19
Illinois Community College.
20

"Community College Cannabis Vocational Training Pilot
21
Program faculty participant Agent Identification Card" means a
22
document issued by the Department of Agriculture that
23
identifies a person as a Community College Cannabis Vocational
24
Training Pilot Program faculty participant.
25

"Conditional Adult Use Dispensing Organization License"
26
means a contingent license awarded to applicants for an Adult

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Use Dispensing Organization License that reserves the right to
2
an Adult Use Dispensing Organization License if the applicant
3
meets certain conditions described in this Act, but does not
4
entitle the recipient to begin purchasing or selling cannabis
5
or cannabis-infused products.
6

"Conditional Adult Use Cultivation Center License" means a
7
license awarded to top-scoring applicants for an Adult Use
8
Cultivation Center License that reserves the right to an Adult
9
Use Cultivation Center License if the applicant meets certain
10
conditions as determined by the Department of Agriculture by
11
rule, but does not entitle the recipient to begin growing,
12
processing, or selling cannabis or cannabis-infused products.
13

"Craft grower" means a facility operated by an
14
organization or business that is licensed by the Department of
15
Agriculture to cultivate, dry, cure, and package cannabis and
16
perform other necessary activities to make cannabis available
17
for sale at a dispensing organization or use at a processing
18
organization. A craft grower may contain up to 5,000 square
19
feet of canopy space on its premises for plants in the
20
flowering state. The Department of Agriculture may authorize
21
an increase or decrease of flowering stage cultivation space
22
in increments of 3,000 square feet by rule based on market
23
need, craft grower capacity, and the licensee's history of
24
compliance or noncompliance, with a maximum space of 14,000
25
square feet for cultivating plants in the flowering stage,
26
which must be cultivated in all stages of growth in an enclosed

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and secure area. A craft grower may share premises with a
2
processing organization or a dispensing organization, or both,
3
provided each licensee stores currency and cannabis or
4
cannabis-infused products in a separate secured vault to which
5
the other licensee does not have access or all licensees
6
sharing a vault share more than 50% of the same ownership.
7

"Craft grower agent" means a principal officer, board
8
member, employee, or other agent of a craft grower who is 21
9
years of age or older.
10

"Craft Grower Agent Identification Card" means a document
11
issued by the Department of Agriculture that identifies a
12
person as a craft grower agent.
13

"Cultivation center" means a facility operated by an
14
organization or business that is licensed by the Department of
15
Agriculture to cultivate, process, transport (unless otherwise
16
limited by this Act), and perform other necessary activities
17
to provide cannabis and cannabis-infused products to cannabis
18
business establishments.
19

"Cultivation center agent" means a principal officer,
20
board member, employee, or other agent of a cultivation center
21
who is 21 years of age or older.
22

"Cultivation Center Agent Identification Card" means a
23
document issued by the Department of Agriculture that
24
identifies a person as a cultivation center agent.
25

"Currency" means currency and coin of the United States.
26

"Dispensary" means a facility operated by a dispensing

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organization at which activities licensed by this Act may
2
occur.
3

"Dispensary Applicant" means the Proposed Dispensing
4
Organization Name as stated on an application for a
5
Conditional Adult Use Dispensing Organization License.
6

"Dispensing organization" means a facility operated by an
7
organization or business that is licensed by the Department of
8
Financial and Professional Regulation to acquire cannabis from
9
a cultivation center, craft grower, processing organization,
10
or another dispensary for the purpose of selling or dispensing
11
cannabis, cannabis-infused products, cannabis seeds,
12
paraphernalia, or related supplies under this Act to
13
purchasers or to qualified registered medical cannabis
14
patients and caregivers. As used in this Act, "dispensing
15
organization" includes a registered medical cannabis
16
organization as defined in the Compassionate Use of Medical
17
Cannabis Program Act or its successor Act that has obtained an
18
Early Approval Adult Use Dispensing Organization License.
19

"Dispensing organization agent" means a principal officer,
20
employee, or agent of a dispensing organization who is 21
21
years of age or older.
22

"Dispensing organization agent identification card" means
23
a document issued by the Department of Financial and
24
Professional Regulation that identifies a person as a
25
dispensing organization agent.
26

"Disproportionately Impacted Area" means a census tract or

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comparable geographic area that satisfies the following
2
criteria as determined by the Department of Commerce and
3
Economic Opportunity, that:
4

(1) meets at least one of the following criteria:
5

(A) the area has a poverty rate of at least 20%
6

according to the latest federal decennial census; or
7

(B) 75% or more of the children in the area
8

participate in the federal free lunch program
9

according to reported statistics from the State Board
10

of Education; or
11

(C) at least 20% of the households in the area
12

receive assistance under the Supplemental Nutrition
13

Assistance Program; or
14

(D) the area has an average unemployment rate, as
15

determined by the Illinois Department of Employment
16

Security, that is more than 120% of the national
17

unemployment average, as determined by the United
18

States Department of Labor, for a period of at least 2
19

consecutive calendar years preceding the date of the
20

application; and
21

(2) has high rates of arrest, conviction, and
22

incarceration related to the sale, possession, use,
23

cultivation, manufacture, or transport of cannabis.
24

"Early Approval Adult Use Cultivation Center License"
25
means a license that permits a medical cannabis cultivation
26
center licensed under the Compassionate Use of Medical

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Cannabis Program Act as of the effective date of this Act to
2
begin cultivating, infusing, packaging, transporting (unless
3
otherwise provided in this Act), processing, and selling
4
cannabis or cannabis-infused product to cannabis business
5
establishments for resale to purchasers as permitted by this
6
Act as of January 1, 2020.
7

"Early Approval Adult Use Dispensing Organization License"
8
means a license that permits a medical cannabis dispensing
9
organization licensed under the Compassionate Use of Medical
10
Cannabis Program Act as of the effective date of this Act to
11
begin selling cannabis or cannabis-infused product to
12
purchasers as permitted by this Act as of January 1, 2020.
13

"Early Approval Adult Use Dispensing Organization at a
14
secondary site" means a license that permits a medical
15
cannabis dispensing organization licensed under the
16
Compassionate Use of Medical Cannabis Program Act as of the
17
effective date of this Act to begin selling cannabis or
18
cannabis-infused product to purchasers as permitted by this
19
Act on January 1, 2020 at a different dispensary location from
20
its existing registered medical dispensary location.
21

"Eligible Tied Applicant" means a Tied Applicant that is
22
eligible to participate in the process by which a remaining
23
available license is distributed by lot pursuant to a Tied
24
Applicant Lottery.
25

"Enclosed, locked facility" means a room, greenhouse,
26
building, or other enclosed area equipped with locks or other

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security devices that permit access only by cannabis business
2
establishment agents working for the licensed cannabis
3
business establishment or acting pursuant to this Act to
4
cultivate, process, store, or distribute cannabis.
5

"Enclosed, locked space" means a closet, room, greenhouse,
6
building, or other enclosed area equipped with locks or other
7
security devices that permit access only by authorized
8
individuals under this Act. "Enclosed, locked space" may
9
include:
10

(1) a space within a residential building that (i) is
11

the primary residence of the individual cultivating 5 or
12

fewer cannabis plants that are more than 5 inches tall and
13

(ii) includes sleeping quarters and indoor plumbing. The
14

space must only be accessible by a key or code that is
15

different from any key or code that can be used to access
16

the residential building from the exterior; or
17

(2) a structure, such as a shed or greenhouse, that
18

lies on the same plot of land as a residential building
19

that (i) includes sleeping quarters and indoor plumbing
20

and (ii) is used as a primary residence by the person
21

cultivating 5 or fewer cannabis plants that are more than
22

5 inches tall, such as a shed or greenhouse. The structure
23

must remain locked when it is unoccupied by people.
24

"Financial institution" has the same meaning as "financial
25
organization" as defined in Section 1501 of the Illinois
26
Income Tax Act, and also includes the holding companies,

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subsidiaries, and affiliates of such financial organizations.
2

"Flowering stage" means the stage of cultivation where and
3
when a cannabis plant is cultivated to produce plant material
4
for cannabis products. This includes mature plants as follows:
5

(1) if greater than 2 stigmas are visible at each
6

internode of the plant; or
7

(2) if the cannabis plant is in an area that has been
8

intentionally deprived of light for a period of time
9

intended to produce flower buds and induce maturation,
10

from the moment the light deprivation began through the
11

remainder of the marijuana plant growth cycle.
12

"Individual" means a natural person.
13

"Infuser organization" or "infuser" means a facility
14
operated by an organization or business that is licensed by
15
the Department of Agriculture to directly incorporate cannabis
16
or cannabis concentrate into a product formulation to produce
17
a cannabis-infused product.
18

"Kief" means the resinous crystal-like trichomes that are
19
found on cannabis and that are accumulated, resulting in a
20
higher concentration of cannabinoids, untreated by heat or
21
pressure, or extracted using a solvent.
22

"Labor peace agreement" means an agreement between a
23
cannabis business establishment and any labor organization
24
recognized under the National Labor Relations Act, referred to
25
in this Act as a bona fide labor organization, that prohibits
26
labor organizations and members from engaging in picketing,

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work stoppages, boycotts, and any other economic interference
2
with the cannabis business establishment. This agreement means
3
that the cannabis business establishment has agreed not to
4
disrupt efforts by the bona fide labor organization to
5
communicate with, and attempt to organize and represent, the
6
cannabis business establishment's employees. The agreement
7
shall provide a bona fide labor organization access at
8
reasonable times to areas in which the cannabis business
9
establishment's employees work, for the purpose of meeting
10
with employees to discuss their right to representation,
11
employment rights under State law, and terms and conditions of
12
employment. This type of agreement shall not mandate a
13
particular method of election or certification of the bona
14
fide labor organization.
15

"Limited access area" means a room or other area under the
16
control of a cannabis dispensing organization licensed under
17
this Act and upon the licensed premises where cannabis sales
18
occur with access limited to purchasers, dispensing
19
organization owners and other dispensing organization agents,
20
or service professionals conducting business with the
21
dispensing organization, or, if sales to registered qualifying
22
patients, caregivers, provisional patients, and Opioid
23
Alternative Pilot Program participants licensed pursuant to
24
the Compassionate Use of Medical Cannabis Program Act are also
25
permitted at the dispensary, registered qualifying patients,
26
caregivers, provisional patients, and Opioid Alternative Pilot

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Program participants.
2

"Member of an impacted family" means an individual who has
3
a parent, legal guardian, child, spouse, or dependent, or was
4
a dependent of an individual who, prior to the effective date
5
of this Act, was arrested for, convicted of, or adjudicated
6
delinquent for any offense that is eligible for expungement
7
under this Act.
8

"Mother plant" means a cannabis plant that is cultivated
9
or maintained for the purpose of generating clones, and that
10
will not be used to produce plant material for sale to an
11
infuser or dispensing organization.
12

"Ordinary public view" means within the sight line with
13
normal visual range of a person, unassisted by visual aids,
14
from a public street or sidewalk adjacent to real property, or
15
from within an adjacent property.
16

"Ownership and control" means ownership of at least 51% of
17
the business, including corporate stock if a corporation, and
18
control over the management and day-to-day operations of the
19
business and an interest in the capital, assets, and profits
20
and losses of the business proportionate to percentage of
21
ownership.
22

"Person" means a natural individual, firm, partnership,
23
association, joint stock company, joint venture, public or
24
private corporation, limited liability company, or a receiver,
25
executor, trustee, guardian, or other representative appointed
26
by order of any court.

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"Possession limit" means the amount of cannabis under
2
Section 10-10 that may be possessed at any one time by a person
3
21 years of age or older or who is a registered qualifying
4
medical cannabis patient or caregiver under the Compassionate
5
Use of Medical Cannabis Program Act.
6

"Principal officer" includes a cannabis business
7
establishment applicant or licensed cannabis business
8
establishment's board member, owner with more than 1% interest
9
of the total cannabis business establishment or more than 5%
10
interest of the total cannabis business establishment of a
11
publicly traded company, president, vice president, secretary,
12
treasurer, partner, officer, member, manager member, or person
13
with a profit sharing, financial interest, or revenue sharing
14
arrangement. The definition includes a person with authority
15
to control the cannabis business establishment, a person who
16
assumes responsibility for the debts of the cannabis business
17
establishment and who is further defined in this Act.
18

"Primary residence" means a dwelling where a person
19
usually stays or stays more often than other locations. It may
20
be determined by, without limitation, presence, tax filings;
21
address on an Illinois driver's license, an Illinois
22
Identification Card, or an Illinois Person with a Disability
23
Identification Card; or voter registration. No person may have
24
more than one primary residence.
25

"Processing organization" or "processor" means a facility
26
operated by an organization or business that is licensed by

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the Department of Agriculture to either extract constituent
2
chemicals or compounds to produce cannabis concentrate or
3
incorporate cannabis or cannabis concentrate into a product
4
formulation to produce a cannabis product.
5

"Processing organization agent" means a principal officer,
6
board member, employee, or agent of a processing organization.
7

"Processing organization agent identification card" means
8
a document issued by the Department of Agriculture that
9
identifies a person as a processing organization agent.
10

"Purchaser" means a person 21 years of age or older who
11
acquires cannabis for a valuable consideration. "Purchaser"
12
does not include a cardholder under the Compassionate Use of
13
Medical Cannabis Program Act.
14

"Qualifying Applicant" means an applicant that submitted
15
an application pursuant to Section 15-30 that received at
16
least 85% of 250 application points available under Section
17
15-30 as the applicant's final score and meets the definition
18
of "Social Equity Applicant" as set forth under this Section.
19

"Qualifying Social Equity Justice Involved Applicant"
20
means an applicant that submitted an application pursuant to
21
Section 15-30 that received at least 85% of 250 application
22
points available under Section 15-30 as the applicant's final
23
score and meets the criteria of either paragraph (1) or (2) of
24
the definition of "Social Equity Applicant" as set forth under
25
this Section.
26

"Qualified Social Equity Applicant" means a Social Equity

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1
Applicant who has been awarded a conditional license under
2
this Act to operate a cannabis business establishment.
3

"Resided" means an individual's primary residence was
4
located within the relevant geographic area as established by
5
2 of the following:
6

(1) a signed lease agreement that includes the
7

applicant's name;
8

(2) a property deed that includes the applicant's
9

name;
10

(3) school records;
11

(4) a voter registration card;
12

(5) an Illinois driver's license, an Illinois
13

Identification Card, or an Illinois Person with a
14

Disability Identification Card;
15

(6) a paycheck stub;
16

(7) a utility bill;
17

(8) tax records; or
18

(9) any other proof of residency or other information
19

necessary to establish residence as provided by rule.
20

"Smoking" means the inhalation of smoke caused by the
21
combustion of cannabis.
22

"Social Equity Applicant" means an applicant that is an
23
Illinois resident that meets one of the following criteria:
24

(1) an applicant with at least 51% ownership and
25

control by one or more individuals who have resided for at
26

least 5 of the preceding 10 years in a Disproportionately

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Impacted Area;
2

(2) an applicant with at least 51% ownership and
3

control by one or more individuals who:
4

(i) have been arrested for, convicted of, or
5

adjudicated delinquent for any offense that is
6

eligible for expungement under this Act; or
7

(ii) is a member of an impacted family;
8

(3) for applicants with a minimum of 10 full-time
9

employees, an applicant with at least 51% of current
10

employees who:
11

(i) currently reside in a Disproportionately
12

Impacted Area; or
13

(ii) have been arrested for, convicted of, or
14

adjudicated delinquent for any offense that is
15

eligible for expungement under this Act or member of
16

an impacted family.
17

Nothing in this Act shall be construed to preempt or limit
18
the duties of any employer under the Job Opportunities for
19
Qualified Applicants Act. Nothing in this Act shall permit an
20
employer to require an employee to disclose sealed or expunged
21
offenses, unless otherwise required by law.
22

"Tied Applicant" means an application submitted by a
23
Dispensary Applicant pursuant to Section 15-30 that received
24
the same number of application points under Section 15-30 as
25
the Dispensary Applicant's final score as one or more
26
top-scoring applications in the same BLS Region and would have

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been awarded a license but for the one or more other
2
top-scoring applications that received the same number of
3
application points. Each application for which a Dispensary
4
Applicant was required to pay a required application fee for
5
the application period ending January 2, 2020 shall be
6
considered an application of a separate Tied Applicant.
7

"Tied Applicant Lottery" means the process established
8
under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult
9
Use Dispensing Organization Licenses pursuant to Sections
10
15-25 and 15-30 among Eligible Tied Applicants.
11

"Tincture" means a cannabis-infused solution, typically
12
comprised of alcohol, glycerin, or vegetable oils, derived
13
either directly from the cannabis plant or from a processed
14
cannabis extract. A tincture is not an alcoholic liquor as
15
defined in the Liquor Control Act of 1934. A tincture shall
16
include a calibrated dropper or other similar device capable
17
of accurately measuring servings.
18

Transfer site" means a secure, non-retail facility
19
operated by a licensed cannabis transporter holding a transfer
20
site endorsement for the short-term storage, consolidation,
21
and logistical movement of cannabis or cannabis-infused
22
products, as authorized under Section 1-10.5.
23

"Transfer site endorsement" means an authorization issued
24
by the Department of Agriculture permitting an eligible social
25
equity cannabis transporter to operate one or more transfer
26
sites in accordance with this Act and rules adopted under it.

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"Transporting organization" or "transporter" means an
2
organization or business that is licensed by the Department of
3
Agriculture to transport cannabis or cannabis-infused product
4
on behalf of a cannabis business establishment or a community
5
college licensed under the Community College Cannabis
6
Vocational Training Pilot Program.
7

"Transporting organization agent" means a principal
8
officer, board member, employee, or agent of a transporting
9
organization.
10

"Transporting organization agent identification card"
11
means a document issued by the Department of Agriculture that
12
identifies a person as a transporting organization agent.
13

"Unit of local government" means any county, city,
14
village, or incorporated town.
15

"Vegetative stage" means the stage of cultivation in which
16
a cannabis plant is propagated to produce additional cannabis
17
plants or reach a sufficient size for production. This
18
includes seedlings, clones, mothers, and other immature
19
cannabis plants as follows:
20

(1) if the cannabis plant is in an area that has not
21

been intentionally deprived of light for a period of time
22

intended to produce flower buds and induce maturation, it
23

has no more than 2 stigmas visible at each internode of the
24

cannabis plant; or
25

(2) any cannabis plant that is cultivated solely for
26

the purpose of propagating clones and is never used to

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produce cannabis.
2
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
3
102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
4
5-13-22.)

5

(410 ILCS 705/40-50 new)
6

Sec. 40-50.
Transfer site endorsement.
7

(a) The Department of Agriculture shall establish a
8
transfer site endorsement for licensed cannabis transporters
9
that have been awarded a social equity designation under this
10
Act. The endorsement shall authorize the transporter to own
11
and operate one or more secure, approved cannabis transfer
12
sites for the limited purpose of short-term storage and
13
logistical consolidation of cannabis or cannabis-infused
14
products.
15

(b) A transfer site may be used solely for:
16

(1) temporary storage of cannabis or cannabis-infused
17

products for a period not to exceed 7 calendar days;
18

(2) consolidation or aggregation of cannabis or
19

cannabis-infused products from multiple licensed
20

cultivation centers, craft growers, infusers, or
21

transporters into compliant outbound shipments; and
22

(3) secure handling of cannabis or cannabis-infused
23

products rejected by a dispensing organization or other
24

licensee, pending lawful return, redistribution, or other
25

disposition as authorized by rule.

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(c) All cannabis or cannabis-infused products received,
2
stored, or dispatched at a transfer site shall remain subject
3
to full seed-to-sale tracking requirements and shall be logged
4
in the State's cannabis tracking system at receipt and
5
dispatch.
6

(d) A transfer site endorsement does not authorize retail
7
sales, processing, repackaging, relabeling, or alteration of
8
cannabis or cannabis-infused products.
9

(e) A transporter holding a transfer site endorsement may
10
operate up to 5 transfer sites statewide, subject to
11
geographic and population-based distribution criteria
12
established by the Department by rule. In establishing such
13
criteria, the Department shall consider county population,
14
regional demographics, market access, and the prevention of
15
excessive concentration in any single area of the State.
16

(f) Ownership and operation of a transfer site shall be
17
limited to transporters holding a social equity designation
18
under this Act. Up to 50% of the operational capacity of each
19
transfer site shall be reserved for use by other social equity
20
transport license holders that do not operate their own
21
transfer sites. Reasonable fees may be charged for storage and
22
utilization to recover associated costs, as permitted by rule.
23

(g) Cannabis or cannabis-infused products from multiple
24
licensed entities may be aggregated at a transfer site into
25
consolidated outbound shipments, provided that all such
26
activity complies with chain-of-custody, security, and

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tracking requirements.

2

(410 ILCS 705/40-55 new)
3

Sec. 40-55.
Security, compliance, and insurance for
4
transfer sites.
5

(a) Transfer sites shall comply with heightened security
6
requirements, including 24-hour video surveillance, alarm
7
systems, controlled access points, and secure storage
8
protocols, as established by rule.
9

(b) Transfer site operators shall maintain insurance
10
coverage, in amounts and forms established by rule, sufficient
11
to cover cannabis or cannabis-infused products stored at the
12
site and in transit.
13

(c) The Department of Agriculture, in coordination with
14
the Illinois State Police, may conduct inspections, audits,
15
and investigations of transfer sites and endorsed transporters
16
and may impose disciplinary action or penalties under this Act
17
for violations.

18

(410 ILCS 705/40-60 new)
19

Sec. 40-60.
Local zoning and coordination.
20

(a) Issuance or renewal of a transfer site endorsement
21
shall be conditioned upon compliance with applicable local
22
zoning and land-use requirements.
23

(b) The Department shall coordinate with units of local
24
government regarding transfer site approval, complaint intake,

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1
and enforcement actions.

2

(410 ILCS 705/40-65 new)
3

Sec. 40-65.
Rulemaking.
The Department of Agriculture
4
shall adopt rules necessary to implement the transfer site
5
endorsement, including application and renewal procedures,
6
operational and security standards, reporting and audit
7
requirements, procedures for handling rejected cannabis or
8
cannabis-infused products, and social equity preference
9
criteria.

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