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SB3222 Enrolled                     LRB104 19119 AAS 32564 b

1   AN ACT concerning regulation.

2   Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4   Section 1. Short title. This Act may be cited as the

5 Illinois Hemp Act.

6   Section 5. Definitions. As used in this Act:

7   "Cannabis" has the meaning given to that term in Section 3

8 of the Cannabis Control Act.

9   "Container" means the innermost wrapping, packaging, or

10 vessel in direct contact with a final hemp-derived cannabinoid

11 product in which the product is enclosed for retail sale to

12 consumers, such as a jar, bottle, bag, box, packet, can,

13 carton, or cartridge. "Container" includes any additional

14 information and specificity as published by the United States

15 Food and Drug Administration or may be changed by rule by the

16 Department of Agriculture. "Container" does not include bulk

17 shipping containers or outer wrappings that are not essential

18 for the final retail delivery or sale to an end consumer for

19 personal or household use.

20  "Department" means the Department of Agriculture.

21  "Director" means the Director of Agriculture.

22  "Final consumer hemp cannabinoid product" means a

23 consumable or topical hemp-derived cannabinoid product that is
    SB3222 Enrolled      -2-          LRB104 19119 AAS 32564 b

1 permitted to be sold to consumers in the State, that meets the

2 requirements of Section 35 of this Act, and that:

3        (1) does not contain any cannabinoids that are

4   incapable of being naturally produced by a Cannabis sativa

5   L. plant;

6        (2) does not contain any cannabinoids that are capable

7   of being naturally produced by a Cannabis sativa L. plant

8   but were synthesized or manufactured outside of the plant;

9   and

10       (3) does not contain more than a per-container total

11  of 0.4 milligrams of total tetrahydrocannabinols,

12  including tetrahydrocannabinolic acid and any other

13  cannabinoids that have similar effects or are marketed to

14  have similar effects on humans or animals as a

15  tetrahydrocannabinol as established under Section 15 of

16  this Act.

17  "Hemp" means the plant Cannabis sativa L. and any part of

18 that plant, including the seeds thereof and all derivatives,

19 extracts, cannabinoids, isomers, acids, salts, and salts of

20 isomers, whether growing or not, with a total

21 tetrahydrocannabinol  concentration,              including

22 tetrahydrocannabinolic acid, of not more than 0.3% on a

23 dry-weight basis. "Hemp" includes industrial hemp. "Hemp" does

24 not include any of the following:

25       (1) any viable seeds from a Cannabis sativa L. plant

26  that exceeds a total tetrahydrocannabinols concentration,
    SB3222 Enrolled        -3-        LRB104 19119 AAS 32564 b

1   including tetrahydrocannabinolic acid, of 0.3% in the

2   plant on a dry weight basis;

3   (2) any intermediate hemp-derived cannabinoid product

4   containing any of the following:

5            (A) cannabinoids that are incapable of being

6   naturally produced by a Cannabis sativa L. plant;

7            (B) cannabinoids that are capable of being

8   naturally produced by a Cannabis sativa L. plant but

9   were synthesized or manufactured outside the plant;

10           (C)     more  than       a  combined      total

11  tetrahydrocannabinol concentration of 0.3%, including

12  tetrahydrocannabinolic acid and any other cannabinoids

13  that have similar effects or are marketed to have

14  similar effects on humans or animals as a

15  tetrahydrocannabinol, as established under Section 15

16  of this Act;

17  (3) any intermediate hemp-derived cannabinoid product

18  that is marketed or sold as a final product or marketed or

19  sold directly to an end consumer for personal or household

20  use; or

21  (4) any final hemp-derived cannabinoid product

22  containing any of the following:

23           (A) cannabinoids that are incapable of being

24  naturally produced by a Cannabis sativa L. plant;

25           (B) cannabinoids that are capable of being

26  naturally produced by a Cannabis sativa L. plant and
    SB3222 Enrolled  -4-               LRB104 19119 AAS 32564 b

1   were synthesized or manufactured outside the plant;

2   (C) more than a per-container total of 0.4

3   milligrams of total tetrahydrocannabinols, including

4   tetrahydrocannabinolic acid and any other cannabinoids

5   that have similar effects or are marketed to have

6   similar effects on humans or animals as a

7   tetrahydrocannabinol as established under Section 15

8   of this Act.

9   "Hemp cultivation licensee" means a person licensed by the

10 Department of Agriculture to cultivate hemp and industrial

11 hemp pursuant to this Act and federal law.

12  "Hemp-derived cannabinoid product" means any intermediate

13 or final product derived from hemp that contains cannabinoids

14 in any form and is intended for human or animal use through any

15 means of application or administration, including inhalation,

16 ingestion, or topical application.

17  "Hemp product manufacturer" means a facility operated by a

18 person licensed by the Department to obtain hemp or

19 intermediate hemp-derived cannabinoid product to manufacture

20 and produce hemp-derived cannabinoid products.

21  "Hemp production plan" means a plan submitted by the

22 Department to the Secretary of the United States Department of

23 Agriculture pursuant to the federal Agriculture Improvement

24 Act of 2018, Public Law 115-334, and consistent with the

25 Domestic Hemp Production Program established under 7 CFR Part

26 990, through which the Department establishes its authority to
    SB3222 Enrolled           -5-       LRB104 19119 AAS 32564 b

1 have primary regulatory authority over the production of hemp.

2   "Industrial hemp" means:

3   (1) hemp grown for the use of the stalk of the plant,

4   fiber produced from the stalk, or any other

5   non-cannabinoid derivative, mixture, preparation, or

6   manufacture of the stalk;

7   (2) hemp grown for the use of the whole grain, oil,

8   cake, nut, hull, or any other non-cannabinoid compound,

9   derivative, mixture, preparation, or manufacture of the

10  seeds of the plant;

11  (3) hemp grown for the purpose of producing

12  microgreens or other edible hemp leaf products intended

13  for human consumption that are derived from an immature

14  hemp plant grown from seeds that do not exceed 0.3% total

15  tetrahydrocannabinol;

16  (4) hemp that does not enter the stream of commerce

17  and is intended to support hemp research at an institution

18  of higher education, as defined in Section 101 of the

19  Higher Education Act of 1965 (20 U.S.C. 1001), or at an

20  independent research institute; or

21  (5) hemp grown for the production of a viable seed of

22  the plant produced solely for the production or

23  manufacture of any material described in paragraphs (1)

24  through (4).

25  "Industrial hemp product" means a product derived from

26 industrial hemp that does not contain cannabinoids.
    SB3222 Enrolled  -6-                  LRB104 19119 AAS 32564 b

1 "Industrial hemp processor" means a facility that processes or

2 handles raw industrial hemp plant material.

3   "Intermediate hemp-derived cannabinoid product" means a

4 hemp-derived cannabinoid product that:

5   (1) is not yet in the final form or preparation

6   marketed or intended to be used or consumed by a human or

7   animal; or

8   (2) is a powder, liquid, tablet, oil, or other product

9   form that is intended or marketed to be mixed, dissolved,

10  formulated, or otherwise added to or prepared with or into

11  any other substance prior to administration or

12  consumption.

13  An intermediate hemp-derived cannabinoid product shall not

14 contain: (i) cannabinoids that are incapable of being

15 naturally produced by a Cannabis sativa L. plant; (ii)

16 cannabinoids that are capable of being naturally produced by a

17 Cannabis sativa L. plant but were synthesized or manufactured

18 outside of the plant; or (iii) more than a combined total

19 tetrahydrocannabinol concentration of 0.3%, including

20 tetrahydrocannabinolic acid and any other cannabinoids with

21 similar effects on humans or animals as tetrahydrocannabinol.

22  "Land area" means a farm, as defined in Section 1-60 of the

23 Property Tax Code, in this State or land or facilities under

24 the control of an institution of higher education.

25  "Person" means any individual, corporation, government or

26 governmental subdivision or agency, business trust, estate,
    SB3222 Enrolled  -7-                 LRB104 19119 AAS 32564 b

1 trust, partnership, association, or any other entity.

2   Section 10. Prohibitions on the sale and distribution of

3 hemp products.

4   (a) No person may distribute or sell cannabis, hemp,

5 industrial hemp, or any product derived from cannabis, hemp,

6 or industrial hemp in this State, except as authorized under

7 the Cannabis Regulation and Tax Act, the Compassionate Use of

8 Medical Cannabis Act, or this Act, unless the product meets

9 the definition of a "final consumer hemp cannabinoid product"

10 or an "industrial hemp product".

11  (b) No person may manufacture or produce any product

12 derived from hemp or industrial hemp without first obtaining

13 an industrial hemp processor registration or a hemp product

14 manufacturer license under this Act.

15  Section 15. Cannabinoid lists.

16  (a) The following lists shall be used to determine what is

17 hemp and what products qualify as a final consumer hemp

18 cannabinoid product under this Act:

19  (1) Cannabinoids that are considered capable of being

20  naturally produced by a Cannabis sativa L. plant:

21  (A) Cannabigerol (CBG), which includes, but is not

22  limited to:

23                   (i) CBGA (Cannabigerolic acid);

24                   (ii) CBG (Cannabigerol);
    SB3222 Enrolled        -8-              LRB104 19119 AAS 32564 b

1                    (iii) CBGVA (Cannabigerovarinic acid);

2                    (iv) CBGV (Cannabigerovarin);

3   (B) Cannabidiol (CBD), which includes, but is not

4   limited to:

5                    (i) CBDA (Cannabidiolic acid);

6                    (ii) CBD (Cannabidiol);

7                    (iii) CBDVA (Cannabidivarinic acid);

8                    (iv) CBDV (Cannabidivarin);

9   (C) Delta 9-Tetrahydrocannabinol (THC), which

10  includes, but is not limited to:

11                   (i) THCA (Delta 9-Tetrahydrocannabinolic

12  acid);

13                   (ii)  Delta              9-THC          (Delta

14  9-Tetrahydrocannabinol);

15                   (iii) THCVA (Tetrahydrocannabivarinic acid);

16                   (iv) THCV (Tetrahydrocannabivarin);

17                   (v) THCP (Tetrahydrocannabiphorol);

18  (D) Cannabichromene (CBC), which includes, but is

19  not limited to:

20                   (i) CBCA (Cannabichromenic acid);

21                   (ii) CBC (Cannabichromene);

22                   (iii) CBCVA (Cannabichromevarinic acid);

23                   (iv) CBCV (Cannabichromevarin);

24  (E) Natural degradation and artifact subclasses,

25  which include, but are not limited to:

26                   (i) CBN (Cannabinol);
    SB3222 Enrolled         -9-       LRB104 19119 AAS 32564 b

1                    (ii) CBNA (Cannabinolic acid);

2                    (iii) CBLA (Cannabicyclolic acid);

3                    (iv) CBL (Cannabicyclol);

4                    (v) CBE (Cannabielsoin);

5                    (vi) CBT (Cannabitriol);

6                    (vii) HHC (Hexahydrocannabinol);

7   (F) Minor natural isomers and trace compounds,

8   which include, but are not limited to:

9                    (i)    Delta-8             THC      (Delta

10  8-Tetrahydrocannabinol);

11                   (ii)   Delta-10            THC      (Delta

12  10-Tetrahydrocannabinol);

13                   (iii)       exo-THC                 (Delta

14  9,11-Tetrahydrocannabinol);

15                   (iv) THCA (Tetrahydrocannabinolic acid);

16                   (v) THC-C1 (Tetrahydrocannabiorcol); and

17  (G) All cannabinoids that appear on a list of

18  cannabinoids that are known to the federal Food and

19  Drug Administration to be capable of being naturally

20  produced by a Cannabis sativa L. plant, as reflected

21  in peer reviewed literature, and that is published by

22  the federal Food and Drug Administration pursuant to 7

23  U.S.C. 1639o.

24  (2) Cannabinoids that are tetrahydrocannabinol class

25  cannabinoids known to be naturally occurring in the

26  Cannabis sativa L. plant:
    SB3222 Enrolled  - 10 - LRB104 19119 AAS 32564 b

1   (A) THCA (Delta 9-Tetrahydrocannabinolic acid);

2   (B) THC (Delta 9-Tetrahydrocannabinol);

3   (C) THCV (Tetrahydrocannabivarin);

4   (D) THCVA (Tetrahydrocannabivarin acid);

5   (E) THCP (Tetrahydrocannabiphorol); and

6   (F) All tetrahydrocannabinol class cannabinoids

7   that appear on a list of tetrahydrocannabinol class

8   cannabinoids that are known to the federal Food and

9   Drug Administration to be naturally occurring in the

10  Cannabis sativa L. plant and that are published by the

11  federal Food and Drug Administration pursuant to 7

12  U.S.C. 1639o.

13  (3) Cannabinoids that are known to have similar

14  effects to, or marketed to have similar effects to,

15  tetrahydrocannabinol class cannabinoids:

16  (A) Delta-5 THC (Delta-5 tetrahydrocannabinol);

17  (B) Delta-6 THC (Delta-6 tetrahydrocannabinol);

18  (C) Delta-7 THC (Delta 7-Tetrahydrocannabinol);

19  (D) Delta-8 THC (Delta 8-Tetrahydrocannabinol);

20  (E) Delta-10 THC (Delta 10-Tetrahydrocannabinol);

21  (F) Delta-6a10a THC (often sold as Delta-3 THC);

22  (G) Delta 10a THC (Delta 10-Tetrahydrocannabinol

23  acid);

24  (H) Delta-11 THC (Delta-11tetrahydrocannabinol)

25  (I) HHC (Hexahydrocannabinol);

26  (J) HHCP (Hexahydrocannabiphorol);
    SB3222 Enrolled  - 11 - LRB104 19119 AAS 32564 b

1            (K) HHCH (Hexahydrocannabihexol);

2            (L) exo-THC (Delta 9,11-Tetrahydrocannabinol);

3            (M) THCP (Tetrahydrocannabiphorol);

4            (N) THCB (Tetrahydrocannabutol);

5            (O) THCH (Tetrahydrocannabihexol);

6            (P) THC-O-Acetate (Delta-9-Tetrahydrocannabinol

7   acetate, THC-O/ATHC);

8            (Q) HHC-O-Acetate (Hexahydrocannabinol O acetate,

9   HHC-O);

10           (R)                                       THCP-O

11  (Delta-9-Tetrahydrocannabiphorol-O-acetate);

12           (S) THCJD (Tetrahydrocannabioctyl); and

13           (T) All tetrahydrocannabinol class cannabinoids

14  that appear on a list of cannabinoids that are known to

15  the federal Food and Drug Administration to have

16  similar effects to, or marketed to have similar

17  effects to, tetrahydrocannabinol class cannabinoids

18  and that is published by the federal Food and Drug

19  Administration pursuant to 7 U.S.C. 1639o.

20  (b) The Department, by rule, may add, change, or remove

21 any of the items included in the lists established in this

22 Section.

23  (c) The Department shall publish any updates to the list,

24 including any federal additions, on its website.

25  Section 20. Hemp and industrial hemp cultivation.
    SB3222 Enrolled  - 12 - LRB104 19119 AAS 32564 b

1   (a) No person shall cultivate hemp or industrial hemp in

2 this State without a hemp cultivation license issued by the

3 Department.

4   (b) An application for a cultivation license shall

5 include:

6   (1) the name and address of the applicant; and

7   (2) the legal description of the land area to be used

8   to cultivate hemp, including Global Positioning System

9   coordinates.

10  (c) The Department may determine, by rule, the duration of

11 a cultivation license, applicable license fees, and the

12 requirements for license renewal.

13  (d) The Department shall submit to the Secretary of the

14 United States Department of Agriculture a hemp production plan

15 under which the Department monitors and regulates the

16 cultivation of hemp and industrial hemp in this State. The

17 Department shall adopt rules incorporating the hemp production

18 plan, including application and licensing requirements.

19  (e) The Department may conduct inspections of hemp

20 cultivation licensees at the Department's discretion.

21  (f) The Department shall adopt rules necessary for the

22 administration and enforcement of this Act in accordance with

23 all applicable State and federal laws and regulations,

24 including rules governing standards and criteria for licensure

25 and registration, payment of applicable fees, required

26 signage, and forms required for the administration of this
    SB3222 Enrolled          - 13 - LRB104 19119 AAS 32564 b

1 Act.

2   (g) The Department shall adopt rules for the testing of

3 hemp THC levels and the disposal of plant matter exceeding

4 lawful THC levels, including an option for a cultivator to

5 request a retest for a minor violation, with the retest

6 threshold determined by the Department and set by rule.

7   (h) The Department may impose fines, not to exceed

8 $10,000, on hemp cultivation licensees for violations of this

9 Act and rules.

10  (i) The Department's rules that are related to the

11 cultivation of industrial hemp and adopted under the

12 Industrial Hemp Act shall remain in effect until superseded by

13 rules adopted under this Act. Upon the effective date of this

14 Act, hemp cultivation licensees under the Industrial Hemp Act

15 shall be automatically licensed under this Act subject to the

16 existing renewal period.

17  Section 25. Industrial hemp processing.

18  (a) Any person that processes or handles raw industrial

19 hemp plant material to create a product not intended for human

20 or animal consumption shall obtain an industrial hemp

21 processor registration. The license application shall be on a

22 form prescribed by the Department and shall contain the name

23 of the licensee, the location of the processing facility, and

24 a list of products to be produced by the industrial hemp

25 processor.
    SB3222 Enrolled  - 14 - LRB104 19119 AAS 32564 b

1   (b) The Department may adopt rules regulating industrial

2 hemp processing. The Department may also inspect industrial

3 hemp processing facilities and, if necessary, collect samples

4 for testing at its discretion.

5   (c) An industrial hemp processor shall only create

6 products derived from industrial hemp and shall not create any

7 product that contains cannabinoids. The Department may revoke

8 the license of an industrial hemp processor that violates this

9 subsection.

10  (d) An industrial hemp processor license shall be valid

11 for 2 years and shall be subject to a fee of $200.

12  (e) Industrial hemp processor registrants under the

13 Industrial Hemp Act shall be required to obtain an industrial

14 hemp processor license or a hemp product manufacturing license

15 under this Act. Industrial hemp processor registrants under

16 the Industrial Hemp Act may request a prorated refund of the

17 registration fee submitted under that Act.

18  Section 30. Intermediate hemp products and hemp product

19 manufacturing.

20  (a) Any person that processes or handles hemp (other than

21 industrial hemp) or intermediate hemp-derived cannabinoid

22 products shall obtain a hemp product manufacturer license from

23 the Department.

24  (b) Hemp product manufacturers shall obtain hemp only from

25 hemp growers licensed by the United States Department of
    SB3222 Enrolled      - 15 - LRB104 19119 AAS 32564 b

1 Agriculture or an approved State or tribal hemp program and

2 may only produce products that are permitted to be sold under

3 federal or State law. Hemp product manufacturers shall not

4 sell any products that do not comply with the requirements of

5 the jurisdiction in which they are sold.

6   (c) A hemp product manufacturer shall only produce

7 products that meet the definition of hemp, intermediate

8 hemp-derived cannabinoid product, or final consumer hemp

9 cannabinoid product. A hemp product manufacturer shall not

10 create artificially derived cannabinoids.

11  (d) An application for licensure shall be submitted to the

12 Department on a form prescribed by the Department and shall

13 include, but shall not be limited to:

14  (1) the entity name, address, email address, and

15  telephone number of the applicant;

16  (2) identification of the facility to be used;

17  separate licenses are required for separate facilities;

18  (3) a copy of the applicable local zoning ordinance

19  and verification that the facility location is not in an

20  area zoned for residential use and complies with local

21  zoning rules and distance limitations established by the

22  local jurisdiction;

23  (4) identification of an authorized point of contact

24  for interactions with the Department; and

25  (5) a list of all operations and processes to be

26  conducted at the facility; licensees shall keep this list
    SB3222 Enrolled        - 16 - LRB104 19119 AAS 32564 b

1   current at all times.

2   (e) The Department shall inspect the facility to assess

3 whether the facility is suitable for operations prior to

4 issuing a license. A license is valid only for the location

5 listed in the application. A new application is required for

6 each new location.

7   (f) A hemp product manufacturer shall operate under the

8 supervision of a food service sanitation manager certified by

9 the Department of Public Health.

10  (g) The facility shall be in compliance with the Illinois

11 Food, Drug, and Cosmetic Act, the Sanitary Food Preparation

12 Act, and the Food Handling Regulation Enforcement Act.

13  (h) A hemp product manufacturer may perform hemp

14 extraction to create hemp concentrate that meets the

15 definition of an intermediate hemp-derived cannabinoid product

16 upon approval by the Department. The hemp product manufacturer

17 shall provide in its application and keep up to date all

18 methods of extraction and concentration that the manufacturer

19 will use and identify the chemicals, if any, that will be used.

20 All extraction methods and chemicals shall be approved by the

21 Department. The Department shall adopt rules regulating hemp

22 extraction, which shall include, at a minimum, an annual

23 inspection by a professional engineer. Extraction equipment

24 and processing sites shall be designed, installed, and

25 maintained in accordance with codes of recognized and

26 generally accepted good engineering practices, such as the
    SB3222 Enrolled  - 17 - LRB104 19119 AAS 32564 b

1 National Fire Protection Association (NFPA), International

2 Fire Code (IFC), American Society of Mechanical Engineers

3 (ASME), and Underwriters Laboratories (UL).

4   (i) A hemp product manufacturer must comply with State and

5 local building, fire, and zoning codes, requirements, and

6 regulations.

7   (j) The Department may adopt rules that set facility

8 standards and specifications, application requirements,

9 production standards, security requirements, and any other

10 requirements to ensure a safe and compliant facility.

11  (k) Hemp product manufacturing licenses shall be valid for

12 2 years and be subject to a license fee of $5,000. The

13 Department shall waive the fee for any public institution of

14 higher education, as defined in the Public Higher Education

15 Act.

16  (l) The Department may impose fines, not to exceed

17 $10,000, on hemp product manufacturers for violation of this

18 Act and rules.

19  Section 35. Final consumer hemp products.

20  (a) All final consumer hemp cannabinoid products

21 distributed, sold, or offered for sale in this State shall

22 meet the following minimum requirements:

23       (1) the product shall meet the definition of "final

24  consumer hemp cannabinoid product";

25       (2) the product shall not contain liquor, wine, beer,
    SB3222 Enrolled          - 18 - LRB104 19119 AAS 32564 b

1   or cider, or otherwise meet the definition of "alcoholic

2   liquor" under the Liquor Control Act of 1934;

3   (3) the product shall not contain tobacco or nicotine;

4   (4) the product shall consist of a consumable or

5   topical product, such as an edible food or beverage, and

6   shall not be intended to be smoked or vaped or otherwise

7   meet the definition of electronic cigarette as defined by

8   the Tobacco Products Tax Act of 1995;

9   (5) the product shall contain only ingredients that

10  are generally recognized as safe (GRAS) for use in food or

11  are approved food additives under the Federal Food, Drug,

12  and Cosmetic Act, unless otherwise authorized by the

13  Department by rule; and

14  (6) the product shall be prepackaged and shall not be

15  added to food or any other consumable product at the point

16  of sale.

17  (b) Prior to sale to the public, a representative sample

18 of each lot shall be tested by a laboratory approved by the

19 Department under the Cannabis Regulation and Tax Act. The

20 representative sample shall be tested for all tests required

21 under 8 Ill. Admin. Code 1300.700, or the Department may set

22 alternative testing standards by rule under this Act. The

23 Department may also conduct testing of any product purported

24 to be a final consumer hemp cannabinoid product. A current

25 certificate of analysis shall be made available to the

26 Department, to any retailer carrying the product, and to
    SB3222 Enrolled             - 19 - LRB104 19119 AAS 32564 b

1 consumers via a scannable code or link on the product label.

2   (c) Every hemp-derived product offered for sale shall bear

3 a label containing, at a minimum:

4   (1) the product name;

5   (2) the net weight or volume;

6   (3) a complete and accurate list of all ingredients in

7   descending order of predominance;

8   (4) the identity and quantity of each cannabinoid

9   present in the product at a level above 0.4 milligrams,

10  expressed in milligrams per serving and per container;

11  (5) the number of servings per container;

12  (6) the batch or lot number;

13  (7) the name, business address, and contact

14  information of the manufacturer or distributor;

15  (8) an expiration or use by date; and

16  (9) a quick response (QR) or equivalent scannable code

17  or website linking to the certificate of analysis for the

18  batch.

19  The Department may make modifications and additions to

20 these requirements by rule.

21  (d) All final hemp consumer cannabinoid products shall be

22 sold in a container as defined by this Act. Each container

23 shall be individually wrapped or packaged at the original

24 point of preparation. Any product containing hemp shall be

25 packaged in a sealed, child-resistant container that complies

26 with current standards, including the Consumer Product Safety
    SB3222 Enrolled         - 20 - LRB104 19119 AAS 32564 b

1 Commission standards referenced in the federal Poison

2 Prevention Packaging Act or any other requirement set by the

3 Department by rule.

4   (e) Labels and Packaging must not contain information

5 that:

6        (1) is false or misleading or includes a

7   representation that the product is a cannabis product;

8        (2) promotes excessive consumption;

9        (3) includes any image designed or likely to appeal to

10  minors, including cartoons, fruit, toys, animals, or

11  children, or any other likeness to images, characters, or

12  phrases used to advertise to children;

13       (4) imitates the trade dress, name, or packaging of

14  any commercial non-cannabis or non-hemp food, candy,

15  beverage, or product primarily marketed to children;

16       (5) contains any seal, flag, crest, coat of arms, or

17  other insignia likely to mislead a purchaser into

18  believing the product has been endorsed, made, or used by

19  the State of Illinois or any of its representatives,

20  except where authorized by this Act;

21       (6) misstates or omits cannabinoid content or

22  ingredients; or

23       (7) makes health claims.

24  (f) Labeling and packaging requirements may be modified by

25 the Department by rule.

26  (g) The Department may issue a mandatory recall for any
    SB3222 Enrolled          - 21 - LRB104 19119 AAS 32564 b

1 product or product line found to be in violation of any
2 provision of this Section.

3   Section 40. Violations.

4   (a) A person or retailer that sells, offers for sale,

5 distributes, or holds for sale a final consumer hemp

6 cannabinoid product that does not comply with any requirement

7 of this Act or any rule adopted under this Act commits a

8 violation of this Act. Products derived from the plant

9 Cannabis sativa L. that do not meet the definition of hemp or

10 hemp-derived cannabinoid product are considered cannabis as

11 defined by the Cannabis Regulation and Tax Act and Cannabis

12 Control Act. Nothing in this Act limits the authority of any

13 other State agency or unit of local government to inspect a

14 person or retailer subject to this Act or to enforce other

15 applicable laws.

16  (b) The Department of Agriculture, Department of Financial

17 and Professional Regulation, Department of Public Health,

18 Illinois State Police, Department of Revenue, and the unit of

19 local government where the premises are located may, during

20 ordinary business hours, enter and inspect any premises where

21 hemp-derived cannabinoid products or final consumer hemp

22 cannabinoid products are sold, offered for sale, stored, or

23 distributed. Refusal to permit inspection constitutes a

24 separate violation subject to a fine under Section 45.
    SB3222 Enrolled           - 22 - LRB104 19119 AAS 32564 b

1   Section 45. Penalties. Upon a finding that a person or

2 retailer has violated this Act, the Department may impose

3 fines as follows:

4   (1) for a first violation within a 24-month period, a

5   fine not to exceed $500;

6   (2) for a second violation within a 24-month period, a

7   fine not to exceed $750; and

8   (3) for a third or subsequent violation within a

9   24-month period, a fine not to exceed $1,000.

10  Fines imposed under this subsection are in addition to,

11 and not in lieu of, any other civil, criminal, or

12 administrative remedy available under this Act or any other

13 law. All penalties collected shall be deposited into the

14 Illinois Hemp Regulatory Fund.

15  Section 50. Cease and desist orders; mandatory recalls;

16 consumer fraud.

17  (a) The Director may issue a cease and desist order to any

18 person doing business without the required license or when in

19 the opinion of the Director the person is violating or is about

20 to violate any provision of this Act or any rule or requirement

21 imposed in writing by the Department, including the sale of

22 products not in compliance with this Act. The cease and desist

23 order permitted by this Section may be issued before a

24 hearing.

25  (b) The Director shall serve notice of the Director's
    SB3222 Enrolled            - 23 - LRB104 19119 AAS 32564 b

1 action, including, but not limited to, a statement of the

2 reasons for the action, either personally, or by certified

3 mail, or by regular mail. Service by certified or regular mail

4 shall be deemed completed when the notice is deposited in the

5 U.S. Mail.

6   (c) Within 10 calendar days after service of the cease and

7 desist order, the licensee or other person may request a

8 hearing in writing. The Director shall schedule a hearing

9 within 90 days after the request for a hearing unless

10 otherwise agreed to by the parties.

11  (d) If it is determined that the Director had the

12 authority to issue the cease and desist order, the Director

13 may issue such orders as may be reasonably necessary to

14 correct, eliminate, or remedy the conduct.

15  (e) The Director may seek to compel compliance with the

16 Cease and Desist Order in the circuit court through the

17 Attorney General's Office. Any person in violation of a cease

18 and desist order issued by the Department is subject to all

19 penalties provided by law.

20  (f) The powers vested in the Director by this Section are

21 in addition to any and all other powers and remedies vested in

22 the Director by law, and nothing in this Section shall be

23 construed as requiring that the Director shall employ the

24 power conferred in this Section instead of or as a condition

25 precedent to the exercise of any other power or remedy vested

26 in the Director.
    SB3222 Enrolled  - 24 - LRB104 19119 AAS 32564 b

1   (g) Whenever the Department issues a mandatory recall

2 under this Act, every person or retailer in possession of the

3 recalled product shall, within the time specified in the

4 recall order, remove the product from sale, segregate it from

5 compliant inventory, and either return it to the manufacturer

6 or distributor or hold it for destruction in accordance with

7 Department instructions. A person or retailer that fails to

8 comply with a mandatory recall order is subject to a civil

9 penalty under rules adopted by the Department for each day the

10 violation continues, and each non-compliant product retained

11 in violation of the order constitutes a separate violation.

12  (h) When a product recalled under this Section has been

13 finally determined by the Department to be non-compliant, the

14 Director may petition the circuit court of the county in which

15 the product is located for an order condemning the product and

16 directing its destruction or other lawful disposition at the

17 expense of the person or retailer in possession.

18  (i) The Department may adopt rules necessary to administer

19 and enforce this Section, including rules establishing a

20 schedule of presumptive civil penalties, procedures for

21 stop-sale orders and embargoes, standards for manufacturer

22 certifications of compliance, and procedures for mandatory

23 recalls.

24  (j) The Attorney General may also enforce a violation of

25 this Act as an unlawful practice under the Consumer Fraud and

26 Deceptive Business Practices Act.
    SB3222 Enrolled  - 25 - LRB104 19119 AAS 32564 b

1   Section 55. Illinois Hemp Regulatory Fund. There is

2 created in the State treasury a special fund to be known as the

3 Illinois Hemp Regulatory Fund. All fees and fines collected by

4 the Department under this Act shall be deposited into the

5 Fund. Moneys in the Illinois Hemp Regulatory Fund shall be

6 used by the Department for the purposes of implementing,

7 administering, and enforcing this Act.

8   Notwithstanding any other provision of law, in addition to

9 any other transfers that may be provided by law, on November

10 12, 2026, or as soon thereafter as practical, the State

11 Comptroller shall direct and the State Treasurer shall

12 transfer the remaining balance from the Industrial Hemp

13 Regulatory Fund into the Illinois Hemp Regulatory Fund. Upon

14 completion of the transfers, the Industrial Hemp Regulatory

15 Fund is dissolved, and any future deposits due to that Fund and

16 any outstanding obligations or liabilities of that Fund pass

17 to the Illinois Hemp Regulatory Fund.

18  Section 60. Immunity. Except for willful or wanton

19 misconduct, a person employed by the Department shall not be

20 subject to criminal or civil liability for taking any action

21 under this Act within the scope of his or her employment.

22 Representation and indemnification of Department employees

23 shall be provided as set forth in Section 2 of the State

24 Employee Indemnification Act.
    SB3222 Enrolled          - 26 - LRB104 19119 AAS 32564 b

1   Section 65. Construction.

2   (a) Nothing in this Act shall be construed to authorize

3 any person to violate any federal rule, regulation, or law.

4 If, as of November 13, 2026, this Act conflicts with the

5 statutory text of 7 U.S.C. 1639p, the federal provision, as of

6 November 13, 2026, shall control to the extent of the

7 conflict.

8   (b) Nothing in this Act shall prohibit the transportation

9 or shipment of hemp or hemp products produced in accordance

10 with subtitle G of the Agricultural Marketing Act of 1946 (7

11 U.S.C. 1639o et seq.) through the State.

12  Section 70. Home Rule. A home rule unit may not regulate

13 hemp in a manner less restrictive than the regulation of hemp

14 under this Act. This Section is a limitation under subsection

15 (i) of Section 6 of Article VII of the Illinois Constitution on

16 the concurrent exercise by home rule units of powers and

17 functions exercised by the State.

18  Section 100. The Department of Professional Regulation Law

19 of the Civil Administrative Code of Illinois is amended by

20 changing Section 2105-117 as follows:

21  (20 ILCS 2105/2105-117)

22  Sec. 2105-117. Confidentiality. All information collected
    SB3222 Enrolled  - 27 - LRB104 19119 AAS 32564 b

 1 by the Department in the course of an examination or
 2 investigation of a licensee, registrant, or applicant,
 3 including, but not limited to, any complaint against a
 4 licensee or registrant filed with the Department and
 5 information collected to investigate any such complaint, shall
 6 be maintained for the confidential use of the Department and
 7 shall not be disclosed. The Department may not disclose the
 8 information to anyone other than law enforcement officials,
 9 other regulatory agencies that have an appropriate regulatory
10 interest as determined by the Director, the Office of the
11 Executive Inspector General, or a party presenting a lawful
12 subpoena to the Department. Information and documents
13 disclosed to a federal, State, county, or local law
14 enforcement agency, including the Office of the Executive
15 Inspector General, shall not be disclosed by the agency for
16 any purpose to any other agency or person, except as necessary
17 to those involved in enforcing the State Officials and
18 Employees Ethics Act. A formal complaint filed against a
19 licensee or registrant by the Department or any order issued
20 by the Department against a licensee, registrant, or applicant
21 shall be a public record, except as otherwise prohibited by
22 law.
23 (Source: P.A. 99-227, eff. 8-3-15.)

24  Section 105. The Criminal Identification Act is amended by

25 changing Section 5.2 as follows:
    SB3222 Enrolled          - 28 - LRB104 19119 AAS 32564 b

1   (20 ILCS 2630/5.2)

2   (Text of Section before amendment by P.A. 104-459)

3   Sec. 5.2. Expungement, sealing, and immediate sealing.

4   (a) General Provisions.

5   (1) Definitions. In this Act, words and phrases have

6   the meanings set forth in this subsection, except when a

7   particular context clearly requires a different meaning.

8   (A) The following terms shall have the meanings

9   ascribed to them in the following Sections of the

10  Unified Code of Corrections:

11                   Business Offense, Section 5-1-2.

12                   Charge, Section 5-1-3.

13                   Court, Section 5-1-6.

14                   Defendant, Section 5-1-7.

15                   Felony, Section 5-1-9.

16                   Imprisonment, Section 5-1-10.

17                   Judgment, Section 5-1-12.

18                   Misdemeanor, Section 5-1-14.

19                   Offense, Section 5-1-15.

20                   Parole, Section 5-1-16.

21                   Petty Offense, Section 5-1-17.

22                   Probation, Section 5-1-18.

23                   Sentence, Section 5-1-19.

24                   Supervision, Section 5-1-21.

25                   Victim, Section 5-1-22.
    SB3222 Enrolled       - 29 - LRB104 19119 AAS 32564 b

1   (B) As used in this Section, "charge not initiated

2   by arrest" means a charge (as defined by Section 5-1-3

3   of the Unified Code of Corrections) brought against a

4   defendant where the defendant is not arrested prior to

5   or as a direct result of the charge.

6   (C) "Conviction" means a judgment of conviction or

7   sentence entered upon a plea of guilty or upon a

8   verdict or finding of guilty of an offense, rendered

9   by a legally constituted jury or by a court of

10  competent jurisdiction authorized to try the case

11  without a jury. An order of supervision successfully

12  completed by the petitioner is not a conviction. An

13  order of qualified probation (as defined in subsection

14  (a)(1)(J)) successfully completed by the petitioner is

15  not a conviction. An order of supervision or an order

16  of qualified probation that is terminated

17  unsatisfactorily is a conviction, unless the

18  unsatisfactory termination is reversed, vacated, or

19  modified and the judgment of conviction, if any, is

20  reversed or vacated.

21  (D) "Criminal offense" means a petty offense,

22  business offense, misdemeanor, felony, or municipal

23  ordinance violation (as defined in subsection

24  (a)(1)(H)). As used in this Section, a minor traffic

25  offense (as defined in subsection (a)(1)(G)) shall not

26  be considered a criminal offense.
    SB3222 Enrolled  - 30 - LRB104 19119 AAS 32564 b

1   (E) "Expunge" means to physically destroy the

2   records or return them to the petitioner and to

3   obliterate the petitioner's name from any official

4   index or public record, or both. Nothing in this Act

5   shall require the physical destruction of the circuit

6   court file, but such records relating to arrests or

7   charges, or both, ordered expunged shall be impounded

8   as required by subsections (d)(9)(A)(ii) and

9   (d)(9)(B)(ii).

10  (F) As used in this Section, "last sentence" means

11  the sentence, order of supervision, or order of

12  qualified probation (as defined by subsection

13  (a)(1)(J)), for a criminal offense (as defined by

14  subsection (a)(1)(D)) that terminates last in time in

15  any jurisdiction, regardless of whether the petitioner

16  has included the criminal offense for which the

17  sentence or order of supervision or qualified

18  probation was imposed in his or her petition. If

19  multiple sentences, orders of supervision, or orders

20  of qualified probation terminate on the same day and

21  are last in time, they shall be collectively

22  considered the "last sentence" regardless of whether

23  they were ordered to run concurrently.

24  (G) "Minor traffic offense" means a petty offense,

25  business offense, or Class C misdemeanor under the

26  Illinois Vehicle Code or a similar provision of a
    SB3222 Enrolled      - 31 - LRB104 19119 AAS 32564 b

1   municipal or local ordinance.

2   (G-5) "Minor Cannabis Offense" means a violation

3   of Section 4 or 5 of the Cannabis Control Act

4   concerning not more than 60 30 grams of any substance

5   containing cannabis, provided the violation did not

6   include a penalty enhancement under Section 7 of the

7   Cannabis Control Act and is not associated with an

8   arrest, conviction or other disposition for a violent

9   crime as defined in subsection (c) of Section 3 of the

10  Rights of Crime Victims and Witnesses Act.

11  (H) "Municipal ordinance violation" means an

12  offense defined by a municipal or local ordinance that

13  is criminal in nature and with which the petitioner

14  was charged or for which the petitioner was arrested

15  and released without charging.

16  (I) "Petitioner" means an adult or a minor

17  prosecuted as an adult who has applied for relief

18  under this Section.

19  (J) "Qualified probation" means an order of

20  probation under Section 10 of the Cannabis Control

21  Act, Section 410 of the Illinois Controlled Substances

22  Act, Section 70 of the Methamphetamine Control and

23  Community Protection Act, Section 5-6-3.3 or 5-6-3.4

24  of the Unified Code of Corrections, Section

25  12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as

26  those provisions existed before their deletion by
    SB3222 Enrolled  - 32 - LRB104 19119 AAS 32564 b

1   Public Act 89-313), Section 10-102 of the Illinois

2   Alcoholism and Other Drug Dependency Act, Section

3   40-10 of the Substance Use Disorder Act, or Section 10

4   of the Steroid Control Act. For the purpose of this

5   Section, "successful completion" of an order of

6   qualified probation under Section 10-102 of the

7   Illinois Alcoholism and Other Drug Dependency Act and

8   Section 40-10 of the Substance Use Disorder Act means

9   that the probation was terminated satisfactorily and

10  the judgment of conviction was vacated.

11  (K) "Seal" means to physically and electronically

12  maintain the records, unless the records would

13  otherwise be destroyed due to age, but to make the

14  records unavailable without a court order, subject to

15  the exceptions in Sections 12 and 13 of this Act. The

16  petitioner's name shall also be obliterated from the

17  official index required to be kept by the circuit

18  court clerk under Section 16 of the Clerks of Courts

19  Act, but any index issued by the circuit court clerk

20  before the entry of the order to seal shall not be

21  affected.

22  (L) "Sexual offense committed against a minor"

23  includes, but is not limited to, the offenses of

24  indecent solicitation of a child or criminal sexual

25  abuse when the victim of such offense is under 18 years

26  of age.
    SB3222 Enrolled  - 33 - LRB104 19119 AAS 32564 b

1   (M) "Terminate" as it relates to a sentence or

2   order of supervision or qualified probation includes

3   either satisfactory or unsatisfactory termination of

4   the sentence, unless otherwise specified in this

5   Section. A sentence is terminated notwithstanding any

6   outstanding financial legal obligation.

7   (2) Minor Traffic Offenses. Orders of supervision or

8   convictions for minor traffic offenses shall not affect a

9   petitioner's eligibility to expunge or seal records

10  pursuant to this Section.

11  (2.5) Commencing 180 days after July 29, 2016 (the

12  effective date of Public Act 99-697), the law enforcement

13  agency issuing the citation shall automatically expunge,

14  on or before January 1 and July 1 of each year, the law

15  enforcement records of a person found to have committed a

16  civil law violation of subsection (a) of Section 4 of the

17  Cannabis Control Act or subsection (c) of Section 3.5 of

18  the Drug Paraphernalia Control Act in the law enforcement

19  agency's possession or control and which contains the

20  final satisfactory disposition which pertain to the person

21  issued a citation for that offense. The law enforcement

22  agency shall provide by rule the process for access,

23  review, and to confirm the automatic expungement by the

24  law enforcement agency issuing the citation. Commencing

25  180 days after July 29, 2016 (the effective date of Public

26  Act 99-697), the clerk of the circuit court shall expunge,
    SB3222 Enrolled  - 34 - LRB104 19119 AAS 32564 b

1   upon order of the court, or in the absence of a court order

2   on or before January 1 and July 1 of each year, the court

3   records of a person found in the circuit court to have

4   committed a civil law violation of subsection (a) of

5   Section 4 of the Cannabis Control Act or subsection (c) of

6   Section 3.5 of the Drug Paraphernalia Control Act in the

7   clerk's possession or control and which contains the final

8   satisfactory disposition which pertain to the person

9   issued a citation for any of those offenses.

10  (3) Exclusions. Except as otherwise provided in

11  subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)

12  of this Section, the court shall not order:

13  (A) the sealing or expungement of the records of

14  arrests or charges not initiated by arrest that result

15  in an order of supervision for or conviction of: (i)

16  any sexual offense committed against a minor; (ii)

17  Section 11-501 of the Illinois Vehicle Code or a

18  similar provision of a local ordinance; or (iii)

19  Section 11-503 of the Illinois Vehicle Code or a

20  similar provision of a local ordinance, unless the

21  arrest or charge is for a misdemeanor violation of

22  subsection (a) of Section 11-503 or a similar

23  provision of a local ordinance, that occurred prior to

24  the offender reaching the age of 25 years and the

25  offender has no other conviction for violating Section

26  11-501 or 11-503 of the Illinois Vehicle Code or a
    SB3222 Enrolled    - 35 - LRB104 19119 AAS 32564 b

1   similar provision of a local ordinance.

2   (B) the sealing or expungement of records of minor

3   traffic offenses (as defined in subsection (a)(1)(G)),

4   unless the petitioner was arrested and released

5   without charging.

6   (C) the sealing of the records of arrests or

7   charges not initiated by arrest which result in an

8   order of supervision or a conviction for the following

9   offenses:

10                   (i) offenses included in Article 11 of the

11  Criminal Code of 1961 or the Criminal Code of 2012

12  or a similar provision of a local ordinance,

13  except Section 11-14 and a misdemeanor violation

14  of Section 11-30 of the Criminal Code of 1961 or

15  the Criminal Code of 2012, or a similar provision

16  of a local ordinance;

17                   (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,

18  26-5, or 48-1 of the Criminal Code of 1961 or the

19  Criminal Code of 2012, or a similar provision of a

20  local ordinance;

21                   (iii) Section 12-3.1 or 12-3.2 of the Criminal

22  Code of 1961 or the Criminal Code of 2012, or

23  Section 125 of the Stalking No Contact Order Act,

24  or Section 219 of the Civil No Contact Order Act,

25  or a similar provision of a local ordinance;

26                   (iv) Class A misdemeanors or felony offenses
    SB3222 Enrolled   - 36 - LRB104 19119 AAS 32564 b

1   under the Humane Care for Animals Act; or

2                    (v) any offense or attempted offense that

3   would subject a person to registration under the

4   Sex Offender Registration Act.

5   (D) (blank).

6   (b) Expungement.

7   (1) A petitioner may petition the circuit court to

8   expunge the records of his or her arrests and charges not

9   initiated by arrest when each arrest or charge not

10  initiated by arrest sought to be expunged resulted in: (i)

11  acquittal, dismissal, or the petitioner's release without

12  charging, unless excluded by subsection (a)(3)(B); (ii) a

13  conviction which was vacated or reversed, unless excluded

14  by subsection (a)(3)(B); (iii) an order of supervision and

15  such supervision was successfully completed by the

16  petitioner, unless excluded by subsection (a)(3)(A) or

17  (a)(3)(B); or (iv) an order of qualified probation (as

18  defined in subsection (a)(1)(J)) and such probation was

19  successfully completed by the petitioner.

20  (1.5) When a petitioner seeks to have a record of

21  arrest expunged under this Section, and the offender has

22  been convicted of a criminal offense, the State's Attorney

23  may object to the expungement on the grounds that the

24  records contain specific relevant information aside from

25  the mere fact of the arrest.

26  (2) Time frame for filing a petition to expunge.
    SB3222 Enrolled  - 37 - LRB104 19119 AAS 32564 b

1   (A) When the arrest or charge not initiated by

2   arrest sought to be expunged resulted in an acquittal,

3   dismissal, the petitioner's release without charging,

4   or the reversal or vacation of a conviction, there is

5   no waiting period to petition for the expungement of

6   such records.

7   (A-5) In anticipation of the successful completion

8   of a problem-solving court, pre-plea diversion, or

9   post-plea diversion program, a petition for

10  expungement may be filed 61 days before the

11  anticipated dismissal of the case or any time

12  thereafter. Upon successful completion of the program

13  and dismissal of the case, the court shall review the

14  petition of the person graduating from the program and

15  shall grant expungement if the petitioner meets all

16  requirements as specified in any applicable statute.

17  (B) When the arrest or charge not initiated by

18  arrest sought to be expunged resulted in an order of

19  supervision, successfully completed by the petitioner,

20  the following time frames will apply:

21                   (i) Those arrests or charges that resulted in

22  orders of supervision under Section 3-707, 3-708,

23  3-710, or 5-401.3 of the Illinois Vehicle Code or

24  a similar provision of a local ordinance, or under

25  Section 11-1.50, 12-3.2, or 12-15 of the Criminal

26  Code of 1961 or the Criminal Code of 2012, or a
    SB3222 Enrolled   - 38 - LRB104 19119 AAS 32564 b

1   similar provision of a local ordinance, shall not

2   be eligible for expungement until 5 years have

3   passed following the satisfactory termination of

4   the supervision.

5                    (i-5) Those arrests or charges that resulted

6   in orders of supervision for a misdemeanor

7   violation of subsection (a) of Section 11-503 of

8   the Illinois Vehicle Code or a similar provision

9   of a local ordinance, that occurred prior to the

10  offender reaching the age of 25 years and the

11  offender has no other conviction for violating

12  Section 11-501 or 11-503 of the Illinois Vehicle

13  Code or a similar provision of a local ordinance

14  shall not be eligible for expungement until the

15  petitioner has reached the age of 25 years.

16                   (ii) Those arrests or charges that resulted in

17  orders of supervision for any other offenses shall

18  not be eligible for expungement until 2 years have

19  passed following the satisfactory termination of

20  the supervision.

21  (C) When the arrest or charge not initiated by

22  arrest sought to be expunged resulted in an order of

23  qualified probation, successfully completed by the

24  petitioner, such records shall not be eligible for

25  expungement until 5 years have passed following the

26  satisfactory termination of the probation.
    SB3222 Enrolled  - 39 - LRB104 19119 AAS 32564 b

1   (3) Those records maintained by the Illinois State

2   Police for persons arrested prior to their 17th birthday

3   shall be expunged as provided in Section 5-915 of the

4   Juvenile Court Act of 1987.

5   (4) Whenever a person has been arrested for or

6   convicted of any offense, in the name of a person whose

7   identity he or she has stolen or otherwise come into

8   possession of, the aggrieved person from whom the identity

9   was stolen or otherwise obtained without authorization,

10  upon learning of the person having been arrested using his

11  or her identity, may, upon verified petition to the chief

12  judge of the circuit wherein the arrest was made, have a

13  court order entered nunc pro tunc by the Chief Judge to

14  correct the arrest record, conviction record, if any, and

15  all official records of the arresting authority, the

16  Illinois State Police, other criminal justice agencies,

17  the prosecutor, and the trial court concerning such

18  arrest, if any, by removing his or her name from all such

19  records in connection with the arrest and conviction, if

20  any, and by inserting in the records the name of the

21  offender, if known or ascertainable, in lieu of the

22  aggrieved's name. The records of the circuit court clerk

23  shall be sealed until further order of the court upon good

24  cause shown and the name of the aggrieved person

25  obliterated on the official index required to be kept by

26  the circuit court clerk under Section 16 of the Clerks of
    SB3222 Enrolled  - 40 - LRB104 19119 AAS 32564 b

1   Courts Act, but the order shall not affect any index

2   issued by the circuit court clerk before the entry of the

3   order. Nothing in this Section shall limit the Illinois

4   State Police or other criminal justice agencies or

5   prosecutors from listing under an offender's name the

6   false names he or she has used.

7   (5) Whenever a person has been convicted of criminal

8   sexual assault, aggravated criminal sexual assault,

9   predatory criminal sexual assault of a child, criminal

10  sexual abuse, or aggravated criminal sexual abuse, the

11  victim of that offense may request that the State's

12  Attorney of the county in which the conviction occurred

13  file a verified petition with the presiding trial judge at

14  the petitioner's trial to have a court order entered to

15  seal the records of the circuit court clerk in connection

16  with the proceedings of the trial court concerning that

17  offense. However, the records of the arresting authority

18  and the Illinois State Police concerning the offense shall

19  not be sealed. The court, upon good cause shown, shall

20  make the records of the circuit court clerk in connection

21  with the proceedings of the trial court concerning the

22  offense available for public inspection.

23  (6) If a conviction has been set aside on direct

24  review or on collateral attack and the court determines by

25  clear and convincing evidence that the petitioner was

26  factually innocent of the charge, the court that finds the
    SB3222 Enrolled       - 41 - LRB104 19119 AAS 32564 b

1   petitioner factually innocent of the charge shall enter an

2   expungement order for the conviction for which the

3   petitioner has been determined to be innocent as provided

4   in subsection (b) of Section 5-5-4 of the Unified Code of

5   Corrections.

6   (7) Nothing in this Section shall prevent the Illinois

7   State Police from maintaining all records of any person

8   who is admitted to probation upon terms and conditions and

9   who fulfills those terms and conditions pursuant to

10  Section 10 of the Cannabis Control Act, Section 410 of the

11  Illinois Controlled Substances Act, Section 70 of the

12  Methamphetamine Control and Community Protection Act,

13  Section 5-6-3.3 or 5-6-3.4 of the Unified Code of

14  Corrections, Section 12-4.3 or subdivision (b)(1) of

15  Section 12-3.05 of the Criminal Code of 1961 or the

16  Criminal Code of 2012, Section 10-102 of the Illinois

17  Alcoholism and Other Drug Dependency Act, Section 40-10 of

18  the Substance Use Disorder Act, or Section 10 of the

19  Steroid Control Act.

20  (8) If the petitioner has been granted a certificate

21  of innocence under Section 2-702 of the Code of Civil

22  Procedure, the court that grants the certificate of

23  innocence shall also enter an order expunging the

24  conviction for which the petitioner has been determined to

25  be innocent as provided in subsection (h) of Section 2-702

26  of the Code of Civil Procedure.
    SB3222 Enrolled     - 42 - LRB104 19119 AAS 32564 b

1   (c) Sealing.

2   (1) Applicability. Notwithstanding any other provision

3   of this Act to the contrary, and cumulative with any

4   rights to expungement of criminal records, this subsection

5   authorizes the sealing of criminal records of adults and

6   of minors prosecuted as adults. Subsection (g) of this

7   Section provides for immediate sealing of certain records.

8   (2) Eligible Records. The following records may be

9   sealed:

10           (A) All arrests resulting in release without

11  charging;

12           (B) Arrests or charges not initiated by arrest

13  resulting in acquittal, dismissal, or conviction when

14  the conviction was reversed or vacated, except as

15  excluded by subsection (a)(3)(B);

16           (C) Arrests or charges not initiated by arrest

17  resulting in orders of supervision, including orders

18  of supervision for municipal ordinance violations,

19  successfully completed by the petitioner, unless

20  excluded by subsection (a)(3);

21           (D) Arrests or charges not initiated by arrest

22  resulting in convictions, including convictions on

23  municipal ordinance violations, unless excluded by

24  subsection (a)(3);

25           (E) Arrests or charges not initiated by arrest

26  resulting in orders of first offender probation under
    SB3222 Enrolled     - 43 - LRB104 19119 AAS 32564 b

1   Section 10 of the Cannabis Control Act, Section 410 of

2   the Illinois Controlled Substances Act, Section 70 of

3   the Methamphetamine Control and Community Protection

4   Act, or Section 5-6-3.3 of the Unified Code of

5   Corrections; and

6   (F) Arrests or charges not initiated by arrest

7   resulting in felony convictions unless otherwise

8   excluded by subsection (a) paragraph (3) of this

9   Section.

10  (3) When Records Are Eligible to Be Sealed. Records

11  identified as eligible under subsection (c)(2) may be

12  sealed as follows:

13  (A) Records identified as eligible under

14  subsections (c)(2)(A) and (c)(2)(B) may be sealed at

15  any time.

16  (B) Except as otherwise provided in subparagraph

17  (E) of this paragraph (3), records identified as

18  eligible under subsection (c)(2)(C) may be sealed 2

19  years after the termination of petitioner's last

20  sentence (as defined in subsection (a)(1)(F)).

21  (C) Except as otherwise provided in subparagraph

22  (E) of this paragraph (3), records identified as

23  eligible under subsections (c)(2)(D), (c)(2)(E), and

24  (c)(2)(F) may be sealed 3 years after the termination

25  of the petitioner's last sentence (as defined in

26  subsection (a)(1)(F)). Convictions requiring public
    SB3222 Enrolled  - 44 - LRB104 19119 AAS 32564 b

1   registration under the Arsonist Registry Act, the Sex

2   Offender Registration Act, or the Murderer and Violent

3   Offender Against Youth Registration Act may not be

4   sealed until the petitioner is no longer required to

5   register under that relevant Act.

6   (D) Records identified in subsection

7   (a)(3)(A)(iii) may be sealed after the petitioner has

8   reached the age of 25 years.

9   (E) Records identified as eligible under

10  subsection (c)(2)(C), (c)(2)(D), (c)(2)(E), or

11  (c)(2)(F) may be sealed upon termination of the

12  petitioner's last sentence if the petitioner earned a

13  high school diploma, associate's degree, career

14  certificate, vocational technical certification, or

15  bachelor's degree, or passed the high school level

16  Test of General Educational Development, during the

17  period of his or her sentence or mandatory supervised

18  release. This subparagraph shall apply only to a

19  petitioner who has not completed the same educational

20  goal prior to the period of his or her sentence or

21  mandatory supervised release. If a petition for

22  sealing eligible records filed under this subparagraph

23  is denied by the court, the time periods under

24  subparagraph (B) or (C) shall apply to any subsequent

25  petition for sealing filed by the petitioner.

26  (4) Subsequent felony convictions. A person may not
    SB3222 Enrolled  - 45 - LRB104 19119 AAS 32564 b

1   have subsequent felony conviction records sealed as

2   provided in this subsection (c) if he or she is convicted

3   of any felony offense after the date of the sealing of

4   prior felony convictions as provided in this subsection

5   (c). The court may, upon conviction for a subsequent

6   felony offense, order the unsealing of prior felony

7   conviction records previously ordered sealed by the court.

8   (5) Notice of eligibility for sealing. Upon entry of a

9   disposition for an eligible record under this subsection

10  (c), the petitioner shall be informed by the court of the

11  right to have the records sealed and the procedures for

12  the sealing of the records.

13  (d) Procedure. The following procedures apply to

14 expungement under subsections (b), (e), and (e-6) and sealing

15 under subsections (c) and (e-5):

16  (1) Filing the petition. Upon becoming eligible to

17  petition for the expungement or sealing of records under

18  this Section, the petitioner shall file a petition

19  requesting the expungement or sealing of records with the

20  clerk of the court where the arrests occurred or the

21  charges were brought, or both. If arrests occurred or

22  charges were brought in multiple jurisdictions, a petition

23  must be filed in each such jurisdiction. The petitioner

24  shall pay the applicable fee, except no fee shall be

25  required if the petitioner has obtained a court order

26  waiving fees under Supreme Court Rule 298 or it is
    SB3222 Enrolled    - 46 - LRB104 19119 AAS 32564 b

1   otherwise waived.

2   (1.5) County fee waiver pilot program. From August 9,

3   2019 (the effective date of Public Act 101-306) through

4   December 31, 2020, in a county of 3,000,000 or more

5   inhabitants, no fee shall be required to be paid by a

6   petitioner if the records sought to be expunged or sealed

7   were arrests resulting in release without charging or

8   arrests or charges not initiated by arrest resulting in

9   acquittal, dismissal, or conviction when the conviction

10  was reversed or vacated, unless excluded by subsection

11  (a)(3)(B). The provisions of this paragraph (1.5), other

12  than this sentence, are inoperative on and after January

13  1, 2022.

14  (2) Contents of petition. The petition shall be

15  verified and shall contain the petitioner's name, date of

16  birth, current address and, for each arrest or charge not

17  initiated by arrest sought to be sealed or expunged, the

18  case number, the date of arrest (if any), the identity of

19  the arresting authority, and such other information as the

20  court may require. During the pendency of the proceeding,

21  the petitioner shall promptly notify the circuit court

22  clerk of any change of his or her address. If the

23  petitioner has received a certificate of eligibility for

24  sealing from the Prisoner Review Board under paragraph

25  (10) of subsection (a) of Section 3-3-2 of the Unified

26  Code of Corrections, the certificate shall be attached to
    SB3222 Enrolled  - 47 - LRB104 19119 AAS 32564 b

1   the petition.

2   (3) Drug test. The petitioner must attach to the

3   petition proof that the petitioner has taken within 30

4   days before the filing of the petition a test showing the

5   absence within his or her body of all illegal substances

6   as defined by the Illinois Controlled Substances Act and

7   the Methamphetamine Control and Community Protection Act

8   if he or she is petitioning to:

9   (A) seal felony records under clause (c)(2)(E);

10  (B) seal felony records for a violation of the

11  Illinois         Controlled      Substances  Act,    the

12  Methamphetamine Control and Community Protection Act,

13  or the Cannabis Control Act under clause (c)(2)(F);

14  (C) seal felony records under subsection (e-5); or

15  (D) expunge felony records of a qualified

16  probation under clause (b)(1)(iv).

17  (4) Service of petition. The circuit court clerk shall

18  promptly serve a copy of the petition and documentation to

19  support the petition under subsection (e-5) or (e-6) on

20  the State's Attorney or prosecutor charged with the duty

21  of prosecuting the offense, the Illinois State Police, the

22  arresting agency and the chief legal officer of the unit

23  of local government effecting the arrest.

24  (5) Objections.

25  (A) Any party entitled to notice of the petition

26  may file an objection to the petition. All objections
    SB3222 Enrolled      - 48 - LRB104 19119 AAS 32564 b

1   shall be in writing, shall be filed with the circuit

2   court clerk, and shall state with specificity the

3   basis of the objection. Whenever a person who has been

4   convicted of an offense is granted a pardon by the

5   Governor which specifically authorizes expungement, an

6   objection to the petition may not be filed.

7   (B) Objections to a petition to expunge or seal

8   must be filed within 60 days of the date of service of

9   the petition.

10  (6) Entry of order.

11  (A) The Chief Judge of the circuit wherein the

12  charge was brought, any judge of that circuit

13  designated by the Chief Judge, or in counties of less

14  than 3,000,000 inhabitants, the presiding trial judge

15  at the petitioner's trial, if any, shall rule on the

16  petition to expunge or seal as set forth in this

17  subsection (d)(6).

18  (B) Unless the State's Attorney or prosecutor, the

19  Illinois State Police, the arresting agency, or the

20  chief legal officer files an objection to the petition

21  to expunge or seal within 60 days from the date of

22  service of the petition, the court shall enter an

23  order granting or denying the petition.

24  (C) Notwithstanding any other provision of law,

25  the court shall not deny a petition for sealing under

26  this Section because the petitioner has not satisfied
    SB3222 Enrolled  - 49 - LRB104 19119 AAS 32564 b

1   an outstanding legal financial obligation established,

2   imposed, or originated by a court, law enforcement

3   agency, or a municipal, State, county, or other unit

4   of local government, including, but not limited to,

5   any cost, assessment, fine, or fee. An outstanding

6   legal financial obligation does not include any court

7   ordered restitution to a victim under Section 5-5-6 of

8   the Unified Code of Corrections, unless the

9   restitution has been converted to a civil judgment.

10  Nothing in this subparagraph (C) waives, rescinds, or

11  abrogates a legal financial obligation or otherwise

12  eliminates or affects the right of the holder of any

13  financial obligation to pursue collection under

14  applicable federal, State, or local law.

15  (D) Notwithstanding any other provision of law,

16  the court shall not deny a petition to expunge or seal

17  under this Section because the petitioner has

18  submitted a drug test taken within 30 days before the

19  filing of the petition to expunge or seal that

20  indicates a positive test for the presence of cannabis

21  within the petitioner's body. In this subparagraph

22  (D), "cannabis" has the meaning ascribed to it in

23  Section 3 of the Cannabis Control Act.

24  (7) Hearings. If an objection is filed, the court

25  shall set a date for a hearing and notify the petitioner

26  and all parties entitled to notice of the petition of the
    SB3222 Enrolled          - 50 - LRB104 19119 AAS 32564 b

1   hearing date at least 30 days prior to the hearing. Prior

2   to the hearing, the State's Attorney shall consult with

3   the Illinois State Police as to the appropriateness of the

4   relief sought in the petition to expunge or seal. At the

5   hearing, the court shall hear evidence on whether the

6   petition should or should not be granted, and shall grant

7   or deny the petition to expunge or seal the records based

8   on the evidence presented at the hearing. The court may

9   consider the following:

10  (A) the strength of the evidence supporting the

11  defendant's conviction;

12  (B) the reasons for retention of the conviction

13  records by the State;

14  (C) the petitioner's age, criminal record history,

15  and employment history;

16  (D) the period of time between the petitioner's

17  arrest on the charge resulting in the conviction and

18  the filing of the petition under this Section; and

19  (E) the specific adverse consequences the

20  petitioner may be subject to if the petition is

21  denied.

22  (8) Service of order. After entering an order to

23  expunge or seal records, the court must provide copies of

24  the order to the Illinois State Police, in a form and

25  manner prescribed by the Illinois State Police, to the

26  petitioner, to the State's Attorney or prosecutor charged
    SB3222 Enrolled  - 51 - LRB104 19119 AAS 32564 b

1   with the duty of prosecuting the offense, to the arresting

2   agency, to the chief legal officer of the unit of local

3   government effecting the arrest, and to such other

4   criminal justice agencies as may be ordered by the court.

5   (9) Implementation of order.

6   (A) Upon entry of an order to expunge records

7   pursuant to subsection (b)(2)(A) or (b)(2)(B)(ii), or

8   both:

9                    (i) the records shall be expunged (as defined

10  in subsection (a)(1)(E)) by the arresting agency,

11  the Illinois State Police, and any other agency as

12  ordered by the court, within 60 days of the date of

13  service of the order, unless a motion to vacate,

14  modify, or reconsider the order is filed pursuant

15  to paragraph (12) of subsection (d) of this

16  Section;

17                   (ii) the records of the circuit court clerk

18  shall be impounded until further order of the

19  court upon good cause shown and the name of the

20  petitioner obliterated on the official index

21  required to be kept by the circuit court clerk

22  under Section 16 of the Clerks of Courts Act, but

23  the order shall not affect any index issued by the

24  circuit court clerk before the entry of the order;

25  and

26                   (iii) in response to an inquiry for expunged
    SB3222 Enrolled  - 52 - LRB104 19119 AAS 32564 b

1   records, the court, the Illinois State Police, or

2   the agency receiving such inquiry, shall reply as

3   it does in response to inquiries when no records

4   ever existed.

5   (B) Upon entry of an order to expunge records

6   pursuant to subsection (b)(2)(B)(i) or (b)(2)(C), or

7   both:

8                    (i) the records shall be expunged (as defined

9   in subsection (a)(1)(E)) by the arresting agency

10  and any other agency as ordered by the court,

11  within 60 days of the date of service of the order,

12  unless a motion to vacate, modify, or reconsider

13  the order is filed pursuant to paragraph (12) of

14  subsection (d) of this Section;

15                   (ii) the records of the circuit court clerk

16  shall be impounded until further order of the

17  court upon good cause shown and the name of the

18  petitioner obliterated on the official index

19  required to be kept by the circuit court clerk

20  under Section 16 of the Clerks of Courts Act, but

21  the order shall not affect any index issued by the

22  circuit court clerk before the entry of the order;

23                   (iii) the records shall be impounded by the

24  Illinois State Police within 60 days of the date

25  of service of the order as ordered by the court,

26  unless a motion to vacate, modify, or reconsider
    SB3222 Enrolled  - 53 - LRB104 19119 AAS 32564 b

1   the order is filed pursuant to paragraph (12) of

2   subsection (d) of this Section;

3                    (iv) records impounded by the Illinois State

4   Police may be disseminated by the Illinois State

5   Police only as required by law or to the arresting

6   authority, the State's Attorney, and the court

7   upon a later arrest for the same or a similar

8   offense or for the purpose of sentencing for any

9   subsequent felony, and to the Department of

10  Corrections upon conviction for any offense; and

11                   (v) in response to an inquiry for such records

12  from anyone not authorized by law to access such

13  records, the court, the Illinois State Police, or

14  the agency receiving such inquiry shall reply as

15  it does in response to inquiries when no records

16  ever existed.

17  (B-5) Upon entry of an order to expunge records

18  under subsection (e-6):

19                   (i) the records shall be expunged (as defined

20  in subsection (a)(1)(E)) by the arresting agency

21  and any other agency as ordered by the court,

22  within 60 days of the date of service of the order,

23  unless a motion to vacate, modify, or reconsider

24  the order is filed under paragraph (12) of

25  subsection (d) of this Section;

26                   (ii) the records of the circuit court clerk
    SB3222 Enrolled  - 54 - LRB104 19119 AAS 32564 b

1   shall be impounded until further order of the

2   court upon good cause shown and the name of the

3   petitioner obliterated on the official index

4   required to be kept by the circuit court clerk

5   under Section 16 of the Clerks of Courts Act, but

6   the order shall not affect any index issued by the

7   circuit court clerk before the entry of the order;

8                    (iii) the records shall be impounded by the

9   Illinois State Police within 60 days of the date

10  of service of the order as ordered by the court,

11  unless a motion to vacate, modify, or reconsider

12  the order is filed under paragraph (12) of

13  subsection (d) of this Section;

14                   (iv) records impounded by the Illinois State

15  Police may be disseminated by the Illinois State

16  Police only as required by law or to the arresting

17  authority, the State's Attorney, and the court

18  upon a later arrest for the same or a similar

19  offense or for the purpose of sentencing for any

20  subsequent felony, and to the Department of

21  Corrections upon conviction for any offense; and

22                   (v) in response to an inquiry for these

23  records from anyone not authorized by law to

24  access the records, the court, the Illinois State

25  Police, or the agency receiving the inquiry shall

26  reply as it does in response to inquiries when no
    SB3222 Enrolled  - 55 - LRB104 19119 AAS 32564 b

1   records ever existed.

2   (C) Upon entry of an order to seal records under

3   subsection (c), the arresting agency, any other agency

4   as ordered by the court, the Illinois State Police,

5   and the court shall seal the records (as defined in

6   subsection (a)(1)(K)). In response to an inquiry for

7   such records, from anyone not authorized by law to

8   access such records, the court, the Illinois State

9   Police, or the agency receiving such inquiry shall

10  reply as it does in response to inquiries when no

11  records ever existed.

12  (D) The Illinois State Police shall send written

13  notice to the petitioner of its compliance with each

14  order to expunge or seal records within 60 days of the

15  date of service of that order or, if a motion to

16  vacate, modify, or reconsider is filed, within 60 days

17  of service of the order resolving the motion, if that

18  order requires the Illinois State Police to expunge or

19  seal records. In the event of an appeal from the

20  circuit court order, the Illinois State Police shall

21  send written notice to the petitioner of its

22  compliance with an Appellate Court or Supreme Court

23  judgment to expunge or seal records within 60 days of

24  the issuance of the court's mandate. The notice is not

25  required while any motion to vacate, modify, or

26  reconsider, or any appeal or petition for
    SB3222 Enrolled  - 56 - LRB104 19119 AAS 32564 b

1   discretionary appellate review, is pending.

2   (E) Upon motion, the court may order that a sealed

3   judgment or other court record necessary to

4   demonstrate the amount of any legal financial

5   obligation due and owing be made available for the

6   limited purpose of collecting any legal financial

7   obligations owed by the petitioner that were

8   established, imposed, or originated in the criminal

9   proceeding for which those records have been sealed.

10  The records made available under this subparagraph (E)

11  shall not be entered into the official index required

12  to be kept by the circuit court clerk under Section 16

13  of the Clerks of Courts Act and shall be immediately

14  re-impounded upon the collection of the outstanding

15  financial obligations.

16  (F) Notwithstanding any other provision of this

17  Section, a circuit court clerk may access a sealed

18  record for the limited purpose of collecting payment

19  for any legal financial obligations that were

20  established, imposed, or originated in the criminal

21  proceedings for which those records have been sealed.

22  (10) Fees. The Illinois State Police may charge the

23  petitioner a fee equivalent to the cost of processing any

24  order to expunge or seal records. Notwithstanding any

25  provision of the Clerks of Courts Act to the contrary, the

26  circuit court clerk may charge a fee equivalent to the
    SB3222 Enrolled  - 57 - LRB104 19119 AAS 32564 b

1   cost associated with the sealing or expungement of records

2   by the circuit court clerk. From the total filing fee

3   collected for the petition to seal or expunge, the circuit

4   court clerk shall deposit $10 into the Circuit Court Clerk

5   Operation and Administrative Fund, to be used to offset

6   the costs incurred by the circuit court clerk in

7   performing the additional duties required to serve the

8   petition to seal or expunge on all parties. The circuit

9   court clerk shall collect and remit the Illinois State

10  Police portion of the fee to the State Treasurer and it

11  shall be deposited in the State Police Services Fund. If

12  the record brought under an expungement petition was

13  previously sealed under this Section, the fee for the

14  expungement petition for that same record shall be waived.

15  (11) Final Order. No court order issued under the

16  expungement or sealing provisions of this Section shall

17  become final for purposes of appeal until 30 days after

18  service of the order on the petitioner and all parties

19  entitled to notice of the petition.

20  (12) Motion to Vacate, Modify, or Reconsider. Under

21  Section 2-1203 of the Code of Civil Procedure, the

22  petitioner or any party entitled to notice may file a

23  motion to vacate, modify, or reconsider the order granting

24  or denying the petition to expunge or seal within 60 days

25  of service of the order. If filed more than 60 days after

26  service of the order, a petition to vacate, modify, or
    SB3222 Enrolled       - 58 - LRB104 19119 AAS 32564 b

1   reconsider shall comply with subsection (c) of Section

2   2-1401 of the Code of Civil Procedure. Upon filing of a

3   motion to vacate, modify, or reconsider, notice of the

4   motion shall be served upon the petitioner and all parties

5   entitled to notice of the petition.

6   (13) Effect of Order. An order granting a petition

7   under the expungement or sealing provisions of this

8   Section shall not be considered void because it fails to

9   comply with the provisions of this Section or because of

10  any error asserted in a motion to vacate, modify, or

11  reconsider. The circuit court retains jurisdiction to

12  determine whether the order is voidable and to vacate,

13  modify, or reconsider its terms based on a motion filed

14  under paragraph (12) of this subsection (d).

15  (14) Compliance with Order Granting Petition to Seal

16  Records. Unless a court has entered a stay of an order

17  granting a petition to seal, all parties entitled to

18  notice of the petition must fully comply with the terms of

19  the order within 60 days of service of the order even if a

20  party is seeking relief from the order through a motion

21  filed under paragraph (12) of this subsection (d) or is

22  appealing the order.

23  (15) Compliance with Order Granting Petition to

24  Expunge Records. While a party is seeking relief from the

25  order granting the petition to expunge through a motion

26  filed under paragraph (12) of this subsection (d) or is
    SB3222 Enrolled  - 59 - LRB104 19119 AAS 32564 b

1   appealing the order, and unless a court has entered a stay

2   of that order, the parties entitled to notice of the

3   petition must seal, but need not expunge, the records

4   until there is a final order on the motion for relief or,

5   in the case of an appeal, the issuance of that court's

6   mandate.

7   (16) The changes to this subsection (d) made by Public

8   Act 98-163 apply to all petitions pending on August 5,

9   2013 (the effective date of Public Act 98-163) and to all

10  orders ruling on a petition to expunge or seal on or after

11  August 5, 2013 (the effective date of Public Act 98-163).

12  (e) Whenever a person who has been convicted of an offense

13 is granted a pardon by the Governor which specifically

14 authorizes expungement, he or she may, upon verified petition

15 to the Chief Judge of the circuit where the person had been

16 convicted, any judge of the circuit designated by the Chief

17 Judge, or in counties of less than 3,000,000 inhabitants, the

18 presiding trial judge at the defendant's trial, have a court

19 order entered expunging the record of arrest from the official

20 records of the arresting authority and order that the records

21 of the circuit court clerk and the Illinois State Police be

22 sealed until further order of the court upon good cause shown

23 or as otherwise provided herein, and the name of the defendant

24 obliterated from the official index requested to be kept by

25 the circuit court clerk under Section 16 of the Clerks of

26 Courts Act in connection with the arrest and conviction for
    SB3222 Enrolled              - 60 - LRB104 19119 AAS 32564 b

1 the offense for which he or she had been pardoned but the order

2 shall not affect any index issued by the circuit court clerk

3 before the entry of the order. All records sealed by the

4 Illinois State Police may be disseminated by the Illinois

5 State Police only to the arresting authority, the State's

6 Attorney, and the court upon a later arrest for the same or

7 similar offense or for the purpose of sentencing for any

8 subsequent felony. Upon conviction for any subsequent offense,

9 the Department of Corrections shall have access to all sealed

10 records of the Illinois State Police pertaining to that

11 individual. Upon entry of the order of expungement, the

12 circuit court clerk shall promptly mail a copy of the order to

13 the person who was pardoned.

14  (e-5) Whenever a person who has been convicted of an

15 offense is granted a certificate of eligibility for sealing by

16 the Prisoner Review Board which specifically authorizes

17 sealing, he or she may, upon verified petition to the Chief

18 Judge of the circuit where the person had been convicted, any

19 judge of the circuit designated by the Chief Judge, or in

20 counties of less than 3,000,000 inhabitants, the presiding

21 trial judge at the petitioner's trial, have a court order

22 entered sealing the record of arrest from the official records

23 of the arresting authority and order that the records of the

24 circuit court clerk and the Illinois State Police be sealed

25 until further order of the court upon good cause shown or as

26 otherwise provided herein, and the name of the petitioner
    SB3222 Enrolled          - 61 - LRB104 19119 AAS 32564 b

1 obliterated from the official index requested to be kept by

2 the circuit court clerk under Section 16 of the Clerks of

3 Courts Act in connection with the arrest and conviction for

4 the offense for which he or she had been granted the

5 certificate but the order shall not affect any index issued by

6 the circuit court clerk before the entry of the order. All

7 records sealed by the Illinois State Police may be

8 disseminated by the Illinois State Police only as required by

9 this Act or to the arresting authority, a law enforcement

10 agency, the State's Attorney, and the court upon a later

11 arrest for the same or similar offense or for the purpose of

12 sentencing for any subsequent felony. Upon conviction for any

13 subsequent offense, the Department of Corrections shall have

14 access to all sealed records of the Illinois State Police

15 pertaining to that individual. Upon entry of the order of

16 sealing, the circuit court clerk shall promptly mail a copy of

17 the order to the person who was granted the certificate of

18 eligibility for sealing.

19  (e-6) Whenever a person who has been convicted of an

20 offense is granted a certificate of eligibility for

21 expungement by the Prisoner Review Board which specifically

22 authorizes expungement, he or she may, upon verified petition

23 to the Chief Judge of the circuit where the person had been

24 convicted, any judge of the circuit designated by the Chief

25 Judge, or in counties of less than 3,000,000 inhabitants, the

26 presiding trial judge at the petitioner's trial, have a court
    SB3222 Enrolled  - 62 - LRB104 19119 AAS 32564 b

1 order entered expunging the record of arrest from the official

2 records of the arresting authority and order that the records

3 of the circuit court clerk and the Illinois State Police be

4 sealed until further order of the court upon good cause shown

5 or as otherwise provided herein, and the name of the

6 petitioner obliterated from the official index requested to be

7 kept by the circuit court clerk under Section 16 of the Clerks

8 of Courts Act in connection with the arrest and conviction for

9 the offense for which he or she had been granted the

10 certificate but the order shall not affect any index issued by

11 the circuit court clerk before the entry of the order. All

12 records sealed by the Illinois State Police may be

13 disseminated by the Illinois State Police only as required by

14 this Act or to the arresting authority, a law enforcement

15 agency, the State's Attorney, and the court upon a later

16 arrest for the same or similar offense or for the purpose of

17 sentencing for any subsequent felony. Upon conviction for any

18 subsequent offense, the Department of Corrections shall have

19 access to all expunged records of the Illinois State Police

20 pertaining to that individual. Upon entry of the order of

21 expungement, the circuit court clerk shall promptly mail a

22 copy of the order to the person who was granted the certificate

23 of eligibility for expungement.

24  (f) Subject to available funding, the Illinois Department

25 of Corrections shall conduct a study of the impact of sealing,

26 especially on employment and recidivism rates, utilizing a
    SB3222 Enrolled         - 63 - LRB104 19119 AAS 32564 b

1 random sample of those who apply for the sealing of their

2 criminal records under Public Act 93-211. At the request of

3 the Illinois Department of Corrections, records of the

4 Illinois Department of Employment Security shall be utilized

5 as appropriate to assist in the study. The study shall not

6 disclose any data in a manner that would allow the

7 identification of any particular individual or employing unit.

8 The study shall be made available to the General Assembly no

9 later than September 1, 2010.

10  (g) Immediate Sealing.

11  (1) Applicability. Notwithstanding any other provision

12  of this Act to the contrary, and cumulative with any

13  rights to expungement or sealing of criminal records, this

14  subsection authorizes the immediate sealing of criminal

15  records of adults and of minors prosecuted as adults.

16  (2) Eligible Records. Arrests or charges not initiated

17  by arrest resulting in acquittal or dismissal with

18  prejudice, except as excluded by subsection (a)(3)(B),

19  that occur on or after January 1, 2018 (the effective date

20  of Public Act 100-282), may be sealed immediately if the

21  petition is filed with the circuit court clerk on the same

22  day and during the same hearing in which the case is

23  disposed.

24  (3) When Records are Eligible to be Immediately

25  Sealed. Eligible records under paragraph (2) of this

26  subsection (g) may be sealed immediately after entry of
    SB3222 Enrolled  - 64 - LRB104 19119 AAS 32564 b

1   the final disposition of a case, notwithstanding the

2   disposition of other charges in the same case.

3   (4) Notice of Eligibility for Immediate Sealing. Upon

4   entry of a disposition for an eligible record under this

5   subsection (g), the defendant shall be informed by the

6   court of his or her right to have eligible records

7   immediately sealed and the procedure for the immediate

8   sealing of these records.

9   (5) Procedure. The following procedures apply to

10  immediate sealing under this subsection (g).

11  (A) Filing the Petition. Upon entry of the final

12  disposition of the case, the defendant's attorney may

13  immediately petition the court, on behalf of the

14  defendant, for immediate sealing of eligible records

15  under paragraph (2) of this subsection (g) that are

16  entered on or after January 1, 2018 (the effective

17  date of Public Act 100-282). The immediate sealing

18  petition may be filed with the circuit court clerk

19  during the hearing in which the final disposition of

20  the case is entered. If the defendant's attorney does

21  not file the petition for immediate sealing during the

22  hearing, the defendant may file a petition for sealing

23  at any time as authorized under subsection (c)(3)(A).

24  (B) Contents of Petition. The immediate sealing

25  petition shall be verified and shall contain the

26  petitioner's name, date of birth, current address, and
    SB3222 Enrolled     - 65 - LRB104 19119 AAS 32564 b

1   for each eligible record, the case number, the date of

2   arrest if applicable, the identity of the arresting

3   authority if applicable, and other information as the

4   court may require.

5   (C) Drug Test. The petitioner shall not be

6   required to attach proof that he or she has passed a

7   drug test.

8   (D) Service of Petition. A copy of the petition

9   shall be served on the State's Attorney in open court.

10  The petitioner shall not be required to serve a copy of

11  the petition on any other agency.

12  (E) Entry of Order. The presiding trial judge

13  shall enter an order granting or denying the petition

14  for immediate sealing during the hearing in which it

15  is filed. Petitions for immediate sealing shall be

16  ruled on in the same hearing in which the final

17  disposition of the case is entered.

18  (F) Hearings. The court shall hear the petition

19  for immediate sealing on the same day and during the

20  same hearing in which the disposition is rendered.

21  (G) Service of Order. An order to immediately seal

22  eligible records shall be served in conformance with

23  subsection (d)(8).

24  (H) Implementation of Order. An order to

25  immediately seal records shall be implemented in

26  conformance with subsections (d)(9)(C) and (d)(9)(D).
    SB3222 Enrolled  - 66 - LRB104 19119 AAS 32564 b

1   (I) Fees. The fee imposed by the circuit court

2   clerk and the Illinois State Police shall comply with

3   paragraph (1) of subsection (d) of this Section.

4   (J) Final Order. No court order issued under this

5   subsection (g) shall become final for purposes of

6   appeal until 30 days after service of the order on the

7   petitioner and all parties entitled to service of the

8   order in conformance with subsection (d)(8).

9   (K) Motion to Vacate, Modify, or Reconsider. Under

10  Section 2-1203 of the Code of Civil Procedure, the

11  petitioner, State's Attorney, or the Illinois State

12  Police may file a motion to vacate, modify, or

13  reconsider the order denying the petition to

14  immediately seal within 60 days of service of the

15  order. If filed more than 60 days after service of the

16  order, a petition to vacate, modify, or reconsider

17  shall comply with subsection (c) of Section 2-1401 of

18  the Code of Civil Procedure.

19  (L) Effect of Order. An order granting an

20  immediate sealing petition shall not be considered

21  void because it fails to comply with the provisions of

22  this Section or because of an error asserted in a

23  motion to vacate, modify, or reconsider. The circuit

24  court retains jurisdiction to determine whether the

25  order is voidable, and to vacate, modify, or

26  reconsider its terms based on a motion filed under
    SB3222 Enrolled  - 67 - LRB104 19119 AAS 32564 b

1   subparagraph (L) of this subsection (g).

2   (M) Compliance with Order Granting Petition to

3   Seal Records. Unless a court has entered a stay of an

4   order granting a petition to immediately seal, all

5   parties entitled to service of the order must fully

6   comply with the terms of the order within 60 days of

7   service of the order.

8   (h) Sealing or vacation and expungement of trafficking

9 victims' crimes.

10  (1) A trafficking victim, as defined by paragraph (10)

11  of subsection (a) of Section 10-9 of the Criminal Code of

12  2012, may petition for vacation and expungement or

13  immediate sealing of his or her criminal record upon the

14  completion of his or her last sentence if his or her

15  participation in the underlying offense was a result of

16  human trafficking under Section 10-9 of the Criminal Code

17  of 2012 or a severe form of trafficking under the federal

18  Trafficking Victims Protection Act.

19  (1.5) A petition under paragraph (1) shall be

20  prepared, signed, and filed in accordance with Supreme

21  Court Rule 9. The court may allow the petitioner to attend

22  any required hearing remotely in accordance with local

23  rules. The court may allow a petition to be filed under

24  seal if the public filing of the petition would constitute

25  a risk of harm to the petitioner.

26  (2) A petitioner under this subsection (h), in
    SB3222 Enrolled  - 68 - LRB104 19119 AAS 32564 b

1   addition to the requirements provided under paragraph (4)

2   of subsection (d) of this Section, shall include in his or

3   her petition a clear and concise statement that: (A) he or

4   she was a victim of human trafficking at the time of the

5   offense; and (B) that his or her participation in the

6   offense was a result of human trafficking under Section

7   10-9 of the Criminal Code of 2012 or a severe form of

8   trafficking under the federal Trafficking Victims

9   Protection Act.

10       (3) If an objection is filed alleging that the

11  petitioner is not entitled to vacation and expungement or

12  immediate sealing under this subsection (h), the court

13  shall conduct a hearing under paragraph (7) of subsection

14  (d) of this Section and the court shall determine whether

15  the petitioner is entitled to vacation and expungement or

16  immediate sealing under this subsection (h). A petitioner

17  is eligible for vacation and expungement or immediate

18  relief under this subsection (h) if he or she shows, by a

19  preponderance of the evidence, that: (A) he or she was a

20  victim of human trafficking at the time of the offense;

21  and (B) that his or her participation in the offense was a

22  result of human trafficking under Section 10-9 of the

23  Criminal Code of 2012 or a severe form of trafficking

24  under the federal Trafficking Victims Protection Act.

25  (i) Minor Cannabis Offenses under the Cannabis Control

26 Act.
    SB3222 Enrolled  - 69 - LRB104 19119 AAS 32564 b

1   (1) Expungement of Arrest Records of Minor Cannabis

2   Offenses.

3   (A) The Illinois State Police and all law

4   enforcement agencies within the State shall

5   automatically expunge all criminal history records of

6   an arrest, charge not initiated by arrest, order of

7   supervision, or order of qualified probation for a

8   Minor Cannabis Offense committed prior to June 25,

9   2019 (the effective date of Public Act 101-27) if:

10                   (i) One year or more has elapsed since the

11  date of the arrest or law enforcement interaction

12  documented in the records; and

13                   (ii) No criminal charges were filed relating

14  to the arrest or law enforcement interaction or

15  criminal charges were filed and subsequently

16  dismissed or vacated or the arrestee was

17  acquitted.

18  (B) If the law enforcement agency is unable to

19  verify satisfaction of condition (ii) in paragraph

20  (A), records that satisfy condition (i) in paragraph

21  (A) shall be automatically expunged.

22  (C) Records shall be expunged by the law

23  enforcement agency under the following timelines:

24                   (i) Records created prior to June 25, 2019

25  (the effective date of Public Act 101-27), but on

26  or after January 1, 2013, shall be automatically
    SB3222 Enrolled  - 70 - LRB104 19119 AAS 32564 b

1   expunged prior to January 1, 2021;

2                    (ii) Records created prior to January 1, 2013,

3   but on or after January 1, 2000, shall be

4   automatically expunged prior to January 1, 2023;

5                    (iii) Records created prior to January 1, 2000

6   shall be automatically expunged prior to January

7   1, 2025.

8   In response to an inquiry for expunged records,

9   the law enforcement agency receiving such inquiry

10  shall reply as it does in response to inquiries when no

11  records ever existed; however, it shall provide a

12  certificate of disposition or confirmation that the

13  record was expunged to the individual whose record was

14  expunged if such a record exists.

15  (D) Nothing in this Section shall be construed to

16  restrict or modify an individual's right to have that

17  individual's records expunged except as otherwise may

18  be provided in this Act, or diminish or abrogate any

19  rights or remedies otherwise available to the

20  individual.

21  (2) Pardons Authorizing Expungement of Minor Cannabis

22  Offenses.

23  (A) Upon June 25, 2019 (the effective date of

24  Public Act 101-27), the Department of State Police

25  shall review all criminal history record information

26  and identify all records that meet all of the
    SB3222 Enrolled       - 71 - LRB104 19119 AAS 32564 b

1   following criteria:

2                    (i) one or more convictions for a Minor

3   Cannabis Offense;

4                    (ii) the conviction identified in paragraph

5   (2)(A)(i) did not include a penalty enhancement

6   under Section 7 of the Cannabis Control Act; and

7                    (iii) the conviction identified in paragraph

8   (2)(A)(i) is not associated with a conviction for

9   a violent crime as defined in subsection (c) of

10  Section 3 of the Rights of Crime Victims and

11  Witnesses Act.

12  (B) Within 180 days after June 25, 2019 (the

13  effective date of Public Act 101-27), the Department

14  of State Police shall notify the Prisoner Review Board

15  of all such records that meet the criteria established

16  in paragraph (2)(A).

17                   (i) The Prisoner Review Board shall notify the

18  State's Attorney of the county of conviction of

19  each record identified by State Police in

20  paragraph (2)(A) that is classified as a Class 4

21  felony. The State's Attorney may provide a written

22  objection to the Prisoner Review Board on the sole

23  basis that the record identified does not meet the

24  criteria established in paragraph (2)(A). Such an

25  objection must be filed within 60 days or by such

26  later date set by the Prisoner Review Board in the
    SB3222 Enrolled  - 72 - LRB104 19119 AAS 32564 b

1   notice after the State's Attorney received notice

2   from the Prisoner Review Board.

3                    (ii) In response to a written objection from a

4   State's Attorney, the Prisoner Review Board is

5   authorized to conduct a non-public hearing to

6   evaluate the information provided in the

7   objection.

8                    (iii) The Prisoner Review Board shall make a

9   confidential and privileged recommendation to the

10  Governor as to whether to grant a pardon

11  authorizing expungement for each of the records

12  identified by the Department of State Police as

13  described in paragraph (2)(A).

14  (C) If an individual has been granted a pardon

15  authorizing expungement as described in this Section,

16  the Prisoner Review Board, through the Attorney

17  General, shall file a petition for expungement with

18  the Chief Judge of the circuit or any judge of the

19  circuit designated by the Chief Judge where the

20  individual had been convicted. Such petition may

21  include more than one individual. Whenever an

22  individual who has been convicted of an offense is

23  granted a pardon by the Governor that specifically

24  authorizes expungement, an objection to the petition

25  may not be filed. Petitions to expunge under this

26  subsection (i) may include more than one individual.
    SB3222 Enrolled  - 73 - LRB104 19119 AAS 32564 b

1   Within 90 days of the filing of such a petition, the

2   court shall enter an order expunging the records of

3   arrest from the official records of the arresting

4   authority and order that the records of the circuit

5   court clerk and the Illinois State Police be expunged

6   and the name of the defendant obliterated from the

7   official index requested to be kept by the circuit

8   court clerk under Section 16 of the Clerks of Courts

9   Act in connection with the arrest and conviction for

10  the offense for which the individual had received a

11  pardon but the order shall not affect any index issued

12  by the circuit court clerk before the entry of the

13  order. Upon entry of the order of expungement, the

14  circuit court clerk shall promptly provide a copy of

15  the order and a certificate of disposition to the

16  individual who was pardoned to the individual's last

17  known address or by electronic means (if available) or

18  otherwise make it available to the individual upon

19  request.

20  (D) Nothing in this Section is intended to

21  diminish or abrogate any rights or remedies otherwise

22  available to the individual.

23  (3) Any individual may file a motion to vacate and

24  expunge a conviction for a misdemeanor or Class 4 felony

25  violation of Section 4 or Section 5 of the Cannabis

26  Control Act. Motions to vacate and expunge under this
    SB3222 Enrolled  - 74 - LRB104 19119 AAS 32564 b

1   subsection (i) may be filed with the circuit court, Chief

2   Judge of a judicial circuit or any judge of the circuit

3   designated by the Chief Judge. The circuit court clerk

4   shall promptly serve a copy of the motion to vacate and

5   expunge, and any supporting documentation, on the State's

6   Attorney or prosecutor charged with the duty of

7   prosecuting the offense. When considering such a motion to

8   vacate and expunge, a court shall consider the following:

9   the reasons to retain the records provided by law

10  enforcement, the petitioner's age, the petitioner's age at

11  the time of offense, the time since the conviction, and

12  the specific adverse consequences if denied. An individual

13  may file such a petition after the completion of any

14  non-financial sentence or non-financial condition imposed

15  by the conviction. Within 60 days of the filing of such

16  motion, a State's Attorney may file an objection to such a

17  petition along with supporting evidence. If a motion to

18  vacate and expunge is granted, the records shall be

19  expunged in accordance with subparagraphs (d)(8) and

20  (d)(9)(A) of this Section. An agency providing civil legal

21  aid, as defined by Section 15 of the Public Interest

22  Attorney Assistance Act, assisting individuals seeking to

23  file a motion to vacate and expunge under this subsection

24  may file motions to vacate and expunge with the Chief

25  Judge of a judicial circuit or any judge of the circuit

26  designated by the Chief Judge, and the motion may include
    SB3222 Enrolled  - 75 - LRB104 19119 AAS 32564 b

1   more than one individual. Motions filed by an agency

2   providing civil legal aid concerning more than one

3   individual may be prepared, presented, and signed

4   electronically.

5   (4) Any State's Attorney may file a motion to vacate

6   and expunge a conviction for a misdemeanor or Class 4

7   felony violation of Section 4 or Section 5 of the Cannabis

8   Control Act. Motions to vacate and expunge under this

9   subsection (i) may be filed with the circuit court, Chief

10  Judge of a judicial circuit or any judge of the circuit

11  designated by the Chief Judge, and may include more than

12  one individual. Motions filed by a State's Attorney

13  concerning more than one individual may be prepared,

14  presented, and signed electronically. When considering

15  such a motion to vacate and expunge, a court shall

16  consider the following: the reasons to retain the records

17  provided by law enforcement, the individual's age, the

18  individual's age at the time of offense, the time since

19  the conviction, and the specific adverse consequences if

20  denied. Upon entry of an order granting a motion to vacate

21  and expunge records pursuant to this Section, the State's

22  Attorney shall notify the Prisoner Review Board within 30

23  days. Upon entry of the order of expungement, the circuit

24  court clerk shall promptly provide a copy of the order and

25  a certificate of disposition to the individual whose

26  records will be expunged to the individual's last known
    SB3222 Enrolled  - 76 - LRB104 19119 AAS 32564 b

1   address or by electronic means (if available) or otherwise

2   make available to the individual upon request. If a motion

3   to vacate and expunge is granted, the records shall be

4   expunged in accordance with subparagraphs (d)(8) and

5   (d)(9)(A) of this Section.

6   (5) In the public interest, the State's Attorney of a

7   county has standing to file motions to vacate and expunge

8   pursuant to this Section in the circuit court with

9   jurisdiction over the underlying conviction.

10  (6) If a person is arrested for a Minor Cannabis

11  Offense as defined in this Section before June 25, 2019

12  (the effective date of Public Act 101-27) and the person's

13  case is still pending but a sentence has not been imposed,

14  the person may petition the court in which the charges are

15  pending for an order to summarily dismiss those charges

16  against him or her, and expunge all official records of

17  his or her arrest, plea, trial, conviction, incarceration,

18  supervision, or expungement. If the court determines, upon

19  review, that: (A) the person was arrested before June 25,

20  2019 (the effective date of Public Act 101-27) for an

21  offense that has been made eligible for expungement; (B)

22  the case is pending at the time; and (C) the person has not

23  been sentenced of the minor cannabis violation eligible

24  for expungement under this subsection, the court shall

25  consider the following: the reasons to retain the records

26  provided by law enforcement, the petitioner's age, the
    SB3222 Enrolled  - 77 - LRB104 19119 AAS 32564 b

1   petitioner's age at the time of offense, the time since

2   the conviction, and the specific adverse consequences if

3   denied. If a motion to dismiss and expunge is granted, the

4   records shall be expunged in accordance with subparagraph

5   (d)(9)(A) of this Section.

6   (7) A person imprisoned solely as a result of one or

7   more convictions for Minor Cannabis Offenses under this

8   subsection (i) shall be released from incarceration upon

9   the issuance of an order under this subsection.

10  (8) The Illinois State Police shall allow a person to

11  use the access and review process, established in the

12  Illinois State Police, for verifying that his or her

13  records relating to Minor Cannabis Offenses of the

14  Cannabis Control Act eligible under this Section have been

15  expunged.

16  (9) No conviction vacated pursuant to this Section

17  shall serve as the basis for damages for time unjustly

18  served as provided in the Court of Claims Act.

19  (10) Effect of Expungement. A person's right to

20  expunge an expungeable offense shall not be limited under

21  this Section. The effect of an order of expungement shall

22  be to restore the person to the status he or she occupied

23  before the arrest, charge, or conviction.

24  (11) Information. The Illinois State Police shall post

25  general information on its website about the expungement

26  process described in this subsection (i).
    SB3222 Enrolled  - 78 - LRB104 19119 AAS 32564 b

1   (j) Felony Prostitution Convictions.

2   (1) Automatic Sealing of Felony Prostitution Arrests.

3   (A) The Illinois State Police and local law

4   enforcement agencies within the State shall

5   automatically seal the law enforcement records

6   relating to a person's Class 4 felony arrests and

7   charges not initiated by arrest for prostitution if

8   that arrest or charge not initiated by arrest is

9   eligible for sealing under paragraph (2) of subsection

10  (c).

11  (B) In the absence of a court order or upon the

12  order of a court, the clerk of the circuit court shall

13  automatically seal the court records and case files

14  relating to a person's Class 4 felony arrests and

15  charges not initiated by arrest for prostitution if

16  that arrest or charge not initiated by arrest is

17  eligible for sealing under paragraph (2) of subsection

18  (c).

19  (C) The automatic sealing described in this

20  paragraph (1) shall be completed no later than January

21  1, 2028.

22  (2) Automatic Sealing of Felony Prostitution

23  Convictions.

24  (A) The Illinois State Police and local law

25  enforcement agencies within the State shall

26  automatically seal the law enforcement records
    SB3222 Enrolled   - 79 - LRB104 19119 AAS 32564 b

1   relating to a person's Class 4 felony conviction for

2   prostitution if those records are eligible for sealing

3   under paragraph (2) of subsection (c).

4        (B) In the absence of a court order or upon the

5   order of a court, the clerk of the circuit court shall

6   automatically seal the court records relating to a

7   person's Class 4 felony conviction for prostitution if

8   those records are eligible for sealing under paragraph

9   (2) of subsection (c).

10       (C) The automatic sealing of records described in

11  this paragraph (2) shall be completed no later than

12  January 1, 2028.

13  (3) Motions to Vacate and Expunge Felony Prostitution

14  Convictions. Any individual may file a motion to vacate

15  and expunge a conviction for a prior Class 4 felony

16  violation of prostitution. Motions to vacate and expunge

17  under this subsection (j) may be filed with the circuit

18  court, Chief Judge of a judicial circuit, or any judge of

19  the circuit designated by the Chief Judge. When

20  considering the motion to vacate and expunge, a court

21  shall consider the following:

22       (A) the reasons to retain the records provided by

23  law enforcement;

24       (B) the petitioner's age;

25       (C) the petitioner's age at the time of offense;

26  and
    SB3222 Enrolled  - 80 - LRB104 19119 AAS 32564 b

1   (D) the time since the conviction, and the

2   specific adverse consequences if denied. An individual

3   may file the petition after the completion of any

4   sentence or condition imposed by the conviction.

5   Within 60 days of the filing of the motion, a State's

6   Attorney may file an objection to the petition along

7   with supporting evidence. If a motion to vacate and

8   expunge is granted, the records shall be expunged in

9   accordance with subparagraph (d)(9)(A) of this

10  Section. An agency providing civil legal aid, as

11  defined in Section 15 of the Public Interest Attorney

12  Assistance Act, assisting individuals seeking to file

13  a motion to vacate and expunge under this subsection

14  may file motions to vacate and expunge with the Chief

15  Judge of a judicial circuit or any judge of the circuit

16  designated by the Chief Judge, and the motion may

17  include more than one individual.

18  (4) Any State's Attorney may file a motion to vacate

19  and expunge a conviction for a Class 4 felony violation of

20  prostitution. Motions to vacate and expunge under this

21  subsection (j) may be filed with the circuit court, Chief

22  Judge of a judicial circuit, or any judge of the circuit

23  court designated by the Chief Judge, and may include more

24  than one individual. When considering the motion to vacate

25  and expunge, a court shall consider the following reasons:

26  (A) the reasons to retain the records provided by
    SB3222 Enrolled   - 81 - LRB104 19119 AAS 32564 b

1   law enforcement;

2   (B) the petitioner's age;

3   (C) the petitioner's age at the time of offense;

4   (D) the time since the conviction; and

5   (E) the specific adverse consequences if denied.

6   If the State's Attorney files a motion to vacate and

7   expunge records for felony prostitution convictions

8   pursuant to this Section, the State's Attorney shall

9   notify the Prisoner Review Board within 30 days of the

10  filing. If a motion to vacate and expunge is granted, the

11  records shall be expunged in accordance with subparagraph

12  (d)(9)(A) of this Section.

13  (5) In the public interest, the State's Attorney of a

14  county has standing to file motions to vacate and expunge

15  pursuant to this Section in the circuit court with

16  jurisdiction over the underlying conviction.

17  (6) The Illinois State Police shall allow a person to

18  a use the access and review process, established in the

19  Illinois State Police, for verifying that his or her

20  records relating to felony prostitution eligible under

21  this Section have been expunged.

22  (7) No conviction vacated pursuant to this Section

23  shall serve as the basis for damages for time unjustly

24  served as provided in the Court of Claims Act.

25  (8) Effect of Expungement. A person's right to expunge

26  an expungeable offense shall not be limited under this
    SB3222 Enrolled          - 82 - LRB104 19119 AAS 32564 b

1   Section. The effect of an order of expungement shall be to

2   restore the person to the status he or she occupied before

3   the arrest, charge, or conviction.

4   (9) Information. The Illinois State Police shall post

5   general information on its website about the expungement

6   or sealing process described in this subsection (j).

7 (Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;

8 103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.

9 7-1-25; 104-417, eff. 8-15-25; revised 1-20-26.)

10  (Text of Section after amendment by P.A. 104-459)

11  Sec. 5.2. Expungement, sealing, and immediate sealing.

12  (a) General Provisions.

13  (1) Definitions. In this Act, words and phrases have

14  the meanings set forth in this subsection, except when a

15  particular context clearly requires a different meaning.

16  (A) The following terms shall have the meanings

17  ascribed to them in the following Sections of the

18  Unified Code of Corrections:

19                   Business Offense, Section 5-1-2.

20                   Charge, Section 5-1-3.

21                   Court, Section 5-1-6.

22                   Defendant, Section 5-1-7.

23                   Felony, Section 5-1-9.

24                   Imprisonment, Section 5-1-10.

25                   Judgment, Section 5-1-12.
    SB3222 Enrolled  - 83 - LRB104 19119 AAS 32564 b

1                    Misdemeanor, Section 5-1-14.

2                    Offense, Section 5-1-15.

3                    Parole, Section 5-1-16.

4                    Petty Offense, Section 5-1-17.

5                    Probation, Section 5-1-18.

6                    Sentence, Section 5-1-19.

7                    Supervision, Section 5-1-21.

8                    Victim, Section 5-1-22.

9   (B) As used in this Section, "charge not initiated

10  by arrest" means a charge (as defined by Section 5-1-3

11  of the Unified Code of Corrections) brought against a

12  defendant where the defendant is not arrested prior to

13  or as a direct result of the charge.

14  (C) "Conviction" means a judgment of conviction or

15  sentence entered upon a plea of guilty or upon a

16  verdict or finding of guilty of an offense, rendered

17  by a legally constituted jury or by a court of

18  competent jurisdiction authorized to try the case

19  without a jury. An order of supervision successfully

20  completed by the petitioner is not a conviction. An

21  order of qualified probation (as defined in subsection

22  (a)(1)(J)) successfully completed by the petitioner is

23  not a conviction. An order of supervision or an order

24  of qualified probation that is terminated

25  unsatisfactorily is a conviction, unless the

26  unsatisfactory termination is reversed, vacated, or
    SB3222 Enrolled       - 84 - LRB104 19119 AAS 32564 b

1   modified and the judgment of conviction, if any, is

2   reversed or vacated.

3   (D) "Criminal offense" means a petty offense,

4   business offense, misdemeanor, felony, or municipal

5   ordinance violation (as defined in subsection

6   (a)(1)(H)). As used in this Section, a minor traffic

7   offense (as defined in subsection (a)(1)(G)) shall not

8   be considered a criminal offense.

9   (E) "Expunge" means to physically destroy the

10  records or return them to the petitioner and to

11  obliterate the petitioner's name from any official

12  index or public record, or both. Nothing in this Act

13  shall require the physical destruction of the circuit

14  court file, but such records relating to arrests or

15  charges, or both, ordered expunged shall be impounded

16  as required by subsections (d)(9)(A)(ii) and

17  (d)(9)(B)(ii).

18  (F) As used in this Section, "last sentence" means

19  the sentence, order of supervision, or order of

20  qualified probation (as defined by subsection

21  (a)(1)(J)), for a criminal offense (as defined by

22  subsection (a)(1)(D)) that terminates last in time in

23  any jurisdiction, regardless of whether the petitioner

24  has included the criminal offense for which the

25  sentence or order of supervision or qualified

26  probation was imposed in his or her petition. If
    SB3222 Enrolled      - 85 - LRB104 19119 AAS 32564 b

1   multiple sentences, orders of supervision, or orders

2   of qualified probation terminate on the same day and

3   are last in time, they shall be collectively

4   considered the "last sentence" regardless of whether

5   they were ordered to run concurrently.

6   (G) "Minor traffic offense" means a petty offense,

7   business offense, or Class C misdemeanor under the

8   Illinois Vehicle Code or a similar provision of a

9   municipal or local ordinance.

10  (G-5) "Minor Cannabis Offense" means a violation

11  of Section 4 or 5 of the Cannabis Control Act

12  concerning not more than 60 30 grams of any substance

13  containing cannabis, provided the violation did not

14  include a penalty enhancement under Section 7 of the

15  Cannabis Control Act and is not associated with an

16  arrest, conviction or other disposition for a violent

17  crime as defined in subsection (c) of Section 3 of the

18  Rights of Crime Victims and Witnesses Act.

19  (H) "Municipal ordinance violation" means an

20  offense defined by a municipal or local ordinance that

21  is criminal in nature and with which the petitioner

22  was charged or for which the petitioner was arrested

23  and released without charging.

24  (I) "Petitioner" means an adult or a minor

25  prosecuted as an adult who has applied for relief

26  under this Section.
    SB3222 Enrolled  - 86 - LRB104 19119 AAS 32564 b

1   (J) "Qualified probation" means an order of

2   probation under Section 10 of the Cannabis Control

3   Act, Section 410 of the Illinois Controlled Substances

4   Act, Section 70 of the Methamphetamine Control and

5   Community Protection Act, Section 5-6-3.3 or 5-6-3.4

6   of the Unified Code of Corrections, Section

7   12-4.3(b)(1) and (2) of the Criminal Code of 1961 (as

8   those provisions existed before their deletion by

9   Public Act 89-313), Section 10-102 of the Illinois

10  Alcoholism and Other Drug Dependency Act, Section

11  40-10 of the Substance Use Disorder Act, or Section 10

12  of the Steroid Control Act. For the purpose of this

13  Section, "successful completion" of an order of

14  qualified probation under Section 10-102 of the

15  Illinois Alcoholism and Other Drug Dependency Act and

16  Section 40-10 of the Substance Use Disorder Act means

17  that the probation was terminated satisfactorily and

18  the judgment of conviction was vacated.

19  (K) (i) Except as provided in subdivision (ii),

20  "seal" means to physically and electronically maintain

21  the records, unless the records would otherwise be

22  destroyed due to age, but to make the records

23  unavailable without a court order, subject to the

24  exceptions in Sections 12 and 13 of this Act. The

25  petitioner's name shall also be obliterated from the

26  official index required to be kept by the circuit
    SB3222 Enrolled  - 87 - LRB104 19119 AAS 32564 b

1   court clerk under Section 16 of the Clerks of Courts

2   Act, but any index issued by the circuit court clerk

3   before the entry of the order to seal shall not be

4   affected.

5   (ii) For records subject to relief under

6   subsection (k) of this Section, "seal" means to

7   physically and electronically maintain the records,

8   unless the records would otherwise be destroyed due to

9   age, but to have the records impounded, as defined in

10  paragraph (2) of subsection (b) of Section 5 of the

11  Court Record and Document Accessibility Act. The

12  defendant's name shall also be obliterated from the

13  official index required to be kept by the circuit

14  court clerk under Section 16 of the Clerks of Courts

15  Act. Upon request, and without court order, the

16  circuit court clerk shall provide to the Illinois

17  State Police the disposition information for any

18  record that was ordered to be sealed or impounded

19  pursuant to this Section.

20  (L) "Sexual offense committed against a minor"

21  includes, but is not limited to, the offenses of

22  indecent solicitation of a child or criminal sexual

23  abuse when the victim of such offense is under 18 years

24  of age.

25  (M) "Terminate" as it relates to a sentence or

26  order of supervision or qualified probation includes
    SB3222 Enrolled  - 88 - LRB104 19119 AAS 32564 b

1   either satisfactory or unsatisfactory termination of

2   the sentence, unless otherwise specified in this

3   Section. A sentence is terminated notwithstanding any

4   outstanding financial legal obligation.

5   (2) Minor Traffic Offenses. Orders of supervision or

6   convictions for minor traffic offenses shall not affect a

7   petitioner's eligibility to expunge or seal records

8   pursuant to this Section.

9   (2.5) Commencing 180 days after July 29, 2016 (the

10  effective date of Public Act 99-697), the law enforcement

11  agency issuing the citation shall automatically expunge,

12  on or before January 1 and July 1 of each year, the law

13  enforcement records of a person found to have committed a

14  civil law violation of subsection (a) of Section 4 of the

15  Cannabis Control Act or subsection (c) of Section 3.5 of

16  the Drug Paraphernalia Control Act in the law enforcement

17  agency's possession or control and which contains the

18  final satisfactory disposition which pertain to the person

19  issued a citation for that offense. The law enforcement

20  agency shall provide by rule the process for access,

21  review, and to confirm the automatic expungement by the

22  law enforcement agency issuing the citation. Commencing

23  180 days after July 29, 2016 (the effective date of Public

24  Act 99-697), the clerk of the circuit court shall expunge,

25  upon order of the court, or in the absence of a court order

26  on or before January 1 and July 1 of each year, the court
    SB3222 Enrolled  - 89 - LRB104 19119 AAS 32564 b

1   records of a person found in the circuit court to have

2   committed a civil law violation of subsection (a) of

3   Section 4 of the Cannabis Control Act or subsection (c) of

4   Section 3.5 of the Drug Paraphernalia Control Act in the

5   clerk's possession or control and which contains the final

6   satisfactory disposition which pertain to the person

7   issued a citation for any of those offenses.

8   (3) Exclusions. Except as otherwise provided in

9   subsections (b)(5), (b)(6), (b)(8), (e), (e-5), and (e-6)

10  of this Section, the court shall not order:

11  (A) the sealing or expungement of the records of

12  arrests or charges not initiated by arrest that result

13  in an order of supervision for or conviction of: (i)

14  any sexual offense committed against a minor; (ii)

15  Section 11-501 of the Illinois Vehicle Code or a

16  similar provision of a local ordinance; or (iii)

17  Section 11-503 of the Illinois Vehicle Code or a

18  similar provision of a local ordinance, unless the

19  arrest or charge is for a misdemeanor violation of

20  subsection (a) of Section 11-503 or a similar

21  provision of a local ordinance, that occurred prior to

22  the offender reaching the age of 25 years and the

23  offender has no other conviction for violating Section

24  11-501 or 11-503 of the Illinois Vehicle Code or a

25  similar provision of a local ordinance.

26  (B) the sealing or expungement of records of minor
    SB3222 Enrolled    - 90 - LRB104 19119 AAS 32564 b

1   traffic offenses (as defined in subsection (a)(1)(G)),

2   unless the petitioner was arrested and released

3   without charging.

4   (C) the sealing of the records of arrests or

5   charges not initiated by arrest which result in an

6   order of supervision or a conviction for the following

7   offenses:

8                    (i) offenses included in Article 11 of the

9   Criminal Code of 1961 or the Criminal Code of 2012

10  or a similar provision of a local ordinance,

11  except Section 11-14 and a misdemeanor violation

12  of Section 11-30 of the Criminal Code of 1961 or

13  the Criminal Code of 2012, or a similar provision

14  of a local ordinance;

15                   (ii) Section 11-1.50, 12-3.4, 12-15, 12-30,

16  26-5, or 48-1 of the Criminal Code of 1961 or the

17  Criminal Code of 2012, or a similar provision of a

18  local ordinance;

19                   (iii) Section 12-3.1 or 12-3.2 of the Criminal

20  Code of 1961 or the Criminal Code of 2012, or

21  Section 125 of the Stalking No Contact Order Act,

22  or Section 219 of the Civil No Contact Order Act,

23  or a similar provision of a local ordinance;

24                   (iv) Class A misdemeanors or felony offenses

25  under the Humane Care for Animals Act; or

26                   (v) any offense or attempted offense that
    SB3222 Enrolled   - 91 - LRB104 19119 AAS 32564 b

1   would subject a person to registration under the

2   Sex Offender Registration Act.

3   (D) (blank).

4   (b) Expungement.

5   (1) A petitioner may petition the circuit court to

6   expunge the records of his or her arrests and charges not

7   initiated by arrest when each arrest or charge not

8   initiated by arrest sought to be expunged resulted in: (i)

9   acquittal, dismissal, or the petitioner's release without

10  charging, unless excluded by subsection (a)(3)(B); (ii) a

11  conviction which was vacated or reversed, unless excluded

12  by subsection (a)(3)(B); (iii) an order of supervision and

13  such supervision was successfully completed by the

14  petitioner, unless excluded by subsection (a)(3)(A) or

15  (a)(3)(B); or (iv) an order of qualified probation (as

16  defined in subsection (a)(1)(J)) and such probation was

17  successfully completed by the petitioner.

18  (1.5) When a petitioner seeks to have a record of

19  arrest expunged under this Section, and the petitioner has

20  been convicted of a criminal offense, the State's Attorney

21  may object to the expungement on the grounds that the

22  records contain specific relevant information aside from

23  the mere fact of the arrest.

24  (2) Time frame for filing a petition to expunge.

25  (A) When the arrest or charge not initiated by

26  arrest sought to be expunged resulted in an acquittal,
    SB3222 Enrolled  - 92 - LRB104 19119 AAS 32564 b

1   dismissal, the petitioner's release without charging,

2   or the reversal or vacation of a conviction, there is

3   no waiting period to petition for the expungement of

4   such records.

5   (A-5) In anticipation of the successful completion

6   of a problem-solving court, pre-plea diversion, or

7   post-plea diversion program, a petition for

8   expungement may be filed 61 days before the

9   anticipated dismissal of the case or any time

10  thereafter. Upon successful completion of the program

11  and dismissal of the case, the court shall review the

12  petition of the person graduating from the program and

13  shall grant expungement if the petitioner meets all

14  requirements as specified in any applicable statute.

15  (B) When the arrest or charge not initiated by

16  arrest sought to be expunged resulted in an order of

17  supervision, successfully completed by the petitioner,

18  the following time frames will apply:

19                   (i) Those arrests or charges that resulted in

20  orders of supervision under Section 3-707, 3-708,

21  3-710, or 5-401.3 of the Illinois Vehicle Code or

22  a similar provision of a local ordinance, or under

23  Section 11-1.50, 12-3.2, or 12-15 of the Criminal

24  Code of 1961 or the Criminal Code of 2012, or a

25  similar provision of a local ordinance, shall not

26  be eligible for expungement until 5 years have
    SB3222 Enrolled   - 93 - LRB104 19119 AAS 32564 b

1   passed following the satisfactory termination of

2   the supervision.

3                    (i-5) Those arrests or charges that resulted

4   in orders of supervision for a misdemeanor

5   violation of subsection (a) of Section 11-503 of

6   the Illinois Vehicle Code or a similar provision

7   of a local ordinance, that occurred prior to the

8   petitioner reaching the age of 25 years and the

9   petitioner has no other conviction for violating

10  Section 11-501 or 11-503 of the Illinois Vehicle

11  Code or a similar provision of a local ordinance

12  shall not be eligible for expungement until the

13  petitioner has reached the age of 25 years.

14                   (ii) Those arrests or charges that resulted in

15  orders of supervision for any other offenses shall

16  not be eligible for expungement until 2 years have

17  passed following the satisfactory termination of

18  the supervision.

19  (C) When the arrest or charge not initiated by

20  arrest sought to be expunged resulted in an order of

21  qualified probation, successfully completed by the

22  petitioner, such records shall not be eligible for

23  expungement until 5 years have passed following the

24  satisfactory termination of the probation.

25  (3) Those records maintained by the Illinois State

26  Police for persons arrested prior to their 17th birthday
    SB3222 Enrolled  - 94 - LRB104 19119 AAS 32564 b

1   shall be expunged as provided in Section 5-915 of the

2   Juvenile Court Act of 1987.

3   (4) Whenever a person has been arrested for or

4   convicted of any offense, in the name of a person whose

5   identity he or she has stolen or otherwise come into

6   possession of, the aggrieved person from whom the identity

7   was stolen or otherwise obtained without authorization,

8   upon learning of the person having been arrested using his

9   or her identity, may, upon verified petition to the chief

10  judge of the circuit wherein the arrest was made, have a

11  court order entered nunc pro tunc by the Chief Judge to

12  correct the arrest record, conviction record, if any, and

13  all official records of the arresting authority, the

14  Illinois State Police, other criminal justice agencies,

15  the prosecutor, and the trial court concerning such

16  arrest, if any, by removing his or her name from all such

17  records in connection with the arrest and conviction, if

18  any, and by inserting in the records the name of the

19  petitioner, if known or ascertainable, in lieu of the

20  aggrieved's name. The records of the circuit court clerk

21  shall be sealed until further order of the court upon good

22  cause shown and the name of the aggrieved person

23  obliterated on the official index required to be kept by

24  the circuit court clerk under Section 16 of the Clerks of

25  Courts Act, but the order shall not affect any index

26  issued by the circuit court clerk before the entry of the
    SB3222 Enrolled  - 95 - LRB104 19119 AAS 32564 b

1   order. Nothing in this Section shall limit the Illinois

2   State Police or other criminal justice agencies or

3   prosecutors from listing under a petitioner's name the

4   false names he or she has used.

5   (5) Whenever a person has been convicted of criminal

6   sexual assault, aggravated criminal sexual assault,

7   predatory criminal sexual assault of a child, criminal

8   sexual abuse, or aggravated criminal sexual abuse, the

9   victim of that offense may request that the State's

10  Attorney of the county in which the conviction occurred

11  file a verified petition with the presiding trial judge at

12  the petitioner's trial to have a court order entered to

13  seal the records of the circuit court clerk in connection

14  with the proceedings of the trial court concerning that

15  offense. However, the records of the arresting authority

16  and the Illinois State Police concerning the offense shall

17  not be sealed. The court, upon good cause shown, shall

18  make the records of the circuit court clerk in connection

19  with the proceedings of the trial court concerning the

20  offense available for public inspection.

21  (6) If a conviction has been set aside on direct

22  review or on collateral attack and the court determines by

23  clear and convincing evidence that the petitioner was

24  factually innocent of the charge, the court that finds the

25  petitioner factually innocent of the charge shall enter an

26  expungement order for the conviction for which the
    SB3222 Enrolled       - 96 - LRB104 19119 AAS 32564 b

1   petitioner has been determined to be innocent as provided

2   in subsection (b) of Section 5-5-4 of the Unified Code of

3   Corrections.

4   (7) Nothing in this Section shall prevent the Illinois

5   State Police from maintaining all records of any person

6   who is admitted to probation upon terms and conditions and

7   who fulfills those terms and conditions pursuant to

8   Section 10 of the Cannabis Control Act, Section 410 of the

9   Illinois Controlled Substances Act, Section 70 of the

10  Methamphetamine Control and Community Protection Act,

11  Section 5-6-3.3 or 5-6-3.4 of the Unified Code of

12  Corrections, Section 12-4.3 or subdivision (b)(1) of

13  Section 12-3.05 of the Criminal Code of 1961 or the

14  Criminal Code of 2012, Section 10-102 of the Illinois

15  Alcoholism and Other Drug Dependency Act, Section 40-10 of

16  the Substance Use Disorder Act, or Section 10 of the

17  Steroid Control Act.

18  (8) If the petitioner has been granted a certificate

19  of innocence under Section 2-702 of the Code of Civil

20  Procedure, the court that grants the certificate of

21  innocence shall also enter an order expunging the

22  conviction for which the petitioner has been determined to

23  be innocent as provided in subsection (h) of Section 2-702

24  of the Code of Civil Procedure.

25  (c) Sealing.

26  (1) Applicability. Notwithstanding any other provision
    SB3222 Enrolled     - 97 - LRB104 19119 AAS 32564 b

1   of this Act to the contrary, and cumulative with any

2   rights to expungement of criminal records, this subsection

3   authorizes the sealing of criminal records of adults and

4   of minors prosecuted as adults. Subsection (g) of this

5   Section provides for immediate sealing of certain records.

6   (2) Eligible Records. The following records may be

7   sealed:

8            (A) All arrests resulting in release without

9   charging;

10           (B) Arrests or charges not initiated by arrest

11  resulting in acquittal, dismissal, or conviction when

12  the conviction was reversed or vacated, except as

13  excluded by subsection (a)(3)(B);

14           (C) Arrests or charges not initiated by arrest

15  resulting in orders of supervision, including orders

16  of supervision for municipal ordinance violations,

17  successfully completed by the petitioner, unless

18  excluded by subsection (a)(3);

19           (C-5) Arrests or charges not initiated by arrest

20  resulting in orders of qualified probation;

21           (D) Arrests or charges not initiated by arrest

22  resulting in convictions with sentences of conditional

23  discharge or probation, completed without revocation

24  by the petitioner, unless otherwise excluded by

25  subsection (a)(3);

26           (E) Arrests or charges not initiated by arrest
    SB3222 Enrolled     - 98 - LRB104 19119 AAS 32564 b

1   resulting in misdemeanor convictions not included in

2   subsection (c)(2)(D), including convictions on

3   municipal ordinance violations, unless excluded by

4   subsection (a)(3); and

5   (F) Arrests or charges not initiated by arrest

6   resulting in felony convictions not included in

7   subsection (c)(2)(D) unless otherwise excluded by

8   subsection (a)(3).

9   (3) When Records Are Eligible to Be Sealed. Records

10  identified as eligible under subsection (c)(2) may be

11  sealed as follows:

12  (A) Records identified as eligible under

13  subsections (c)(2)(A) and (c)(2)(B) may be sealed at

14  any time.

15  (B) Records identified as eligible under

16  subsection (c)(2)(C), (c)(2)(C-5), (c)(2)(D), or

17  (c)(2)(E) may be sealed 2 years after the termination

18  of petitioner's last sentence (as defined in

19  subsection (a)(1)(F)).

20  (C) Except as otherwise provided in subparagraphs

21  (B) and (E) of this paragraph (3), records identified

22  as eligible under subsection (c)(2)(F) may be sealed 3

23  years after the termination of the petitioner's last

24  sentence (as defined in subsection (a)(1)(F)).

25  Convictions requiring public registration under the

26  Arsonist Registry Act, the Sex Offender Registration
    SB3222 Enrolled     - 99 - LRB104 19119 AAS 32564 b

1   Act, or the Murderer and Violent Offender Against

2   Youth Registration Act may not be sealed until the

3   petitioner is no longer required to register under

4   that relevant Act.

5   (D) Records identified in subsection

6   (a)(3)(A)(iii) may be sealed after the petitioner has

7   reached the age of 25 years.

8   (E) Records identified as eligible under

9   subsection (c)(2)(F) may be sealed upon termination of

10  the petitioner's last sentence if the petitioner

11  earned a high school diploma, associate's degree,

12  career           certificate,  vocational      technical

13  certification, or bachelor's degree, or passed the

14  high school level Test of General Educational

15  Development, during the period of his or her sentence

16  or mandatory supervised release. This subparagraph

17  shall apply only to a petitioner who has not completed

18  the same educational goal prior to the period of his or

19  her sentence or mandatory supervised release. If a

20  petition for sealing eligible records filed under this

21  subparagraph is denied by the court, the time periods

22  under subparagraph (C) shall apply to any subsequent

23  petition for sealing filed by the petitioner.

24  (4) (Blank).

25  (5) Notice of eligibility for sealing. Upon entry of a

26  disposition for an eligible record under this subsection
    SB3222 Enrolled    - 100 - LRB104 19119 AAS 32564 b

1   (c), the petitioner shall be informed by the court of the

2   right to have the records sealed and the procedures for

3   the sealing of the records.

4   (d) Procedure. The following procedures apply to

5 expungement under subsections (b), (e), and (e-6) and sealing

6 under subsections (c) and (e-5):

7   (1) Filing the petition. Upon becoming eligible to

8   petition for the expungement or sealing of records under

9   this Section, the petitioner shall file a petition

10  requesting the expungement or sealing of records with the

11  clerk of the court where the arrests occurred or the

12  charges were brought, or both. If arrests occurred or

13  charges were brought in multiple jurisdictions, a petition

14  must be filed in each such jurisdiction. The petitioner

15  shall pay the applicable fee, except no fee shall be

16  required if the petitioner has obtained a court order

17  waiving fees under Supreme Court Rule 298 or it is

18  otherwise waived.

19  (1.5) County fee waiver pilot program. From August 9,

20  2019 (the effective date of Public Act 101-306) through

21  December 31, 2020, in a county of 3,000,000 or more

22  inhabitants, no fee shall be required to be paid by a

23  petitioner if the records sought to be expunged or sealed

24  were arrests resulting in release without charging or

25  arrests or charges not initiated by arrest resulting in

26  acquittal, dismissal, or conviction when the conviction
    SB3222 Enrolled  - 101 - LRB104 19119 AAS 32564 b

1   was reversed or vacated, unless excluded by subsection

2   (a)(3)(B). The provisions of this paragraph (1.5), other

3   than this sentence, are inoperative on and after January

4   1, 2022.

5   (2) Contents of petition. The petition shall be

6   verified and shall contain the petitioner's name, date of

7   birth, current address and, for each arrest or charge not

8   initiated by arrest sought to be sealed or expunged, the

9   case number, the date of arrest (if any), the identity of

10  the arresting authority, and such other information as the

11  court may require. During the pendency of the proceeding,

12  the petitioner shall promptly notify the circuit court

13  clerk of any change of his or her address. If the

14  petitioner has received a certificate of eligibility for

15  sealing from the Prisoner Review Board under paragraph

16  (10) of subsection (a) of Section 3-3-2 of the Unified

17  Code of Corrections, the certificate shall be attached to

18  the petition.

19  (3) (Blank).

20  (4) Service of petition. The circuit court clerk shall

21  promptly serve a copy of the petition and documentation to

22  support the petition under subsection (e-5) or (e-6) on

23  the State's Attorney or prosecutor charged with the duty

24  of prosecuting the offense, the Illinois State Police, the

25  arresting agency, and, for municipal ordinance violations,

26  the chief legal officer of the unit of local government
    SB3222 Enrolled        - 102 - LRB104 19119 AAS 32564 b

1   effecting the arrest.

2   (5) Objections.

3   (A) Any party entitled to notice of the petition

4   may file an objection to the petition. All objections

5   shall be in writing, shall be filed with the circuit

6   court clerk, and shall state with specificity the

7   basis of the objection. Whenever a person who has been

8   convicted of an offense is granted a pardon by the

9   Governor which specifically authorizes expungement, an

10  objection to the petition may not be filed.

11  (B) Objections to a petition to expunge or seal

12  must be filed within 60 days of the date of service of

13  the petition.

14  (6) Entry of order.

15  (A) The Chief Judge of the circuit wherein the

16  charge was brought, any judge of that circuit

17  designated by the Chief Judge, or in counties of less

18  than 3,000,000 inhabitants, the presiding trial judge

19  at the petitioner's trial, if any, shall rule on the

20  petition to expunge or seal as set forth in this

21  subsection (d)(6).

22  (B) Unless the State's Attorney or prosecutor, the

23  Illinois State Police, the arresting agency, or the

24  chief legal officer files an objection to the petition

25  to expunge or seal within 60 days from the date of

26  service of the petition, the court shall enter an
    SB3222 Enrolled  - 103 - LRB104 19119 AAS 32564 b

1   order granting or denying the petition.

2   (C) Notwithstanding any other provision of law,

3   the court shall not deny a petition for sealing under

4   this Section because the petitioner has not satisfied

5   an outstanding legal financial obligation established,

6   imposed, or originated by a court, law enforcement

7   agency, or a municipal, State, county, or other unit

8   of local government, including, but not limited to,

9   any cost, assessment, fine, or fee. An outstanding

10  legal financial obligation does not include any court

11  ordered restitution to a victim under Section 5-5-6 of

12  the Unified Code of Corrections, unless the

13  restitution has been converted to a civil judgment.

14  Nothing in this subparagraph (C) waives, rescinds, or

15  abrogates a legal financial obligation or otherwise

16  eliminates or affects the right of the holder of any

17  financial obligation to pursue collection under

18  applicable federal, State, or local law.

19  (D) (Blank).

20  (7) Hearings. If an objection is filed, the court

21  shall set a date for a hearing and notify the petitioner

22  and all parties entitled to notice of the petition of the

23  hearing date at least 30 days prior to the hearing. Prior

24  to the hearing, the State's Attorney shall consult with

25  the Illinois State Police as to the appropriateness of the

26  relief sought in the petition to expunge or seal. At the
    SB3222 Enrolled          - 104 - LRB104 19119 AAS 32564 b

1   hearing, the court shall hear evidence on whether the

2   petition should or should not be granted, and shall grant

3   or deny the petition to expunge or seal the records based

4   on the evidence presented at the hearing. The court may

5   consider the following:

6   (A) the strength of the evidence supporting the

7   defendant's conviction;

8   (B) the reasons for retention of the conviction

9   records by the State;

10  (C) the petitioner's age, criminal record history,

11  and employment history;

12  (D) the period of time between the petitioner's

13  arrest on the charge resulting in the conviction and

14  the filing of the petition under this Section; and

15  (E) the specific adverse consequences the

16  petitioner may be subject to if the petition is

17  denied.

18  (8) Service of order. After entering an order to

19  expunge or seal records, the court must provide copies of

20  the order to the Illinois State Police, in a form and

21  manner prescribed by the Illinois State Police, to the

22  petitioner, to the State's Attorney or prosecutor charged

23  with the duty of prosecuting the offense, to the arresting

24  agency, to the chief legal officer of the unit of local

25  government effecting the arrest for municipal ordinance

26  violations, and to such other criminal justice agencies as
    SB3222 Enrolled         - 105 - LRB104 19119 AAS 32564 b

1   may be ordered by the court. The disposition information

2   for each case or record ordered expunged, sealed, or

3   impounded shall be attached to the order provided to the

4   Illinois State Police.

5   (9) Implementation of order.

6   (A) Upon entry of an order to expunge records

7   pursuant to subsection (b)(2)(A) or (b)(2)(B)(ii), or

8   both:

9                    (i) the records shall be expunged (as defined

10  in subsection (a)(1)(E)) by the arresting agency,

11  the Illinois State Police, and any other agency as

12  ordered by the court, within 60 days of the date of

13  service of the order, unless a motion to vacate,

14  modify, or reconsider the order is filed pursuant

15  to paragraph (12) of subsection (d) of this

16  Section;

17                   (ii) the records of the circuit court clerk

18  shall be impounded until further order of the

19  court upon good cause shown and the name of the

20  petitioner obliterated on the official index

21  required to be kept by the circuit court clerk

22  under Section 16 of the Clerks of Courts Act, but

23  the order shall not affect any index issued by the

24  circuit court clerk before the entry of the order;

25  and

26                   (iii) in response to an inquiry for expunged
    SB3222 Enrolled  - 106 - LRB104 19119 AAS 32564 b

1   records, the court, the Illinois State Police, or

2   the agency receiving such inquiry, shall reply as

3   it does in response to inquiries when no records

4   ever existed.

5   (B) Upon entry of an order to expunge records

6   pursuant to subsection (b)(2)(B)(i) or (b)(2)(C), or

7   both:

8                    (i) the records shall be expunged (as defined

9   in subsection (a)(1)(E)) by the arresting agency

10  and any other agency as ordered by the court,

11  within 60 days of the date of service of the order,

12  unless a motion to vacate, modify, or reconsider

13  the order is filed pursuant to paragraph (12) of

14  subsection (d) of this Section;

15                   (ii) the records of the circuit court clerk

16  shall be impounded until further order of the

17  court upon good cause shown and the name of the

18  petitioner obliterated on the official index

19  required to be kept by the circuit court clerk

20  under Section 16 of the Clerks of Courts Act, but

21  the order shall not affect any index issued by the

22  circuit court clerk before the entry of the order;

23                   (iii) the records shall be impounded by the

24  Illinois State Police within 60 days of the date

25  of service of the order as ordered by the court,

26  unless a motion to vacate, modify, or reconsider
    SB3222 Enrolled  - 107 - LRB104 19119 AAS 32564 b

1   the order is filed pursuant to paragraph (12) of

2   subsection (d) of this Section;

3                    (iv) records impounded by the Illinois State

4   Police may be disseminated by the Illinois State

5   Police only as required by law or to the arresting

6   authority, the State's Attorney, and the court

7   upon a later arrest for the same or a similar

8   offense or for the purpose of sentencing for any

9   subsequent felony, and to the Department of

10  Corrections upon conviction for any offense; and

11                   (v) in response to an inquiry for such records

12  from anyone not authorized by law to access such

13  records, the court, the Illinois State Police, or

14  the agency receiving such inquiry shall reply as

15  it does in response to inquiries when no records

16  ever existed.

17  (B-5) Upon entry of an order to expunge records

18  under subsection (e-6):

19                   (i) the records shall be expunged (as defined

20  in subsection (a)(1)(E)) by the arresting agency

21  and any other agency as ordered by the court,

22  within 60 days of the date of service of the order,

23  unless a motion to vacate, modify, or reconsider

24  the order is filed under paragraph (12) of

25  subsection (d) of this Section;

26                   (ii) the records of the circuit court clerk
    SB3222 Enrolled  - 108 - LRB104 19119 AAS 32564 b

1   shall be impounded until further order of the

2   court upon good cause shown and the name of the

3   petitioner obliterated on the official index

4   required to be kept by the circuit court clerk

5   under Section 16 of the Clerks of Courts Act, but

6   the order shall not affect any index issued by the

7   circuit court clerk before the entry of the order;

8                    (iii) the records shall be impounded by the

9   Illinois State Police within 60 days of the date

10  of service of the order as ordered by the court,

11  unless a motion to vacate, modify, or reconsider

12  the order is filed under paragraph (12) of

13  subsection (d) of this Section;

14                   (iv) records impounded by the Illinois State

15  Police may be disseminated by the Illinois State

16  Police only as required by law or to the arresting

17  authority, the State's Attorney, and the court

18  upon a later arrest for the same or a similar

19  offense or for the purpose of sentencing for any

20  subsequent felony, and to the Department of

21  Corrections upon conviction for any offense; and

22                   (v) in response to an inquiry for these

23  records from anyone not authorized by law to

24  access the records, the court, the Illinois State

25  Police, or the agency receiving the inquiry shall

26  reply as it does in response to inquiries when no
    SB3222 Enrolled  - 109 - LRB104 19119 AAS 32564 b

1   records ever existed.

2   (C) Upon entry of an order to seal records under

3   subsection (c), the arresting agency, any other agency

4   as ordered by the court, the Illinois State Police,

5   and the court shall seal the records (as defined in

6   subsection (a)(1)(K)). In response to an inquiry for

7   such records, from anyone not authorized by law to

8   access such records, the court, the Illinois State

9   Police, or the agency receiving such inquiry shall

10  reply as it does in response to inquiries when no

11  records ever existed.

12  (D) The Illinois State Police shall send written

13  notice to the petitioner of its compliance with each

14  order to expunge or seal records within 60 days of the

15  date of service of that order or, if a motion to

16  vacate, modify, or reconsider is filed, within 60 days

17  of service of the order resolving the motion, if that

18  order requires the Illinois State Police to expunge or

19  seal records. In the event of an appeal from the

20  circuit court order, the Illinois State Police shall

21  send written notice to the petitioner of its

22  compliance with an Appellate Court or Supreme Court

23  judgment to expunge or seal records within 60 days of

24  the issuance of the court's mandate. The notice is not

25  required while any motion to vacate, modify, or

26  reconsider, or any appeal or petition for
    SB3222 Enrolled  - 110 - LRB104 19119 AAS 32564 b

1   discretionary appellate review, is pending.

2   (E) Upon motion, the court may order that a sealed

3   judgment or other court record necessary to

4   demonstrate the amount of any legal financial

5   obligation due and owing be made available for the

6   limited purpose of collecting any legal financial

7   obligations owed by the petitioner that were

8   established, imposed, or originated in the criminal

9   proceeding for which those records have been sealed.

10  The records made available under this subparagraph (E)

11  shall not be entered into the official index required

12  to be kept by the circuit court clerk under Section 16

13  of the Clerks of Courts Act and shall be immediately

14  re-impounded upon the collection of the outstanding

15  financial obligations.

16  (F) Notwithstanding any other provision of this

17  Section, a circuit court clerk may access a sealed

18  record for the limited purpose of collecting payment

19  for any legal financial obligations that were

20  established, imposed, or originated in the criminal

21  proceedings for which those records have been sealed.

22  (10) Fees. The Illinois State Police may charge the

23  petitioner a fee equivalent to the cost of processing any

24  order to expunge or seal records. Notwithstanding any

25  provision of the Clerks of Courts Act to the contrary, the

26  circuit court clerk may charge a fee equivalent to the
    SB3222 Enrolled  - 111 - LRB104 19119 AAS 32564 b

1   cost associated with the sealing or expungement of records

2   by the circuit court clerk. From the total filing fee

3   collected for the petition to seal or expunge, the circuit

4   court clerk shall deposit $10 into the Circuit Court Clerk

5   Operation and Administrative Fund, to be used to offset

6   the costs incurred by the circuit court clerk in

7   performing the additional duties required to serve the

8   petition to seal or expunge on all parties. The circuit

9   court clerk shall collect and remit the Illinois State

10  Police portion of the fee to the State Treasurer and it

11  shall be deposited in the State Police Services Fund. If

12  the record brought under an expungement petition was

13  previously sealed under this Section, the fee for the

14  expungement petition for that same record shall be waived.

15  (11) Final Order. No court order issued under the

16  expungement or sealing provisions of this Section shall

17  become final for purposes of appeal until 30 days after

18  service of the order on the petitioner and all parties

19  entitled to notice of the petition.

20  (12) Motion to Vacate, Modify, or Reconsider. Under

21  Section 2-1203 of the Code of Civil Procedure, the

22  petitioner or any party entitled to notice may file a

23  motion to vacate, modify, or reconsider the order granting

24  or denying the petition to expunge or seal within 60 days

25  of service of the order. If filed more than 60 days after

26  service of the order, a petition to vacate, modify, or
    SB3222 Enrolled       - 112 - LRB104 19119 AAS 32564 b

1   reconsider shall comply with subsection (c) of Section

2   2-1401 of the Code of Civil Procedure. Upon filing of a

3   motion to vacate, modify, or reconsider, notice of the

4   motion shall be served upon the petitioner and all parties

5   entitled to notice of the petition.

6   (13) Effect of Order. An order granting a petition

7   under the expungement or sealing provisions of this

8   Section shall not be considered void because it fails to

9   comply with the provisions of this Section or because of

10  any error asserted in a motion to vacate, modify, or

11  reconsider. The circuit court retains jurisdiction to

12  determine whether the order is voidable and to vacate,

13  modify, or reconsider its terms based on a motion filed

14  under paragraph (12) of this subsection (d).

15  (14) Compliance with Order Granting Petition to Seal

16  Records. Unless a court has entered a stay of an order

17  granting a petition to seal, all parties entitled to

18  notice of the petition must fully comply with the terms of

19  the order within 60 days of service of the order even if a

20  party is seeking relief from the order through a motion

21  filed under paragraph (12) of this subsection (d) or is

22  appealing the order.

23  (15) Compliance with Order Granting Petition to

24  Expunge Records. While a party is seeking relief from the

25  order granting the petition to expunge through a motion

26  filed under paragraph (12) of this subsection (d) or is
    SB3222 Enrolled  - 113 - LRB104 19119 AAS 32564 b

1   appealing the order, and unless a court has entered a stay

2   of that order, the parties entitled to notice of the

3   petition must seal, but need not expunge, the records

4   until there is a final order on the motion for relief or,

5   in the case of an appeal, the issuance of that court's

6   mandate.

7   (16) The changes to this subsection (d) made by Public

8   Act 98-163 apply to all petitions pending on August 5,

9   2013 (the effective date of Public Act 98-163) and to all

10  orders ruling on a petition to expunge or seal on or after

11  August 5, 2013 (the effective date of Public Act 98-163).

12  (17) Upon request, and without court order, the

13  circuit court clerk shall provide the disposition

14  information for any record that was ordered to be sealed

15  or impounded pursuant to this Section to the Illinois

16  State Police.

17  (e) Whenever a person who has been convicted of an offense

18 is granted a pardon by the Governor which specifically

19 authorizes expungement, he or she may, upon verified petition

20 to the Chief Judge of the circuit where the person had been

21 convicted, any judge of the circuit designated by the Chief

22 Judge, or in counties of less than 3,000,000 inhabitants, the

23 presiding trial judge at the defendant's trial, have a court

24 order entered expunging the record of arrest from the official

25 records of the arresting authority and order that the records

26 of the circuit court clerk and the Illinois State Police be
    SB3222 Enrolled  - 114 - LRB104 19119 AAS 32564 b

1 sealed until further order of the court upon good cause shown

2 or as otherwise provided herein, and the name of the defendant

3 obliterated from the official index requested to be kept by

4 the circuit court clerk under Section 16 of the Clerks of

5 Courts Act in connection with the arrest and conviction for

6 the offense for which he or she had been pardoned but the order

7 shall not affect any index issued by the circuit court clerk

8 before the entry of the order. All records sealed by the

9 Illinois State Police may be disseminated by the Illinois

10 State Police only to the arresting authority, the State's

11 Attorney, and the court upon a later arrest for the same or

12 similar offense or for the purpose of sentencing for any

13 subsequent felony. Upon conviction for any subsequent offense,

14 the Department of Corrections shall have access to all sealed

15 records of the Illinois State Police pertaining to that

16 individual. Upon entry of the order of expungement, the

17 circuit court clerk shall promptly mail a copy of the order to

18 the person who was pardoned.

19  (e-5) Whenever a person who has been convicted of an

20 offense is granted a certificate of eligibility for sealing by

21 the Prisoner Review Board which specifically authorizes

22 sealing, he or she may, upon verified petition to the Chief

23 Judge of the circuit where the person had been convicted, any

24 judge of the circuit designated by the Chief Judge, or in

25 counties of less than 3,000,000 inhabitants, the presiding

26 trial judge at the petitioner's trial, have a court order
    SB3222 Enrolled          - 115 - LRB104 19119 AAS 32564 b

1 entered sealing the record of arrest from the official records

2 of the arresting authority and order that the records of the

3 circuit court clerk and the Illinois State Police be sealed

4 until further order of the court upon good cause shown or as

5 otherwise provided herein, and the name of the petitioner

6 obliterated from the official index requested to be kept by

7 the circuit court clerk under Section 16 of the Clerks of

8 Courts Act in connection with the arrest and conviction for

9 the offense for which he or she had been granted the

10 certificate but the order shall not affect any index issued by

11 the circuit court clerk before the entry of the order. All

12 records sealed by the Illinois State Police may be

13 disseminated by the Illinois State Police only as required by

14 this Act or to the arresting authority, a law enforcement

15 agency, the State's Attorney, and the court upon a later

16 arrest for the same or similar offense or for the purpose of

17 sentencing for any subsequent felony. Upon conviction for any

18 subsequent offense, the Department of Corrections shall have

19 access to all sealed records of the Illinois State Police

20 pertaining to that individual. Upon entry of the order of

21 sealing, the circuit court clerk shall promptly mail a copy of

22 the order to the person who was granted the certificate of

23 eligibility for sealing.

24  (e-6) Whenever a person who has been convicted of an

25 offense is granted a certificate of eligibility for

26 expungement by the Prisoner Review Board which specifically
SB3222 Enrolled  - 116 - LRB104 19119 AAS 32564 b

 1 authorizes expungement, he or she may, upon verified petition
 2 to the Chief Judge of the circuit where the person had been
 3 convicted, any judge of the circuit designated by the Chief
 4 Judge, or in counties of less than 3,000,000 inhabitants, the
 5 presiding trial judge at the petitioner's trial, have a court
 6 order entered expunging the record of arrest from the official
 7 records of the arresting authority and order that the records
 8 of the circuit court clerk and the Illinois State Police be
 9 sealed until further order of the court upon good cause shown
10 or as otherwise provided herein, and the name of the
11 petitioner obliterated from the official index requested to be
12 kept by the circuit court clerk under Section 16 of the Clerks
13 of Courts Act in connection with the arrest and conviction for
14 the offense for which he or she had been granted the
15 certificate but the order shall not affect any index issued by
16 the circuit court clerk before the entry of the order. All
17 records sealed by the Illinois State Police may be
18 disseminated by the Illinois State Police only as required by
19 this Act or to the arresting authority, a law enforcement
20 agency, the State's Attorney, and the court upon a later
21 arrest for the same or similar offense or for the purpose of
22 sentencing for any subsequent felony. Upon conviction for any
23 subsequent offense, the Department of Corrections shall have
24 access to all expunged records of the Illinois State Police
25 pertaining to that individual. Upon entry of the order of
26 expungement, the circuit court clerk shall promptly mail a
    SB3222 Enrolled         - 117 - LRB104 19119 AAS 32564 b

1 copy of the order to the person who was granted the certificate

2 of eligibility for expungement.

3   (f) Subject to available funding, the Illinois Department

4 of Corrections shall conduct a study of the impact of sealing,

5 especially on employment and recidivism rates, utilizing a

6 random sample of those who apply for the sealing of their

7 criminal records under Public Act 93-211. At the request of

8 the Illinois Department of Corrections, records of the

9 Illinois Department of Employment Security shall be utilized

10 as appropriate to assist in the study. The study shall not

11 disclose any data in a manner that would allow the

12 identification of any particular individual or employing unit.

13 The study shall be made available to the General Assembly no

14 later than September 1, 2010.

15  (g) Immediate Sealing.

16  (1) Applicability. Notwithstanding any other provision

17  of this Act to the contrary, and cumulative with any

18  rights to expungement or sealing of criminal records, this

19  subsection authorizes the immediate sealing of criminal

20  records of adults and of minors prosecuted as adults.

21  (2) Eligible Records. Arrests or charges not initiated

22  by arrest resulting in acquittal or dismissal with

23  prejudice, except as excluded by subsection (a)(3)(B),

24  that occur on or after January 1, 2018 (the effective date

25  of Public Act 100-282), may be sealed immediately if the

26  petition is filed with the circuit court clerk on the same
    SB3222 Enrolled  - 118 - LRB104 19119 AAS 32564 b

1   day and during the same hearing in which the case is

2   disposed.

3   (3) When Records are Eligible to be Immediately

4   Sealed. Eligible records under paragraph (2) of this

5   subsection (g) may be sealed immediately after entry of

6   the final disposition of a case, notwithstanding the

7   disposition of other charges in the same case.

8   (4) Notice of Eligibility for Immediate Sealing. Upon

9   entry of a disposition for an eligible record under this

10  subsection (g), the defendant shall be informed by the

11  court of his or her right to have eligible records

12  immediately sealed and the procedure for the immediate

13  sealing of these records.

14  (5) Procedure. The following procedures apply to

15  immediate sealing under this subsection (g).

16  (A) Filing the Petition. Upon entry of the final

17  disposition of the case, the defendant's attorney may

18  immediately petition the court, on behalf of the

19  defendant, for immediate sealing of eligible records

20  under paragraph (2) of this subsection (g) that are

21  entered on or after January 1, 2018 (the effective

22  date of Public Act 100-282). The immediate sealing

23  petition may be filed with the circuit court clerk

24  during the hearing in which the final disposition of

25  the case is entered. If the defendant's attorney does

26  not file the petition for immediate sealing during the
    SB3222 Enrolled     - 119 - LRB104 19119 AAS 32564 b

1   hearing, the defendant may file a petition for sealing

2   at any time as authorized under subsection (c)(3)(A).

3   (B) Contents of Petition. The immediate sealing

4   petition shall be verified and shall contain the

5   petitioner's name, date of birth, current address, and

6   for each eligible record, the case number, the date of

7   arrest if applicable, the identity of the arresting

8   authority if applicable, and other information as the

9   court may require.

10  (C) Drug Test. The petitioner shall not be

11  required to attach proof that he or she has passed a

12  drug test.

13  (D) Service of Petition. A copy of the petition

14  shall be served on the State's Attorney in open court.

15  The petitioner shall not be required to serve a copy of

16  the petition on any other agency.

17  (E) Entry of Order. The presiding trial judge

18  shall enter an order granting or denying the petition

19  for immediate sealing during the hearing in which it

20  is filed. Petitions for immediate sealing shall be

21  ruled on in the same hearing in which the final

22  disposition of the case is entered.

23  (F) Hearings. The court shall hear the petition

24  for immediate sealing on the same day and during the

25  same hearing in which the disposition is rendered.

26  (G) Service of Order. An order to immediately seal
    SB3222 Enrolled     - 120 - LRB104 19119 AAS 32564 b

1   eligible records shall be served in conformance with

2   subsection (d)(8).

3   (H) Implementation of Order. An order to

4   immediately seal records shall be implemented in

5   conformance with subsections (d)(9)(C) and (d)(9)(D).

6   (I) Fees. The fee imposed by the circuit court

7   clerk and the Illinois State Police shall comply with

8   paragraph (1) of subsection (d) of this Section.

9   (J) Final Order. No court order issued under this

10  subsection (g) shall become final for purposes of

11  appeal until 30 days after service of the order on the

12  petitioner and all parties entitled to service of the

13  order in conformance with subsection (d)(8).

14  (K) Motion to Vacate, Modify, or Reconsider. Under

15  Section 2-1203 of the Code of Civil Procedure, the

16  petitioner, State's Attorney, or the Illinois State

17  Police may file a motion to vacate, modify, or

18  reconsider the order denying the petition to

19  immediately seal within 60 days of service of the

20  order. If filed more than 60 days after service of the

21  order, a petition to vacate, modify, or reconsider

22  shall comply with subsection (c) of Section 2-1401 of

23  the Code of Civil Procedure.

24  (L) Effect of Order. An order granting an

25  immediate sealing petition shall not be considered

26  void because it fails to comply with the provisions of
    SB3222 Enrolled  - 121 - LRB104 19119 AAS 32564 b

1   this Section or because of an error asserted in a

2   motion to vacate, modify, or reconsider. The circuit

3   court retains jurisdiction to determine whether the

4   order is voidable, and to vacate, modify, or

5   reconsider its terms based on a motion filed under

6   subparagraph (L) of this subsection (g).

7   (M) Compliance with Order Granting Petition to

8   Seal Records. Unless a court has entered a stay of an

9   order granting a petition to immediately seal, all

10  parties entitled to service of the order must fully

11  comply with the terms of the order within 60 days of

12  service of the order.

13  (h) Sealing or vacation and expungement of trafficking

14 victims' crimes.

15  (1) A trafficking victim, as defined by paragraph (10)

16  of subsection (a) of Section 10-9 of the Criminal Code of

17  2012, may petition for vacation and expungement or

18  immediate sealing of his or her criminal record upon the

19  completion of his or her last sentence if his or her

20  participation in the underlying offense was a result of

21  human trafficking under Section 10-9 of the Criminal Code

22  of 2012 or a severe form of trafficking under the federal

23  Trafficking Victims Protection Act.

24  (1.5) A petition under paragraph (1) shall be

25  prepared, signed, and filed in accordance with Supreme

26  Court Rule 9. The court may allow the petitioner to attend
    SB3222 Enrolled  - 122 - LRB104 19119 AAS 32564 b

1   any required hearing remotely in accordance with local

2   rules. The court may allow a petition to be filed under

3   seal if the public filing of the petition would constitute

4   a risk of harm to the petitioner.

5   (2) A petitioner under this subsection (h), in

6   addition to the requirements provided under paragraph (4)

7   of subsection (d) of this Section, shall include in his or

8   her petition a clear and concise statement that: (A) he or

9   she was a victim of human trafficking at the time of the

10  offense; and (B) that his or her participation in the

11  offense was a result of human trafficking under Section

12  10-9 of the Criminal Code of 2012 or a severe form of

13  trafficking under the federal Trafficking Victims

14  Protection Act.

15  (3) If an objection is filed alleging that the

16  petitioner is not entitled to vacation and expungement or

17  immediate sealing under this subsection (h), the court

18  shall conduct a hearing under paragraph (7) of subsection

19  (d) of this Section and the court shall determine whether

20  the petitioner is entitled to vacation and expungement or

21  immediate sealing under this subsection (h). A petitioner

22  is eligible for vacation and expungement or immediate

23  relief under this subsection (h) if he or she shows, by a

24  preponderance of the evidence, that: (A) he or she was a

25  victim of human trafficking at the time of the offense;

26  and (B) that his or her participation in the offense was a
    SB3222 Enrolled  - 123 - LRB104 19119 AAS 32564 b

1   result of human trafficking under Section 10-9 of the

2   Criminal Code of 2012 or a severe form of trafficking

3   under the federal Trafficking Victims Protection Act.

4   (i) Minor Cannabis Offenses under the Cannabis Control

5 Act.

6       (1) Expungement of Arrest Records of Minor Cannabis

7   Offenses.

8       (A) The Illinois State Police and all law

9       enforcement agencies within the State shall

10      automatically expunge all criminal history records of

11      an arrest, charge not initiated by arrest, order of

12      supervision, or order of qualified probation for a

13      Minor Cannabis Offense committed prior to June 25,

14      2019 (the effective date of Public Act 101-27) if:

15                   (i) One year or more has elapsed since the

16      date of the arrest or law enforcement interaction

17      documented in the records; and

18                   (ii) No criminal charges were filed relating

19      to the arrest or law enforcement interaction or

20      criminal charges were filed and subsequently

21      dismissed or vacated or the arrestee was

22      acquitted.

23      (B) If the law enforcement agency is unable to

24      verify satisfaction of condition (ii) in paragraph

25      (A), records that satisfy condition (i) in paragraph

26      (A) shall be automatically expunged.
    SB3222 Enrolled  - 124 - LRB104 19119 AAS 32564 b

1   (C) Records shall be expunged by the law

2   enforcement agency under the following timelines:

3                    (i) Records created prior to June 25, 2019

4   (the effective date of Public Act 101-27), but on

5   or after January 1, 2013, shall be automatically

6   expunged prior to January 1, 2021;

7                    (ii) Records created prior to January 1, 2013,

8   but on or after January 1, 2000, shall be

9   automatically expunged prior to January 1, 2023;

10                   (iii) Records created prior to January 1, 2000

11  shall be automatically expunged prior to January

12  1, 2025.

13  In response to an inquiry for expunged records,

14  the law enforcement agency receiving such inquiry

15  shall reply as it does in response to inquiries when no

16  records ever existed; however, it shall provide a

17  certificate of disposition or confirmation that the

18  record was expunged to the individual whose record was

19  expunged if such a record exists.

20  (D) Nothing in this Section shall be construed to

21  restrict or modify an individual's right to have that

22  individual's records expunged except as otherwise may

23  be provided in this Act, or diminish or abrogate any

24  rights or remedies otherwise available to the

25  individual.

26  (2) Pardons Authorizing Expungement of Minor Cannabis
    SB3222 Enrolled      - 125 - LRB104 19119 AAS 32564 b

1   Offenses.

2   (A) Upon June 25, 2019 (the effective date of

3   Public Act 101-27), the Department of State Police

4   shall review all criminal history record information

5   and identify all records that meet all of the

6   following criteria:

7                    (i) one or more convictions for a Minor

8   Cannabis Offense;

9                    (ii) the conviction identified in paragraph

10  (2)(A)(i) did not include a penalty enhancement

11  under Section 7 of the Cannabis Control Act; and

12                   (iii) the conviction identified in paragraph

13  (2)(A)(i) is not associated with a conviction for

14  a violent crime as defined in subsection (c) of

15  Section 3 of the Rights of Crime Victims and

16  Witnesses Act.

17  (B) Within 180 days after June 25, 2019 (the

18  effective date of Public Act 101-27), the Department

19  of State Police shall notify the Prisoner Review Board

20  of all such records that meet the criteria established

21  in paragraph (2)(A).

22                   (i) The Prisoner Review Board shall notify the

23  State's Attorney of the county of conviction of

24  each record identified by State Police in

25  paragraph (2)(A) that is classified as a Class 4

26  felony. The State's Attorney may provide a written
    SB3222 Enrolled  - 126 - LRB104 19119 AAS 32564 b

1   objection to the Prisoner Review Board on the sole

2   basis that the record identified does not meet the

3   criteria established in paragraph (2)(A). Such an

4   objection must be filed within 60 days or by such

5   later date set by the Prisoner Review Board in the

6   notice after the State's Attorney received notice

7   from the Prisoner Review Board.

8                    (ii) In response to a written objection from a

9   State's Attorney, the Prisoner Review Board is

10  authorized to conduct a non-public hearing to

11  evaluate the information provided in the

12  objection.

13                   (iii) The Prisoner Review Board shall make a

14  confidential and privileged recommendation to the

15  Governor as to whether to grant a pardon

16  authorizing expungement for each of the records

17  identified by the Department of State Police as

18  described in paragraph (2)(A).

19  (C) If an individual has been granted a pardon

20  authorizing expungement as described in this Section,

21  the Prisoner Review Board, through the Attorney

22  General, shall file a petition for expungement with

23  the Chief Judge of the circuit or any judge of the

24  circuit designated by the Chief Judge where the

25  individual had been convicted. Such petition may

26  include more than one individual. Whenever an
    SB3222 Enrolled  - 127 - LRB104 19119 AAS 32564 b

1   individual who has been convicted of an offense is

2   granted a pardon by the Governor that specifically

3   authorizes expungement, an objection to the petition

4   may not be filed. Petitions to expunge under this

5   subsection (i) may include more than one individual.

6   Within 90 days of the filing of such a petition, the

7   court shall enter an order expunging the records of

8   arrest from the official records of the arresting

9   authority and order that the records of the circuit

10  court clerk and the Illinois State Police be expunged

11  and the name of the defendant obliterated from the

12  official index requested to be kept by the circuit

13  court clerk under Section 16 of the Clerks of Courts

14  Act in connection with the arrest and conviction for

15  the offense for which the individual had received a

16  pardon but the order shall not affect any index issued

17  by the circuit court clerk before the entry of the

18  order. Upon entry of the order of expungement, the

19  circuit court clerk shall promptly provide a copy of

20  the order and a certificate of disposition to the

21  individual who was pardoned to the individual's last

22  known address or by electronic means (if available) or

23  otherwise make it available to the individual upon

24  request.

25  (D) Nothing in this Section is intended to

26  diminish or abrogate any rights or remedies otherwise
    SB3222 Enrolled  - 128 - LRB104 19119 AAS 32564 b

1   available to the individual.

2   (3) Any individual may file a motion to vacate and

3   expunge a conviction for a misdemeanor or Class 4 felony

4   violation of Section 4 or Section 5 of the Cannabis

5   Control Act. Motions to vacate and expunge under this

6   subsection (i) may be filed with the circuit court, Chief

7   Judge of a judicial circuit or any judge of the circuit

8   designated by the Chief Judge. The circuit court clerk

9   shall promptly serve a copy of the motion to vacate and

10  expunge, and any supporting documentation, on the State's

11  Attorney or prosecutor charged with the duty of

12  prosecuting the offense. When considering such a motion to

13  vacate and expunge, a court shall consider the following:

14  the reasons to retain the records provided by law

15  enforcement, the petitioner's age, the petitioner's age at

16  the time of offense, the time since the conviction, and

17  the specific adverse consequences if denied. An individual

18  may file such a petition after the completion of any

19  non-financial sentence or non-financial condition imposed

20  by the conviction. Within 60 days of the filing of such

21  motion, a State's Attorney may file an objection to such a

22  petition along with supporting evidence. If a motion to

23  vacate and expunge is granted, the records shall be

24  expunged in accordance with subparagraphs (d)(8) and

25  (d)(9)(A) of this Section. An agency providing civil legal

26  aid, as defined by Section 15 of the Public Interest
    SB3222 Enrolled  - 129 - LRB104 19119 AAS 32564 b

1   Attorney Assistance Act, assisting individuals seeking to

2   file a motion to vacate and expunge under this subsection

3   may file motions to vacate and expunge with the Chief

4   Judge of a judicial circuit or any judge of the circuit

5   designated by the Chief Judge, and the motion may include

6   more than one individual. Motions filed by an agency

7   providing civil legal aid concerning more than one

8   individual may be prepared, presented, and signed

9   electronically.

10  (4) Any State's Attorney may file a motion to vacate

11  and expunge a conviction for a misdemeanor or Class 4

12  felony violation of Section 4 or Section 5 of the Cannabis

13  Control Act. Motions to vacate and expunge under this

14  subsection (i) may be filed with the circuit court, Chief

15  Judge of a judicial circuit or any judge of the circuit

16  designated by the Chief Judge, and may include more than

17  one individual. Motions filed by a State's Attorney

18  concerning more than one individual may be prepared,

19  presented, and signed electronically. When considering

20  such a motion to vacate and expunge, a court shall

21  consider the following: the reasons to retain the records

22  provided by law enforcement, the individual's age, the

23  individual's age at the time of offense, the time since

24  the conviction, and the specific adverse consequences if

25  denied. Upon entry of an order granting a motion to vacate

26  and expunge records pursuant to this Section, the State's
    SB3222 Enrolled  - 130 - LRB104 19119 AAS 32564 b

1   Attorney shall notify the Prisoner Review Board within 30

2   days. Upon entry of the order of expungement, the circuit

3   court clerk shall promptly provide a copy of the order and

4   a certificate of disposition to the individual whose

5   records will be expunged to the individual's last known

6   address or by electronic means (if available) or otherwise

7   make available to the individual upon request. If a motion

8   to vacate and expunge is granted, the records shall be

9   expunged in accordance with subparagraphs (d)(8) and

10  (d)(9)(A) of this Section.

11  (5) In the public interest, the State's Attorney of a

12  county has standing to file motions to vacate and expunge

13  pursuant to this Section in the circuit court with

14  jurisdiction over the underlying conviction.

15  (6) If a person is arrested for a Minor Cannabis

16  Offense as defined in this Section before June 25, 2019

17  (the effective date of Public Act 101-27) and the person's

18  case is still pending but a sentence has not been imposed,

19  the person may petition the court in which the charges are

20  pending for an order to summarily dismiss those charges

21  against him or her, and expunge all official records of

22  his or her arrest, plea, trial, conviction, incarceration,

23  supervision, or expungement. If the court determines, upon

24  review, that: (A) the person was arrested before June 25,

25  2019 (the effective date of Public Act 101-27) for an

26  offense that has been made eligible for expungement; (B)
    SB3222 Enrolled  - 131 - LRB104 19119 AAS 32564 b

1   the case is pending at the time; and (C) the person has not

2   been sentenced of the minor cannabis violation eligible

3   for expungement under this subsection, the court shall

4   consider the following: the reasons to retain the records

5   provided by law enforcement, the petitioner's age, the

6   petitioner's age at the time of offense, the time since

7   the conviction, and the specific adverse consequences if

8   denied. If a motion to dismiss and expunge is granted, the

9   records shall be expunged in accordance with subparagraph

10  (d)(9)(A) of this Section.

11  (7) A person imprisoned solely as a result of one or

12  more convictions for Minor Cannabis Offenses under this

13  subsection (i) shall be released from incarceration upon

14  the issuance of an order under this subsection.

15  (8) The Illinois State Police shall allow a person to

16  use the access and review process, established in the

17  Illinois State Police, for verifying that his or her

18  records relating to Minor Cannabis Offenses of the

19  Cannabis Control Act eligible under this Section have been

20  expunged.

21  (9) No conviction vacated pursuant to this Section

22  shall serve as the basis for damages for time unjustly

23  served as provided in the Court of Claims Act.

24  (10) Effect of Expungement. A person's right to

25  expunge an expungeable offense shall not be limited under

26  this Section. The effect of an order of expungement shall
    SB3222 Enrolled  - 132 - LRB104 19119 AAS 32564 b

1   be to restore the person to the status he or she occupied

2   before the arrest, charge, or conviction.

3   (11) Information. The Illinois State Police shall post

4   general information on its website about the expungement

5   process described in this subsection (i).

6   (j) Felony Prostitution Convictions.

7   (1) Automatic Sealing of Felony Prostitution Arrests.

8   (A) The Illinois State Police and local law

9   enforcement agencies within the State shall

10  automatically seal the law enforcement records

11  relating to a person's Class 4 felony arrests and

12  charges not initiated by arrest for prostitution if

13  that arrest or charge not initiated by arrest is

14  eligible for sealing under paragraph (2) of subsection

15  (c).

16  (B) In the absence of a court order or upon the

17  order of a court, the clerk of the circuit court shall

18  automatically seal the court records and case files

19  relating to a person's Class 4 felony arrests and

20  charges not initiated by arrest for prostitution if

21  that arrest or charge not initiated by arrest is

22  eligible for sealing under paragraph (2) of subsection

23  (c).

24  (C) The automatic sealing described in this

25  paragraph (1) shall be completed no later than January

26  1, 2028.
    SB3222 Enrolled   - 133 - LRB104 19119 AAS 32564 b

1   (2) Automatic Sealing of Felony Prostitution

2   Convictions.

3   (A) The Illinois State Police and local law

4   enforcement agencies within the State shall

5   automatically seal the law enforcement records

6   relating to a person's Class 4 felony conviction for

7   prostitution if those records are eligible for sealing

8   under paragraph (2) of subsection (c).

9   (B) In the absence of a court order or upon the

10  order of a court, the clerk of the circuit court shall

11  automatically seal the court records relating to a

12  person's Class 4 felony conviction for prostitution if

13  those records are eligible for sealing under paragraph

14  (2) of subsection (c).

15  (C) The automatic sealing of records described in

16  this paragraph (2) shall be completed no later than

17  January 1, 2028.

18  (3) Motions to Vacate and Expunge Felony Prostitution

19  Convictions. Any individual may file a motion to vacate

20  and expunge a conviction for a prior Class 4 felony

21  violation of prostitution. Motions to vacate and expunge

22  under this subsection (j) may be filed with the circuit

23  court, Chief Judge of a judicial circuit, or any judge of

24  the circuit designated by the Chief Judge. When

25  considering the motion to vacate and expunge, a court

26  shall consider the following:
    SB3222 Enrolled   - 134 - LRB104 19119 AAS 32564 b

1        (A) the reasons to retain the records provided by

2   law enforcement;

3        (B) the petitioner's age;

4        (C) the petitioner's age at the time of offense;

5   and

6        (D) the time since the conviction, and the

7   specific adverse consequences if denied. An individual

8   may file the petition after the completion of any

9   sentence or condition imposed by the conviction.

10  Within 60 days of the filing of the motion, a State's

11  Attorney may file an objection to the petition along

12  with supporting evidence. If a motion to vacate and

13  expunge is granted, the records shall be expunged in

14  accordance with subparagraph (d)(9)(A) of this

15  Section. An agency providing civil legal aid, as

16  defined in Section 15 of the Public Interest Attorney

17  Assistance Act, assisting individuals seeking to file

18  a motion to vacate and expunge under this subsection

19  may file motions to vacate and expunge with the Chief

20  Judge of a judicial circuit or any judge of the circuit

21  designated by the Chief Judge, and the motion may

22  include more than one individual.

23  (4) Any State's Attorney may file a motion to vacate

24  and expunge a conviction for a Class 4 felony violation of

25  prostitution. Motions to vacate and expunge under this

26  subsection (j) may be filed with the circuit court, Chief
    SB3222 Enrolled   - 135 - LRB104 19119 AAS 32564 b

1   Judge of a judicial circuit, or any judge of the circuit

2   court designated by the Chief Judge, and may include more

3   than one individual. When considering the motion to vacate

4   and expunge, a court shall consider the following reasons:

5   (A) the reasons to retain the records provided by

6   law enforcement;

7   (B) the petitioner's age;

8   (C) the petitioner's age at the time of offense;

9   (D) the time since the conviction; and

10  (E) the specific adverse consequences if denied.

11  If the State's Attorney files a motion to vacate and

12  expunge records for felony prostitution convictions

13  pursuant to this Section, the State's Attorney shall

14  notify the Prisoner Review Board within 30 days of the

15  filing. If a motion to vacate and expunge is granted, the

16  records shall be expunged in accordance with subparagraph

17  (d)(9)(A) of this Section.

18  (5) In the public interest, the State's Attorney of a

19  county has standing to file motions to vacate and expunge

20  pursuant to this Section in the circuit court with

21  jurisdiction over the underlying conviction.

22  (6) The Illinois State Police shall allow a person to

23  a use the access and review process, established in the

24  Illinois State Police, for verifying that his or her

25  records relating to felony prostitution eligible under

26  this Section have been expunged.
    SB3222 Enrolled         - 136 - LRB104 19119 AAS 32564 b

1   (7) No conviction vacated pursuant to this Section

2   shall serve as the basis for damages for time unjustly

3   served as provided in the Court of Claims Act.

4   (8) Effect of Expungement. A person's right to expunge

5   an expungeable offense shall not be limited under this

6   Section. The effect of an order of expungement shall be to

7   restore the person to the status he or she occupied before

8   the arrest, charge, or conviction.

9   (9) Information. The Illinois State Police shall post

10  general information on its website about the expungement

11  or sealing process described in this subsection (j).

12  (k) Automatic Sealing.

13  (1) Applicability. Notwithstanding any other provision

14  of this Act, and cumulative with any rights to expungement

15  or sealing of criminal records, this subsection authorizes

16  the automatic sealing of criminal records of adults and of

17  minors prosecuted as adults. Any duties imposed upon the

18  Illinois State Police by this Act are subject to

19  appropriations being made for that purpose to the State

20  Police Services Fund. Any duties imposed upon circuit

21  clerks by this Act are subject to appropriations being

22  made for that purpose to the Circuit Court Clerk Operation

23  and Administrative Fund.

24  (2) Beginning January 1, 2029, records created on or

25  after January 1, 1970 that meet the eligibility criteria

26  in paragraph (k)(3) and timing criteria in paragraph
    SB3222 Enrolled  - 137 - LRB104 19119 AAS 32564 b

1   (k)(4) or (k)(5) shall be automatically sealed without the

2   filing of a petition. The Illinois State Police shall

3   identify eligible records, automatically seal eligible

4   records, and provide an electronic notice to circuit

5   clerks, by means of the applicable e-filing system.

6   Commencing January 1, 2029, the Illinois State Police

7   shall, at least quarterly, seal all records identified as

8   subject to automatic sealing in paragraph (k)(3) and

9   meeting time requirements under paragraph (k)(5). At least

10  quarterly, the Illinois State Police shall electronically

11  notify each circuit court of all previously unidentified

12  records originating in that county for which a record is

13  subject to automatic sealing pursuant to this subsection.

14  Upon receipt of notice from the Illinois State Police,

15  circuit clerks shall seal records as that term is defined

16  in subsection (a)(1)(K)(ii). For records held

17  electronically, circuit clerks shall seal records within

18  90 days of notice from the Illinois State Police. For

19  records not held electronically, circuit clerks shall

20  ensure that the individual's name is obliterated from the

21  official index required to be kept by the circuit court

22  clerk under Section 16 of the Clerks of Courts Act and

23  shall also ensure that the permanent record, as defined by

24  the Supreme Court, is sealed as defined in subsection

25  (a)(1)(K)(ii) before anyone not authorized by law is able

26  to access the physical records.
    SB3222 Enrolled  - 138 - LRB104 19119 AAS 32564 b

1   For all records created before January 1, 2029, the

2   following timelines shall apply:

3   (A) Records created prior to January 1, 2029 but

4   on or after July 1, 2005 shall be identified and sealed

5   by the Illinois State Police, with notice provided to

6   circuit clerks by means of the applicable e-filing

7   system, by January 1, 2030. Circuit clerks shall seal

8   records in accordance with the procedures established

9   in this Section by January 1, 2031.

10  (B) Records created prior to July 1, 2005 but on or

11  after July 1, 1990 shall be identified and sealed by

12  the Illinois State Police, with notice provided to

13  circuit clerks by means of the applicable e-filing

14  system, by January 1, 2031. Circuit clerks shall seal

15  records in accordance with the procedures established

16  in this Section by January 1, 2032.

17  (C) Records created prior to July 1, 1990 but on or

18  after July 1, 1970 shall be identified and sealed by

19  the Illinois State Police, with notice provided to

20  circuit clerks by means of the applicable e-filing

21  system, by January 1, 2032. Circuit clerks shall seal

22  records in accordance with the procedures established

23  in this Section by January 1, 2034.

24  (3) Records listed in subsection (c)(2) are eligible

25  for automatic record sealing unless excluded by subsection

26  (a)(3) or in this paragraph (3):
    SB3222 Enrolled     - 139 - LRB104 19119 AAS 32564 b

1   (A) Records are not eligible for automatic sealing

2   while the subject of the record is serving a sentence,

3   order of supervision, or order of qualified probation

4   for a criminal offense in this State. Records are not

5   eligible for automatic sealing if the subject of the

6   record has pending filed charges. For the purposes of

7   determining if a charge is pending, if the Illinois

8   State Police is otherwise unable to determine

9   disposition status, misdemeanor charges shall not be

10  considered pending if one year has elapsed since the

11  filing of charges and felony charges shall not be

12  considered pending if 7 years have elapsed since the

13  filing of charges.

14  (B) Records of conviction for offenses included in

15  Article 9 or 11 of the Criminal Code of 1961 or the

16  Criminal Code of 2012, for felonies designated as

17  Class X, and for felonies that require public

18  registration under the Sex Offender Registration Act

19  are not eligible for automatic sealing.

20  Notwithstanding this subparagraph, offenses included

21  in Section 11-14 of the Criminal Code of 1961 or the

22  Criminal Code of 2012 are eligible for automatic

23  sealing. A conviction of a crime of violence, as that

24  term is defined in Section 20 of the Drug Court

25  Treatment Act, is not eligible for automatic sealing.

26  A conviction of trafficking in persons, involuntary
    SB3222 Enrolled  - 140 - LRB104 19119 AAS 32564 b

1   servitude, or involuntary sexual servitude of a minor,

2   a conviction of organized retail crime, a conviction

3   of robbery, a conviction of vehicular hijacking, a

4   conviction of burglary that is a Class 1 or 2 felony,

5   or a conviction of residential burglary, as those

6   terms are used in Sections 10-9, 16-25.1, 18-1, 18-3,

7   19-1, and 19-3 of the Criminal Code of 2012, is not

8   eligible for automatic sealing. Convictions requiring

9   public registration under the Arsonist Registration

10  Act or the Murderer and Violent Offender Against Youth

11  Registration Act are not eligible for automatic

12  sealing until the petitioner is no longer required to

13  register under the relevant Act.

14  (C) Records with the same case number as a

15  conviction listed in subparagraph (B) are not eligible

16  for automatic sealing.

17  (D) Felony conviction records are not eligible for

18  automatic sealing until all felony conviction records

19  eligible for automatic sealing for the subject of the

20  record have met the time requirements in paragraph

21  (5).

22  (4) Automatic Sealing of Nonconviction Records.

23  Arrests or charges not initiated by arrest resulting in

24  acquittal or dismissal, except as excluded by subsection

25  (a)(3)(B), that occur on or after January 1, 2029 shall be

26  sealed immediately after entry of the final disposition of
    SB3222 Enrolled  - 141 - LRB104 19119 AAS 32564 b

1   a case, except as provided in subsection (k)(3)(C). Upon

2   entry of a disposition for an eligible record under this

3   paragraph, the defendant shall be informed by the court

4   that the defendant's eligible records will be immediately

5   sealed and the procedure for the immediate sealing of

6   these records. The court shall enter an order sealing the

7   record after entry of the final disposition of a case.

8   After sealing records pursuant to this paragraph, the

9   circuit court clerk must provide notice of sealing to the

10  Illinois State Police and to the arresting agency in a

11  form and manner prescribed by the Supreme Court. The

12  circuit clerk shall provide this notice within 30 days of

13  sealing the record and may do so electronically. An order

14  to immediately seal records shall be implemented in

15  conformance with paragraph (8).

16  (5) When Records are Subject to Automatic Sealing.

17  (A) Records of arrest resulting in release without

18  charging and records of arrests or charges not

19  initiated by arrest resulting in acquittal, dismissal,

20  or conviction when the conviction was reversed or

21  vacated are subject to automatic sealing immediately.

22  (B) Records of arrests or charges not initiated by

23  arrest resulting in orders of supervision, including

24  orders of supervision for municipal ordinance

25  violations, resulting in orders of qualified

26  probation, are subject to automatic sealing if 2 years
    SB3222 Enrolled  - 142 - LRB104 19119 AAS 32564 b

1   have elapsed since the termination of the order of

2   supervision or qualified probation.

3   (C) Arrests or charges not initiated by arrest

4   resulting in misdemeanor convictions are subject to

5   automatic sealing if two years have elapsed since the

6   termination of the sentence associated with the

7   record.

8   (D) Arrests or charges not initiated by arrest

9   resulting in convictions for felony offenses are

10  subject to automatic sealing if 3 years have elapsed

11  since the termination of the sentence associated with

12  the record.

13  (E) For the purposes of determining if the

14  timelines in this paragraph (5) have been met, the

15  Illinois State Police shall consider records in its

16  possession and, in the absence of disposition or

17  sentence termination records, shall deem sentences

18  terminated based on the sentence or supervision term

19  length information in its possession. In the absence

20  of a known term length of probation or conditional

21  discharge, the Illinois State Police shall deem a term

22  completed if the maximum probation or conditional

23  discharge term length for the statutory class of the

24  offense has elapsed since the disposition date.

25  (6) Notice. At least monthly, the circuit court clerk

26  shall provide notice to each arresting agency of all
    SB3222 Enrolled      - 143 - LRB104 19119 AAS 32564 b

1   records sealed under this subsection. The circuit court

2   clerk may provide this notice electronically.

3   (7) Implementation.

4   (A) Upon notice of sealing provided by the circuit

5   court clerk, the arresting agency and any other agency

6   receiving notice of sealing shall seal the records

7   under the procedures in subsections (a)(1)(K) and

8   (d)(9)(C).

9   (B) In response to an inquiry for the sealed

10  records from anyone not authorized by law to access

11  the records, the court, the Illinois State Police, the

12  arresting agency, or the prosecuting agency receiving

13  the inquiry shall reply as it does in response to

14  inquiries when no records ever existed.

15  (C) Each circuit court that has sealed a record

16  shall make those records available to the subject of

17  the record, or an attorney representing the subject of

18  the record, without court order within 7 days.

19  (8) Upon request, the circuit court clerk shall

20  provide disposition information for any record sealed

21  pursuant to this subsection to the Illinois State Police,

22  the arresting agency, the State's Attorney, or prosecutor

23  that prosecuted the offense. If the Illinois State Police,

24  arresting agency, State's Attorney, or prosecutor that

25  prosecuted the offense determine a record has been

26  improperly sealed pursuant to this subsection, the
    SB3222 Enrolled         - 144 - LRB104 19119 AAS 32564 b

1   Illinois State Police, arresting agency, State's Attorney,

2   or prosecutor that prosecuted the offense may file a

3   petition to unseal the record with the court that entered

4   the original record. If the court determines the record

5   was improperly sealed, the court shall enter an order

6   unsealing the record.

7   (9) Records sealed under this subsection shall be used

8   and disseminated by the Illinois State Police only as

9   required or authorized by a federal or State law, rule, or

10  regulation that requires inquiry into and release of

11  criminal records. The Department of Corrections shall have

12  access to all sealed records of the Illinois State Police

13  pertaining to individuals committed or confined within or

14  sentenced to a term of imprisonment within a correctional

15  institution or facility.

16  (10) The Illinois State Police shall allow a person to

17  use the access and review process, established by the

18  Illinois State Police, for verifying that the person's

19  records eligible under this subsection have been sealed.

20  As part of the access and review process, upon request,

21  the Illinois State Police shall provide the subject of the

22  record written confirmation that the record was sealed

23  under this subsection.

24  (11) An individual may challenge the individual's

25  record and request corrections, including the sealing of

26  records eligible under this subsection, by completing and
    SB3222 Enrolled  - 145 - LRB104 19119 AAS 32564 b

1   submitting a record challenge form to the Illinois State

2   Police. The Illinois State Police shall automatically seal

3   all records identified as eligible under this subsection

4   based on the access and review process. The Illinois State

5   Police shall include any records identified as eligible

6   under this process in the next electronic notification of

7   the circuit court in which the case originated. The

8   Illinois State Police shall render a final administrative

9   decision with respect to the record challenge, which shall

10  be subject to administrative appeal procedures established

11  by the Illinois Criminal Justice Information Authority.

12  (12) Nothing in this Section shall be construed to

13  restrict or modify an individual's right to have that

14  individual's records expunged or sealed except as

15  otherwise may be provided in this Act or diminish or

16  abrogate any rights or remedies otherwise available to the

17  individual.

18  (13) The State or the county, or an official or

19  employee of the State or the county acting in the course of

20  the official's or employee's duties, is not liable for an

21  injury or loss a person might receive due to an act or

22  omission of a person in the commission of the person's

23  duties under this Act, except for willful, wanton

24  misconduct or gross negligence on the part of the

25  governmental unit or on the part of the official or

26  employee.
    SB3222 Enrolled      - 146 - LRB104 19119 AAS 32564 b

1   (l) Municipal ordinance violations and Class C

2 misdemeanors. Notwithstanding any other provision of this Act

3 to the contrary and cumulative with any rights to expungement

4 of criminal records, this subsection requires the sealing of

5 criminal records of municipal ordinance violations and Class C

6 misdemeanors without petition. Beginning January 1, 2028, and

7 on January 1 and July 1 of each year thereafter, circuit court

8 clerks shall seal any criminal records of arrests or charges

9 not initiated by arrest resulting in charges or convictions

10 for municipal ordinance violations or Class C misdemeanors if

11 one year has elapsed since the case was closed as designated by

12 the Supreme Court.

13 (Source: P.A. 103-35, eff. 1-1-24; 103-154, eff. 6-30-23;

14 103-609, eff. 7-1-24; 103-755, eff. 8-2-24; 103-1071, eff.

15 7-1-25; 104-417, eff. 8-15-25; 104-459, eff. 6-1-26; revised

16 1-20-26.)

17  Section 110. The State Finance Act is amended by changing

18 Sections 5.890 and 5.916 and adding Section 5.1038 as follows:

19  (30 ILCS 105/5.890)

20  Sec. 5.890. The Industrial Hemp Regulatory Fund. This

21 Section is repealed on January 1, 2028.

22 (Source: P.A. 100-1091, eff. 8-26-18; 101-81, eff. 7-12-19.)

23  (30 ILCS 105/5.916)
    SB3222 Enrolled          - 147 - LRB104 19119 AAS 32564 b

1   Sec. 5.916. The Local Cannabis Retailers' Occupation

2 Consumer Excise Tax Trust Fund.

3 (Source: P.A. 101-27, eff. 6-25-19; 102-558, eff. 8-20-21.)

4   (30 ILCS 105/5.1038 new)

5   Sec. 5.1038. The Illinois Hemp Regulatory Fund.

6   Section 115. The Illinois Procurement Code is amended by

7 changing Section 1-10 as follows:

8   (30 ILCS 500/1-10)

9   (Text of Section before amendment by P.A. 104-458)

10  Sec. 1-10. Application.

11  (a) This Code applies only to procurements for which

12 bidders, offerors, potential contractors, or contractors were

13 first solicited on or after July 1, 1998. This Code shall not

14 be construed to affect or impair any contract, or any

15 provision of a contract, entered into based on a solicitation

16 prior to the implementation date of this Code as described in

17 Article 99, including, but not limited to, any covenant

18 entered into with respect to any revenue bonds or similar

19 instruments. All procurements for which contracts are

20 solicited between the effective date of Articles 50 and 99 and

21 July 1, 1998 shall be substantially in accordance with this

22 Code and its intent.

23  (b) This Code shall apply regardless of the source of the
    SB3222 Enrolled   - 148 - LRB104 19119 AAS 32564 b

1 funds with which the contracts are paid, including federal

2 assistance moneys. This Code shall not apply to:

3   (1) Contracts between the State and its political

4   subdivisions or other governments, or between State

5   governmental bodies, except as specifically provided in

6   this Code.

7   (2) Grants, except for the filing requirements of

8   Section 20-80.

9   (3) Purchase of care, except as provided in Section

10  5-30.6 of the Illinois Public Aid Code and this Section.

11  (4) Hiring of an individual as an employee and not as

12  an independent contractor, whether pursuant to an

13  employment code or policy or by contract directly with

14  that individual.

15  (5) Collective bargaining contracts.

16  (6) Purchase of real estate, except that notice of

17  this type of contract with a value of more than $25,000

18  must be published in the Procurement Bulletin within 10

19  calendar days after the deed is recorded in the county of

20  jurisdiction. The notice shall identify the real estate

21  purchased, the names of all parties to the contract, the

22  value of the contract, and the effective date of the

23  contract.

24  (7) Contracts necessary to prepare for anticipated

25  litigation, enforcement actions, or investigations,

26  provided that the chief legal counsel to the Governor
    SB3222 Enrolled  - 149 - LRB104 19119 AAS 32564 b

1   shall give his or her prior approval when the procuring

2   agency is one subject to the jurisdiction of the Governor,

3   and provided that the chief legal counsel of any other

4   procuring entity subject to this Code shall give his or

5   her prior approval when the procuring entity is not one

6   subject to the jurisdiction of the Governor.

7   (8) (Blank).

8   (9) Procurement expenditures by the Illinois

9   Conservation Foundation when only private funds are used.

10  (10) (Blank).

11  (11) Public-private agreements entered into according

12  to the procurement requirements of Section 20 of the

13  Public-Private Partnerships for Transportation Act and

14  design-build agreements entered into according to the

15  procurement requirements of Section 25 of the

16  Public-Private Partnerships for Transportation Act.

17  (12) (A) Contracts for legal, financial, and other

18  professional and artistic services entered into by the

19  Illinois Finance Authority in which the State of Illinois

20  is not obligated. Such contracts shall be awarded through

21  a competitive process authorized by the members of the

22  Illinois Finance Authority and are subject to Sections

23  5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,

24  as well as the final approval by the members of the

25  Illinois Finance Authority of the terms of the contract.

26  (B) Contracts for legal and financial services entered
    SB3222 Enrolled  - 150 - LRB104 19119 AAS 32564 b

1   into by the Illinois Housing Development Authority in

2   connection with the issuance of bonds in which the State

3   of Illinois is not obligated. Such contracts shall be

4   awarded through a competitive process authorized by the

5   members of the Illinois Housing Development Authority and

6   are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,

7   and 50-37 of this Code, as well as the final approval by

8   the members of the Illinois Housing Development Authority

9   of the terms of the contract.

10  (13) Contracts for services, commodities, and

11  equipment to support the delivery of timely forensic

12  science services in consultation with and subject to the

13  approval of the Chief Procurement Officer as provided in

14  subsection (d) of Section 5-4-3a of the Unified Code of

15  Corrections, except for the requirements of Sections

16  20-60, 20-65, 20-70, and 20-160 and Article 50 of this

17  Code; however, the Chief Procurement Officer may, in

18  writing with justification, waive any certification

19  required under Article 50 of this Code. For any contracts

20  for services which are currently provided by members of a

21  collective bargaining agreement, the applicable terms of

22  the collective bargaining agreement concerning

23  subcontracting shall be followed.

24  On and after January 1, 2019, this paragraph (13),

25  except for this sentence, is inoperative.

26  (14) Contracts for participation expenditures required
    SB3222 Enrolled  - 151 - LRB104 19119 AAS 32564 b

1   by a domestic or international trade show or exhibition of

2   an exhibitor, member, or sponsor.

3   (15) Contracts with a railroad or utility that

4   requires the State to reimburse the railroad or utilities

5   for the relocation of utilities for construction or other

6   public purpose. Contracts included within this paragraph

7   (15) shall include, but not be limited to, those

8   associated with: relocations, crossings, installations,

9   and maintenance. For the purposes of this paragraph (15),

10  "railroad" means any form of non-highway ground

11  transportation that runs on rails or electromagnetic

12  guideways and "utility" means: (1) public utilities as

13  defined in Section 3-105 of the Public Utilities Act, (2)

14  telecommunications carriers as defined in Section 13-202

15  of the Public Utilities Act, (3) electric cooperatives as

16  defined in Section 3.4 of the Electric Supplier Act, (4)

17  telephone or telecommunications cooperatives as defined in

18  Section 13-212 of the Public Utilities Act, (5) rural

19  water or wastewater waste water systems with 10,000

20  connections or less, (6) a holder as defined in Section

21  21-201 of the Public Utilities Act, and (7) municipalities

22  owning or operating utility systems consisting of public

23  utilities as that term is defined in Section 11-117-2 of

24  the Illinois Municipal Code.

25  (16) Procurement expenditures necessary for the

26  Department of Public Health to provide the delivery of
    SB3222 Enrolled  - 152 - LRB104 19119 AAS 32564 b

1   timely newborn screening services in accordance with the

2   Newborn Metabolic Screening Act.

3   (17) Procurement expenditures necessary for the

4   Department of Agriculture, the Department of Financial and

5   Professional Regulation, the Department of Human Services,

6   and the Department of Public Health to implement the

7   Compassionate Use of Medical Cannabis Program and Opioid

8   Alternative Pilot Program requirements and ensure access

9   to medical cannabis for patients with debilitating medical

10  conditions in accordance with the Compassionate Use of

11  Medical Cannabis Program Act.

12  (18) This Code does not apply to any procurements

13  necessary for the Department of Agriculture or, the

14  Department of Financial and Professional Regulation, the

15  Department of Human Services, the Department of Commerce

16  and Economic Opportunity, and the Department of Public

17  Health to implement the Cannabis Regulation and Tax Act

18  and for the Department of Agriculture to implement the

19  Illinois Hemp Act if the applicable agency has made a good

20  faith determination that it is necessary and appropriate

21  for the expenditure to fall within this exemption and if

22  the process is conducted in a manner substantially in

23  accordance with the requirements of Sections 20-160,

24  25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15,

25  50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of

26  this Code; however, for Section 50-35, compliance applies
    SB3222 Enrolled  - 153 - LRB104 19119 AAS 32564 b

1   only to contracts or subcontracts over $100,000. Notice of

2   each contract entered into under this paragraph (18) that

3   is related to the procurement of goods and services

4   identified in paragraph (1) through (9) of this subsection

5   shall be published in the Procurement Bulletin within 14

6   calendar days after contract execution. The Chief

7   Procurement Officer shall prescribe the form and content

8   of the notice. Each agency shall provide the Chief

9   Procurement Officer, on a monthly basis, in the form and

10  content prescribed by the Chief Procurement Officer, a

11  report of contracts that are related to the procurement of

12  goods and services identified in this subsection. At a

13  minimum, this report shall include the name of the

14  contractor, a description of the supply or service

15  provided, the total amount of the contract, the term of

16  the contract, and the exception to this Code utilized. A

17  copy of any or all of these contracts shall be made

18  available to the Chief Procurement Officer immediately

19  upon request. The Chief Procurement Officer shall submit a

20  report to the Governor and General Assembly no later than

21  November 1 of each year that includes, at a minimum, an

22  annual summary of the monthly information reported to the

23  Chief Procurement Officer. This exemption becomes

24  inoperative 10 5 years after June 25, 2019 (the effective

25  date of Public Act 101-27).

26  (19) Acquisition of modifications or adjustments,
    SB3222 Enrolled  - 154 - LRB104 19119 AAS 32564 b

1   limited to assistive technology devices and assistive

2   technology services, adaptive equipment, repairs, and

3   replacement parts to provide reasonable accommodations (i)

4   that enable a qualified applicant with a disability to

5   complete the job application process and be considered for

6   the position such qualified applicant desires, (ii) that

7   modify or adjust the work environment to enable a

8   qualified current employee with a disability to perform

9   the essential functions of the position held by that

10  employee, (iii) to enable a qualified current employee

11  with a disability to enjoy equal benefits and privileges

12  of employment as are enjoyed by other similarly situated

13  employees without disabilities, and (iv) that allow a

14  customer, client, claimant, or member of the public

15  seeking State services full use and enjoyment of and

16  access to its programs, services, or benefits.

17  For purposes of this paragraph (19):

18  "Assistive technology devices" means any item, piece

19  of equipment, or product system, whether acquired

20  commercially off the shelf, modified, or customized, that

21  is used to increase, maintain, or improve functional

22  capabilities of individuals with disabilities.

23  "Assistive technology services" means any service that

24  directly assists an individual with a disability in

25  selection, acquisition, or use of an assistive technology

26  device.
    SB3222 Enrolled  - 155 - LRB104 19119 AAS 32564 b

1   "Qualified" has the same meaning and use as provided

2   under the federal Americans with Disabilities Act when

3   describing an individual with a disability.

4   (20) Procurement expenditures necessary for the

5   Illinois Commerce Commission to hire third-party

6   facilitators pursuant to Sections 16-105.17 and 16-108.18

7   of the Public Utilities Act or an ombudsman pursuant to

8   Section 16-107.5 of the Public Utilities Act, a

9   facilitator pursuant to Section 16-105.17 of the Public

10  Utilities Act, or a grid auditor pursuant to Section

11  16-105.10 of the Public Utilities Act.

12  (21) Procurement expenditures for the purchase,

13  renewal, and expansion of software, software licenses, or

14  software maintenance agreements that support the efforts

15  of the Illinois State Police to enforce, regulate, and

16  administer the Firearm Owners Identification Card Act, the

17  Firearm Concealed Carry Act, the Firearms Restraining

18  Order Act, the Firearm Dealer License Certification Act,

19  the Law Enforcement Agencies Data System (LEADS), the

20  Uniform Crime Reporting Act, the Criminal Identification

21  Act, the Illinois Uniform Conviction Information Act, and

22  the Gun Trafficking Information Act, or establish or

23  maintain record management systems necessary to conduct

24  human trafficking investigations or gun trafficking or

25  other stolen firearm investigations. This paragraph (21)

26  applies to contracts entered into on or after January 10,
    SB3222 Enrolled  - 156 - LRB104 19119 AAS 32564 b

1   2023 (the effective date of Public Act 102-1116) and the

2   renewal of contracts that are in effect on January 10,

3   2023 (the effective date of Public Act 102-1116).

4   (22) Contracts for project management services and

5   system integration services required for the completion of

6   the State's enterprise resource planning project. This

7   exemption becomes inoperative 5 years after June 7, 2023

8   (the effective date of the changes made to this Section by

9   Public Act 103-8). This paragraph (22) applies to

10  contracts entered into on or after June 7, 2023 (the

11  effective date of the changes made to this Section by

12  Public Act 103-8) and the renewal of contracts that are in

13  effect on June 7, 2023 (the effective date of the changes

14  made to this Section by Public Act 103-8).

15  (23) Procurements necessary for the Department of

16  Insurance to implement the Illinois Health Benefits

17  Exchange Law if the Department of Insurance has made a

18  good faith determination that it is necessary and

19  appropriate for the expenditure to fall within this

20  exemption. The procurement process shall be conducted in a

21  manner substantially in accordance with the requirements

22  of Sections 20-160 and 25-60 and Article 50 of this Code. A

23  copy of these contracts shall be made available to the

24  Chief Procurement Officer immediately upon request. This

25  paragraph is inoperative 5 years after June 27, 2023 (the

26  effective date of Public Act 103-103).
    SB3222 Enrolled  - 157 - LRB104 19119 AAS 32564 b

1   (24) Contracts for public education programming,

2   noncommercial sustaining announcements, public service

3   announcements, and public awareness and education

4   messaging with the nonprofit trade associations of the

5   providers of those services that inform the public on

6   immediate and ongoing health and safety risks and hazards.

7   (25) Procurements necessary for the Department of

8   Early Childhood to implement the Department of Early

9   Childhood Act if the Department has made a good faith

10  determination that it is necessary and appropriate for the

11  expenditure to fall within this exemption. This exemption

12  shall only be used for products and services procured

13  solely for use by the Department of Early Childhood. The

14  procurements may include those necessary to design and

15  build integrated, operational systems of programs and

16  services. The procurements may include, but are not

17  limited to, those necessary to align and update program

18  standards, integrate funding systems, design and establish

19  data and reporting systems, align and update models for

20  technical assistance and professional development, design

21  systems to manage grants and ensure compliance, design and

22  implement management and operational structures, and

23  establish new means of engaging with families, educators,

24  providers, and stakeholders. The procurement processes

25  shall be conducted in a manner substantially in accordance

26  with the requirements of Article 50 (ethics) and Sections
    SB3222 Enrolled      - 158 - LRB104 19119 AAS 32564 b

1   5-5 (Procurement Policy Board), 5-7 (Commission on Equity

2   and Inclusion), 20-80 (contract files), 20-120

3   (subcontractors),    20-155    (paperwork),   20-160

4   (ethics/campaign contribution prohibitions), 25-60

5   (prevailing wage), and 25-90 (prohibited and authorized

6   cybersecurity) of this Code. Beginning January 1, 2025,

7   the Department of Early Childhood shall provide a

8   quarterly report to the General Assembly detailing a list

9   of expenditures and contracts for which the Department

10  uses this exemption. This paragraph is inoperative on and

11  after July 1, 2027.

12  (26) Procurements that are necessary for increasing

13  the recruitment and retention of State employees,

14  particularly minority candidates for employment,

15  including:

16  (A) procurements related to registration fees for

17  job fairs and other outreach and recruitment events;

18  (B) production of recruitment materials; and

19  (C) other services related to recruitment and

20  retention of State employees.

21  The exemption under this paragraph (26) applies only

22  if the State agency has made a good faith determination

23  that it is necessary and appropriate for the expenditure

24  to fall within this paragraph (26). The procurement

25  process under this paragraph (26) shall be conducted in a

26  manner substantially in accordance with the requirements
    SB3222 Enrolled         - 159 - LRB104 19119 AAS 32564 b

1   of Sections 20-160 and 25-60 and Article 50 of this Code. A

2   copy of these contracts shall be made available to the

3   Chief Procurement Officer immediately upon request.

4   Nothing in this paragraph (26) authorizes the replacement

5   or diminishment of State responsibilities in hiring or the

6   positions that effectuate that hiring. This paragraph (26)

7   is inoperative on and after June 30, 2029.

8   (27) Procurements necessary for the Department of

9   Healthcare and Family Services to implement changes to the

10  State's Integrated Eligibility System to ensure the

11  system's compliance with federal implementation mandates

12  and deadlines, if the Department of Healthcare and Family

13  Services has made a good faith determination that it is

14  necessary and appropriate for the procurement to fall

15  within this exemption.

16  Notwithstanding any other provision of law, for contracts

17 with an annual value of more than $100,000 entered into on or

18 after October 1, 2017 under an exemption provided in any

19 paragraph of this subsection (b), except paragraph (1), (2),

20 or (5), each State agency shall post to the appropriate

21 procurement bulletin the name of the contractor, a description

22 of the supply or service provided, the total amount of the

23 contract, the term of the contract, and the exception to the

24 Code utilized. The chief procurement officer shall submit a

25 report to the Governor and General Assembly no later than

26 November 1 of each year that shall include, at a minimum, an
    SB3222 Enrolled           - 160 - LRB104 19119 AAS 32564 b

1 annual summary of the monthly information reported to the

2 chief procurement officer.

3   (c) This Code does not apply to the electric power

4 procurement process provided for under Section 1-75 of the

5 Illinois Power Agency Act and Section 16-111.5 of the Public

6 Utilities Act. This Code does not apply to the procurement of

7 technical and policy experts pursuant to Section 1-129 of the

8 Illinois Power Agency Act.

9   (d) Except for Section 20-160 and Article 50 of this Code,

10 and as expressly required by Section 9.1 of the Illinois

11 Lottery Law, the provisions of this Code do not apply to the

12 procurement process provided for under Section 9.1 of the

13 Illinois Lottery Law.

14  (e) This Code does not apply to the process used by the

15 Capital Development Board to retain a person or entity to

16 assist the Capital Development Board with its duties related

17 to the determination of costs of a clean coal SNG brownfield

18 facility, as defined by Section 1-10 of the Illinois Power

19 Agency Act, as required in subsection (h-3) of Section 9-220

20 of the Public Utilities Act, including calculating the range

21 of capital costs, the range of operating and maintenance

22 costs, or the sequestration costs or monitoring the

23 construction of clean coal SNG brownfield facility for the

24 full duration of construction.

25  (f) (Blank).

26  (g) (Blank).
    SB3222 Enrolled  - 161 - LRB104 19119 AAS 32564 b

1   (h) This Code does not apply to the process to procure or

2 contracts entered into in accordance with Sections 11-5.2 and

3 11-5.3 of the Illinois Public Aid Code.

4   (i) Each chief procurement officer may access records

5 necessary to review whether a contract, purchase, or other

6 expenditure is or is not subject to the provisions of this

7 Code, unless such records would be subject to attorney-client

8 privilege.

9   (j) This Code does not apply to the process used by the

10 Capital Development Board to retain an artist or work or works

11 of art as required in Section 14 of the Capital Development

12 Board Act.

13  (k) This Code does not apply to the process to procure

14 contracts, or contracts entered into, by the State Board of

15 Elections or the State Electoral Board for hearing officers

16 appointed pursuant to the Election Code.

17  (l) This Code does not apply to the processes used by the

18 Illinois Student Assistance Commission to procure supplies and

19 services paid for from the private funds of the Illinois

20 Prepaid Tuition Fund. As used in this subsection (l), "private

21 funds" means funds derived from deposits paid into the

22 Illinois Prepaid Tuition Trust Fund and the earnings thereon.

23  (m) This Code shall apply regardless of the source of

24 funds with which contracts are paid, including federal

25 assistance moneys. Except as specifically provided in this

26 Code, this Code shall not apply to procurement expenditures
    SB3222 Enrolled          - 162 - LRB104 19119 AAS 32564 b

1 necessary for the Department of Public Health to conduct the
2 Healthy Illinois Survey in accordance with Section 2310-431 of
3 the Department of Public Health Powers and Duties Law of the
4 Civil Administrative Code of Illinois.
5 (Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;
6 103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.
7 6-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,
8 eff. 6-16-25; 104-417, eff. 8-15-25)

9   (Text of Section after amendment by P.A. 104-458)

10  Sec. 1-10. Application.

11  (a) This Code applies only to procurements for which

12 bidders, offerors, potential contractors, or contractors were

13 first solicited on or after July 1, 1998. This Code shall not

14 be construed to affect or impair any contract, or any

15 provision of a contract, entered into based on a solicitation

16 prior to the implementation date of this Code as described in

17 Article 99, including, but not limited to, any covenant

18 entered into with respect to any revenue bonds or similar

19 instruments. All procurements for which contracts are

20 solicited between the effective date of Articles 50 and 99 and

21 July 1, 1998 shall be substantially in accordance with this

22 Code and its intent.

23  (b) This Code shall apply regardless of the source of the

24 funds with which the contracts are paid, including federal

25 assistance moneys. This Code shall not apply to:
    SB3222 Enrolled   - 163 - LRB104 19119 AAS 32564 b

1   (1) Contracts between the State and its political

2   subdivisions or other governments, or between State

3   governmental bodies, except as specifically provided in

4   this Code.

5   (2) Grants, except for the filing requirements of

6   Section 20-80.

7   (3) Purchase of care, except as provided in Section

8   5-30.6 of the Illinois Public Aid Code and this Section.

9   (4) Hiring of an individual as an employee and not as

10  an independent contractor, whether pursuant to an

11  employment code or policy or by contract directly with

12  that individual.

13  (5) Collective bargaining contracts.

14  (6) Purchase of real estate, except that notice of

15  this type of contract with a value of more than $25,000

16  must be published in the Procurement Bulletin within 10

17  calendar days after the deed is recorded in the county of

18  jurisdiction. The notice shall identify the real estate

19  purchased, the names of all parties to the contract, the

20  value of the contract, and the effective date of the

21  contract.

22  (7) Contracts necessary to prepare for anticipated

23  litigation, enforcement actions, or investigations,

24  provided that the chief legal counsel to the Governor

25  shall give his or her prior approval when the procuring

26  agency is one subject to the jurisdiction of the Governor,
    SB3222 Enrolled  - 164 - LRB104 19119 AAS 32564 b

1   and provided that the chief legal counsel of any other

2   procuring entity subject to this Code shall give his or

3   her prior approval when the procuring entity is not one

4   subject to the jurisdiction of the Governor.

5   (8) (Blank).

6   (9) Procurement expenditures by the Illinois

7   Conservation Foundation when only private funds are used.

8   (10) (Blank).

9   (11) Public-private agreements entered into according

10  to the procurement requirements of Section 20 of the

11  Public-Private Partnerships for Transportation Act and

12  design-build agreements entered into according to the

13  procurement requirements of Section 25 of the

14  Public-Private Partnerships for Transportation Act.

15  (12) (A) Contracts for legal, financial, and other

16  professional and artistic services entered into by the

17  Illinois Finance Authority in which the State of Illinois

18  is not obligated. Such contracts shall be awarded through

19  a competitive process authorized by the members of the

20  Illinois Finance Authority and are subject to Sections

21  5-30, 20-160, 50-13, 50-20, 50-35, and 50-37 of this Code,

22  as well as the final approval by the members of the

23  Illinois Finance Authority of the terms of the contract.

24  (B) Contracts for legal and financial services entered

25  into by the Illinois Housing Development Authority in

26  connection with the issuance of bonds in which the State
    SB3222 Enrolled  - 165 - LRB104 19119 AAS 32564 b

1   of Illinois is not obligated. Such contracts shall be

2   awarded through a competitive process authorized by the

3   members of the Illinois Housing Development Authority and

4   are subject to Sections 5-30, 20-160, 50-13, 50-20, 50-35,

5   and 50-37 of this Code, as well as the final approval by

6   the members of the Illinois Housing Development Authority

7   of the terms of the contract.

8   (13) Contracts for services, commodities, and

9   equipment to support the delivery of timely forensic

10  science services in consultation with and subject to the

11  approval of the Chief Procurement Officer as provided in

12  subsection (d) of Section 5-4-3a of the Unified Code of

13  Corrections, except for the requirements of Sections

14  20-60, 20-65, 20-70, and 20-160 and Article 50 of this

15  Code; however, the Chief Procurement Officer may, in

16  writing with justification, waive any certification

17  required under Article 50 of this Code. For any contracts

18  for services which are currently provided by members of a

19  collective bargaining agreement, the applicable terms of

20  the collective bargaining agreement concerning

21  subcontracting shall be followed.

22  On and after January 1, 2019, this paragraph (13),

23  except for this sentence, is inoperative.

24  (14) Contracts for participation expenditures required

25  by a domestic or international trade show or exhibition of

26  an exhibitor, member, or sponsor.
    SB3222 Enrolled  - 166 - LRB104 19119 AAS 32564 b

1   (15) Contracts with a railroad or utility that

2   requires the State to reimburse the railroad or utilities

3   for the relocation of utilities for construction or other

4   public purpose. Contracts included within this paragraph

5   (15) shall include, but not be limited to, those

6   associated with: relocations, crossings, installations,

7   and maintenance. For the purposes of this paragraph (15),

8   "railroad" means any form of non-highway ground

9   transportation that runs on rails or electromagnetic

10  guideways and "utility" means: (1) public utilities as

11  defined in Section 3-105 of the Public Utilities Act, (2)

12  telecommunications carriers as defined in Section 13-202

13  of the Public Utilities Act, (3) electric cooperatives as

14  defined in Section 3.4 of the Electric Supplier Act, (4)

15  telephone or telecommunications cooperatives as defined in

16  Section 13-212 of the Public Utilities Act, (5) rural

17  water or wastewater waste water systems with 10,000

18  connections or less, (6) a holder as defined in Section

19  21-201 of the Public Utilities Act, and (7) municipalities

20  owning or operating utility systems consisting of public

21  utilities as that term is defined in Section 11-117-2 of

22  the Illinois Municipal Code.

23  (16) Procurement expenditures necessary for the

24  Department of Public Health to provide the delivery of

25  timely newborn screening services in accordance with the

26  Newborn Metabolic Screening Act.
    SB3222 Enrolled  - 167 - LRB104 19119 AAS 32564 b

1   (17) Procurement expenditures necessary for the

2   Department of Agriculture, the Department of Financial and

3   Professional Regulation, the Department of Human Services,

4   and the Department of Public Health to implement the

5   Compassionate Use of Medical Cannabis Program and Opioid

6   Alternative Pilot Program requirements and ensure access

7   to medical cannabis for patients with debilitating medical

8   conditions in accordance with the Compassionate Use of

9   Medical Cannabis Program Act.

10  (18) This Code does not apply to any procurements

11  necessary for the Department of Agriculture or, the

12  Department of Financial and Professional Regulation, the

13  Department of Human Services, the Department of Commerce

14  and Economic Opportunity, and the Department of Public

15  Health to implement the Cannabis Regulation and Tax Act

16  and for the Department of Agriculture to implement the

17  Illinois Hemp Act if the applicable agency has made a good

18  faith determination that it is necessary and appropriate

19  for the expenditure to fall within this exemption and if

20  the process is conducted in a manner substantially in

21  accordance with the requirements of Sections 20-160,

22  25-60, 30-22, 50-5, 50-10, 50-10.5, 50-12, 50-13, 50-15,

23  50-20, 50-21, 50-35, 50-36, 50-37, 50-38, and 50-50 of

24  this Code; however, for Section 50-35, compliance applies

25  only to contracts or subcontracts over $100,000. Notice of

26  each contract entered into under this paragraph (18) that
    SB3222 Enrolled  - 168 - LRB104 19119 AAS 32564 b

1   is related to the procurement of goods and services

2   identified in paragraph (1) through (9) of this subsection

3   shall be published in the Procurement Bulletin within 14

4   calendar days after contract execution. The Chief

5   Procurement Officer shall prescribe the form and content

6   of the notice. Each agency shall provide the Chief

7   Procurement Officer, on a monthly basis, in the form and

8   content prescribed by the Chief Procurement Officer, a

9   report of contracts that are related to the procurement of

10  goods and services identified in this subsection. At a

11  minimum, this report shall include the name of the

12  contractor, a description of the supply or service

13  provided, the total amount of the contract, the term of

14  the contract, and the exception to this Code utilized. A

15  copy of any or all of these contracts shall be made

16  available to the Chief Procurement Officer immediately

17  upon request. The Chief Procurement Officer shall submit a

18  report to the Governor and General Assembly no later than

19  November 1 of each year that includes, at a minimum, an

20  annual summary of the monthly information reported to the

21  Chief Procurement Officer. This exemption becomes

22  inoperative 10 5 years after June 25, 2019 (the effective

23  date of Public Act 101-27).

24  (19) Acquisition of modifications or adjustments,

25  limited to assistive technology devices and assistive

26  technology services, adaptive equipment, repairs, and
    SB3222 Enrolled  - 169 - LRB104 19119 AAS 32564 b

1   replacement parts to provide reasonable accommodations (i)

2   that enable a qualified applicant with a disability to

3   complete the job application process and be considered for

4   the position such qualified applicant desires, (ii) that

5   modify or adjust the work environment to enable a

6   qualified current employee with a disability to perform

7   the essential functions of the position held by that

8   employee, (iii) to enable a qualified current employee

9   with a disability to enjoy equal benefits and privileges

10  of employment as are enjoyed by other similarly situated

11  employees without disabilities, and (iv) that allow a

12  customer, client, claimant, or member of the public

13  seeking State services full use and enjoyment of and

14  access to its programs, services, or benefits.

15  For purposes of this paragraph (19):

16  "Assistive technology devices" means any item, piece

17  of equipment, or product system, whether acquired

18  commercially off the shelf, modified, or customized, that

19  is used to increase, maintain, or improve functional

20  capabilities of individuals with disabilities.

21  "Assistive technology services" means any service that

22  directly assists an individual with a disability in

23  selection, acquisition, or use of an assistive technology

24  device.

25  "Qualified" has the same meaning and use as provided

26  under the federal Americans with Disabilities Act when
    SB3222 Enrolled  - 170 - LRB104 19119 AAS 32564 b

1   describing an individual with a disability.

2   (20) Procurement expenditures necessary for the

3   Illinois Commerce Commission to hire third-party

4   facilitators pursuant to Sections 16-105.17 and 16-108.18

5   of the Public Utilities Act or an ombudsman pursuant to

6   Section 16-107.5 of the Public Utilities Act, a

7   facilitator pursuant to Section 16-105.17 of the Public

8   Utilities Act, a grid auditor pursuant to Section

9   16-105.10 of the Public Utilities Act, a facilitator,

10  expert, or consultant pursuant to Sections 16-126.2 and

11  16-202 of the Public Utilities Act, a procurement monitor

12  pursuant to Section 16-111.5 of the Public Utilities Act,

13  an ombudsperson pursuant to Section 20-145 of the Public

14  Utilities Act, or consultants and experts pursuant to

15  Section 5-15 of the Utility Data Access Act.

16  (21) Procurement expenditures for the purchase,

17  renewal, and expansion of software, software licenses, or

18  software maintenance agreements that support the efforts

19  of the Illinois State Police to enforce, regulate, and

20  administer the Firearm Owners Identification Card Act, the

21  Firearm Concealed Carry Act, the Firearms Restraining

22  Order Act, the Firearm Dealer License Certification Act,

23  the Law Enforcement Agencies Data System (LEADS), the

24  Uniform Crime Reporting Act, the Criminal Identification

25  Act, the Illinois Uniform Conviction Information Act, and

26  the Gun Trafficking Information Act, or establish or
    SB3222 Enrolled  - 171 - LRB104 19119 AAS 32564 b

1   maintain record management systems necessary to conduct

2   human trafficking investigations or gun trafficking or

3   other stolen firearm investigations. This paragraph (21)

4   applies to contracts entered into on or after January 10,

5   2023 (the effective date of Public Act 102-1116) and the

6   renewal of contracts that are in effect on January 10,

7   2023 (the effective date of Public Act 102-1116).

8   (22) Contracts for project management services and

9   system integration services required for the completion of

10  the State's enterprise resource planning project. This

11  exemption becomes inoperative 5 years after June 7, 2023

12  (the effective date of the changes made to this Section by

13  Public Act 103-8). This paragraph (22) applies to

14  contracts entered into on or after June 7, 2023 (the

15  effective date of the changes made to this Section by

16  Public Act 103-8) and the renewal of contracts that are in

17  effect on June 7, 2023 (the effective date of the changes

18  made to this Section by Public Act 103-8).

19  (23) Procurements necessary for the Department of

20  Insurance to implement the Illinois Health Benefits

21  Exchange Law if the Department of Insurance has made a

22  good faith determination that it is necessary and

23  appropriate for the expenditure to fall within this

24  exemption. The procurement process shall be conducted in a

25  manner substantially in accordance with the requirements

26  of Sections 20-160 and 25-60 and Article 50 of this Code. A
    SB3222 Enrolled  - 172 - LRB104 19119 AAS 32564 b

1   copy of these contracts shall be made available to the

2   Chief Procurement Officer immediately upon request. This

3   paragraph is inoperative 5 years after June 27, 2023 (the

4   effective date of Public Act 103-103).

5   (24) Contracts for public education programming,

6   noncommercial sustaining announcements, public service

7   announcements, and public awareness and education

8   messaging with the nonprofit trade associations of the

9   providers of those services that inform the public on

10  immediate and ongoing health and safety risks and hazards.

11  (25) Procurements necessary for the Department of

12  Early Childhood to implement the Department of Early

13  Childhood Act if the Department has made a good faith

14  determination that it is necessary and appropriate for the

15  expenditure to fall within this exemption. This exemption

16  shall only be used for products and services procured

17  solely for use by the Department of Early Childhood. The

18  procurements may include those necessary to design and

19  build integrated, operational systems of programs and

20  services. The procurements may include, but are not

21  limited to, those necessary to align and update program

22  standards, integrate funding systems, design and establish

23  data and reporting systems, align and update models for

24  technical assistance and professional development, design

25  systems to manage grants and ensure compliance, design and

26  implement management and operational structures, and
    SB3222 Enrolled      - 173 - LRB104 19119 AAS 32564 b

1   establish new means of engaging with families, educators,

2   providers, and stakeholders. The procurement processes

3   shall be conducted in a manner substantially in accordance

4   with the requirements of Article 50 (ethics) and Sections

5   5-5 (Procurement Policy Board), 5-7 (Commission on Equity

6   and Inclusion), 20-80 (contract files), 20-120

7   (subcontractors),    20-155    (paperwork),   20-160

8   (ethics/campaign contribution prohibitions), 25-60

9   (prevailing wage), and 25-90 (prohibited and authorized

10  cybersecurity) of this Code. Beginning January 1, 2025,

11  the Department of Early Childhood shall provide a

12  quarterly report to the General Assembly detailing a list

13  of expenditures and contracts for which the Department

14  uses this exemption. This paragraph is inoperative on and

15  after July 1, 2027.

16  (26) Procurements that are necessary for increasing

17  the recruitment and retention of State employees,

18  particularly minority candidates for employment,

19  including:

20  (A) procurements related to registration fees for

21  job fairs and other outreach and recruitment events;

22  (B) production of recruitment materials; and

23  (C) other services related to recruitment and

24  retention of State employees.

25  The exemption under this paragraph (26) applies only

26  if the State agency has made a good faith determination
    SB3222 Enrolled         - 174 - LRB104 19119 AAS 32564 b

1   that it is necessary and appropriate for the expenditure

2   to fall within this paragraph (26). The procurement

3   process under this paragraph (26) shall be conducted in a

4   manner substantially in accordance with the requirements

5   of Sections 20-160 and 25-60 and Article 50 of this Code. A

6   copy of these contracts shall be made available to the

7   Chief Procurement Officer immediately upon request.

8   Nothing in this paragraph (26) authorizes the replacement

9   or diminishment of State responsibilities in hiring or the

10  positions that effectuate that hiring. This paragraph (26)

11  is inoperative on and after June 30, 2029.

12  (27) Procurements necessary for the Department of

13  Healthcare and Family Services to implement changes to the

14  State's Integrated Eligibility System to ensure the

15  system's compliance with federal implementation mandates

16  and deadlines, if the Department of Healthcare and Family

17  Services has made a good faith determination that it is

18  necessary and appropriate for the procurement to fall

19  within this exemption.

20  Notwithstanding any other provision of law, for contracts

21 with an annual value of more than $100,000 entered into on or

22 after October 1, 2017 under an exemption provided in any

23 paragraph of this subsection (b), except paragraph (1), (2),

24 or (5), each State agency shall post to the appropriate

25 procurement bulletin the name of the contractor, a description

26 of the supply or service provided, the total amount of the
    SB3222 Enrolled            - 175 - LRB104 19119 AAS 32564 b

1 contract, the term of the contract, and the exception to the

2 Code utilized. The chief procurement officer shall submit a

3 report to the Governor and General Assembly no later than

4 November 1 of each year that shall include, at a minimum, an

5 annual summary of the monthly information reported to the

6 chief procurement officer.

7   (c) This Code does not apply to the electric power

8 procurement process provided for under Section 1-75 of the

9 Illinois Power Agency Act and Section 16-111.5 of the Public

10 Utilities Act. This Code does not apply to the procurement of

11 technical and policy experts pursuant to Section 1-129 of the

12 Illinois Power Agency Act.

13  (d) Except for Section 20-160 and Article 50 of this Code,

14 and as expressly required by Section 9.1 of the Illinois

15 Lottery Law, the provisions of this Code do not apply to the

16 procurement process provided for under Section 9.1 of the

17 Illinois Lottery Law.

18  (e) This Code does not apply to the process used by the

19 Capital Development Board to retain a person or entity to

20 assist the Capital Development Board with its duties related

21 to the determination of costs of a clean coal SNG brownfield

22 facility, as defined by Section 1-10 of the Illinois Power

23 Agency Act, as required in subsection (h-3) of Section 9-220

24 of the Public Utilities Act, including calculating the range

25 of capital costs, the range of operating and maintenance

26 costs, or the sequestration costs or monitoring the
    SB3222 Enrolled  - 176 - LRB104 19119 AAS 32564 b

1 construction of clean coal SNG brownfield facility for the

2 full duration of construction.

3   (f) (Blank).

4   (g) (Blank).

5   (h) This Code does not apply to the process to procure or

6 contracts entered into in accordance with Sections 11-5.2 and

7 11-5.3 of the Illinois Public Aid Code.

8   (i) Each chief procurement officer may access records

9 necessary to review whether a contract, purchase, or other

10 expenditure is or is not subject to the provisions of this

11 Code, unless such records would be subject to attorney-client

12 privilege.

13  (j) This Code does not apply to the process used by the

14 Capital Development Board to retain an artist or work or works

15 of art as required in Section 14 of the Capital Development

16 Board Act.

17  (k) This Code does not apply to the process to procure

18 contracts, or contracts entered into, by the State Board of

19 Elections or the State Electoral Board for hearing officers

20 appointed pursuant to the Election Code.

21  (l) This Code does not apply to the processes used by the

22 Illinois Student Assistance Commission to procure supplies and

23 services paid for from the private funds of the Illinois

24 Prepaid Tuition Fund. As used in this subsection (l), "private

25 funds" means funds derived from deposits paid into the

26 Illinois Prepaid Tuition Trust Fund and the earnings thereon.
    SB3222 Enrolled    - 177 - LRB104 19119 AAS 32564 b

1   (m) This Code shall apply regardless of the source of

2 funds with which contracts are paid, including federal

3 assistance moneys. Except as specifically provided in this

4 Code, this Code shall not apply to procurement expenditures

5 necessary for the Department of Public Health to conduct the

6 Healthy Illinois Survey in accordance with Section 2310-431 of

7 the Department of Public Health Powers and Duties Law of the

8 Civil Administrative Code of Illinois.

9 (Source: P.A. 103-8, eff. 6-7-23; 103-103, eff. 6-27-23;

10 103-570, eff. 1-1-24; 103-580, eff. 12-8-23; 103-594, eff.

11 6-25-24; 103-605, eff. 7-1-24; 103-865, eff. 1-1-25; 104-2,

12 eff. 6-16-25; 104-417, eff. 8-15-25; 104-458, eff. 6-1-26;

13 revised 1-12-26.)

14  Section 120. The Use Tax Act is amended by changing

15 Sections 3-5 and 3-10 as follows:

16  (35 ILCS 105/3-5)

17  Sec. 3-5. Exemptions. Use, which, on and after January 1,

18 2025, includes use by a lessee, of the following tangible

19 personal property is exempt from the tax imposed by this Act:

20  (1) Personal property purchased from a corporation,

21 society, association, foundation, institution, or

22 organization, other than a limited liability company, that is

23 organized and operated as a not-for-profit service enterprise

24 for the benefit of persons 65 years of age or older if the
    SB3222 Enrolled    - 178 - LRB104 19119 AAS 32564 b

1 personal property was not purchased by the enterprise for the

2 purpose of resale by the enterprise.

3   (2) Personal property purchased by a not-for-profit

4 Illinois county fair association for use in conducting,

5 operating, or promoting the county fair.

6   (3) Personal property purchased by a not-for-profit arts

7 or cultural organization that establishes, by proof required

8 by the Department by rule, that it has received an exemption

9 under Section 501(c)(3) of the Internal Revenue Code and that

10 is organized and operated primarily for the presentation or

11 support of arts or cultural programming, activities, or

12 services. These organizations include, but are not limited to,

13 music and dramatic arts organizations such as symphony

14 orchestras and theatrical groups, arts and cultural service

15 organizations, local arts councils, visual arts organizations,

16 and media arts organizations. On and after July 1, 2001 (the

17 effective date of Public Act 92-35), however, an entity

18 otherwise eligible for this exemption shall not make tax-free

19 purchases unless it has an active identification number issued

20 by the Department.

21  (4) Except as otherwise provided in this Act, personal

22 property purchased by a governmental body, by a corporation,

23 society, association, foundation, or institution organized and

24 operated exclusively for charitable, religious, or educational

25 purposes, or by a not-for-profit corporation, society,

26 association, foundation, institution, or organization that has
    SB3222 Enrolled      - 179 - LRB104 19119 AAS 32564 b

1 no compensated officers or employees and that is organized and

2 operated primarily for the recreation of persons 55 years of

3 age or older. A limited liability company may qualify for the

4 exemption under this paragraph only if the limited liability

5 company is organized and operated exclusively for educational

6 purposes. On and after July 1, 1987, however, no entity

7 otherwise eligible for this exemption shall make tax-free

8 purchases unless it has an active exemption identification

9 number issued by the Department.

10  (5) Until July 1, 2003, a passenger car that is a

11 replacement vehicle to the extent that the purchase price of

12 the car is subject to the Replacement Vehicle Tax.

13  (6) Until July 1, 2003 and beginning again on September 1,

14 2004 through August 30, 2014, graphic arts machinery and

15 equipment, including repair and replacement parts, both new

16 and used, and including that manufactured on special order,

17 certified by the purchaser to be used primarily for graphic

18 arts production, and including machinery and equipment

19 purchased for lease. Equipment includes chemicals or chemicals

20 acting as catalysts but only if the chemicals or chemicals

21 acting as catalysts effect a direct and immediate change upon

22 a graphic arts product. Beginning on July 1, 2017, graphic

23 arts machinery and equipment is included in the manufacturing

24 and assembling machinery and equipment exemption under

25 paragraph (18).

26  (7) Farm chemicals.
    SB3222 Enrolled      - 180 - LRB104 19119 AAS 32564 b

1   (8) Legal tender, currency, medallions, or gold or silver

2 coinage issued by the State of Illinois, the government of the

3 United States of America, or the government of any foreign

4 country, and bullion.

5   (9) Personal property purchased from a teacher-sponsored

6 student organization affiliated with an elementary or

7 secondary school located in Illinois.

8   (10) A motor vehicle that is used for automobile renting,

9 as defined in the Automobile Renting Occupation and Use Tax

10 Act.

11  (11) Farm machinery and equipment, both new and used,

12 including that manufactured on special order, certified by the

13 purchaser to be used primarily for production agriculture or

14 State or federal agricultural programs, including individual

15 replacement parts for the machinery and equipment, including

16 machinery and equipment purchased for lease, and including

17 implements of husbandry defined in Section 1-130 of the

18 Illinois Vehicle Code, farm machinery and agricultural

19 chemical and fertilizer spreaders, and nurse wagons required

20 to be registered under Section 3-809 of the Illinois Vehicle

21 Code, but excluding other motor vehicles required to be

22 registered under the Illinois Vehicle Code. Horticultural

23 polyhouses or hoop houses used for propagating, growing, or

24 overwintering plants shall be considered farm machinery and

25 equipment under this item (11). Agricultural chemical tender

26 tanks and dry boxes shall include units sold separately from a
    SB3222 Enrolled         - 181 - LRB104 19119 AAS 32564 b

1 motor vehicle required to be licensed and units sold mounted

2 on a motor vehicle required to be licensed if the selling price

3 of the tender is separately stated.

4   Farm machinery and equipment shall include precision

5 farming equipment that is installed or purchased to be

6 installed on farm machinery and equipment, including, but not

7 limited to, tractors, harvesters, sprayers, planters, seeders,

8 or spreaders. Precision farming equipment includes, but is not

9 limited to, soil testing sensors, computers, monitors,

10 software, global positioning and mapping systems, and other

11 such equipment.

12  Farm machinery and equipment also includes computers,

13 sensors, software, and related equipment used primarily in the

14 computer-assisted operation of production agriculture

15 facilities, equipment, and activities such as, but not limited

16 to, the collection, monitoring, and correlation of animal and

17 crop data for the purpose of formulating animal diets and

18 agricultural chemicals.

19  Beginning on January 1, 2024, farm machinery and equipment

20 also includes electrical power generation equipment used

21 primarily for production agriculture.

22  This item (11) is exempt from the provisions of Section

23 3-90.

24  (12) Until June 30, 2013, fuel and petroleum products sold

25 to or used by an air common carrier, certified by the carrier

26 to be used for consumption, shipment, or storage in the
    SB3222 Enrolled    - 182 - LRB104 19119 AAS 32564 b

1 conduct of its business as an air common carrier, for a flight

2 destined for or returning from a location or locations outside

3 the United States without regard to previous or subsequent

4 domestic stopovers.

5   Beginning July 1, 2013, fuel and petroleum products sold

6 to or used by an air carrier, certified by the carrier to be

7 used for consumption, shipment, or storage in the conduct of

8 its business as an air common carrier, for a flight that (i) is

9 engaged in foreign trade or is engaged in trade between the

10 United States and any of its possessions and (ii) transports

11 at least one individual or package for hire from the city of

12 origination to the city of final destination on the same

13 aircraft, without regard to a change in the flight number of

14 that aircraft.

15  (13) Proceeds of mandatory service charges separately

16 stated on customers' bills for the purchase and consumption of

17 food and beverages purchased at retail from a retailer, to the

18 extent that the proceeds of the service charge are in fact

19 turned over as tips or as a substitute for tips to the

20 employees who participate directly in preparing, serving,

21 hosting or cleaning up the food or beverage function with

22 respect to which the service charge is imposed.

23  (14) Until July 1, 2003, oil field exploration, drilling,

24 and production equipment, including (i) rigs and parts of

25 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

26 pipe and tubular goods, including casing and drill strings,
    SB3222 Enrolled  - 183 - LRB104 19119 AAS 32564 b

1 (iii) pumps and pump-jack units, (iv) storage tanks and flow

2 lines, (v) any individual replacement part for oil field

3 exploration, drilling, and production equipment, and (vi)

4 machinery and equipment purchased for lease; but excluding

5 motor vehicles required to be registered under the Illinois

6 Vehicle Code.

7   (15) Photoprocessing machinery and equipment, including

8 repair and replacement parts, both new and used, including

9 that manufactured on special order, certified by the purchaser

10 to be used primarily for photoprocessing, and including

11 photoprocessing machinery and equipment purchased for lease.

12  (16) Until July 1, 2028, coal and aggregate exploration,

13 mining, off-highway hauling, processing, maintenance, and

14 reclamation equipment, including replacement parts and

15 equipment, and including equipment purchased for lease, but

16 excluding motor vehicles required to be registered under the

17 Illinois Vehicle Code. The changes made to this Section by

18 Public Act 97-767 apply on and after July 1, 2003, but no claim

19 for credit or refund is allowed on or after August 16, 2013

20 (the effective date of Public Act 98-456) for such taxes paid

21 during the period beginning July 1, 2003 and ending on August

22 16, 2013 (the effective date of Public Act 98-456).

23  (17) Until July 1, 2003, distillation machinery and

24 equipment, sold as a unit or kit, assembled or installed by the

25 retailer, certified by the user to be used only for the

26 production of ethyl alcohol that will be used for consumption
   SB3222 Enrolled  - 184 - LRB104 19119 AAS 32564 b

1 as motor fuel or as a component of motor fuel for the personal

2 use of the user, and not subject to sale or resale.

3  (18) Manufacturing and assembling machinery and equipment

4 used primarily in the process of manufacturing or assembling

5 tangible personal property for wholesale or retail sale or

6 lease, whether that sale or lease is made directly by the

7 manufacturer or by some other person, whether the materials

8 used in the process are owned by the manufacturer or some other

9 person, or whether that sale or lease is made apart from or as

10 an incident to the seller's engaging in the service occupation

11 of producing machines, tools, dies, jigs, patterns, gauges, or

12 other similar items of no commercial value on special order

13 for a particular purchaser. The exemption provided by this

14 paragraph (18) includes production related tangible personal

15 property, as defined in Section 3-50, purchased on or after

16 July 1, 2019. The exemption provided by this paragraph (18)

17 does not include machinery and equipment used in (i) the

18 generation of electricity for wholesale or retail sale; (ii)

19 the generation or treatment of natural or artificial gas for

20 wholesale or retail sale that is delivered to customers

21 through pipes, pipelines, or mains; or (iii) the treatment of

22 water for wholesale or retail sale that is delivered to

23 customers through pipes, pipelines, or mains. The provisions

24 of Public Act 98-583 are declaratory of existing law as to the

25 meaning and scope of this exemption. Beginning on July 1,

26 2017, the exemption provided by this paragraph (18) includes,
    SB3222 Enrolled  - 185 - LRB104 19119 AAS 32564 b

1 but is not limited to, graphic arts machinery and equipment,

2 as defined in paragraph (6) of this Section.

3   (19) Personal property delivered to a purchaser or

4 purchaser's donee inside Illinois when the purchase order for

5 that personal property was received by a florist located

6 outside Illinois who has a florist located inside Illinois

7 deliver the personal property.

8   (20) Semen used for artificial insemination of livestock

9 for direct agricultural production.

10  (21) Horses, or interests in horses, registered with and

11 meeting the requirements of any of the Arabian Horse Club

12 Registry of America, Appaloosa Horse Club, American Quarter

13 Horse Association, United States Trotting Association, or

14 Jockey Club, as appropriate, used for purposes of breeding or

15 racing for prizes. This item (21) is exempt from the

16 provisions of Section 3-90, and the exemption provided for

17 under this item (21) applies for all periods beginning May 30,

18 1995, but no claim for credit or refund is allowed on or after

19 January 1, 2008 for such taxes paid during the period

20 beginning May 30, 2000 and ending on January 1, 2008.

21  (22) Computers and communications equipment utilized for

22 any hospital purpose and equipment used in the diagnosis,

23 analysis, or treatment of hospital patients purchased by a

24 lessor who leases the equipment, under a lease of one year or

25 longer executed or in effect at the time the lessor would

26 otherwise be subject to the tax imposed by this Act, to a
    SB3222 Enrolled  - 186 - LRB104 19119 AAS 32564 b

1 hospital that has been issued an active tax exemption

2 identification number by the Department under Section 1g of

3 the Retailers' Occupation Tax Act. If the equipment is leased

4 in a manner that does not qualify for this exemption or is used

5 in any other non-exempt manner, the lessor shall be liable for

6 the tax imposed under this Act or the Service Use Tax Act, as

7 the case may be, based on the fair market value of the property

8 at the time the non-qualifying use occurs. No lessor shall

9 collect or attempt to collect an amount (however designated)

10 that purports to reimburse that lessor for the tax imposed by

11 this Act or the Service Use Tax Act, as the case may be, if the

12 tax has not been paid by the lessor. If a lessor improperly

13 collects any such amount from the lessee, the lessee shall

14 have a legal right to claim a refund of that amount from the

15 lessor. If, however, that amount is not refunded to the lessee

16 for any reason, the lessor is liable to pay that amount to the

17 Department.

18  (23) Personal property purchased by a lessor who leases

19 the property, under a lease of one year or longer executed or

20 in effect at the time the lessor would otherwise be subject to

21 the tax imposed by this Act, to a governmental body that has

22 been issued an active sales tax exemption identification

23 number by the Department under Section 1g of the Retailers'

24 Occupation Tax Act. If the property is leased in a manner that

25 does not qualify for this exemption or used in any other

26 non-exempt manner, the lessor shall be liable for the tax
    SB3222 Enrolled  - 187 - LRB104 19119 AAS 32564 b

1 imposed under this Act or the Service Use Tax Act, as the case

2 may be, based on the fair market value of the property at the

3 time the non-qualifying use occurs. No lessor shall collect or

4 attempt to collect an amount (however designated) that

5 purports to reimburse that lessor for the tax imposed by this

6 Act or the Service Use Tax Act, as the case may be, if the tax

7 has not been paid by the lessor. If a lessor improperly

8 collects any such amount from the lessee, the lessee shall

9 have a legal right to claim a refund of that amount from the

10 lessor. If, however, that amount is not refunded to the lessee

11 for any reason, the lessor is liable to pay that amount to the

12 Department.

13  (24) Beginning with taxable years ending on or after

14 December 31, 1995 and ending with taxable years ending on or

15 before December 31, 2004, personal property that is donated

16 for disaster relief to be used in a State or federally declared

17 disaster area in Illinois or bordering Illinois by a

18 manufacturer or retailer that is registered in this State to a

19 corporation, society, association, foundation, or institution

20 that has been issued a sales tax exemption identification

21 number by the Department that assists victims of the disaster

22 who reside within the declared disaster area.

23  (25) Beginning with taxable years ending on or after

24 December 31, 1995 and ending with taxable years ending on or

25 before December 31, 2004, personal property that is used in

26 the performance of infrastructure repairs in this State,
    SB3222 Enrolled             - 188 - LRB104 19119 AAS 32564 b

1 including, but not limited to, municipal roads and streets,

2 access roads, bridges, sidewalks, waste disposal systems,

3 water and sewer line extensions, water distribution and

4 purification facilities, storm water drainage and retention

5 facilities, and sewage treatment facilities, resulting from a

6 State or federally declared disaster in Illinois or bordering

7 Illinois when such repairs are initiated on facilities located

8 in the declared disaster area within 6 months after the

9 disaster.

10  (26) Beginning July 1, 1999, game or game birds purchased

11 at a "game breeding and hunting preserve area" as that term is

12 used in the Wildlife Code. This paragraph is exempt from the

13 provisions of Section 3-90.

14  (27) A motor vehicle, as that term is defined in Section

15 1-146 of the Illinois Vehicle Code, that is donated to a

16 corporation, limited liability company, society, association,

17 foundation, or institution that is determined by the

18 Department to be organized and operated exclusively for

19 educational purposes. For purposes of this exemption, "a

20 corporation, limited liability company, society, association,

21 foundation, or institution organized and operated exclusively

22 for educational purposes" means all tax-supported public

23 schools, private schools that offer systematic instruction in

24 useful branches of learning by methods common to public

25 schools and that compare favorably in their scope and

26 intensity with the course of study presented in tax-supported
    SB3222 Enrolled  - 189 - LRB104 19119 AAS 32564 b

1 schools, and vocational or technical schools or institutes

2 organized and operated exclusively to provide a course of

3 study of not less than 6 weeks duration and designed to prepare

4 individuals to follow a trade or to pursue a manual,

5 technical, mechanical, industrial, business, or commercial

6 occupation.

7   (28) Beginning January 1, 2000, personal property,

8 including food, purchased through fundraising events for the

9 benefit of a public or private elementary or secondary school,

10 a group of those schools, or one or more school districts if

11 the events are sponsored by an entity recognized by the school

12 district that consists primarily of volunteers and includes

13 parents and teachers of the school children. This paragraph

14 does not apply to fundraising events (i) for the benefit of

15 private home instruction or (ii) for which the fundraising

16 entity purchases the personal property sold at the events from

17 another individual or entity that sold the property for the

18 purpose of resale by the fundraising entity and that profits

19 from the sale to the fundraising entity. This paragraph is

20 exempt from the provisions of Section 3-90.

21  (29) Beginning January 1, 2000 and through December 31,

22 2001, new or used automatic vending machines that prepare and

23 serve hot food and beverages, including coffee, soup, and

24 other items, and replacement parts for these machines.

25 Beginning January 1, 2002 and through June 30, 2003, machines

26 and parts for machines used in commercial, coin-operated
    SB3222 Enrolled  - 190 - LRB104 19119 AAS 32564 b

1 amusement and vending business if a use or occupation tax is

2 paid on the gross receipts derived from the use of the

3 commercial, coin-operated amusement and vending machines. This

4 paragraph is exempt from the provisions of Section 3-90.

5   (30) Beginning January 1, 2001 and through June 30, 2016,

6 food for human consumption that is to be consumed off the

7 premises where it is sold (other than alcoholic beverages,

8 soft drinks, and food that has been prepared for immediate

9 consumption) and prescription and nonprescription medicines,

10 drugs, medical appliances, and insulin, urine testing

11 materials, syringes, and needles used by diabetics, for human

12 use, when purchased for use by a person receiving medical

13 assistance under Article V of the Illinois Public Aid Code who

14 resides in a licensed long-term care facility, as defined in

15 the Nursing Home Care Act, or in a licensed facility as defined

16 in the ID/DD Community Care Act, the MC/DD Act, or the

17 Specialized Mental Health Rehabilitation Act of 2013.

18  (31) Beginning on August 2, 2001 (the effective date of

19 Public Act 92-227), computers and communications equipment

20 utilized for any hospital purpose and equipment used in the

21 diagnosis, analysis, or treatment of hospital patients

22 purchased by a lessor who leases the equipment, under a lease

23 of one year or longer executed or in effect at the time the

24 lessor would otherwise be subject to the tax imposed by this

25 Act, to a hospital that has been issued an active tax exemption

26 identification number by the Department under Section 1g of
    SB3222 Enrolled  - 191 - LRB104 19119 AAS 32564 b

1 the Retailers' Occupation Tax Act. If the equipment is leased

2 in a manner that does not qualify for this exemption or is used

3 in any other nonexempt manner, the lessor shall be liable for

4 the tax imposed under this Act or the Service Use Tax Act, as

5 the case may be, based on the fair market value of the property

6 at the time the nonqualifying use occurs. No lessor shall

7 collect or attempt to collect an amount (however designated)

8 that purports to reimburse that lessor for the tax imposed by

9 this Act or the Service Use Tax Act, as the case may be, if the

10 tax has not been paid by the lessor. If a lessor improperly

11 collects any such amount from the lessee, the lessee shall

12 have a legal right to claim a refund of that amount from the

13 lessor. If, however, that amount is not refunded to the lessee

14 for any reason, the lessor is liable to pay that amount to the

15 Department. This paragraph is exempt from the provisions of

16 Section 3-90.

17  (32) Beginning on August 2, 2001 (the effective date of

18 Public Act 92-227), personal property purchased by a lessor

19 who leases the property, under a lease of one year or longer

20 executed or in effect at the time the lessor would otherwise be

21 subject to the tax imposed by this Act, to a governmental body

22 that has been issued an active sales tax exemption

23 identification number by the Department under Section 1g of

24 the Retailers' Occupation Tax Act. If the property is leased

25 in a manner that does not qualify for this exemption or used in

26 any other nonexempt manner, the lessor shall be liable for the
    SB3222 Enrolled  - 192 - LRB104 19119 AAS 32564 b

1 tax imposed under this Act or the Service Use Tax Act, as the

2 case may be, based on the fair market value of the property at

3 the time the nonqualifying use occurs. No lessor shall collect

4 or attempt to collect an amount (however designated) that

5 purports to reimburse that lessor for the tax imposed by this

6 Act or the Service Use Tax Act, as the case may be, if the tax

7 has not been paid by the lessor. If a lessor improperly

8 collects any such amount from the lessee, the lessee shall

9 have a legal right to claim a refund of that amount from the

10 lessor. If, however, that amount is not refunded to the lessee

11 for any reason, the lessor is liable to pay that amount to the

12 Department. This paragraph is exempt from the provisions of

13 Section 3-90.

14  (33) On and after July 1, 2003 and through June 30, 2004,

15 the use in this State of motor vehicles of the second division

16 with a gross vehicle weight in excess of 8,000 pounds and that

17 are subject to the commercial distribution fee imposed under

18 Section 3-815.1 of the Illinois Vehicle Code. Beginning on

19 July 1, 2004 and through June 30, 2005, the use in this State

20 of motor vehicles of the second division: (i) with a gross

21 vehicle weight rating in excess of 8,000 pounds; (ii) that are

22 subject to the commercial distribution fee imposed under

23 Section 3-815.1 of the Illinois Vehicle Code; and (iii) that

24 are primarily used for commercial purposes. Through June 30,

25 2005, this exemption applies to repair and replacement parts

26 added after the initial purchase of such a motor vehicle if
    SB3222 Enrolled  - 193 - LRB104 19119 AAS 32564 b

1 that motor vehicle is used in a manner that would qualify for

2 the rolling stock exemption otherwise provided for in this

3 Act. For purposes of this paragraph, the term "used for

4 commercial purposes" means the transportation of persons or

5 property in furtherance of any commercial or industrial

6 enterprise, whether for-hire or not.

7   (34) Beginning January 1, 2008, tangible personal property

8 used in the construction or maintenance of a community water

9 supply, as defined under Section 3.145 of the Environmental

10 Protection Act, that is operated by a not-for-profit

11 corporation that holds a valid water supply permit issued

12 under Title IV of the Environmental Protection Act. This

13 paragraph is exempt from the provisions of Section 3-90.

14  (35) Beginning January 1, 2010 and continuing through

15 December 31, 2029, materials, parts, equipment, components,

16 and furnishings incorporated into or upon an aircraft as part

17 of the modification, refurbishment, completion, replacement,

18 repair, or maintenance of the aircraft. This exemption

19 includes consumable supplies used in the modification,

20 refurbishment, completion, replacement, repair, and

21 maintenance of aircraft. However, until January 1, 2024, this

22 exemption excludes any materials, parts, equipment,

23 components, and consumable supplies used in the modification,

24 replacement, repair, and maintenance of aircraft engines or

25 power plants, whether such engines or power plants are

26 installed or uninstalled upon any such aircraft. "Consumable
    SB3222 Enrolled  - 194 - LRB104 19119 AAS 32564 b

1 supplies" include, but are not limited to, adhesive, tape,

2 sandpaper, general purpose lubricants, cleaning solution,

3 latex gloves, and protective films.

4   Beginning January 1, 2010 and continuing through December

5 31, 2023, this exemption applies only to the use of qualifying

6 tangible personal property by persons who modify, refurbish,

7 complete, repair, replace, or maintain aircraft and who (i)

8 hold an Air Agency Certificate and are empowered to operate an

9 approved repair station by the Federal Aviation

10 Administration, (ii) have a Class IV Rating, and (iii) conduct

11 operations in accordance with Part 145 of the Federal Aviation

12 Regulations. From January 1, 2024 through December 31, 2029,

13 this exemption applies only to the use of qualifying tangible

14 personal property by: (A) persons who modify, refurbish,

15 complete, repair, replace, or maintain aircraft and who (i)

16 hold an Air Agency Certificate and are empowered to operate an

17 approved repair station by the Federal Aviation

18 Administration, (ii) have a Class IV Rating, and (iii) conduct

19 operations in accordance with Part 145 of the Federal Aviation

20 Regulations; and (B) persons who engage in the modification,

21 replacement, repair, and maintenance of aircraft engines or

22 power plants without regard to whether or not those persons

23 meet the qualifications of item (A).

24  The exemption does not include aircraft operated by a

25 commercial air carrier providing scheduled passenger air

26 service pursuant to authority issued under Part 121 or Part
    SB3222 Enrolled  - 195 - LRB104 19119 AAS 32564 b

1 129 of the Federal Aviation Regulations. The changes made to

2 this paragraph (35) by Public Act 98-534 are declarative of

3 existing law. It is the intent of the General Assembly that the

4 exemption under this paragraph (35) applies continuously from

5 January 1, 2010 through December 31, 2024; however, no claim

6 for credit or refund is allowed for taxes paid as a result of

7 the disallowance of this exemption on or after January 1, 2015

8 and prior to February 5, 2020 (the effective date of Public Act

9 101-629).

10  (36) Tangible personal property purchased by a

11 public-facilities corporation, as described in Section

12 11-65-10 of the Illinois Municipal Code, for purposes of

13 constructing or furnishing a municipal convention hall, but

14 only if the legal title to the municipal convention hall is

15 transferred to the municipality without any further

16 consideration by or on behalf of the municipality at the time

17 of the completion of the municipal convention hall or upon the

18 retirement or redemption of any bonds or other debt

19 instruments issued by the public-facilities corporation in

20 connection with the development of the municipal convention

21 hall. This exemption includes existing public-facilities

22 corporations as provided in Section 11-65-25 of the Illinois

23 Municipal Code. This paragraph is exempt from the provisions

24 of Section 3-90.

25  (37) Beginning January 1, 2017 and through December 31,

26 2026, menstrual pads, tampons, and menstrual cups.
    SB3222 Enrolled  - 196 - LRB104 19119 AAS 32564 b

1   (38) Merchandise that is subject to the Rental Purchase

2 Agreement Occupation and Use Tax. The purchaser must certify

3 that the item is purchased to be rented subject to a

4 rental-purchase agreement, as defined in the Rental-Purchase

5 Agreement Act, and provide proof of registration under the

6 Rental Purchase Agreement Occupation and Use Tax Act. This

7 paragraph is exempt from the provisions of Section 3-90.

8   (39) Tangible personal property purchased by a purchaser

9 who is exempt from the tax imposed by this Act by operation of

10 federal law. This paragraph is exempt from the provisions of

11 Section 3-90.

12  (40) Qualified tangible personal property used in the

13 construction or operation of a data center that has been

14 granted a certificate of exemption by the Department of

15 Commerce and Economic Opportunity, whether that tangible

16 personal property is purchased by the owner, operator, or

17 tenant of the data center or by a contractor or subcontractor

18 of the owner, operator, or tenant. Data centers that would

19 have qualified for a certificate of exemption prior to January

20 1, 2020 had Public Act 101-31 been in effect may apply for and

21 obtain an exemption for subsequent purchases of computer

22 equipment or enabling software purchased or leased to upgrade,

23 supplement, or replace computer equipment or enabling software

24 purchased or leased in the original investment that would have

25 qualified.

26  The Department of Commerce and Economic Opportunity shall
    SB3222 Enrolled         - 197 - LRB104 19119 AAS 32564 b

1 grant a certificate of exemption under this item (40) to

2 qualified data centers as defined by Section 605-1025 of the

3 Department of Commerce and Economic Opportunity Law of the

4 Civil Administrative Code of Illinois.

5   For the purposes of this item (40):

6   "Data center" means a building or a series of

7   buildings rehabilitated or constructed to house working

8   servers in one physical location or multiple sites within

9   the State of Illinois.

10  "Qualified tangible personal property" means:

11  electrical systems and equipment; climate control and

12  chilling equipment and systems; mechanical systems and

13  equipment; monitoring and secure systems; emergency

14  generators; hardware; computers; servers; data storage

15  devices; network connectivity equipment; racks; cabinets;

16  telecommunications cabling infrastructure; raised floor

17  systems; peripheral components or systems; software;

18  mechanical, electrical, or plumbing systems; battery

19  systems; cooling systems and towers; temperature control

20  systems; other cabling; and other data center

21  infrastructure equipment and systems necessary to operate

22  qualified tangible personal property, including fixtures;

23  and component parts of any of the foregoing, including

24  installation, maintenance, repair, refurbishment, and

25  replacement of qualified tangible personal property to

26  generate, transform, transmit, distribute, or manage
    SB3222 Enrolled         - 198 - LRB104 19119 AAS 32564 b

1   electricity necessary to operate qualified tangible

2   personal property; and all other tangible personal

3   property that is essential to the operations of a computer

4   data center. The term "qualified tangible personal

5   property" also includes building materials physically

6   incorporated into the qualifying data center. To document

7   the exemption allowed under this Section, the retailer

8   must obtain from the purchaser a copy of the certificate

9   of eligibility issued by the Department of Commerce and

10  Economic Opportunity.

11  This item (40) is exempt from the provisions of Section

12 3-90.

13  (41) Beginning July 1, 2022, breast pumps, breast pump

14 collection and storage supplies, and breast pump kits. This

15 item (41) is exempt from the provisions of Section 3-90. As

16 used in this item (41):

17        "Breast pump" means an electrically controlled or

18  manually controlled pump device designed or marketed to be

19  used to express milk from a human breast during lactation,

20  including the pump device and any battery, AC adapter, or

21  other power supply unit that is used to power the pump

22  device and is packaged and sold with the pump device at the

23  time of sale.

24        "Breast pump collection and storage supplies" means

25  items of tangible personal property designed or marketed

26  to be used in conjunction with a breast pump to collect
    SB3222 Enrolled     - 199 - LRB104 19119 AAS 32564 b

1   milk expressed from a human breast and to store collected

2   milk until it is ready for consumption.

3   "Breast pump collection and storage supplies"

4   includes, but is not limited to: breast shields and breast

5   shield connectors; breast pump tubes and tubing adapters;

6   breast pump valves and membranes; backflow protectors and

7   backflow protector adaptors; bottles and bottle caps

8   specific to the operation of the breast pump; and breast

9   milk storage bags.

10  "Breast pump collection and storage supplies" does not

11  include: (1) bottles and bottle caps not specific to the

12  operation of the breast pump; (2) breast pump travel bags

13  and other similar carrying accessories, including ice

14  packs, labels, and other similar products; (3) breast pump

15  cleaning supplies; (4) nursing bras, bra pads, breast

16  shells, and other similar products; and (5) creams,

17  ointments, and other similar products that relieve

18  breastfeeding-related symptoms or conditions of the

19  breasts or nipples, unless sold as part of a breast pump

20  kit that is pre-packaged by the breast pump manufacturer

21  or distributor.

22  "Breast pump kit" means a kit that: (1) contains no

23  more than a breast pump, breast pump collection and

24  storage supplies, a rechargeable battery for operating the

25  breast pump, a breastmilk cooler, bottle stands, ice

26  packs, and a breast pump carrying case; and (2) is
    SB3222 Enrolled  - 200 - LRB104 19119 AAS 32564 b

1   pre-packaged as a breast pump kit by the breast pump

2   manufacturer or distributor.

3   (42) Tangible personal property sold by or on behalf of

4 the State Treasurer pursuant to the Revised Uniform Unclaimed

5 Property Act. This item (42) is exempt from the provisions of

6 Section 3-90.

7   (43) Beginning on January 1, 2024, tangible personal

8 property purchased by an active duty member of the armed

9 forces of the United States who presents valid military

10 identification and purchases the property using a form of

11 payment where the federal government is the payor. The member

12 of the armed forces must complete, at the point of sale, a form

13 prescribed by the Department of Revenue documenting that the

14 transaction is eligible for the exemption under this

15 paragraph. Retailers must keep the form as documentation of

16 the exemption in their records for a period of not less than 6

17 years. "Armed forces of the United States" means the United

18 States Army, Navy, Air Force, Space Force, Marine Corps, or

19 Coast Guard. This paragraph is exempt from the provisions of

20 Section 3-90.

21  (44) Beginning July 1, 2024, home-delivered meals provided

22 to Medicare or Medicaid recipients when payment is made by an

23 intermediary, such as a Medicare Administrative Contractor, a

24 Managed Care Organization, or a Medicare Advantage

25 Organization, pursuant to a government contract. This item

26 (44) is exempt from the provisions of Section 3-90.
    SB3222 Enrolled    - 201 - LRB104 19119 AAS 32564 b

1   (45) Beginning on January 1, 2026, as further defined in

2 Section 3-10, food for human consumption that is to be

3 consumed off the premises where it is sold (other than

4 alcoholic beverages, food consisting of or infused with adult

5 use cannabis, soft drinks, candy, and food that has been

6 prepared for immediate consumption, and, beginning on November

7 12, 2026, food that is a final consumer hemp cannabinoid

8 product as defined in the Illinois Hemp Act). This item (45) is

9 exempt from the provisions of Section 3-90.

10  (46) Use by the lessee of the following leased tangible

11 personal property:

12  (1) software transferred subject to a license that

13  meets the following requirements:

14  (A) it is evidenced by a written agreement signed

15  by the licensor and the customer;

16                   (i) an electronic agreement in which the

17  customer accepts the license by means of an

18  electronic signature that is verifiable and can be

19  authenticated and is attached to or made part of

20  the license will comply with this requirement;

21                   (ii) a license agreement in which the customer

22  electronically accepts the terms by clicking "I

23  agree" does not comply with this requirement;

24  (B) it restricts the customer's duplication and

25  use of the software;

26  (C) it prohibits the customer from licensing,
    SB3222 Enrolled    - 202 - LRB104 19119 AAS 32564 b

1   sublicensing, or transferring the software to a third

2   party (except to a related party) without the

3   permission and continued control of the licensor;

4   (D) the licensor has a policy of providing another

5   copy at minimal or no charge if the customer loses or

6   damages the software, or of permitting the licensee to

7   make and keep an archival copy, and such policy is

8   either stated in the license agreement, supported by

9   the licensor's books and records, or supported by a

10  notarized statement made under penalties of perjury by

11  the licensor; and

12  (E) the customer must destroy or return all copies

13  of the software to the licensor at the end of the

14  license period; this provision is deemed to be met, in

15  the case of a perpetual license, without being set

16  forth in the license agreement; and

17  (2) property that is subject to a tax on lease

18  receipts imposed by a home rule unit of local government

19  if the ordinance imposing that tax was adopted prior to

20  January 1, 2023.

21 (Source: P.A. 103-9, Article 5, Section 5-5, eff. 6-7-23;

22 103-9, Article 15, Section 15-5, eff. 6-7-23; 103-154, eff.

23 6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,

24 eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;

25 103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)
    SB3222 Enrolled        - 203 - LRB104 19119 AAS 32564 b

1   (35 ILCS 105/3-10) from Ch. 120, par. 439.33-10

2   Sec. 3-10. Rate of tax. Unless otherwise provided in this

3 Section, the tax imposed by this Act is at the rate of 6.25% of

4 either the selling price or the fair market value, if any, of

5 the tangible personal property, which, on and after January 1,

6 2025, includes leases of tangible personal property. In all

7 cases where property functionally used or consumed is the same

8 as the property that was purchased at retail, then the tax is

9 imposed on the selling price of the property. In all cases

10 where property functionally used or consumed is a by-product

11 or waste product that has been refined, manufactured, or

12 produced from property purchased at retail, then the tax is

13 imposed on the lower of the fair market value, if any, of the

14 specific property so used in this State or on the selling price

15 of the property purchased at retail. For purposes of this

16 Section "fair market value" means the price at which property

17 would change hands between a willing buyer and a willing

18 seller, neither being under any compulsion to buy or sell and

19 both having reasonable knowledge of the relevant facts. The

20 fair market value shall be established by Illinois sales by

21 the taxpayer of the same property as that functionally used or

22 consumed, or if there are no such sales by the taxpayer, then

23 comparable sales or purchases of property of like kind and

24 character in Illinois.

25  Beginning on July 1, 2000 and through December 31, 2000,

26 with respect to motor fuel, as defined in Section 1.1 of the
    SB3222 Enrolled  - 204 - LRB104 19119 AAS 32564 b

1 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

2 the Use Tax Act, the tax is imposed at the rate of 1.25%.

3   Beginning on August 6, 2010 through August 15, 2010, and

4 beginning again on August 5, 2022 through August 14, 2022,

5 with respect to sales tax holiday items as defined in Section

6 3-6 of this Act, the tax is imposed at the rate of 1.25%.

7   With respect to gasohol, the tax imposed by this Act

8 applies to (i) 70% of the proceeds of sales made on or after

9 January 1, 1990, and before July 1, 2003, (ii) 80% of the

10 proceeds of sales made on or after July 1, 2003 and on or

11 before July 1, 2017, (iii) 100% of the proceeds of sales made

12 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of

13 the proceeds of sales made on or after January 1, 2024 and on

14 or before December 31, 2028, and (v) 100% of the proceeds of

15 sales made after December 31, 2028. If, at any time, however,

16 the tax under this Act on sales of gasohol is imposed at the

17 rate of 1.25%, then the tax imposed by this Act applies to 100%

18 of the proceeds of sales of gasohol made during that time.

19  With respect to mid-range ethanol blends, the tax imposed

20 by this Act applies to (i) 80% of the proceeds of sales made on

21 or after January 1, 2024 and on or before December 31, 2028 and

22 (ii) 100% of the proceeds of sales made thereafter. If, at any

23 time, however, the tax under this Act on sales of mid-range

24 ethanol blends is imposed at the rate of 1.25%, then the tax

25 imposed by this Act applies to 100% of the proceeds of sales of

26 mid-range ethanol blends made during that time.
    SB3222 Enrolled  - 205 - LRB104 19119 AAS 32564 b

1   With respect to majority blended ethanol fuel, the tax

2 imposed by this Act does not apply to the proceeds of sales

3 made on or after July 1, 2003 and on or before December 31,

4 2028 but applies to 100% of the proceeds of sales made

5 thereafter.

6   With respect to biodiesel blends with no less than 1% and

7 no more than 10% biodiesel, the tax imposed by this Act applies

8 to (i) 80% of the proceeds of sales made on or after July 1,

9 2003 and on or before December 31, 2018 and (ii) 100% of the

10 proceeds of sales made after December 31, 2018 and before

11 January 1, 2024. On and after January 1, 2024 and on or before

12 December 31, 2030, the taxation of biodiesel, renewable

13 diesel, and biodiesel blends shall be as provided in Section

14 3-5.1. If, at any time, however, the tax under this Act on

15 sales of biodiesel blends with no less than 1% and no more than

16 10% biodiesel is imposed at the rate of 1.25%, then the tax

17 imposed by this Act applies to 100% of the proceeds of sales of

18 biodiesel blends with no less than 1% and no more than 10%

19 biodiesel made during that time.

20  With respect to biodiesel and biodiesel blends with more

21 than 10% but no more than 99% biodiesel, the tax imposed by

22 this Act does not apply to the proceeds of sales made on or

23 after July 1, 2003 and on or before December 31, 2023. On and

24 after January 1, 2024 and on or before December 31, 2030, the

25 taxation of biodiesel, renewable diesel, and biodiesel blends

26 shall be as provided in Section 3-5.1.
    SB3222 Enrolled      - 206 - LRB104 19119 AAS 32564 b

1   Until July 1, 2022 and from July 1, 2023 through December

2 31, 2025, with respect to food for human consumption that is to

3 be consumed off the premises where it is sold (other than

4 alcoholic beverages, food consisting of or infused with adult

5 use cannabis, soft drinks, and food that has been prepared for

6 immediate consumption, and, beginning on November 12, 2026,

7 food that is a final consumer hemp cannabinoid product as

8 defined in the Illinois Hemp Act), the tax is imposed at the

9 rate of 1%. Beginning on July 1, 2022 and until July 1, 2023,

10 with respect to food for human consumption that is to be

11 consumed off the premises where it is sold (other than

12 alcoholic beverages, food consisting of or infused with adult

13 use cannabis, soft drinks, and food that has been prepared for

14 immediate consumption), the tax is imposed at the rate of 0%.

15 On and after January 1, 2026, food for human consumption that

16 is to be consumed off the premises where it is sold (other than

17 alcoholic beverages, food consisting of or infused with adult

18 use cannabis, soft drinks, candy, and food that has been

19 prepared for immediate consumption) is exempt from the tax

20 imposed by this Act.

21  With respect to prescription and nonprescription

22 medicines, drugs, medical appliances, products classified as

23 Class III medical devices by the United States Food and Drug

24 Administration that are used for cancer treatment pursuant to

25 a prescription, as well as any accessories and components

26 related to those devices, modifications to a motor vehicle for
    SB3222 Enrolled  - 207 - LRB104 19119 AAS 32564 b

1 the purpose of rendering it usable by a person with a

2 disability, and insulin, blood sugar testing materials,

3 syringes, and needles used by human diabetics, the tax is

4 imposed at the rate of 1%. For the purposes of this Section,

5 until September 1, 2009: the term "soft drinks" means any

6 complete, finished, ready-to-use, non-alcoholic drink, whether

7 carbonated or not, including, but not limited to, soda water,

8 cola, fruit juice, vegetable juice, carbonated water, and all

9 other preparations commonly known as soft drinks of whatever

10 kind or description that are contained in any closed or sealed

11 bottle, can, carton, or container, regardless of size; but

12 "soft drinks" does not include coffee, tea, non-carbonated

13 water, infant formula, milk or milk products as defined in the

14 Grade A Pasteurized Milk and Milk Products Act, or drinks

15 containing 50% or more natural fruit or vegetable juice.

16  Notwithstanding any other provisions of this Act,

17 beginning September 1, 2009, "soft drinks" means non-alcoholic

18 beverages that contain natural or artificial sweeteners. "Soft

19 drinks" does not include beverages that contain milk or milk

20 products, soy, rice or similar milk substitutes, or greater

21 than 50% of vegetable or fruit juice by volume.

22  Until August 1, 2009, and notwithstanding any other

23 provisions of this Act, "food for human consumption that is to

24 be consumed off the premises where it is sold" includes all

25 food sold through a vending machine, except soft drinks and

26 food products that are dispensed hot from a vending machine,
    SB3222 Enrolled  - 208 - LRB104 19119 AAS 32564 b

1 regardless of the location of the vending machine. Beginning

2 August 1, 2009, and notwithstanding any other provisions of

3 this Act, "food for human consumption that is to be consumed

4 off the premises where it is sold" includes all food sold

5 through a vending machine, except soft drinks, candy, and food

6 products that are dispensed hot from a vending machine,

7 regardless of the location of the vending machine.

8   Notwithstanding any other provisions of this Act,

9 beginning September 1, 2009, "food for human consumption that

10 is to be consumed off the premises where it is sold" does not

11 include candy. For purposes of this Section, "candy" means a

12 preparation of sugar, honey, or other natural or artificial

13 sweeteners in combination with chocolate, fruits, nuts or

14 other ingredients or flavorings in the form of bars, drops, or

15 pieces. "Candy" does not include any preparation that contains

16 flour or requires refrigeration.

17  Notwithstanding any other provisions of this Act,

18 beginning September 1, 2009, "nonprescription medicines and

19 drugs" does not include grooming and hygiene products. For

20 purposes of this Section, "grooming and hygiene products"

21 includes, but is not limited to, soaps and cleaning solutions,

22 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

23 lotions and screens, unless those products are available by

24 prescription only, regardless of whether the products meet the

25 definition of "over-the-counter-drugs". For the purposes of

26 this paragraph, "over-the-counter-drug" means a drug for human
    SB3222 Enrolled         - 209 - LRB104 19119 AAS 32564 b

1 use that contains a label that identifies the product as a drug

2 as required by 21 CFR 201.66. The "over-the-counter-drug"

3 label includes:

4   (A) a "Drug Facts" panel; or

5   (B) a statement of the "active ingredient(s)" with a

6   list of those ingredients contained in the compound,

7   substance or preparation.

8   Beginning on January 1, 2014 (the effective date of Public

9 Act 98-122), "prescription and nonprescription medicines and

10 drugs" includes medical cannabis purchased from a registered

11 dispensing organization under the Compassionate Use of Medical

12 Cannabis Program Act.

13  Beginning 90 days after the effective date of this

14 amendatory Act of the 104th General Assembly, "prescription

15 and nonprescription medicines and drugs" includes cannabis or

16 cannabis-infused products purchased by a qualified patient,

17 provisional patient, designated caregiver, or Opioid

18 Alternative Patient Program participant as part of that

19 individual's adequate medical supply from any dispensary that

20 has been issued a Medical Cannabis Dispensing Organization

21 license, as these terms are defined under the Cannabis

22 Regulation and Tax Act.

23  Beginning on the November 12, 2026, "prescription and

24 nonprescription medicines and drugs" does not include a final

25 consumer hemp cannabinoid product as defined in the Illinois

26 Hemp Act.
    SB3222 Enrolled  - 210 - LRB104 19119 AAS 32564 b

1   As used in this Section, "adult use cannabis" means

2 cannabis subject to tax under the Cannabis Cultivation

3 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

4 and does not include cannabis subject to tax under the

5 Compassionate Use of Medical Cannabis Program Act.

6   Beginning 90 days after the effective date of this

7 amendatory Act of the 104th General Assembly, as used in this

8 Section, "adult use cannabis" does not include cannabis or

9 cannabis-infused products purchased by a qualified patient,

10 provisional patient, designated caregiver, or Opioid

11 Alternative Patient Program participant as part of that

12 individual's adequate medical supply from any dispensary that

13 has been issued a Medical Cannabis Dispensing Organization

14 license.

15  If the property that is purchased at retail from a

16 retailer is acquired outside Illinois and used outside

17 Illinois before being brought to Illinois for use here and is

18 taxable under this Act, the "selling price" on which the tax is

19 computed shall be reduced by an amount that represents a

20 reasonable allowance for depreciation for the period of prior

21 out-of-state use. No depreciation is allowed in cases where

22 the tax under this Act is imposed on lease receipts.

23 (Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;

24 103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.

25 8-15-25.)
    SB3222 Enrolled            - 211 - LRB104 19119 AAS 32564 b

1   Section 125. The Service Use Tax Act is amended by

2 changing Sections 3-5 and 3-10 as follows:

3   (35 ILCS 110/3-5)

4   Sec. 3-5. Exemptions. Use of the following tangible

5 personal property is exempt from the tax imposed by this Act:

6   (1) Personal property purchased from a corporation,

7 society, association, foundation, institution, or

8 organization, other than a limited liability company, that is

9 organized and operated as a not-for-profit service enterprise

10 for the benefit of persons 65 years of age or older if the

11 personal property was not purchased by the enterprise for the

12 purpose of resale by the enterprise.

13  (2) Personal property purchased by a non-profit Illinois

14 county fair association for use in conducting, operating, or

15 promoting the county fair.

16  (3) Personal property purchased by a not-for-profit arts

17 or cultural organization that establishes, by proof required

18 by the Department by rule, that it has received an exemption

19 under Section 501(c)(3) of the Internal Revenue Code and that

20 is organized and operated primarily for the presentation or

21 support of arts or cultural programming, activities, or

22 services. These organizations include, but are not limited to,

23 music and dramatic arts organizations such as symphony

24 orchestras and theatrical groups, arts and cultural service

25 organizations, local arts councils, visual arts organizations,
    SB3222 Enrolled      - 212 - LRB104 19119 AAS 32564 b

1 and media arts organizations. On and after July 1, 2001 (the

2 effective date of Public Act 92-35), however, an entity

3 otherwise eligible for this exemption shall not make tax-free

4 purchases unless it has an active identification number issued

5 by the Department.

6   (4) Legal tender, currency, medallions, or gold or silver

7 coinage issued by the State of Illinois, the government of the

8 United States of America, or the government of any foreign

9 country, and bullion.

10  (5) Until July 1, 2003 and beginning again on September 1,

11 2004 through August 30, 2014, graphic arts machinery and

12 equipment, including repair and replacement parts, both new

13 and used, and including that manufactured on special order or

14 purchased for lease, certified by the purchaser to be used

15 primarily for graphic arts production. Equipment includes

16 chemicals or chemicals acting as catalysts but only if the

17 chemicals or chemicals acting as catalysts effect a direct and

18 immediate change upon a graphic arts product. Beginning on

19 July 1, 2017, graphic arts machinery and equipment is included

20 in the manufacturing and assembling machinery and equipment

21 exemption under Section 2 of this Act.

22  (6) Personal property purchased from a teacher-sponsored

23 student organization affiliated with an elementary or

24 secondary school located in Illinois.

25  (7) Farm machinery and equipment, both new and used,

26 including that manufactured on special order, certified by the
    SB3222 Enrolled  - 213 - LRB104 19119 AAS 32564 b

1 purchaser to be used primarily for production agriculture or

2 State or federal agricultural programs, including individual

3 replacement parts for the machinery and equipment, including

4 machinery and equipment purchased for lease, and including

5 implements of husbandry defined in Section 1-130 of the

6 Illinois Vehicle Code, farm machinery and agricultural

7 chemical and fertilizer spreaders, and nurse wagons required

8 to be registered under Section 3-809 of the Illinois Vehicle

9 Code, but excluding other motor vehicles required to be

10 registered under the Illinois Vehicle Code. Horticultural

11 polyhouses or hoop houses used for propagating, growing, or

12 overwintering plants shall be considered farm machinery and

13 equipment under this item (7). Agricultural chemical tender

14 tanks and dry boxes shall include units sold separately from a

15 motor vehicle required to be licensed and units sold mounted

16 on a motor vehicle required to be licensed if the selling price

17 of the tender is separately stated.

18  Farm machinery and equipment shall include precision

19 farming equipment that is installed or purchased to be

20 installed on farm machinery and equipment, including, but not

21 limited to, tractors, harvesters, sprayers, planters, seeders,

22 or spreaders. Precision farming equipment includes, but is not

23 limited to, soil testing sensors, computers, monitors,

24 software, global positioning and mapping systems, and other

25 such equipment.

26  Farm machinery and equipment also includes computers,
    SB3222 Enrolled        - 214 - LRB104 19119 AAS 32564 b

1 sensors, software, and related equipment used primarily in the

2 computer-assisted operation of production agriculture

3 facilities, equipment, and activities such as, but not limited

4 to, the collection, monitoring, and correlation of animal and

5 crop data for the purpose of formulating animal diets and

6 agricultural chemicals.

7   Beginning on January 1, 2024, farm machinery and equipment

8 also includes electrical power generation equipment used

9 primarily for production agriculture.

10  This item (7) is exempt from the provisions of Section

11 3-75.

12  (8) Until June 30, 2013, fuel and petroleum products sold

13 to or used by an air common carrier, certified by the carrier

14 to be used for consumption, shipment, or storage in the

15 conduct of its business as an air common carrier, for a flight

16 destined for or returning from a location or locations outside

17 the United States without regard to previous or subsequent

18 domestic stopovers.

19  Beginning July 1, 2013, fuel and petroleum products sold

20 to or used by an air carrier, certified by the carrier to be

21 used for consumption, shipment, or storage in the conduct of

22 its business as an air common carrier, for a flight that (i) is

23 engaged in foreign trade or is engaged in trade between the

24 United States and any of its possessions and (ii) transports

25 at least one individual or package for hire from the city of

26 origination to the city of final destination on the same
    SB3222 Enrolled  - 215 - LRB104 19119 AAS 32564 b

1 aircraft, without regard to a change in the flight number of

2 that aircraft.

3   (9) Proceeds of mandatory service charges separately

4 stated on customers' bills for the purchase and consumption of

5 food and beverages acquired as an incident to the purchase of a

6 service from a serviceman, to the extent that the proceeds of

7 the service charge are in fact turned over as tips or as a

8 substitute for tips to the employees who participate directly

9 in preparing, serving, hosting or cleaning up the food or

10 beverage function with respect to which the service charge is

11 imposed.

12  (10) Until July 1, 2003, oil field exploration, drilling,

13 and production equipment, including (i) rigs and parts of

14 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

15 pipe and tubular goods, including casing and drill strings,

16 (iii) pumps and pump-jack units, (iv) storage tanks and flow

17 lines, (v) any individual replacement part for oil field

18 exploration, drilling, and production equipment, and (vi)

19 machinery and equipment purchased for lease; but excluding

20 motor vehicles required to be registered under the Illinois

21 Vehicle Code.

22  (11) Proceeds from the sale of photoprocessing machinery

23 and equipment, including repair and replacement parts, both

24 new and used, including that manufactured on special order,

25 certified by the purchaser to be used primarily for

26 photoprocessing, and including photoprocessing machinery and
    SB3222 Enrolled  - 216 - LRB104 19119 AAS 32564 b

1 equipment purchased for lease.

2   (12) Until July 1, 2028, coal and aggregate exploration,

3 mining, off-highway hauling, processing, maintenance, and

4 reclamation equipment, including replacement parts and

5 equipment, and including equipment purchased for lease, but

6 excluding motor vehicles required to be registered under the

7 Illinois Vehicle Code. The changes made to this Section by

8 Public Act 97-767 apply on and after July 1, 2003, but no claim

9 for credit or refund is allowed on or after August 16, 2013

10 (the effective date of Public Act 98-456) for such taxes paid

11 during the period beginning July 1, 2003 and ending on August

12 16, 2013 (the effective date of Public Act 98-456).

13  (13) Semen used for artificial insemination of livestock

14 for direct agricultural production.

15  (14) Horses, or interests in horses, registered with and

16 meeting the requirements of any of the Arabian Horse Club

17 Registry of America, Appaloosa Horse Club, American Quarter

18 Horse Association, United States Trotting Association, or

19 Jockey Club, as appropriate, used for purposes of breeding or

20 racing for prizes. This item (14) is exempt from the

21 provisions of Section 3-75, and the exemption provided for

22 under this item (14) applies for all periods beginning May 30,

23 1995, but no claim for credit or refund is allowed on or after

24 January 1, 2008 (the effective date of Public Act 95-88) for

25 such taxes paid during the period beginning May 30, 2000 and

26 ending on January 1, 2008 (the effective date of Public Act
    SB3222 Enrolled  - 217 - LRB104 19119 AAS 32564 b

1 95-88).

2   (15) Computers and communications equipment utilized for

3 any hospital purpose and equipment used in the diagnosis,

4 analysis, or treatment of hospital patients purchased by a

5 lessor who leases the equipment, under a lease of one year or

6 longer executed or in effect at the time the lessor would

7 otherwise be subject to the tax imposed by this Act, to a

8 hospital that has been issued an active tax exemption

9 identification number by the Department under Section 1g of

10 the Retailers' Occupation Tax Act. If the equipment is leased

11 in a manner that does not qualify for this exemption or is used

12 in any other non-exempt manner, the lessor shall be liable for

13 the tax imposed under this Act or the Use Tax Act, as the case

14 may be, based on the fair market value of the property at the

15 time the non-qualifying use occurs. No lessor shall collect or

16 attempt to collect an amount (however designated) that

17 purports to reimburse that lessor for the tax imposed by this

18 Act or the Use Tax Act, as the case may be, if the tax has not

19 been paid by the lessor. If a lessor improperly collects any

20 such amount from the lessee, the lessee shall have a legal

21 right to claim a refund of that amount from the lessor. If,

22 however, that amount is not refunded to the lessee for any

23 reason, the lessor is liable to pay that amount to the

24 Department.

25  (16) Personal property purchased by a lessor who leases

26 the property, under a lease of one year or longer executed or
    SB3222 Enrolled  - 218 - LRB104 19119 AAS 32564 b

1 in effect at the time the lessor would otherwise be subject to

2 the tax imposed by this Act, to a governmental body that has

3 been issued an active tax exemption identification number by

4 the Department under Section 1g of the Retailers' Occupation

5 Tax Act. If the property is leased in a manner that does not

6 qualify for this exemption or is used in any other non-exempt

7 manner, the lessor shall be liable for the tax imposed under

8 this Act or the Use Tax Act, as the case may be, based on the

9 fair market value of the property at the time the

10 non-qualifying use occurs. No lessor shall collect or attempt

11 to collect an amount (however designated) that purports to

12 reimburse that lessor for the tax imposed by this Act or the

13 Use Tax Act, as the case may be, if the tax has not been paid

14 by the lessor. If a lessor improperly collects any such amount

15 from the lessee, the lessee shall have a legal right to claim a

16 refund of that amount from the lessor. If, however, that

17 amount is not refunded to the lessee for any reason, the lessor

18 is liable to pay that amount to the Department.

19  (17) Beginning with taxable years ending on or after

20 December 31, 1995 and ending with taxable years ending on or

21 before December 31, 2004, personal property that is donated

22 for disaster relief to be used in a State or federally declared

23 disaster area in Illinois or bordering Illinois by a

24 manufacturer or retailer that is registered in this State to a

25 corporation, society, association, foundation, or institution

26 that has been issued a sales tax exemption identification
    SB3222 Enrolled             - 219 - LRB104 19119 AAS 32564 b

1 number by the Department that assists victims of the disaster

2 who reside within the declared disaster area.

3   (18) Beginning with taxable years ending on or after

4 December 31, 1995 and ending with taxable years ending on or

5 before December 31, 2004, personal property that is used in

6 the performance of infrastructure repairs in this State,

7 including, but not limited to, municipal roads and streets,

8 access roads, bridges, sidewalks, waste disposal systems,

9 water and sewer line extensions, water distribution and

10 purification facilities, storm water drainage and retention

11 facilities, and sewage treatment facilities, resulting from a

12 State or federally declared disaster in Illinois or bordering

13 Illinois when such repairs are initiated on facilities located

14 in the declared disaster area within 6 months after the

15 disaster.

16  (19) Beginning July 1, 1999, game or game birds purchased

17 at a "game breeding and hunting preserve area" as that term is

18 used in the Wildlife Code. This paragraph is exempt from the

19 provisions of Section 3-75.

20  (20) A motor vehicle, as that term is defined in Section

21 1-146 of the Illinois Vehicle Code, that is donated to a

22 corporation, limited liability company, society, association,

23 foundation, or institution that is determined by the

24 Department to be organized and operated exclusively for

25 educational purposes. For purposes of this exemption, "a

26 corporation, limited liability company, society, association,
    SB3222 Enrolled  - 220 - LRB104 19119 AAS 32564 b

1 foundation, or institution organized and operated exclusively

2 for educational purposes" means all tax-supported public

3 schools, private schools that offer systematic instruction in

4 useful branches of learning by methods common to public

5 schools and that compare favorably in their scope and

6 intensity with the course of study presented in tax-supported

7 schools, and vocational or technical schools or institutes

8 organized and operated exclusively to provide a course of

9 study of not less than 6 weeks duration and designed to prepare

10 individuals to follow a trade or to pursue a manual,

11 technical, mechanical, industrial, business, or commercial

12 occupation.

13  (21) Beginning January 1, 2000, personal property,

14 including food, purchased through fundraising events for the

15 benefit of a public or private elementary or secondary school,

16 a group of those schools, or one or more school districts if

17 the events are sponsored by an entity recognized by the school

18 district that consists primarily of volunteers and includes

19 parents and teachers of the school children. This paragraph

20 does not apply to fundraising events (i) for the benefit of

21 private home instruction or (ii) for which the fundraising

22 entity purchases the personal property sold at the events from

23 another individual or entity that sold the property for the

24 purpose of resale by the fundraising entity and that profits

25 from the sale to the fundraising entity. This paragraph is

26 exempt from the provisions of Section 3-75.
    SB3222 Enrolled  - 221 - LRB104 19119 AAS 32564 b

1   (22) Beginning January 1, 2000 and through December 31,

2 2001, new or used automatic vending machines that prepare and

3 serve hot food and beverages, including coffee, soup, and

4 other items, and replacement parts for these machines.

5 Beginning January 1, 2002 and through June 30, 2003, machines

6 and parts for machines used in commercial, coin-operated

7 amusement and vending business if a use or occupation tax is

8 paid on the gross receipts derived from the use of the

9 commercial, coin-operated amusement and vending machines. This

10 paragraph is exempt from the provisions of Section 3-75.

11  (23) Beginning August 23, 2001 and through June 30, 2016,

12 food for human consumption that is to be consumed off the

13 premises where it is sold (other than alcoholic beverages,

14 soft drinks, and food that has been prepared for immediate

15 consumption) and prescription and nonprescription medicines,

16 drugs, medical appliances, and insulin, urine testing

17 materials, syringes, and needles used by diabetics, for human

18 use, when purchased for use by a person receiving medical

19 assistance under Article V of the Illinois Public Aid Code who

20 resides in a licensed long-term care facility, as defined in

21 the Nursing Home Care Act, or in a licensed facility as defined

22 in the ID/DD Community Care Act, the MC/DD Act, or the

23 Specialized Mental Health Rehabilitation Act of 2013.

24  (24) Beginning on August 2, 2001 (the effective date of

25 Public Act 92-227), computers and communications equipment

26 utilized for any hospital purpose and equipment used in the
    SB3222 Enrolled  - 222 - LRB104 19119 AAS 32564 b

1 diagnosis, analysis, or treatment of hospital patients

2 purchased by a lessor who leases the equipment, under a lease

3 of one year or longer executed or in effect at the time the

4 lessor would otherwise be subject to the tax imposed by this

5 Act, to a hospital that has been issued an active tax exemption

6 identification number by the Department under Section 1g of

7 the Retailers' Occupation Tax Act. If the equipment is leased

8 in a manner that does not qualify for this exemption or is used

9 in any other nonexempt manner, the lessor shall be liable for

10 the tax imposed under this Act or the Use Tax Act, as the case

11 may be, based on the fair market value of the property at the

12 time the nonqualifying use occurs. No lessor shall collect or

13 attempt to collect an amount (however designated) that

14 purports to reimburse that lessor for the tax imposed by this

15 Act or the Use Tax Act, as the case may be, if the tax has not

16 been paid by the lessor. If a lessor improperly collects any

17 such amount from the lessee, the lessee shall have a legal

18 right to claim a refund of that amount from the lessor. If,

19 however, that amount is not refunded to the lessee for any

20 reason, the lessor is liable to pay that amount to the

21 Department. This paragraph is exempt from the provisions of

22 Section 3-75.

23  (25) Beginning on August 2, 2001 (the effective date of

24 Public Act 92-227), personal property purchased by a lessor

25 who leases the property, under a lease of one year or longer

26 executed or in effect at the time the lessor would otherwise be
    SB3222 Enrolled  - 223 - LRB104 19119 AAS 32564 b

1 subject to the tax imposed by this Act, to a governmental body

2 that has been issued an active tax exemption identification

3 number by the Department under Section 1g of the Retailers'

4 Occupation Tax Act. If the property is leased in a manner that

5 does not qualify for this exemption or is used in any other

6 nonexempt manner, the lessor shall be liable for the tax

7 imposed under this Act or the Use Tax Act, as the case may be,

8 based on the fair market value of the property at the time the

9 nonqualifying use occurs. No lessor shall collect or attempt

10 to collect an amount (however designated) that purports to

11 reimburse that lessor for the tax imposed by this Act or the

12 Use Tax Act, as the case may be, if the tax has not been paid

13 by the lessor. If a lessor improperly collects any such amount

14 from the lessee, the lessee shall have a legal right to claim a

15 refund of that amount from the lessor. If, however, that

16 amount is not refunded to the lessee for any reason, the lessor

17 is liable to pay that amount to the Department. This paragraph

18 is exempt from the provisions of Section 3-75.

19  (26) Beginning January 1, 2008, tangible personal property

20 used in the construction or maintenance of a community water

21 supply, as defined under Section 3.145 of the Environmental

22 Protection Act, that is operated by a not-for-profit

23 corporation that holds a valid water supply permit issued

24 under Title IV of the Environmental Protection Act. This

25 paragraph is exempt from the provisions of Section 3-75.

26  (27) Beginning January 1, 2010 and continuing through
    SB3222 Enrolled  - 224 - LRB104 19119 AAS 32564 b

1 December 31, 2029, materials, parts, equipment, components,

2 and furnishings incorporated into or upon an aircraft as part

3 of the modification, refurbishment, completion, replacement,

4 repair, or maintenance of the aircraft. This exemption

5 includes consumable supplies used in the modification,

6 refurbishment, completion, replacement, repair, and

7 maintenance of aircraft. However, until January 1, 2024, this

8 exemption excludes any materials, parts, equipment,

9 components, and consumable supplies used in the modification,

10 replacement, repair, and maintenance of aircraft engines or

11 power plants, whether such engines or power plants are

12 installed or uninstalled upon any such aircraft. "Consumable

13 supplies" include, but are not limited to, adhesive, tape,

14 sandpaper, general purpose lubricants, cleaning solution,

15 latex gloves, and protective films.

16  Beginning January 1, 2010 and continuing through December

17 31, 2023, this exemption applies only to the use of qualifying

18 tangible personal property transferred incident to the

19 modification, refurbishment, completion, replacement, repair,

20 or maintenance of aircraft by persons who (i) hold an Air

21 Agency Certificate and are empowered to operate an approved

22 repair station by the Federal Aviation Administration, (ii)

23 have a Class IV Rating, and (iii) conduct operations in

24 accordance with Part 145 of the Federal Aviation Regulations.

25 From January 1, 2024 through December 31, 2029, this exemption

26 applies only to the use of qualifying tangible personal
    SB3222 Enrolled  - 225 - LRB104 19119 AAS 32564 b

1 property transferred incident to: (A) the modification,

2 refurbishment, completion, repair, replacement, or maintenance

3 of an aircraft by persons who (i) hold an Air Agency

4 Certificate and are empowered to operate an approved repair

5 station by the Federal Aviation Administration, (ii) have a

6 Class IV Rating, and (iii) conduct operations in accordance

7 with Part 145 of the Federal Aviation Regulations; and (B) the

8 modification, replacement, repair, and maintenance of aircraft

9 engines or power plants without regard to whether or not those

10 persons meet the qualifications of item (A).

11  The exemption does not include aircraft operated by a

12 commercial air carrier providing scheduled passenger air

13 service pursuant to authority issued under Part 121 or Part

14 129 of the Federal Aviation Regulations. The changes made to

15 this paragraph (27) by Public Act 98-534 are declarative of

16 existing law. It is the intent of the General Assembly that the

17 exemption under this paragraph (27) applies continuously from

18 January 1, 2010 through December 31, 2024; however, no claim

19 for credit or refund is allowed for taxes paid as a result of

20 the disallowance of this exemption on or after January 1, 2015

21 and prior to February 5, 2020 (the effective date of Public Act

22 101-629).

23  (28) Tangible personal property purchased by a

24 public-facilities corporation, as described in Section

25 11-65-10 of the Illinois Municipal Code, for purposes of

26 constructing or furnishing a municipal convention hall, but
    SB3222 Enrolled  - 226 - LRB104 19119 AAS 32564 b

1 only if the legal title to the municipal convention hall is

2 transferred to the municipality without any further

3 consideration by or on behalf of the municipality at the time

4 of the completion of the municipal convention hall or upon the

5 retirement or redemption of any bonds or other debt

6 instruments issued by the public-facilities corporation in

7 connection with the development of the municipal convention

8 hall. This exemption includes existing public-facilities

9 corporations as provided in Section 11-65-25 of the Illinois

10 Municipal Code. This paragraph is exempt from the provisions

11 of Section 3-75.

12  (29) Beginning January 1, 2017 and through December 31,

13 2026, menstrual pads, tampons, and menstrual cups.

14  (30) Tangible personal property transferred to a purchaser

15 who is exempt from the tax imposed by this Act by operation of

16 federal law. This paragraph is exempt from the provisions of

17 Section 3-75.

18  (31) Qualified tangible personal property used in the

19 construction or operation of a data center that has been

20 granted a certificate of exemption by the Department of

21 Commerce and Economic Opportunity, whether that tangible

22 personal property is purchased by the owner, operator, or

23 tenant of the data center or by a contractor or subcontractor

24 of the owner, operator, or tenant. Data centers that would

25 have qualified for a certificate of exemption prior to January

26 1, 2020 had Public Act 101-31 been in effect, may apply for and
    SB3222 Enrolled         - 227 - LRB104 19119 AAS 32564 b

1 obtain an exemption for subsequent purchases of computer

2 equipment or enabling software purchased or leased to upgrade,

3 supplement, or replace computer equipment or enabling software

4 purchased or leased in the original investment that would have

5 qualified.

6   The Department of Commerce and Economic Opportunity shall

7 grant a certificate of exemption under this item (31) to

8 qualified data centers as defined by Section 605-1025 of the

9 Department of Commerce and Economic Opportunity Law of the

10 Civil Administrative Code of Illinois.

11  For the purposes of this item (31):

12  "Data center" means a building or a series of

13  buildings rehabilitated or constructed to house working

14  servers in one physical location or multiple sites within

15  the State of Illinois.

16  "Qualified tangible personal property" means:

17  electrical systems and equipment; climate control and

18  chilling equipment and systems; mechanical systems and

19  equipment; monitoring and secure systems; emergency

20  generators; hardware; computers; servers; data storage

21  devices; network connectivity equipment; racks; cabinets;

22  telecommunications cabling infrastructure; raised floor

23  systems; peripheral components or systems; software;

24  mechanical, electrical, or plumbing systems; battery

25  systems; cooling systems and towers; temperature control

26  systems; other cabling; and other data center
    SB3222 Enrolled         - 228 - LRB104 19119 AAS 32564 b

1   infrastructure equipment and systems necessary to operate

2   qualified tangible personal property, including fixtures;

3   and component parts of any of the foregoing, including

4   installation, maintenance, repair, refurbishment, and

5   replacement of qualified tangible personal property to

6   generate, transform, transmit, distribute, or manage

7   electricity necessary to operate qualified tangible

8   personal property; and all other tangible personal

9   property that is essential to the operations of a computer

10  data center. The term "qualified tangible personal

11  property" also includes building materials physically

12  incorporated into the qualifying data center. To document

13  the exemption allowed under this Section, the retailer

14  must obtain from the purchaser a copy of the certificate

15  of eligibility issued by the Department of Commerce and

16  Economic Opportunity.

17  This item (31) is exempt from the provisions of Section

18 3-75.

19  (32) Beginning July 1, 2022, breast pumps, breast pump

20 collection and storage supplies, and breast pump kits. This

21 item (32) is exempt from the provisions of Section 3-75. As

22 used in this item (32):

23        "Breast pump" means an electrically controlled or

24  manually controlled pump device designed or marketed to be

25  used to express milk from a human breast during lactation,

26  including the pump device and any battery, AC adapter, or
    SB3222 Enrolled     - 229 - LRB104 19119 AAS 32564 b

1   other power supply unit that is used to power the pump

2   device and is packaged and sold with the pump device at the

3   time of sale.

4   "Breast pump collection and storage supplies" means

5   items of tangible personal property designed or marketed

6   to be used in conjunction with a breast pump to collect

7   milk expressed from a human breast and to store collected

8   milk until it is ready for consumption.

9   "Breast pump collection and storage supplies"

10  includes, but is not limited to: breast shields and breast

11  shield connectors; breast pump tubes and tubing adapters;

12  breast pump valves and membranes; backflow protectors and

13  backflow protector adaptors; bottles and bottle caps

14  specific to the operation of the breast pump; and breast

15  milk storage bags.

16  "Breast pump collection and storage supplies" does not

17  include: (1) bottles and bottle caps not specific to the

18  operation of the breast pump; (2) breast pump travel bags

19  and other similar carrying accessories, including ice

20  packs, labels, and other similar products; (3) breast pump

21  cleaning supplies; (4) nursing bras, bra pads, breast

22  shells, and other similar products; and (5) creams,

23  ointments, and other similar products that relieve

24  breastfeeding-related symptoms or conditions of the

25  breasts or nipples, unless sold as part of a breast pump

26  kit that is pre-packaged by the breast pump manufacturer
    SB3222 Enrolled  - 230 - LRB104 19119 AAS 32564 b

1   or distributor.

2   "Breast pump kit" means a kit that: (1) contains no

3   more than a breast pump, breast pump collection and

4   storage supplies, a rechargeable battery for operating the

5   breast pump, a breastmilk cooler, bottle stands, ice

6   packs, and a breast pump carrying case; and (2) is

7   pre-packaged as a breast pump kit by the breast pump

8   manufacturer or distributor.

9   (33) Tangible personal property sold by or on behalf of

10 the State Treasurer pursuant to the Revised Uniform Unclaimed

11 Property Act. This item (33) is exempt from the provisions of

12 Section 3-75.

13  (34) Beginning on January 1, 2024, tangible personal

14 property purchased by an active duty member of the armed

15 forces of the United States who presents valid military

16 identification and purchases the property using a form of

17 payment where the federal government is the payor. The member

18 of the armed forces must complete, at the point of sale, a form

19 prescribed by the Department of Revenue documenting that the

20 transaction is eligible for the exemption under this

21 paragraph. Retailers must keep the form as documentation of

22 the exemption in their records for a period of not less than 6

23 years. "Armed forces of the United States" means the United

24 States Army, Navy, Air Force, Space Force, Marine Corps, or

25 Coast Guard. This paragraph is exempt from the provisions of

26 Section 3-75.
    SB3222 Enrolled  - 231 - LRB104 19119 AAS 32564 b

1   (35) Beginning July 1, 2024, home-delivered meals provided

2 to Medicare or Medicaid recipients when payment is made by an

3 intermediary, such as a Medicare Administrative Contractor, a

4 Managed Care Organization, or a Medicare Advantage

5 Organization, pursuant to a government contract. This

6 paragraph (35) is exempt from the provisions of Section 3-75.

7   (36) Beginning on January 1, 2026, as further defined in

8 Section 3-10, food prepared for immediate consumption and

9 transferred incident to a sale of service subject to this Act

10 or the Service Occupation Tax Act by an entity licensed under

11 the Hospital Licensing Act, the Nursing Home Care Act, the

12 Assisted Living and Shared Housing Act, the ID/DD Community

13 Care Act, the MC/DD Act, the Specialized Mental Health

14 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by

15 an entity that holds a permit issued pursuant to the Life Care

16 Facilities Act. This item (36) is exempt from the provisions

17 of Section 3-75.

18  (37) Beginning on January 1, 2026, as further defined in

19 Section 3-10, food for human consumption that is to be

20 consumed off the premises where it is sold (other than

21 alcoholic beverages, food consisting of or infused with adult

22 use cannabis, soft drinks, candy, and food that has been

23 prepared for immediate consumption, and, beginning on November

24 12, 2026, food that is a final consumer hemp cannabinoid

25 product as defined in the Illinois Hemp Act). This item (37) is

26 exempt from the provisions of Section 3-75.
    SB3222 Enrolled   - 232 - LRB104 19119 AAS 32564 b

1   (38) Use by a lessee of the following leased tangible

2 personal property:

3   (1) software transferred subject to a license that

4   meets the following requirements:

5   (A) it is evidenced by a written agreement signed

6   by the licensor and the customer;

7                    (i) an electronic agreement in which the

8   customer accepts the license by means of an

9   electronic signature that is verifiable and can be

10  authenticated and is attached to or made part of

11  the license will comply with this requirement;

12                   (ii) a license agreement in which the customer

13  electronically accepts the terms by clicking "I

14  agree" does not comply with this requirement;

15  (B) it restricts the customer's duplication and

16  use of the software;

17  (C) it prohibits the customer from licensing,

18  sublicensing, or transferring the software to a third

19  party (except to a related party) without the

20  permission and continued control of the licensor;

21  (D) the licensor has a policy of providing another

22  copy at minimal or no charge if the customer loses or

23  damages the software, or of permitting the licensee to

24  make and keep an archival copy, and such policy is

25  either stated in the license agreement, supported by

26  the licensor's books and records, or supported by a
    SB3222 Enrolled     - 233 - LRB104 19119 AAS 32564 b

1   notarized statement made under penalties of perjury by

2   the licensor; and

3             (E) the customer must destroy or return all copies

4   of the software to the licensor at the end of the

5   license period; this provision is deemed to be met, in

6   the case of a perpetual license, without being set

7   forth in the license agreement; and

8   (2) property that is subject to a tax on lease

9   receipts imposed by a home rule unit of local government

10  if the ordinance imposing that tax was adopted prior to

11  January 1, 2023.

12 (Source: P.A. 103-9, Article 5, Section 5-10, eff. 6-7-23;

13 103-9, Article 15, Section 15-10, eff. 6-7-23; 103-154, eff.

14 6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,

15 eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;

16 103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.

17 8-15-25.)

18  (35 ILCS 110/3-10)

19  Sec. 3-10. Rate of tax. Unless otherwise provided in this

20 Section, the tax imposed by this Act is at the rate of 6.25% of

21 the selling price of tangible personal property transferred,

22 including, on and after January 1, 2025, transferred by lease,

23 as an incident to the sale of service, but, for the purpose of

24 computing this tax, in no event shall the selling price be less

25 than the cost price of the property to the serviceman.
    SB3222 Enrolled  - 234 - LRB104 19119 AAS 32564 b

1   Beginning on July 1, 2000 and through December 31, 2000,

2 with respect to motor fuel, as defined in Section 1.1 of the

3 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

4 the Use Tax Act, the tax is imposed at the rate of 1.25%.

5   With respect to gasohol, as defined in the Use Tax Act, the

6 tax imposed by this Act applies to (i) 70% of the selling price

7 of property transferred as an incident to the sale of service

8 on or after January 1, 1990, and before July 1, 2003, (ii) 80%

9 of the selling price of property transferred as an incident to

10 the sale of service on or after July 1, 2003 and on or before

11 July 1, 2017, (iii) 100% of the selling price of property

12 transferred as an incident to the sale of service after July 1,

13 2017 and before January 1, 2024, (iv) 90% of the selling price

14 of property transferred as an incident to the sale of service

15 on or after January 1, 2024 and on or before December 31, 2028,

16 and (v) 100% of the selling price of property transferred as an

17 incident to the sale of service after December 31, 2028. If, at

18 any time, however, the tax under this Act on sales of gasohol,

19 as defined in the Use Tax Act, is imposed at the rate of 1.25%,

20 then the tax imposed by this Act applies to 100% of the

21 proceeds of sales of gasohol made during that time.

22  With respect to mid-range ethanol blends, as defined in

23 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

24 applies to (i) 80% of the selling price of property

25 transferred as an incident to the sale of service on or after

26 January 1, 2024 and on or before December 31, 2028 and (ii)
    SB3222 Enrolled  - 235 - LRB104 19119 AAS 32564 b

1 100% of the selling price of property transferred as an

2 incident to the sale of service after December 31, 2028. If, at

3 any time, however, the tax under this Act on sales of mid-range

4 ethanol blends is imposed at the rate of 1.25%, then the tax

5 imposed by this Act applies to 100% of the selling price of

6 mid-range ethanol blends transferred as an incident to the

7 sale of service during that time.

8   With respect to majority blended ethanol fuel, as defined

9 in the Use Tax Act, the tax imposed by this Act does not apply

10 to the selling price of property transferred as an incident to

11 the sale of service on or after July 1, 2003 and on or before

12 December 31, 2028 but applies to 100% of the selling price

13 thereafter.

14  With respect to biodiesel blends, as defined in the Use

15 Tax Act, with no less than 1% and no more than 10% biodiesel,

16 the tax imposed by this Act applies to (i) 80% of the selling

17 price of property transferred as an incident to the sale of

18 service on or after July 1, 2003 and on or before December 31,

19 2018 and (ii) 100% of the proceeds of the selling price after

20 December 31, 2018 and before January 1, 2024. On and after

21 January 1, 2024 and on or before December 31, 2030, the

22 taxation of biodiesel, renewable diesel, and biodiesel blends

23 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

24 at any time, however, the tax under this Act on sales of

25 biodiesel blends, as defined in the Use Tax Act, with no less

26 than 1% and no more than 10% biodiesel is imposed at the rate
    SB3222 Enrolled  - 236 - LRB104 19119 AAS 32564 b

1 of 1.25%, then the tax imposed by this Act applies to 100% of

2 the proceeds of sales of biodiesel blends with no less than 1%

3 and no more than 10% biodiesel made during that time.

4   With respect to biodiesel, as defined in the Use Tax Act,

5 and biodiesel blends, as defined in the Use Tax Act, with more

6 than 10% but no more than 99% biodiesel, the tax imposed by

7 this Act does not apply to the proceeds of the selling price of

8 property transferred as an incident to the sale of service on

9 or after July 1, 2003 and on or before December 31, 2023. On

10 and after January 1, 2024 and on or before December 31, 2030,

11 the taxation of biodiesel, renewable diesel, and biodiesel

12 blends shall be as provided in Section 3-5.1 of the Use Tax

13 Act.

14  At the election of any registered serviceman made for each

15 fiscal year, for whom the aggregate annual cost price of

16 tangible personal property transferred as an incident to the

17 sales of service is less than 35%, or 75% in the case of

18 servicemen transferring prescription drugs or servicemen

19 engaged in graphic arts production, of the aggregate annual

20 total gross receipts from all sales of service, the tax

21 imposed by this Act shall be based on the serviceman's cost

22 price of the tangible personal property transferred as an

23 incident to the sale of those services. This election may also

24 be made by any serviceman maintaining a place of business in

25 this State who makes retail sales from outside of this State to

26 Illinois customers but is not required to be registered under
    SB3222 Enrolled  - 237 - LRB104 19119 AAS 32564 b

1 Section 2a of the Retailers' Occupation Tax Act. Beginning

2 January 1, 2026, this election shall not apply to any sale of

3 service made through a marketplace that has met the threshold

4 in subsection (b-5) of Section 2d of this Act.

5   Beginning January 1, 2026, the tax shall be imposed at the

6 rate of 6.25% of 50% of the entire billing to the service

7 customer for all sales of service made through a marketplace

8 that has met the threshold in subsection (b-5) of Section 2d of

9 this Act. In no event shall 50% of the entire billing be less

10 than the cost price of the property to the marketplace

11 serviceman or the marketplace facilitator on its own sales of

12 service.

13  Until July 1, 2022 and from July 1, 2023 through December

14 31, 2025, the tax shall be imposed at the rate of 1% on food

15 prepared for immediate consumption and transferred incident to

16 a sale of service subject to this Act or the Service Occupation

17 Tax Act by an entity licensed under the Hospital Licensing

18 Act, the Nursing Home Care Act, the Assisted Living and Shared

19 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

20 Specialized Mental Health Rehabilitation Act of 2013, or the

21 Child Care Act of 1969, or an entity that holds a permit issued

22 pursuant to the Life Care Facilities Act. Until July 1, 2022

23 and from July 1, 2023 through December 31, 2025, the tax shall

24 also be imposed at the rate of 1% on food for human consumption

25 that is to be consumed off the premises where it is sold (other

26 than alcoholic beverages, food consisting of or infused with
    SB3222 Enrolled     - 238 - LRB104 19119 AAS 32564 b

1 adult use cannabis, soft drinks, and food that has been

2 prepared for immediate consumption and is not otherwise

3 included in this paragraph).

4   Beginning on July 1, 2022 and until July 1, 2023, the tax

5 shall be imposed at the rate of 0% on food prepared for

6 immediate consumption and transferred incident to a sale of

7 service subject to this Act or the Service Occupation Tax Act

8 by an entity licensed under the Hospital Licensing Act, the

9 Nursing Home Care Act, the Assisted Living and Shared Housing

10 Act, the ID/DD Community Care Act, the MC/DD Act, the

11 Specialized Mental Health Rehabilitation Act of 2013, or the

12 Child Care Act of 1969, or an entity that holds a permit issued

13 pursuant to the Life Care Facilities Act. Beginning on July 1,

14 2022 and until July 1, 2023, the tax shall also be imposed at

15 the rate of 0% on food for human consumption that is to be

16 consumed off the premises where it is sold (other than

17 alcoholic beverages, food consisting of or infused with adult

18 use cannabis, soft drinks, and food that has been prepared for

19 immediate consumption and is not otherwise included in this

20 paragraph, and, beginning on November 12, 2026, food that is a

21 final consumer hemp cannabinoid product as defined in the

22 Illinois Hemp Act).

23  On and after January 1, 2026, food prepared for immediate

24 consumption and transferred incident to a sale of service

25 subject to this Act or the Service Occupation Tax Act by an

26 entity licensed under the Hospital Licensing Act, the Nursing
    SB3222 Enrolled  - 239 - LRB104 19119 AAS 32564 b

1 Home Care Act, the Assisted Living and Shared Housing Act, the

2 ID/DD Community Care Act, the MC/DD Act, the Specialized

3 Mental Health Rehabilitation Act of 2013, or the Child Care

4 Act of 1969, or by an entity that holds a permit issued

5 pursuant to the Life Care Facilities Act is exempt from the tax

6 under this Act. On and after January 1, 2026, food for human

7 consumption that is to be consumed off the premises where it is

8 sold (other than alcoholic beverages, food consisting of or

9 infused with adult use cannabis, soft drinks, candy, and food

10 that has been prepared for immediate consumption and is not

11 otherwise included in this paragraph) is exempt from the tax

12 under this Act.

13  The tax shall be imposed at the rate of 1% on prescription

14 and nonprescription medicines, drugs, medical appliances,

15 products classified as Class III medical devices by the United

16 States Food and Drug Administration that are used for cancer

17 treatment pursuant to a prescription, as well as any

18 accessories and components related to those devices,

19 modifications to a motor vehicle for the purpose of rendering

20 it usable by a person with a disability, and insulin, blood

21 sugar testing materials, syringes, and needles used by human

22 diabetics. For the purposes of this Section, until September

23 1, 2009: the term "soft drinks" means any complete, finished,

24 ready-to-use, non-alcoholic drink, whether carbonated or not,

25 including, but not limited to, soda water, cola, fruit juice,

26 vegetable juice, carbonated water, and all other preparations
    SB3222 Enrolled  - 240 - LRB104 19119 AAS 32564 b

1 commonly known as soft drinks of whatever kind or description

2 that are contained in any closed or sealed bottle, can,

3 carton, or container, regardless of size; but "soft drinks"

4 does not include coffee, tea, non-carbonated water, infant

5 formula, milk or milk products as defined in the Grade A

6 Pasteurized Milk and Milk Products Act, or drinks containing

7 50% or more natural fruit or vegetable juice.

8   Notwithstanding any other provisions of this Act,

9 beginning September 1, 2009, "soft drinks" means non-alcoholic

10 beverages that contain natural or artificial sweeteners. "Soft

11 drinks" does not include beverages that contain milk or milk

12 products, soy, rice or similar milk substitutes, or greater

13 than 50% of vegetable or fruit juice by volume.

14  Until August 1, 2009, and notwithstanding any other

15 provisions of this Act, "food for human consumption that is to

16 be consumed off the premises where it is sold" includes all

17 food sold through a vending machine, except soft drinks and

18 food products that are dispensed hot from a vending machine,

19 regardless of the location of the vending machine. Beginning

20 August 1, 2009, and notwithstanding any other provisions of

21 this Act, "food for human consumption that is to be consumed

22 off the premises where it is sold" includes all food sold

23 through a vending machine, except soft drinks, candy, and food

24 products that are dispensed hot from a vending machine,

25 regardless of the location of the vending machine.

26  Notwithstanding any other provisions of this Act,
    SB3222 Enrolled  - 241 - LRB104 19119 AAS 32564 b

1 beginning September 1, 2009, "food for human consumption that

2 is to be consumed off the premises where it is sold" does not

3 include candy. For purposes of this Section, "candy" means a

4 preparation of sugar, honey, or other natural or artificial

5 sweeteners in combination with chocolate, fruits, nuts or

6 other ingredients or flavorings in the form of bars, drops, or

7 pieces. "Candy" does not include any preparation that contains

8 flour or requires refrigeration.

9   Notwithstanding any other provisions of this Act,

10 beginning September 1, 2009, "nonprescription medicines and

11 drugs" does not include grooming and hygiene products. For

12 purposes of this Section, "grooming and hygiene products"

13 includes, but is not limited to, soaps and cleaning solutions,

14 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

15 lotions and screens, unless those products are available by

16 prescription only, regardless of whether the products meet the

17 definition of "over-the-counter-drugs". For the purposes of

18 this paragraph, "over-the-counter-drug" means a drug for human

19 use that contains a label that identifies the product as a drug

20 as required by 21 CFR 201.66. The "over-the-counter-drug"

21 label includes:

22  (A) a "Drug Facts" panel; or

23  (B) a statement of the "active ingredient(s)" with a

24  list of those ingredients contained in the compound,

25  substance or preparation.

26  Beginning on January 1, 2014 (the effective date of Public
    SB3222 Enrolled         - 242 - LRB104 19119 AAS 32564 b

1 Act 98-122), "prescription and nonprescription medicines and

2 drugs" includes medical cannabis purchased from a registered

3 dispensing organization under the Compassionate Use of Medical

4 Cannabis Program Act.

5   Beginning 90 days after the effective date of this

6 amendatory Act of the 104th General Assembly, "prescription

7 and nonprescription medicines and drugs" includes cannabis or

8 cannabis-infused products purchased by a qualified patient,

9 provisional patient, designated caregiver, or Opioid

10 Alternative Patient Program participant as part of that

11 individual's adequate medical supply from any dispensary that

12 has been issued a Medical Cannabis Dispensing Organization

13 license, as these terms are defined under the Cannabis

14 Regulation and Tax Act.

15  Beginning on the November 12, 2026, "prescription and

16 nonprescription medicines and drugs" does not include a final

17 consumer hemp cannabinoid product as defined in the Illinois

18 Hemp Act.

19  As used in this Section, "adult use cannabis" means

20 cannabis subject to tax under the Cannabis Cultivation

21 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

22 and does not include cannabis subject to tax under the

23 Compassionate Use of Medical Cannabis Program Act.

24  Beginning 90 days after the effective date of this

25 amendatory Act of the 104th General Assembly, as used in this

26 Section, "adult use cannabis" does not include cannabis or
    SB3222 Enrolled    - 243 - LRB104 19119 AAS 32564 b

1 cannabis-infused products purchased by a qualified patient,

2 provisional patient, designated caregiver, or Opioid

3 Alternative Patient Program participant as part of that

4 individual's adequate medical supply from any dispensary that

5 has been issued a Medical Cannabis Dispensing Organization

6 license.

7   If the property that is acquired from a serviceman is

8 acquired outside Illinois and used outside Illinois before

9 being brought to Illinois for use here and is taxable under

10 this Act, the "selling price" on which the tax is computed

11 shall be reduced by an amount that represents a reasonable

12 allowance for depreciation for the period of prior

13 out-of-state use. No depreciation is allowed in cases where

14 the tax under this Act is imposed on lease receipts.

15 (Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;

16 103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.

17 6-16-25; 104-417, eff. 8-15-25.)

18  Section 130. The Service Occupation Tax Act is amended by

19 changing Sections 3-5 and 3-10 as follows:

20  (35 ILCS 115/3-5)

21  Sec. 3-5. Exemptions. The following tangible personal

22 property is exempt from the tax imposed by this Act:

23  (1) Personal property sold by a corporation, society,

24 association, foundation, institution, or organization, other
    SB3222 Enrolled    - 244 - LRB104 19119 AAS 32564 b

1 than a limited liability company, that is organized and

2 operated as a not-for-profit service enterprise for the

3 benefit of persons 65 years of age or older if the personal

4 property was not purchased by the enterprise for the purpose

5 of resale by the enterprise.

6   (2) Personal property purchased by a not-for-profit

7 Illinois county fair association for use in conducting,

8 operating, or promoting the county fair.

9   (3) Personal property purchased by any not-for-profit arts

10 or cultural organization that establishes, by proof required

11 by the Department by rule, that it has received an exemption

12 under Section 501(c)(3) of the Internal Revenue Code and that

13 is organized and operated primarily for the presentation or

14 support of arts or cultural programming, activities, or

15 services. These organizations include, but are not limited to,

16 music and dramatic arts organizations such as symphony

17 orchestras and theatrical groups, arts and cultural service

18 organizations, local arts councils, visual arts organizations,

19 and media arts organizations. On and after July 1, 2001 (the

20 effective date of Public Act 92-35), however, an entity

21 otherwise eligible for this exemption shall not make tax-free

22 purchases unless it has an active identification number issued

23 by the Department.

24  (4) Legal tender, currency, medallions, or gold or silver

25 coinage issued by the State of Illinois, the government of the

26 United States of America, or the government of any foreign
    SB3222 Enrolled      - 245 - LRB104 19119 AAS 32564 b

1 country, and bullion.

2   (5) Until July 1, 2003 and beginning again on September 1,

3 2004 through August 30, 2014, graphic arts machinery and

4 equipment, including repair and replacement parts, both new

5 and used, and including that manufactured on special order or

6 purchased for lease, certified by the purchaser to be used

7 primarily for graphic arts production. Equipment includes

8 chemicals or chemicals acting as catalysts but only if the

9 chemicals or chemicals acting as catalysts effect a direct and

10 immediate change upon a graphic arts product. Beginning on

11 July 1, 2017, graphic arts machinery and equipment is included

12 in the manufacturing and assembling machinery and equipment

13 exemption under Section 2 of this Act.

14  (6) Personal property sold by a teacher-sponsored student

15 organization affiliated with an elementary or secondary school

16 located in Illinois.

17  (7) Farm machinery and equipment, both new and used,

18 including that manufactured on special order, certified by the

19 purchaser to be used primarily for production agriculture or

20 State or federal agricultural programs, including individual

21 replacement parts for the machinery and equipment, including

22 machinery and equipment purchased for lease, and including

23 implements of husbandry defined in Section 1-130 of the

24 Illinois Vehicle Code, farm machinery and agricultural

25 chemical and fertilizer spreaders, and nurse wagons required

26 to be registered under Section 3-809 of the Illinois Vehicle
    SB3222 Enrolled         - 246 - LRB104 19119 AAS 32564 b

1 Code, but excluding other motor vehicles required to be

2 registered under the Illinois Vehicle Code. Horticultural

3 polyhouses or hoop houses used for propagating, growing, or

4 overwintering plants shall be considered farm machinery and

5 equipment under this item (7). Agricultural chemical tender

6 tanks and dry boxes shall include units sold separately from a

7 motor vehicle required to be licensed and units sold mounted

8 on a motor vehicle required to be licensed if the selling price

9 of the tender is separately stated.

10  Farm machinery and equipment shall include precision

11 farming equipment that is installed or purchased to be

12 installed on farm machinery and equipment, including, but not

13 limited to, tractors, harvesters, sprayers, planters, seeders,

14 or spreaders. Precision farming equipment includes, but is not

15 limited to, soil testing sensors, computers, monitors,

16 software, global positioning and mapping systems, and other

17 such equipment.

18  Farm machinery and equipment also includes computers,

19 sensors, software, and related equipment used primarily in the

20 computer-assisted operation of production agriculture

21 facilities, equipment, and activities such as, but not limited

22 to, the collection, monitoring, and correlation of animal and

23 crop data for the purpose of formulating animal diets and

24 agricultural chemicals.

25  Beginning on January 1, 2024, farm machinery and equipment

26 also includes electrical power generation equipment used
    SB3222 Enrolled     - 247 - LRB104 19119 AAS 32564 b

1 primarily for production agriculture.

2   This item (7) is exempt from the provisions of Section

3 3-55.

4   (8) Until June 30, 2013, fuel and petroleum products sold

5 to or used by an air common carrier, certified by the carrier

6 to be used for consumption, shipment, or storage in the

7 conduct of its business as an air common carrier, for a flight

8 destined for or returning from a location or locations outside

9 the United States without regard to previous or subsequent

10 domestic stopovers.

11  Beginning July 1, 2013, fuel and petroleum products sold

12 to or used by an air carrier, certified by the carrier to be

13 used for consumption, shipment, or storage in the conduct of

14 its business as an air common carrier, for a flight that (i) is

15 engaged in foreign trade or is engaged in trade between the

16 United States and any of its possessions and (ii) transports

17 at least one individual or package for hire from the city of

18 origination to the city of final destination on the same

19 aircraft, without regard to a change in the flight number of

20 that aircraft.

21  (9) Proceeds of mandatory service charges separately

22 stated on customers' bills for the purchase and consumption of

23 food and beverages, to the extent that the proceeds of the

24 service charge are in fact turned over as tips or as a

25 substitute for tips to the employees who participate directly

26 in preparing, serving, hosting or cleaning up the food or
    SB3222 Enrolled  - 248 - LRB104 19119 AAS 32564 b

1 beverage function with respect to which the service charge is

2 imposed.

3   (10) Until July 1, 2003, oil field exploration, drilling,

4 and production equipment, including (i) rigs and parts of

5 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)

6 pipe and tubular goods, including casing and drill strings,

7 (iii) pumps and pump-jack units, (iv) storage tanks and flow

8 lines, (v) any individual replacement part for oil field

9 exploration, drilling, and production equipment, and (vi)

10 machinery and equipment purchased for lease; but excluding

11 motor vehicles required to be registered under the Illinois

12 Vehicle Code.

13  (11) Photoprocessing machinery and equipment, including

14 repair and replacement parts, both new and used, including

15 that manufactured on special order, certified by the purchaser

16 to be used primarily for photoprocessing, and including

17 photoprocessing machinery and equipment purchased for lease.

18  (12) Until July 1, 2028, coal and aggregate exploration,

19 mining, off-highway hauling, processing, maintenance, and

20 reclamation equipment, including replacement parts and

21 equipment, and including equipment purchased for lease, but

22 excluding motor vehicles required to be registered under the

23 Illinois Vehicle Code. The changes made to this Section by

24 Public Act 97-767 apply on and after July 1, 2003, but no claim

25 for credit or refund is allowed on or after August 16, 2013

26 (the effective date of Public Act 98-456) for such taxes paid
    SB3222 Enrolled  - 249 - LRB104 19119 AAS 32564 b

1 during the period beginning July 1, 2003 and ending on August

2 16, 2013 (the effective date of Public Act 98-456).

3   (13) Beginning January 1, 1992 and through June 30, 2016,

4 food for human consumption that is to be consumed off the

5 premises where it is sold (other than alcoholic beverages,

6 soft drinks and food that has been prepared for immediate

7 consumption) and prescription and non-prescription medicines,

8 drugs, medical appliances, and insulin, urine testing

9 materials, syringes, and needles used by diabetics, for human

10 use, when purchased for use by a person receiving medical

11 assistance under Article V of the Illinois Public Aid Code who

12 resides in a licensed long-term care facility, as defined in

13 the Nursing Home Care Act, or in a licensed facility as defined

14 in the ID/DD Community Care Act, the MC/DD Act, or the

15 Specialized Mental Health Rehabilitation Act of 2013.

16  (14) Semen used for artificial insemination of livestock

17 for direct agricultural production.

18  (15) Horses, or interests in horses, registered with and

19 meeting the requirements of any of the Arabian Horse Club

20 Registry of America, Appaloosa Horse Club, American Quarter

21 Horse Association, United States Trotting Association, or

22 Jockey Club, as appropriate, used for purposes of breeding or

23 racing for prizes. This item (15) is exempt from the

24 provisions of Section 3-55, and the exemption provided for

25 under this item (15) applies for all periods beginning May 30,

26 1995, but no claim for credit or refund is allowed on or after
    SB3222 Enrolled     - 250 - LRB104 19119 AAS 32564 b

1 January 1, 2008 (the effective date of Public Act 95-88) for

2 such taxes paid during the period beginning May 30, 2000 and

3 ending on January 1, 2008 (the effective date of Public Act

4 95-88).

5   (16) Computers and communications equipment utilized for

6 any hospital purpose and equipment used in the diagnosis,

7 analysis, or treatment of hospital patients sold to a lessor

8 who leases the equipment, under a lease of one year or longer

9 executed or in effect at the time of the purchase, to a

10 hospital that has been issued an active tax exemption

11 identification number by the Department under Section 1g of

12 the Retailers' Occupation Tax Act.

13  (17) Personal property sold to a lessor who leases the

14 property, under a lease of one year or longer executed or in

15 effect at the time of the purchase, to a governmental body that

16 has been issued an active tax exemption identification number

17 by the Department under Section 1g of the Retailers'

18 Occupation Tax Act.

19  (18) Beginning with taxable years ending on or after

20 December 31, 1995 and ending with taxable years ending on or

21 before December 31, 2004, personal property that is donated

22 for disaster relief to be used in a State or federally declared

23 disaster area in Illinois or bordering Illinois by a

24 manufacturer or retailer that is registered in this State to a

25 corporation, society, association, foundation, or institution

26 that has been issued a sales tax exemption identification
    SB3222 Enrolled             - 251 - LRB104 19119 AAS 32564 b

1 number by the Department that assists victims of the disaster

2 who reside within the declared disaster area.

3   (19) Beginning with taxable years ending on or after

4 December 31, 1995 and ending with taxable years ending on or

5 before December 31, 2004, personal property that is used in

6 the performance of infrastructure repairs in this State,

7 including, but not limited to, municipal roads and streets,

8 access roads, bridges, sidewalks, waste disposal systems,

9 water and sewer line extensions, water distribution and

10 purification facilities, storm water drainage and retention

11 facilities, and sewage treatment facilities, resulting from a

12 State or federally declared disaster in Illinois or bordering

13 Illinois when such repairs are initiated on facilities located

14 in the declared disaster area within 6 months after the

15 disaster.

16  (20) Beginning July 1, 1999, game or game birds sold at a

17 "game breeding and hunting preserve area" as that term is used

18 in the Wildlife Code. This paragraph is exempt from the

19 provisions of Section 3-55.

20  (21) A motor vehicle, as that term is defined in Section

21 1-146 of the Illinois Vehicle Code, that is donated to a

22 corporation, limited liability company, society, association,

23 foundation, or institution that is determined by the

24 Department to be organized and operated exclusively for

25 educational purposes. For purposes of this exemption, "a

26 corporation, limited liability company, society, association,
    SB3222 Enrolled  - 252 - LRB104 19119 AAS 32564 b

1 foundation, or institution organized and operated exclusively

2 for educational purposes" means all tax-supported public

3 schools, private schools that offer systematic instruction in

4 useful branches of learning by methods common to public

5 schools and that compare favorably in their scope and

6 intensity with the course of study presented in tax-supported

7 schools, and vocational or technical schools or institutes

8 organized and operated exclusively to provide a course of

9 study of not less than 6 weeks duration and designed to prepare

10 individuals to follow a trade or to pursue a manual,

11 technical, mechanical, industrial, business, or commercial

12 occupation.

13  (22) Beginning January 1, 2000, personal property,

14 including food, purchased through fundraising events for the

15 benefit of a public or private elementary or secondary school,

16 a group of those schools, or one or more school districts if

17 the events are sponsored by an entity recognized by the school

18 district that consists primarily of volunteers and includes

19 parents and teachers of the school children. This paragraph

20 does not apply to fundraising events (i) for the benefit of

21 private home instruction or (ii) for which the fundraising

22 entity purchases the personal property sold at the events from

23 another individual or entity that sold the property for the

24 purpose of resale by the fundraising entity and that profits

25 from the sale to the fundraising entity. This paragraph is

26 exempt from the provisions of Section 3-55.
    SB3222 Enrolled  - 253 - LRB104 19119 AAS 32564 b

1   (23) Beginning January 1, 2000 and through December 31,

2 2001, new or used automatic vending machines that prepare and

3 serve hot food and beverages, including coffee, soup, and

4 other items, and replacement parts for these machines.

5 Beginning January 1, 2002 and through June 30, 2003, machines

6 and parts for machines used in commercial, coin-operated

7 amusement and vending business if a use or occupation tax is

8 paid on the gross receipts derived from the use of the

9 commercial, coin-operated amusement and vending machines. This

10 paragraph is exempt from the provisions of Section 3-55.

11  (24) Beginning on August 2, 2001 (the effective date of

12 Public Act 92-227), computers and communications equipment

13 utilized for any hospital purpose and equipment used in the

14 diagnosis, analysis, or treatment of hospital patients sold to

15 a lessor who leases the equipment, under a lease of one year or

16 longer executed or in effect at the time of the purchase, to a

17 hospital that has been issued an active tax exemption

18 identification number by the Department under Section 1g of

19 the Retailers' Occupation Tax Act. This paragraph is exempt

20 from the provisions of Section 3-55.

21  (25) Beginning on August 2, 2001 (the effective date of

22 Public Act 92-227), personal property sold to a lessor who

23 leases the property, under a lease of one year or longer

24 executed or in effect at the time of the purchase, to a

25 governmental body that has been issued an active tax exemption

26 identification number by the Department under Section 1g of
    SB3222 Enrolled        - 254 - LRB104 19119 AAS 32564 b

1 the Retailers' Occupation Tax Act. This paragraph is exempt

2 from the provisions of Section 3-55.

3   (26) Beginning on January 1, 2002 and through June 30,

4 2016, tangible personal property purchased from an Illinois

5 retailer by a taxpayer engaged in centralized purchasing

6 activities in Illinois who will, upon receipt of the property

7 in Illinois, temporarily store the property in Illinois (i)

8 for the purpose of subsequently transporting it outside this

9 State for use or consumption thereafter solely outside this

10 State or (ii) for the purpose of being processed, fabricated,

11 or manufactured into, attached to, or incorporated into other

12 tangible personal property to be transported outside this

13 State and thereafter used or consumed solely outside this

14 State. The Director of Revenue shall, pursuant to rules

15 adopted in accordance with the Illinois Administrative

16 Procedure Act, issue a permit to any taxpayer in good standing

17 with the Department who is eligible for the exemption under

18 this paragraph (26). The permit issued under this paragraph

19 (26) shall authorize the holder, to the extent and in the

20 manner specified in the rules adopted under this Act, to

21 purchase tangible personal property from a retailer exempt

22 from the taxes imposed by this Act. Taxpayers shall maintain

23 all necessary books and records to substantiate the use and

24 consumption of all such tangible personal property outside of

25 the State of Illinois.

26  (27) Beginning January 1, 2008, tangible personal property
    SB3222 Enrolled  - 255 - LRB104 19119 AAS 32564 b

1 used in the construction or maintenance of a community water

2 supply, as defined under Section 3.145 of the Environmental

3 Protection Act, that is operated by a not-for-profit

4 corporation that holds a valid water supply permit issued

5 under Title IV of the Environmental Protection Act. This

6 paragraph is exempt from the provisions of Section 3-55.

7   (28) Tangible personal property sold to a

8 public-facilities corporation, as described in Section

9 11-65-10 of the Illinois Municipal Code, for purposes of

10 constructing or furnishing a municipal convention hall, but

11 only if the legal title to the municipal convention hall is

12 transferred to the municipality without any further

13 consideration by or on behalf of the municipality at the time

14 of the completion of the municipal convention hall or upon the

15 retirement or redemption of any bonds or other debt

16 instruments issued by the public-facilities corporation in

17 connection with the development of the municipal convention

18 hall. This exemption includes existing public-facilities

19 corporations as provided in Section 11-65-25 of the Illinois

20 Municipal Code. This paragraph is exempt from the provisions

21 of Section 3-55.

22  (29) Beginning January 1, 2010 and continuing through

23 December 31, 2029, materials, parts, equipment, components,

24 and furnishings incorporated into or upon an aircraft as part

25 of the modification, refurbishment, completion, replacement,

26 repair, or maintenance of the aircraft. This exemption
    SB3222 Enrolled  - 256 - LRB104 19119 AAS 32564 b

1 includes consumable supplies used in the modification,

2 refurbishment, completion, replacement, repair, and

3 maintenance of aircraft. However, until January 1, 2024, this

4 exemption excludes any materials, parts, equipment,

5 components, and consumable supplies used in the modification,

6 replacement, repair, and maintenance of aircraft engines or

7 power plants, whether such engines or power plants are

8 installed or uninstalled upon any such aircraft. "Consumable

9 supplies" include, but are not limited to, adhesive, tape,

10 sandpaper, general purpose lubricants, cleaning solution,

11 latex gloves, and protective films.

12  Beginning January 1, 2010 and continuing through December

13 31, 2023, this exemption applies only to the transfer of

14 qualifying tangible personal property incident to the

15 modification, refurbishment, completion, replacement, repair,

16 or maintenance of an aircraft by persons who (i) hold an Air

17 Agency Certificate and are empowered to operate an approved

18 repair station by the Federal Aviation Administration, (ii)

19 have a Class IV Rating, and (iii) conduct operations in

20 accordance with Part 145 of the Federal Aviation Regulations.

21 The exemption does not include aircraft operated by a

22 commercial air carrier providing scheduled passenger air

23 service pursuant to authority issued under Part 121 or Part

24 129 of the Federal Aviation Regulations. From January 1, 2024

25 through December 31, 2029, this exemption applies only to the

26 transfer of qualifying tangible personal property incident to:
    SB3222 Enrolled  - 257 - LRB104 19119 AAS 32564 b

1 (A) the modification, refurbishment, completion, repair,

2 replacement, or maintenance of an aircraft by persons who (i)

3 hold an Air Agency Certificate and are empowered to operate an

4 approved repair station by the Federal Aviation

5 Administration, (ii) have a Class IV Rating, and (iii) conduct

6 operations in accordance with Part 145 of the Federal Aviation

7 Regulations; and (B) the modification, replacement, repair,

8 and maintenance of aircraft engines or power plants without

9 regard to whether or not those persons meet the qualifications

10 of item (A).

11  The changes made to this paragraph (29) by Public Act

12 98-534 are declarative of existing law. It is the intent of the

13 General Assembly that the exemption under this paragraph (29)

14 applies continuously from January 1, 2010 through December 31,

15 2024; however, no claim for credit or refund is allowed for

16 taxes paid as a result of the disallowance of this exemption on

17 or after January 1, 2015 and prior to February 5, 2020 (the

18 effective date of Public Act 101-629).

19  (30) Beginning January 1, 2017 and through December 31,

20 2026, menstrual pads, tampons, and menstrual cups.

21  (31) Tangible personal property transferred to a purchaser

22 who is exempt from tax by operation of federal law. This

23 paragraph is exempt from the provisions of Section 3-55.

24  (32) Qualified tangible personal property used in the

25 construction or operation of a data center that has been

26 granted a certificate of exemption by the Department of
    SB3222 Enrolled         - 258 - LRB104 19119 AAS 32564 b

1 Commerce and Economic Opportunity, whether that tangible

2 personal property is purchased by the owner, operator, or

3 tenant of the data center or by a contractor or subcontractor

4 of the owner, operator, or tenant. Data centers that would

5 have qualified for a certificate of exemption prior to January

6 1, 2020 had Public Act 101-31 been in effect, may apply for and

7 obtain an exemption for subsequent purchases of computer

8 equipment or enabling software purchased or leased to upgrade,

9 supplement, or replace computer equipment or enabling software

10 purchased or leased in the original investment that would have

11 qualified.

12  The Department of Commerce and Economic Opportunity shall

13 grant a certificate of exemption under this item (32) to

14 qualified data centers as defined by Section 605-1025 of the

15 Department of Commerce and Economic Opportunity Law of the

16 Civil Administrative Code of Illinois.

17  For the purposes of this item (32):

18  "Data center" means a building or a series of

19  buildings rehabilitated or constructed to house working

20  servers in one physical location or multiple sites within

21  the State of Illinois.

22  "Qualified tangible personal property" means:

23  electrical systems and equipment; climate control and

24  chilling equipment and systems; mechanical systems and

25  equipment; monitoring and secure systems; emergency

26  generators; hardware; computers; servers; data storage
    SB3222 Enrolled        - 259 - LRB104 19119 AAS 32564 b

1   devices; network connectivity equipment; racks; cabinets;

2   telecommunications cabling infrastructure; raised floor

3   systems; peripheral components or systems; software;

4   mechanical, electrical, or plumbing systems; battery

5   systems; cooling systems and towers; temperature control

6   systems; other cabling; and other data center

7   infrastructure equipment and systems necessary to operate

8   qualified tangible personal property, including fixtures;

9   and component parts of any of the foregoing, including

10  installation, maintenance, repair, refurbishment, and

11  replacement of qualified tangible personal property to

12  generate, transform, transmit, distribute, or manage

13  electricity necessary to operate qualified tangible

14  personal property; and all other tangible personal

15  property that is essential to the operations of a computer

16  data center. The term "qualified tangible personal

17  property" also includes building materials physically

18  incorporated into the qualifying data center. To document

19  the exemption allowed under this Section, the retailer

20  must obtain from the purchaser a copy of the certificate

21  of eligibility issued by the Department of Commerce and

22  Economic Opportunity.

23  This item (32) is exempt from the provisions of Section

24 3-55.

25  (33) Beginning July 1, 2022, breast pumps, breast pump

26 collection and storage supplies, and breast pump kits. This
    SB3222 Enrolled        - 260 - LRB104 19119 AAS 32564 b

1 item (33) is exempt from the provisions of Section 3-55. As

2 used in this item (33):

3   "Breast pump" means an electrically controlled or

4   manually controlled pump device designed or marketed to be

5   used to express milk from a human breast during lactation,

6   including the pump device and any battery, AC adapter, or

7   other power supply unit that is used to power the pump

8   device and is packaged and sold with the pump device at the

9   time of sale.

10  "Breast pump collection and storage supplies" means

11  items of tangible personal property designed or marketed

12  to be used in conjunction with a breast pump to collect

13  milk expressed from a human breast and to store collected

14  milk until it is ready for consumption.

15  "Breast pump collection and storage supplies"

16  includes, but is not limited to: breast shields and breast

17  shield connectors; breast pump tubes and tubing adapters;

18  breast pump valves and membranes; backflow protectors and

19  backflow protector adaptors; bottles and bottle caps

20  specific to the operation of the breast pump; and breast

21  milk storage bags.

22  "Breast pump collection and storage supplies" does not

23  include: (1) bottles and bottle caps not specific to the

24  operation of the breast pump; (2) breast pump travel bags

25  and other similar carrying accessories, including ice

26  packs, labels, and other similar products; (3) breast pump
    SB3222 Enrolled  - 261 - LRB104 19119 AAS 32564 b

1   cleaning supplies; (4) nursing bras, bra pads, breast

2   shells, and other similar products; and (5) creams,

3   ointments, and other similar products that relieve

4   breastfeeding-related symptoms or conditions of the

5   breasts or nipples, unless sold as part of a breast pump

6   kit that is pre-packaged by the breast pump manufacturer

7   or distributor.

8   "Breast pump kit" means a kit that: (1) contains no

9   more than a breast pump, breast pump collection and

10  storage supplies, a rechargeable battery for operating the

11  breast pump, a breastmilk cooler, bottle stands, ice

12  packs, and a breast pump carrying case; and (2) is

13  pre-packaged as a breast pump kit by the breast pump

14  manufacturer or distributor.

15  (34) Tangible personal property sold by or on behalf of

16 the State Treasurer pursuant to the Revised Uniform Unclaimed

17 Property Act. This item (34) is exempt from the provisions of

18 Section 3-55.

19  (35) Beginning on January 1, 2024, tangible personal

20 property purchased by an active duty member of the armed

21 forces of the United States who presents valid military

22 identification and purchases the property using a form of

23 payment where the federal government is the payor. The member

24 of the armed forces must complete, at the point of sale, a form

25 prescribed by the Department of Revenue documenting that the

26 transaction is eligible for the exemption under this
    SB3222 Enrolled  - 262 - LRB104 19119 AAS 32564 b

1 paragraph. Retailers must keep the form as documentation of

2 the exemption in their records for a period of not less than 6

3 years. "Armed forces of the United States" means the United

4 States Army, Navy, Air Force, Space Force, Marine Corps, or

5 Coast Guard. This paragraph is exempt from the provisions of

6 Section 3-55.

7   (36) Beginning July 1, 2024, home-delivered meals provided

8 to Medicare or Medicaid recipients when payment is made by an

9 intermediary, such as a Medicare Administrative Contractor, a

10 Managed Care Organization, or a Medicare Advantage

11 Organization, pursuant to a government contract. This

12 paragraph (36) is exempt from the provisions of Section 3-55.

13  (37) Beginning on January 1, 2026, as further defined in

14 Section 3-10, food prepared for immediate consumption and

15 transferred incident to a sale of service subject to this Act

16 or the Service Use Tax Act by an entity licensed under the

17 Hospital Licensing Act, the Nursing Home Care Act, the

18 Assisted Living and Shared Housing Act, the ID/DD Community

19 Care Act, the MC/DD Act, the Specialized Mental Health

20 Rehabilitation Act of 2013, or the Child Care Act of 1969 or by

21 an entity that holds a permit issued pursuant to the Life Care

22 Facilities Act. This item (37) is exempt from the provisions

23 of Section 3-55.

24  (38) Beginning on January 1, 2026, as further defined in

25 Section 3-10, food for human consumption that is to be

26 consumed off the premises where it is sold (other than
    SB3222 Enrolled  - 263 - LRB104 19119 AAS 32564 b

1 alcoholic beverages, food consisting of or infused with adult

2 use cannabis, soft drinks, candy, and food that has been

3 prepared for immediate consumption, and, beginning on November

4 12, 2026, food that is a final consumer hemp cannabinoid

5 product as defined in the Illinois Hemp Act). This item (38) is

6 exempt from the provisions of Section 3-55.

7   (39) The lease of the following tangible personal

8 property:

9   (1) computer software transferred subject to a license

10  that meets the following requirements:

11           (A) it is evidenced by a written agreement signed

12  by the licensor and the customer;

13                   (i) an electronic agreement in which the

14           customer accepts the license by means of an

15           electronic signature that is verifiable and can be

16           authenticated and is attached to or made part of

17           the license will comply with this requirement;

18                   (ii) a license agreement in which the customer

19           electronically accepts the terms by clicking "I

20           agree" does not comply with this requirement;

21           (B) it restricts the customer's duplication and

22  use of the software;

23           (C) it prohibits the customer from licensing,

24  sublicensing, or transferring the software to a third

25  party (except to a related party) without the

26  permission and continued control of the licensor;
    SB3222 Enrolled     - 264 - LRB104 19119 AAS 32564 b

1             (D) the licensor has a policy of providing another

2   copy at minimal or no charge if the customer loses or

3   damages the software, or of permitting the licensee to

4   make and keep an archival copy, and such policy is

5   either stated in the license agreement, supported by

6   the licensor's books and records, or supported by a

7   notarized statement made under penalties of perjury by

8   the licensor; and

9             (E) the customer must destroy or return all copies

10  of the software to the licensor at the end of the

11  license period; this provision is deemed to be met, in

12  the case of a perpetual license, without being set

13  forth in the license agreement; and

14  (2) property that is subject to a tax on lease

15  receipts imposed by a home rule unit of local government

16  if the ordinance imposing that tax was adopted prior to

17  January 1, 2023.

18 (Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;

19 103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.

20 6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,

21 eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;

22 103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.

23 8-15-25.)

24  (35 ILCS 115/3-10)

25  Sec. 3-10. Rate of tax. Unless otherwise provided in this
    SB3222 Enrolled  - 265 - LRB104 19119 AAS 32564 b

1 Section, the tax imposed by this Act is at the rate of 6.25% of

2 the "selling price", as defined in Section 2 of the Service Use

3 Tax Act, of the tangible personal property, including, on and

4 after January 1, 2025, tangible personal property transferred

5 by lease. For the purpose of computing this tax, in no event

6 shall the "selling price" be less than the cost price to the

7 serviceman of the tangible personal property transferred. The

8 selling price of each item of tangible personal property

9 transferred as an incident of a sale of service may be shown as

10 a distinct and separate item on the serviceman's billing to

11 the service customer. If the selling price is not so shown, the

12 selling price of the tangible personal property is deemed to

13 be 50% of the serviceman's entire billing to the service

14 customer. When, however, a serviceman contracts to design,

15 develop, and produce special order machinery or equipment, the

16 tax imposed by this Act shall be based on the serviceman's cost

17 price of the tangible personal property transferred incident

18 to the completion of the contract.

19  Beginning on July 1, 2000 and through December 31, 2000,

20 with respect to motor fuel, as defined in Section 1.1 of the

21 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

22 the Use Tax Act, the tax is imposed at the rate of 1.25%.

23  With respect to gasohol, as defined in the Use Tax Act, the

24 tax imposed by this Act shall apply to (i) 70% of the cost

25 price of property transferred as an incident to the sale of

26 service on or after January 1, 1990, and before July 1, 2003,
    SB3222 Enrolled        - 266 - LRB104 19119 AAS 32564 b

1 (ii) 80% of the selling price of property transferred as an

2 incident to the sale of service on or after July 1, 2003 and on

3 or before July 1, 2017, (iii) 100% of the selling price of

4 property transferred as an incident to the sale of service

5 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of

6 the selling price of property transferred as an incident to

7 the sale of service on or after January 1, 2024 and on or

8 before December 31, 2028, and (v) 100% of the selling price of

9 property transferred as an incident to the sale of service

10 after December 31, 2028. If, at any time, however, the tax

11 under this Act on sales of gasohol, as defined in the Use Tax

12 Act, is imposed at the rate of 1.25%, then the tax imposed by

13 this Act applies to 100% of the proceeds of sales of gasohol

14 made during that time.

15  With respect to mid-range ethanol blends, as defined in

16 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

17 applies to (i) 80% of the selling price of property

18 transferred as an incident to the sale of service on or after

19 January 1, 2024 and on or before December 31, 2028 and (ii)

20 100% of the selling price of property transferred as an

21 incident to the sale of service after December 31, 2028. If, at

22 any time, however, the tax under this Act on sales of mid-range

23 ethanol blends is imposed at the rate of 1.25%, then the tax

24 imposed by this Act applies to 100% of the selling price of

25 mid-range ethanol blends transferred as an incident to the

26 sale of service during that time.
    SB3222 Enrolled  - 267 - LRB104 19119 AAS 32564 b

1   With respect to majority blended ethanol fuel, as defined

2 in the Use Tax Act, the tax imposed by this Act does not apply

3 to the selling price of property transferred as an incident to

4 the sale of service on or after July 1, 2003 and on or before

5 December 31, 2028 but applies to 100% of the selling price

6 thereafter.

7   With respect to biodiesel blends, as defined in the Use

8 Tax Act, with no less than 1% and no more than 10% biodiesel,

9 the tax imposed by this Act applies to (i) 80% of the selling

10 price of property transferred as an incident to the sale of

11 service on or after July 1, 2003 and on or before December 31,

12 2018 and (ii) 100% of the proceeds of the selling price after

13 December 31, 2018 and before January 1, 2024. On and after

14 January 1, 2024 and on or before December 31, 2030, the

15 taxation of biodiesel, renewable diesel, and biodiesel blends

16 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

17 at any time, however, the tax under this Act on sales of

18 biodiesel blends, as defined in the Use Tax Act, with no less

19 than 1% and no more than 10% biodiesel is imposed at the rate

20 of 1.25%, then the tax imposed by this Act applies to 100% of

21 the proceeds of sales of biodiesel blends with no less than 1%

22 and no more than 10% biodiesel made during that time.

23  With respect to biodiesel, as defined in the Use Tax Act,

24 and biodiesel blends, as defined in the Use Tax Act, with more

25 than 10% but no more than 99% biodiesel material, the tax

26 imposed by this Act does not apply to the proceeds of the
    SB3222 Enrolled          - 268 - LRB104 19119 AAS 32564 b

1 selling price of property transferred as an incident to the

2 sale of service on or after July 1, 2003 and on or before

3 December 31, 2023. On and after January 1, 2024 and on or

4 before December 31, 2030, the taxation of biodiesel, renewable

5 diesel, and biodiesel blends shall be as provided in Section

6 3-5.1 of the Use Tax Act.

7   At the election of any registered serviceman made for each

8 fiscal year, for whom the aggregate annual cost price of

9 tangible personal property transferred as an incident to the

10 sales of service is less than 35%, or 75% in the case of

11 servicemen transferring prescription drugs or servicemen

12 engaged in graphic arts production, of the aggregate annual

13 total gross receipts from all sales of service, the tax

14 imposed by this Act shall be based on the serviceman's cost

15 price of the tangible personal property transferred incident

16 to the sale of those services. This election may also be made

17 by a serviceman maintaining a place of business in this State

18 who makes retail sales from outside of this State to Illinois

19 customers but is not required to be registered under Section

20 2a of the Retailers' Occupation Tax Act. Beginning January 1,

21 2026, this election shall not apply to any sale of service made

22 through a marketplace that has met the threshold in subsection

23 (d) of Section 3 of this Act.

24  Beginning January 1, 2026, the tax shall be imposed at the

25 rate of 6.25% of 50% of the entire billing to the service

26 customer for all sales of service made through a marketplace
    SB3222 Enrolled  - 269 - LRB104 19119 AAS 32564 b

1 that has met the threshold in subsection (d) of Section 3 of

2 this Act. In no event shall 50% of the entire billing be less

3 than the cost price of the property to the marketplace

4 serviceman or the marketplace facilitator on its own sales of

5 service.

6   Until July 1, 2022 and from July 1, 2023 through December

7 31, 2025, the tax shall be imposed at the rate of 1% on food

8 prepared for immediate consumption and transferred incident to

9 a sale of service subject to this Act or the Service Use Tax

10 Act by an entity licensed under the Hospital Licensing Act,

11 the Nursing Home Care Act, the Assisted Living and Shared

12 Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

13 Specialized Mental Health Rehabilitation Act of 2013, or the

14 Child Care Act of 1969, or an entity that holds a permit issued

15 pursuant to the Life Care Facilities Act. Until July 1, 2022

16 and from July 1, 2023 through December 31, 2025, the tax shall

17 also be imposed at the rate of 1% on food for human consumption

18 that is to be consumed off the premises where it is sold (other

19 than alcoholic beverages, food consisting of or infused with

20 adult use cannabis, soft drinks, and food that has been

21 prepared for immediate consumption and is not otherwise

22 included in this paragraph).

23  Beginning on July 1, 2022 and until July 1, 2023, the tax

24 shall be imposed at the rate of 0% on food prepared for

25 immediate consumption and transferred incident to a sale of

26 service subject to this Act or the Service Use Tax Act by an
    SB3222 Enrolled  - 270 - LRB104 19119 AAS 32564 b

1 entity licensed under the Hospital Licensing Act, the Nursing

2 Home Care Act, the Assisted Living and Shared Housing Act, the

3 ID/DD Community Care Act, the MC/DD Act, the Specialized

4 Mental Health Rehabilitation Act of 2013, or the Child Care

5 Act of 1969, or an entity that holds a permit issued pursuant

6 to the Life Care Facilities Act. Beginning July 1, 2022 and

7 until July 1, 2023, the tax shall also be imposed at the rate

8 of 0% on food for human consumption that is to be consumed off

9 the premises where it is sold (other than alcoholic beverages,

10 food consisting of or infused with adult use cannabis, soft

11 drinks, and food that has been prepared for immediate

12 consumption and is not otherwise included in this paragraph).

13  On and after January 1, 2026, food prepared for immediate

14 consumption and transferred incident to a sale of service

15 subject to this Act or the Service Use Tax Act by an entity

16 licensed under the Hospital Licensing Act, the Nursing Home

17 Care Act, the Assisted Living and Shared Housing Act, the

18 ID/DD Community Care Act, the MC/DD Act, the Specialized

19 Mental Health Rehabilitation Act of 2013, or the Child Care

20 Act of 1969, or an entity that holds a permit issued pursuant

21 to the Life Care Facilities Act is exempt from the tax imposed

22 by this Act. On and after January 1, 2026, food for human

23 consumption that is to be consumed off the premises where it is

24 sold (other than alcoholic beverages, food consisting of or

25 infused with adult use cannabis, soft drinks, candy, and food

26 that has been prepared for immediate consumption and is not
    SB3222 Enrolled  - 271 - LRB104 19119 AAS 32564 b

1 otherwise included in this paragraph, and, beginning on

2 November 12, 2026, food that is a "final consumer hemp

3 cannabinoid product" as defined in Illinois Hemp Act) is

4 exempt from the tax imposed by this Act.

5   The tax shall be imposed at the rate of 1% on prescription

6 and nonprescription medicines, drugs, medical appliances,

7 products classified as Class III medical devices by the United

8 States Food and Drug Administration that are used for cancer

9 treatment pursuant to a prescription, as well as any

10 accessories and components related to those devices,

11 modifications to a motor vehicle for the purpose of rendering

12 it usable by a person with a disability, and insulin, blood

13 sugar testing materials, syringes, and needles used by human

14 diabetics. For the purposes of this Section, until September

15 1, 2009: the term "soft drinks" means any complete, finished,

16 ready-to-use, non-alcoholic drink, whether carbonated or not,

17 including, but not limited to, soda water, cola, fruit juice,

18 vegetable juice, carbonated water, and all other preparations

19 commonly known as soft drinks of whatever kind or description

20 that are contained in any closed or sealed can, carton, or

21 container, regardless of size; but "soft drinks" does not

22 include coffee, tea, non-carbonated water, infant formula,

23 milk or milk products as defined in the Grade A Pasteurized

24 Milk and Milk Products Act, or drinks containing 50% or more

25 natural fruit or vegetable juice.

26  Notwithstanding any other provisions of this Act,
    SB3222 Enrolled  - 272 - LRB104 19119 AAS 32564 b

1 beginning September 1, 2009, "soft drinks" means non-alcoholic

2 beverages that contain natural or artificial sweeteners. "Soft

3 drinks" does not include beverages that contain milk or milk

4 products, soy, rice or similar milk substitutes, or greater

5 than 50% of vegetable or fruit juice by volume.

6   Until August 1, 2009, and notwithstanding any other

7 provisions of this Act, "food for human consumption that is to

8 be consumed off the premises where it is sold" includes all

9 food sold through a vending machine, except soft drinks and

10 food products that are dispensed hot from a vending machine,

11 regardless of the location of the vending machine. Beginning

12 August 1, 2009, and notwithstanding any other provisions of

13 this Act, "food for human consumption that is to be consumed

14 off the premises where it is sold" includes all food sold

15 through a vending machine, except soft drinks, candy, and food

16 products that are dispensed hot from a vending machine,

17 regardless of the location of the vending machine.

18  Notwithstanding any other provisions of this Act,

19 beginning September 1, 2009, "food for human consumption that

20 is to be consumed off the premises where it is sold" does not

21 include candy. For purposes of this Section, "candy" means a

22 preparation of sugar, honey, or other natural or artificial

23 sweeteners in combination with chocolate, fruits, nuts or

24 other ingredients or flavorings in the form of bars, drops, or

25 pieces. "Candy" does not include any preparation that contains

26 flour or requires refrigeration.
    SB3222 Enrolled       - 273 - LRB104 19119 AAS 32564 b

1   Notwithstanding any other provisions of this Act,

2 beginning September 1, 2009, "nonprescription medicines and

3 drugs" does not include grooming and hygiene products. For

4 purposes of this Section, "grooming and hygiene products"

5 includes, but is not limited to, soaps and cleaning solutions,

6 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

7 lotions and screens, unless those products are available by

8 prescription only, regardless of whether the products meet the

9 definition of "over-the-counter-drugs". For the purposes of

10 this paragraph, "over-the-counter-drug" means a drug for human

11 use that contains a label that identifies the product as a drug

12 as required by 21 CFR 201.66. The "over-the-counter-drug"

13 label includes:

14  (A) a "Drug Facts" panel; or

15  (B) a statement of the "active ingredient(s)" with a

16  list of those ingredients contained in the compound,

17  substance or preparation.

18  Beginning on January 1, 2014 (the effective date of Public

19 Act 98-122), "prescription and nonprescription medicines and

20 drugs" includes medical cannabis purchased from a registered

21 dispensing organization under the Compassionate Use of Medical

22 Cannabis Program Act.

23  Beginning 90 days after the effective date of this

24 amendatory Act of the 104th General Assembly, "prescription

25 and nonprescription medicines and drugs" includes cannabis or

26 cannabis-infused products purchased by a qualified patient,
    SB3222 Enrolled        - 274 - LRB104 19119 AAS 32564 b

1 provisional patient, designated caregiver, or Opioid

2 Alternative Patient Program participant as part of that

3 individual's adequate medical supply from any dispensary that

4 has been issued a Medical Cannabis Dispensing Organization

5 license, as these terms are defined under the Cannabis

6 Regulation and Tax Act.

7   Beginning on November 12, 2026, "prescription and

8 nonprescription medicines and drugs" does not include a final

9 consumer hemp cannabinoid product as defined in the Illinois

10 Hemp Act.

11  As used in this Section, "adult use cannabis" means

12 cannabis subject to tax under the Cannabis Cultivation

13 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

14 and does not include cannabis subject to tax under the

15 Compassionate Use of Medical Cannabis Program Act.

16  Beginning 90 days after the effective date of this

17 amendatory Act of the 104th General Assembly, as used in this

18 Section, "adult use cannabis" does not include cannabis or

19 cannabis-infused products purchased by a qualified patient,

20 provisional patient, designated caregiver, or Opioid

21 Alternative Patient Program participant as part of that

22 individual's adequate medical supply from any dispensary that

23 has been issued a Medical Cannabis Dispensing Organization

24 license.

25 (Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;

26 103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
    SB3222 Enrolled      - 275 - LRB104 19119 AAS 32564 b

1 6-16-25; 104-417, eff. 8-15-25.)

2   Section 140. The Retailers' Occupation Tax Act is amended

3 by changing Sections 2-5, 2-10, and 11 as follows:

4   (35 ILCS 120/2-5)

5   Sec. 2-5. Exemptions. Gross receipts from proceeds from

6 the sale, which, on and after January 1, 2025, includes the

7 lease, of the following tangible personal property are exempt

8 from the tax imposed by this Act:

9   (1) Farm chemicals.

10  (2) Farm machinery and equipment, both new and used,

11  including that manufactured on special order, certified by

12  the purchaser to be used primarily for production

13  agriculture or State or federal agricultural programs,

14  including individual replacement parts for the machinery

15  and equipment, including machinery and equipment purchased

16  for lease, and including implements of husbandry defined

17  in Section 1-130 of the Illinois Vehicle Code, farm

18  machinery and agricultural chemical and fertilizer

19  spreaders, and nurse wagons required to be registered

20  under Section 3-809 of the Illinois Vehicle Code, but

21  excluding other motor vehicles required to be registered

22  under the Illinois Vehicle Code. Horticultural polyhouses

23  or hoop houses used for propagating, growing, or

24  overwintering plants shall be considered farm machinery
    SB3222 Enrolled  - 276 - LRB104 19119 AAS 32564 b

1   and equipment under this item (2). Agricultural chemical

2   tender tanks and dry boxes shall include units sold

3   separately from a motor vehicle required to be licensed

4   and units sold mounted on a motor vehicle required to be

5   licensed, if the selling price of the tender is separately

6   stated.

7   Farm machinery and equipment shall include precision

8   farming equipment that is installed or purchased to be

9   installed on farm machinery and equipment including, but

10  not limited to, tractors, harvesters, sprayers, planters,

11  seeders, or spreaders. Precision farming equipment

12  includes, but is not limited to, soil testing sensors,

13  computers, monitors, software, global positioning and

14  mapping systems, and other such equipment.

15  Farm machinery and equipment also includes computers,

16  sensors, software, and related equipment used primarily in

17  the computer-assisted operation of production agriculture

18  facilities, equipment, and activities such as, but not

19  limited to, the collection, monitoring, and correlation of

20  animal and crop data for the purpose of formulating animal

21  diets and agricultural chemicals.

22  Beginning on January 1, 2024, farm machinery and

23  equipment also includes electrical power generation

24  equipment used primarily for production agriculture.

25  This item (2) is exempt from the provisions of Section

26  2-70.
    SB3222 Enrolled  - 277 - LRB104 19119 AAS 32564 b

1   (3) Until July 1, 2003, distillation machinery and

2   equipment, sold as a unit or kit, assembled or installed

3   by the retailer, certified by the user to be used only for

4   the production of ethyl alcohol that will be used for

5   consumption as motor fuel or as a component of motor fuel

6   for the personal use of the user, and not subject to sale

7   or resale.

8   (4) Until July 1, 2003 and beginning again September

9   1, 2004 through August 30, 2014, graphic arts machinery

10  and equipment, including repair and replacement parts,

11  both new and used, and including that manufactured on

12  special order or purchased for lease, certified by the

13  purchaser to be used primarily for graphic arts

14  production. Equipment includes chemicals or chemicals

15  acting as catalysts but only if the chemicals or chemicals

16  acting as catalysts effect a direct and immediate change

17  upon a graphic arts product. Beginning on July 1, 2017,

18  graphic arts machinery and equipment is included in the

19  manufacturing and assembling machinery and equipment

20  exemption under paragraph (14).

21  (5) A motor vehicle that is used for automobile

22  renting, as defined in the Automobile Renting Occupation

23  and Use Tax Act. This paragraph is exempt from the

24  provisions of Section 2-70.

25  (6) Personal property sold by a teacher-sponsored

26  student organization affiliated with an elementary or
    SB3222 Enrolled   - 278 - LRB104 19119 AAS 32564 b

1   secondary school located in Illinois.

2   (7) Until July 1, 2003, proceeds of that portion of

3   the selling price of a passenger car the sale of which is

4   subject to the Replacement Vehicle Tax.

5   (8) Personal property sold to an Illinois county fair

6   association for use in conducting, operating, or promoting

7   the county fair.

8   (9) Personal property sold to a not-for-profit arts or

9   cultural organization that establishes, by proof required

10  by the Department by rule, that it has received an

11  exemption under Section 501(c)(3) of the Internal Revenue

12  Code and that is organized and operated primarily for the

13  presentation or support of arts or cultural programming,

14  activities, or services. These organizations include, but

15  are not limited to, music and dramatic arts organizations

16  such as symphony orchestras and theatrical groups, arts

17  and cultural service organizations, local arts councils,

18  visual arts organizations, and media arts organizations.

19  On and after July 1, 2001 (the effective date of Public Act

20  92-35), however, an entity otherwise eligible for this

21  exemption shall not make tax-free purchases unless it has

22  an active identification number issued by the Department.

23  (10) Personal property sold by a corporation, society,

24  association, foundation, institution, or organization,

25  other than a limited liability company, that is organized

26  and operated as a not-for-profit service enterprise for
    SB3222 Enrolled  - 279 - LRB104 19119 AAS 32564 b

1   the benefit of persons 65 years of age or older if the

2   personal property was not purchased by the enterprise for

3   the purpose of resale by the enterprise.

4   (11) Except as otherwise provided in this Section,

5   personal property sold to a governmental body, to a

6   corporation, society, association, foundation, or

7   institution organized and operated exclusively for

8   charitable, religious, or educational purposes, or to a

9   not-for-profit corporation, society, association,

10  foundation, institution, or organization that has no

11  compensated officers or employees and that is organized

12  and operated primarily for the recreation of persons 55

13  years of age or older. A limited liability company may

14  qualify for the exemption under this paragraph only if the

15  limited liability company is organized and operated

16  exclusively for educational purposes. On and after July 1,

17  1987, however, no entity otherwise eligible for this

18  exemption shall make tax-free purchases unless it has an

19  active identification number issued by the Department.

20  (12) (Blank).

21  (12-5) On and after July 1, 2003 and through June 30,

22  2004, motor vehicles of the second division with a gross

23  vehicle weight in excess of 8,000 pounds that are subject

24  to the commercial distribution fee imposed under Section

25  3-815.1 of the Illinois Vehicle Code. Beginning on July 1,

26  2004 and through June 30, 2005, the use in this State of
    SB3222 Enrolled  - 280 - LRB104 19119 AAS 32564 b

1   motor vehicles of the second division: (i) with a gross

2   vehicle weight rating in excess of 8,000 pounds; (ii) that

3   are subject to the commercial distribution fee imposed

4   under Section 3-815.1 of the Illinois Vehicle Code; and

5   (iii) that are primarily used for commercial purposes.

6   Through June 30, 2005, this exemption applies to repair

7   and replacement parts added after the initial purchase of

8   such a motor vehicle if that motor vehicle is used in a

9   manner that would qualify for the rolling stock exemption

10  otherwise provided for in this Act. For purposes of this

11  paragraph, "used for commercial purposes" means the

12  transportation of persons or property in furtherance of

13  any commercial or industrial enterprise whether for-hire

14  or not.

15  (13) Proceeds from sales to owners or lessors,

16  lessees, or shippers of tangible personal property that is

17  utilized by interstate carriers for hire for use as

18  rolling stock moving in interstate commerce and equipment

19  operated by a telecommunications provider, licensed as a

20  common carrier by the Federal Communications Commission,

21  which is permanently installed in or affixed to aircraft

22  moving in interstate commerce.

23  (14) Machinery and equipment that will be used by the

24  purchaser, or a lessee of the purchaser, primarily in the

25  process of manufacturing or assembling tangible personal

26  property for wholesale or retail sale or lease, whether
    SB3222 Enrolled  - 281 - LRB104 19119 AAS 32564 b

1   the sale or lease is made directly by the manufacturer or

2   by some other person, whether the materials used in the

3   process are owned by the manufacturer or some other

4   person, or whether the sale or lease is made apart from or

5   as an incident to the seller's engaging in the service

6   occupation of producing machines, tools, dies, jigs,

7   patterns, gauges, or other similar items of no commercial

8   value on special order for a particular purchaser. The

9   exemption provided by this paragraph (14) does not include

10  machinery and equipment used in (i) the generation of

11  electricity for wholesale or retail sale; (ii) the

12  generation or treatment of natural or artificial gas for

13  wholesale or retail sale that is delivered to customers

14  through pipes, pipelines, or mains; or (iii) the treatment

15  of water for wholesale or retail sale that is delivered to

16  customers through pipes, pipelines, or mains. The

17  provisions of Public Act 98-583 are declaratory of

18  existing law as to the meaning and scope of this

19  exemption. Beginning on July 1, 2017, the exemption

20  provided by this paragraph (14) includes, but is not

21  limited to, graphic arts machinery and equipment, as

22  defined in paragraph (4) of this Section.

23  (15) Proceeds of mandatory service charges separately

24  stated on customers' bills for purchase and consumption of

25  food and beverages, to the extent that the proceeds of the

26  service charge are in fact turned over as tips or as a
    SB3222 Enrolled   - 282 - LRB104 19119 AAS 32564 b

1   substitute for tips to the employees who participate

2   directly in preparing, serving, hosting or cleaning up the

3   food or beverage function with respect to which the

4   service charge is imposed.

5   (16) Tangible personal property sold to a purchaser if

6   the purchaser is exempt from use tax by operation of

7   federal law. This paragraph is exempt from the provisions

8   of Section 2-70.

9   (17) Tangible personal property sold to a common

10  carrier by rail or motor that receives the physical

11  possession of the property in Illinois and that transports

12  the property, or shares with another common carrier in the

13  transportation of the property, out of Illinois on a

14  standard uniform bill of lading showing the seller of the

15  property as the shipper or consignor of the property to a

16  destination outside Illinois, for use outside Illinois.

17  (18) Legal tender, currency, medallions, or gold or

18  silver coinage issued by the State of Illinois, the

19  government of the United States of America, or the

20  government of any foreign country, and bullion.

21  (19) Until July 1, 2003, oil field exploration,

22  drilling, and production equipment, including (i) rigs and

23  parts of rigs, rotary rigs, cable tool rigs, and workover

24  rigs, (ii) pipe and tubular goods, including casing and

25  drill strings, (iii) pumps and pump-jack units, (iv)

26  storage tanks and flow lines, (v) any individual
    SB3222 Enrolled       - 283 - LRB104 19119 AAS 32564 b

1   replacement part for oil field exploration, drilling, and

2   production equipment, and (vi) machinery and equipment

3   purchased for lease; but excluding motor vehicles required

4   to be registered under the Illinois Vehicle Code.

5   (20) Photoprocessing machinery and equipment,

6   including repair and replacement parts, both new and used,

7   including that manufactured on special order, certified by

8   the purchaser to be used primarily for photoprocessing,

9   and including photoprocessing machinery and equipment

10  purchased for lease.

11  (21) Until July 1, 2028, coal and aggregate

12  exploration, mining, off-highway hauling, processing,

13  maintenance, and reclamation equipment, including

14  replacement parts and equipment, and including equipment

15  purchased for lease, but excluding motor vehicles required

16  to be registered under the Illinois Vehicle Code. The

17  changes made to this Section by Public Act 97-767 apply on

18  and after July 1, 2003, but no claim for credit or refund

19  is allowed on or after August 16, 2013 (the effective date

20  of Public Act 98-456) for such taxes paid during the

21  period beginning July 1, 2003 and ending on August 16,

22  2013 (the effective date of Public Act 98-456).

23  (22) Until June 30, 2013, fuel and petroleum products

24  sold to or used by an air carrier, certified by the carrier

25  to be used for consumption, shipment, or storage in the

26  conduct of its business as an air common carrier, for a
    SB3222 Enrolled  - 284 - LRB104 19119 AAS 32564 b

1   flight destined for or returning from a location or

2   locations outside the United States without regard to

3   previous or subsequent domestic stopovers.

4   Beginning July 1, 2013, fuel and petroleum products

5   sold to or used by an air carrier, certified by the carrier

6   to be used for consumption, shipment, or storage in the

7   conduct of its business as an air common carrier, for a

8   flight that (i) is engaged in foreign trade or is engaged

9   in trade between the United States and any of its

10  possessions and (ii) transports at least one individual or

11  package for hire from the city of origination to the city

12  of final destination on the same aircraft, without regard

13  to a change in the flight number of that aircraft.

14  (23) A transaction in which the purchase order is

15  received by a florist who is located outside Illinois, but

16  who has a florist located in Illinois deliver the property

17  to the purchaser or the purchaser's donee in Illinois.

18  (24) Fuel consumed or used in the operation of ships,

19  barges, or vessels that are used primarily in or for the

20  transportation of property or the conveyance of persons

21  for hire on rivers bordering on this State if the fuel is

22  delivered by the seller to the purchaser's barge, ship, or

23  vessel while it is afloat upon that bordering river.

24  (25) Except as provided in items (25-5) and (25-6) of

25  this Section, a motor vehicle sold in this State to a

26  nonresident even though the motor vehicle is delivered to
    SB3222 Enrolled        - 285 - LRB104 19119 AAS 32564 b

1   the nonresident in this State, if the motor vehicle is not

2   to be titled in this State, and if a drive-away permit is

3   issued to the motor vehicle as provided in Section 3-603

4   of the Illinois Vehicle Code or if the nonresident

5   purchaser has vehicle registration plates to transfer to

6   the motor vehicle upon returning to his or her home state.

7   The issuance of the drive-away permit or having the

8   out-of-state registration plates to be transferred is

9   prima facie evidence that the motor vehicle will not be

10  titled in this State.

11  (25-5) The exemption under item (25) does not apply if

12  the state in which the motor vehicle will be titled does

13  not allow a reciprocal exemption for a motor vehicle sold

14  and delivered in that state to an Illinois resident but

15  titled in Illinois. The tax collected under this Act on

16  the sale of a motor vehicle in this State to a resident of

17  another state that does not allow a reciprocal exemption

18  shall be imposed at a rate equal to the state's rate of tax

19  on taxable property in the state in which the purchaser is

20  a resident, except that the tax shall not exceed the tax

21  that would otherwise be imposed under this Act. At the

22  time of the sale, the purchaser shall execute a statement,

23  signed under penalty of perjury, of his or her intent to

24  title the vehicle in the state in which the purchaser is a

25  resident within 30 days after the sale and of the fact of

26  the payment to the State of Illinois of tax in an amount
    SB3222 Enrolled  - 286 - LRB104 19119 AAS 32564 b

1   equivalent to the state's rate of tax on taxable property

2   in his or her state of residence and shall submit the

3   statement to the appropriate tax collection agency in his

4   or her state of residence. In addition, the retailer must

5   retain a signed copy of the statement in his or her

6   records. Nothing in this item shall be construed to

7   require the removal of the vehicle from this state

8   following the filing of an intent to title the vehicle in

9   the purchaser's state of residence if the purchaser titles

10  the vehicle in his or her state of residence within 30 days

11  after the date of sale. The tax collected under this Act in

12  accordance with this item (25-5) shall be proportionately

13  distributed as if the tax were collected at the 6.25%

14  general rate imposed under this Act.

15  (25-6) There is a rebuttable presumption that the

16  exemption under item (25) does not apply if the purchaser

17  is a limited liability company and a member of the limited

18  liability company is a resident of Illinois. This

19  presumption may be rebutted by other evidence, such as

20  evidence the motor vehicle is insured at a garaging or

21  storage address outside Illinois or other evidence of the

22  physical address at which the motor vehicle will be

23  permanently stored or garaged outside Illinois.

24  (25-7) Beginning on July 1, 2007, no tax is imposed

25  under this Act on the sale of an aircraft, as defined in

26  Section 3 of the Illinois Aeronautics Act, if all of the
    SB3222 Enrolled  - 287 - LRB104 19119 AAS 32564 b

1   following conditions are met:

2   (1) the aircraft leaves this State within 15 days

3   after the later of either the issuance of the final

4   billing for the sale of the aircraft, or the

5   authorized approval for return to service, completion

6   of the maintenance record entry, and completion of the

7   test flight and ground test for inspection, as

8   required by 14 CFR 91.407;

9   (2) the aircraft is not based or registered in

10  this State after the sale of the aircraft; and

11  (3) the seller retains in his or her books and

12  records and provides to the Department a signed and

13  dated certification from the purchaser, on a form

14  prescribed by the Department, certifying that the

15  requirements of this item (25-7) are met. The

16  certificate must also include the name and address of

17  the purchaser, the address of the location where the

18  aircraft is to be titled or registered, the address of

19  the primary physical location of the aircraft, and

20  other information that the Department may reasonably

21  require.

22  For purposes of this item (25-7):

23  "Based in this State" means hangared, stored, or

24  otherwise used, excluding post-sale customizations as

25  defined in this Section, for 10 or more days in each

26  12-month period immediately following the date of the sale
    SB3222 Enrolled   - 288 - LRB104 19119 AAS 32564 b

1   of the aircraft.

2   "Registered in this State" means an aircraft

3   registered with the Department of Transportation,

4   Aeronautics Division, or titled or registered with the

5   Federal Aviation Administration to an address located in

6   this State.

7   This paragraph (25-7) is exempt from the provisions of

8   Section 2-70.

9   (26) Semen used for artificial insemination of

10  livestock for direct agricultural production.

11  (27) Horses, or interests in horses, registered with

12  and meeting the requirements of any of the Arabian Horse

13  Club Registry of America, Appaloosa Horse Club, American

14  Quarter Horse Association, United States Trotting

15  Association, or Jockey Club, as appropriate, used for

16  purposes of breeding or racing for prizes. This item (27)

17  is exempt from the provisions of Section 2-70, and the

18  exemption provided for under this item (27) applies for

19  all periods beginning May 30, 1995, but no claim for

20  credit or refund is allowed on or after January 1, 2008

21  (the effective date of Public Act 95-88) for such taxes

22  paid during the period beginning May 30, 2000 and ending

23  on January 1, 2008 (the effective date of Public Act

24  95-88).

25  (28) Computers and communications equipment utilized

26  for any hospital purpose and equipment used in the
    SB3222 Enrolled          - 289 - LRB104 19119 AAS 32564 b

1   diagnosis, analysis, or treatment of hospital patients

2   sold to a lessor who leases the equipment, under a lease of

3   one year or longer executed or in effect at the time of the

4   purchase, to a hospital that has been issued an active tax

5   exemption identification number by the Department under

6   Section 1g of this Act.

7   (29) Personal property sold to a lessor who leases the

8   property, under a lease of one year or longer executed or

9   in effect at the time of the purchase, to a governmental

10  body that has been issued an active tax exemption

11  identification number by the Department under Section 1g

12  of this Act.

13  (30) Beginning with taxable years ending on or after

14  December 31, 1995 and ending with taxable years ending on

15  or before December 31, 2004, personal property that is

16  donated for disaster relief to be used in a State or

17  federally declared disaster area in Illinois or bordering

18  Illinois by a manufacturer or retailer that is registered

19  in this State to a corporation, society, association,

20  foundation, or institution that has been issued a sales

21  tax exemption identification number by the Department that

22  assists victims of the disaster who reside within the

23  declared disaster area.

24  (31) Beginning with taxable years ending on or after

25  December 31, 1995 and ending with taxable years ending on

26  or before December 31, 2004, personal property that is
    SB3222 Enrolled  - 290 - LRB104 19119 AAS 32564 b

1   used in the performance of infrastructure repairs in this

2   State, including, but not limited to, municipal roads and

3   streets, access roads, bridges, sidewalks, waste disposal

4   systems, water and sewer line extensions, water

5   distribution and purification facilities, storm water

6   drainage and retention facilities, and sewage treatment

7   facilities, resulting from a State or federally declared

8   disaster in Illinois or bordering Illinois when such

9   repairs are initiated on facilities located in the

10  declared disaster area within 6 months after the disaster.

11  (32) Beginning July 1, 1999, game or game birds sold

12  at a "game breeding and hunting preserve area" as that

13  term is used in the Wildlife Code. This paragraph is

14  exempt from the provisions of Section 2-70.

15  (33) A motor vehicle, as that term is defined in

16  Section 1-146 of the Illinois Vehicle Code, that is

17  donated to a corporation, limited liability company,

18  society, association, foundation, or institution that is

19  determined by the Department to be organized and operated

20  exclusively for educational purposes. For purposes of this

21  exemption, "a corporation, limited liability company,

22  society, association, foundation, or institution organized

23  and operated exclusively for educational purposes" means

24  all tax-supported public schools, private schools that

25  offer systematic instruction in useful branches of

26  learning by methods common to public schools and that
    SB3222 Enrolled  - 291 - LRB104 19119 AAS 32564 b

1   compare favorably in their scope and intensity with the

2   course of study presented in tax-supported schools, and

3   vocational or technical schools or institutes organized

4   and operated exclusively to provide a course of study of

5   not less than 6 weeks duration and designed to prepare

6   individuals to follow a trade or to pursue a manual,

7   technical, mechanical, industrial, business, or commercial

8   occupation.

9   (34) Beginning January 1, 2000, personal property,

10  including food, purchased through fundraising events for

11  the benefit of a public or private elementary or secondary

12  school, a group of those schools, or one or more school

13  districts if the events are sponsored by an entity

14  recognized by the school district that consists primarily

15  of volunteers and includes parents and teachers of the

16  school children. This paragraph does not apply to

17  fundraising events (i) for the benefit of private home

18  instruction or (ii) for which the fundraising entity

19  purchases the personal property sold at the events from

20  another individual or entity that sold the property for

21  the purpose of resale by the fundraising entity and that

22  profits from the sale to the fundraising entity. This

23  paragraph is exempt from the provisions of Section 2-70.

24  (35) Beginning January 1, 2000 and through December

25  31, 2001, new or used automatic vending machines that

26  prepare and serve hot food and beverages, including
    SB3222 Enrolled  - 292 - LRB104 19119 AAS 32564 b

1   coffee, soup, and other items, and replacement parts for

2   these machines. Beginning January 1, 2002 and through June

3   30, 2003, machines and parts for machines used in

4   commercial, coin-operated amusement and vending business

5   if a use or occupation tax is paid on the gross receipts

6   derived from the use of the commercial, coin-operated

7   amusement and vending machines. This paragraph is exempt

8   from the provisions of Section 2-70.

9   (35-5) Beginning August 23, 2001 and through June 30,

10  2016, food for human consumption that is to be consumed

11  off the premises where it is sold (other than alcoholic

12  beverages, soft drinks, and food that has been prepared

13  for immediate consumption) and prescription and

14  nonprescription medicines, drugs, medical appliances, and

15  insulin, urine testing materials, syringes, and needles

16  used by diabetics, for human use, when purchased for use

17  by a person receiving medical assistance under Article V

18  of the Illinois Public Aid Code who resides in a licensed

19  long-term care facility, as defined in the Nursing Home

20  Care Act, or a licensed facility as defined in the ID/DD

21  Community Care Act, the MC/DD Act, or the Specialized

22  Mental Health Rehabilitation Act of 2013.

23  (36) Beginning August 2, 2001, computers and

24  communications equipment utilized for any hospital purpose

25  and equipment used in the diagnosis, analysis, or

26  treatment of hospital patients sold to a lessor who leases
    SB3222 Enrolled   - 293 - LRB104 19119 AAS 32564 b

1   the equipment, under a lease of one year or longer

2   executed or in effect at the time of the purchase, to a

3   hospital that has been issued an active tax exemption

4   identification number by the Department under Section 1g

5   of this Act. This paragraph is exempt from the provisions

6   of Section 2-70.

7   (37) Beginning August 2, 2001, personal property sold

8   to a lessor who leases the property, under a lease of one

9   year or longer executed or in effect at the time of the

10  purchase, to a governmental body that has been issued an

11  active tax exemption identification number by the

12  Department under Section 1g of this Act. This paragraph is

13  exempt from the provisions of Section 2-70.

14  (38) Beginning on January 1, 2002 and through June 30,

15  2016, tangible personal property purchased from an

16  Illinois retailer by a taxpayer engaged in centralized

17  purchasing activities in Illinois who will, upon receipt

18  of the property in Illinois, temporarily store the

19  property in Illinois (i) for the purpose of subsequently

20  transporting it outside this State for use or consumption

21  thereafter solely outside this State or (ii) for the

22  purpose of being processed, fabricated, or manufactured

23  into, attached to, or incorporated into other tangible

24  personal property to be transported outside this State and

25  thereafter used or consumed solely outside this State. The

26  Director of Revenue shall, pursuant to rules adopted in
    SB3222 Enrolled  - 294 - LRB104 19119 AAS 32564 b

1   accordance with the Illinois Administrative Procedure Act,

2   issue a permit to any taxpayer in good standing with the

3   Department who is eligible for the exemption under this

4   paragraph (38). The permit issued under this paragraph

5   (38) shall authorize the holder, to the extent and in the

6   manner specified in the rules adopted under this Act, to

7   purchase tangible personal property from a retailer exempt

8   from the taxes imposed by this Act. Taxpayers shall

9   maintain all necessary books and records to substantiate

10  the use and consumption of all such tangible personal

11  property outside of the State of Illinois.

12  (39) Beginning January 1, 2008, tangible personal

13  property used in the construction or maintenance of a

14  community water supply, as defined under Section 3.145 of

15  the Environmental Protection Act, that is operated by a

16  not-for-profit corporation that holds a valid water supply

17  permit issued under Title IV of the Environmental

18  Protection Act. This paragraph is exempt from the

19  provisions of Section 2-70.

20  (40) Beginning January 1, 2010 and continuing through

21  December 31, 2029, materials, parts, equipment,

22  components, and furnishings incorporated into or upon an

23  aircraft as part of the modification, refurbishment,

24  completion, replacement, repair, or maintenance of the

25  aircraft. This exemption includes consumable supplies used

26  in the modification, refurbishment, completion,
    SB3222 Enrolled  - 295 - LRB104 19119 AAS 32564 b

1   replacement, repair, and maintenance of aircraft. However,

2   until January 1, 2024, this exemption excludes any

3   materials, parts, equipment, components, and consumable

4   supplies used in the modification, replacement, repair,

5   and maintenance of aircraft engines or power plants,

6   whether such engines or power plants are installed or

7   uninstalled upon any such aircraft. "Consumable supplies"

8   include, but are not limited to, adhesive, tape,

9   sandpaper, general purpose lubricants, cleaning solution,

10  latex gloves, and protective films.

11  Beginning January 1, 2010 and continuing through

12  December 31, 2023, this exemption applies only to the sale

13  of qualifying tangible personal property to persons who

14  modify, refurbish, complete, replace, or maintain an

15  aircraft and who (i) hold an Air Agency Certificate and

16  are empowered to operate an approved repair station by the

17  Federal Aviation Administration, (ii) have a Class IV

18  Rating, and (iii) conduct operations in accordance with

19  Part 145 of the Federal Aviation Regulations. The

20  exemption does not include aircraft operated by a

21  commercial air carrier providing scheduled passenger air

22  service pursuant to authority issued under Part 121 or

23  Part 129 of the Federal Aviation Regulations. From January

24  1, 2024 through December 31, 2029, this exemption applies

25  only to the sale of qualifying tangible personal property

26  to: (A) persons who modify, refurbish, complete, repair,
    SB3222 Enrolled       - 296 - LRB104 19119 AAS 32564 b

1   replace, or maintain aircraft and who (i) hold an Air

2   Agency Certificate and are empowered to operate an

3   approved repair station by the Federal Aviation

4   Administration, (ii) have a Class IV Rating, and (iii)

5   conduct operations in accordance with Part 145 of the

6   Federal Aviation Regulations; and (B) persons who engage

7   in the modification, replacement, repair, and maintenance

8   of aircraft engines or power plants without regard to

9   whether or not those persons meet the qualifications of

10  item (A).

11  The changes made to this paragraph (40) by Public Act

12  98-534 are declarative of existing law. It is the intent

13  of the General Assembly that the exemption under this

14  paragraph (40) applies continuously from January 1, 2010

15  through December 31, 2024; however, no claim for credit or

16  refund is allowed for taxes paid as a result of the

17  disallowance of this exemption on or after January 1, 2015

18  and prior to February 5, 2020 (the effective date of

19  Public Act 101-629).

20  (41) Tangible personal property sold to a

21  public-facilities corporation, as described in Section

22  11-65-10 of the Illinois Municipal Code, for purposes of

23  constructing or furnishing a municipal convention hall,

24  but only if the legal title to the municipal convention

25  hall is transferred to the municipality without any

26  further consideration by or on behalf of the municipality
    SB3222 Enrolled  - 297 - LRB104 19119 AAS 32564 b

1   at the time of the completion of the municipal convention

2   hall or upon the retirement or redemption of any bonds or

3   other debt instruments issued by the public-facilities

4   corporation in connection with the development of the

5   municipal convention hall. This exemption includes

6   existing public-facilities corporations as provided in

7   Section 11-65-25 of the Illinois Municipal Code. This

8   paragraph is exempt from the provisions of Section 2-70.

9   (42) Beginning January 1, 2017 and through December

10  31, 2026, menstrual pads, tampons, and menstrual cups.

11  (43) Merchandise that is subject to the Rental

12  Purchase Agreement Occupation and Use Tax. The purchaser

13  must certify that the item is purchased to be rented

14  subject to a rental-purchase agreement, as defined in the

15  Rental-Purchase Agreement Act, and provide proof of

16  registration under the Rental Purchase Agreement

17  Occupation and Use Tax Act. This paragraph is exempt from

18  the provisions of Section 2-70.

19  (44) Qualified tangible personal property used in the

20  construction or operation of a data center that has been

21  granted a certificate of exemption by the Department of

22  Commerce and Economic Opportunity, whether that tangible

23  personal property is purchased by the owner, operator, or

24  tenant of the data center or by a contractor or

25  subcontractor of the owner, operator, or tenant. Data

26  centers that would have qualified for a certificate of
    SB3222 Enrolled  - 298 - LRB104 19119 AAS 32564 b

1   exemption prior to January 1, 2020 had Public Act 101-31

2   been in effect, may apply for and obtain an exemption for

3   subsequent purchases of computer equipment or enabling

4   software purchased or leased to upgrade, supplement, or

5   replace computer equipment or enabling software purchased

6   or leased in the original investment that would have

7   qualified.

8   The Department of Commerce and Economic Opportunity

9   shall grant a certificate of exemption under this item

10  (44) to qualified data centers as defined by Section

11  605-1025 of the Department of Commerce and Economic

12  Opportunity Law of the Civil Administrative Code of

13  Illinois.

14  For the purposes of this item (44):

15  "Data center" means a building or a series of

16  buildings rehabilitated or constructed to house

17  working servers in one physical location or multiple

18  sites within the State of Illinois.

19  "Qualified tangible personal property" means:

20  electrical systems and equipment; climate control and

21  chilling equipment and systems; mechanical systems and

22  equipment; monitoring and secure systems; emergency

23  generators; hardware; computers; servers; data storage

24  devices; network connectivity equipment; racks;

25  cabinets; telecommunications cabling infrastructure;

26  raised floor systems; peripheral components or
    SB3222 Enrolled  - 299 - LRB104 19119 AAS 32564 b

1   systems; software; mechanical, electrical, or plumbing

2   systems; battery systems; cooling systems and towers;

3   temperature control systems; other cabling; and other

4   data center infrastructure equipment and systems

5   necessary to operate qualified tangible personal

6   property, including fixtures; and component parts of

7   any of the foregoing, including installation,

8   maintenance, repair, refurbishment, and replacement of

9   qualified tangible personal property to generate,

10  transform, transmit, distribute, or manage electricity

11  necessary to operate qualified tangible personal

12  property; and all other tangible personal property

13  that is essential to the operations of a computer data

14  center. The term "qualified tangible personal

15  property" also includes building materials physically

16  incorporated into the qualifying data center. To

17  document the exemption allowed under this Section, the

18  retailer must obtain from the purchaser a copy of the

19  certificate of eligibility issued by the Department of

20  Commerce and Economic Opportunity.

21  This item (44) is exempt from the provisions of

22  Section 2-70.

23  (45) Beginning January 1, 2020 and through December

24  31, 2020, sales of tangible personal property made by a

25  marketplace seller over a marketplace for which tax is due

26  under this Act but for which use tax has been collected and
    SB3222 Enrolled  - 300 - LRB104 19119 AAS 32564 b

1   remitted to the Department by a marketplace facilitator

2   under Section 2d of the Use Tax Act are exempt from tax

3   under this Act. A marketplace seller claiming this

4   exemption shall maintain books and records demonstrating

5   that the use tax on such sales has been collected and

6   remitted by a marketplace facilitator. Marketplace sellers

7   that have properly remitted tax under this Act on such

8   sales may file a claim for credit as provided in Section 6

9   of this Act. No claim is allowed, however, for such taxes

10  for which a credit or refund has been issued to the

11  marketplace facilitator under the Use Tax Act, or for

12  which the marketplace facilitator has filed a claim for

13  credit or refund under the Use Tax Act.

14  (46) Beginning July 1, 2022, breast pumps, breast pump

15  collection and storage supplies, and breast pump kits.

16  This item (46) is exempt from the provisions of Section

17  2-70. As used in this item (46):

18  "Breast pump" means an electrically controlled or

19  manually controlled pump device designed or marketed to be

20  used to express milk from a human breast during lactation,

21  including the pump device and any battery, AC adapter, or

22  other power supply unit that is used to power the pump

23  device and is packaged and sold with the pump device at the

24  time of sale.

25  "Breast pump collection and storage supplies" means

26  items of tangible personal property designed or marketed
    SB3222 Enrolled     - 301 - LRB104 19119 AAS 32564 b

1   to be used in conjunction with a breast pump to collect

2   milk expressed from a human breast and to store collected

3   milk until it is ready for consumption.

4   "Breast pump collection and storage supplies"

5   includes, but is not limited to: breast shields and breast

6   shield connectors; breast pump tubes and tubing adapters;

7   breast pump valves and membranes; backflow protectors and

8   backflow protector adaptors; bottles and bottle caps

9   specific to the operation of the breast pump; and breast

10  milk storage bags.

11  "Breast pump collection and storage supplies" does not

12  include: (1) bottles and bottle caps not specific to the

13  operation of the breast pump; (2) breast pump travel bags

14  and other similar carrying accessories, including ice

15  packs, labels, and other similar products; (3) breast pump

16  cleaning supplies; (4) nursing bras, bra pads, breast

17  shells, and other similar products; and (5) creams,

18  ointments, and other similar products that relieve

19  breastfeeding-related symptoms or conditions of the

20  breasts or nipples, unless sold as part of a breast pump

21  kit that is pre-packaged by the breast pump manufacturer

22  or distributor.

23  "Breast pump kit" means a kit that: (1) contains no

24  more than a breast pump, breast pump collection and

25  storage supplies, a rechargeable battery for operating the

26  breast pump, a breastmilk cooler, bottle stands, ice
    SB3222 Enrolled  - 302 - LRB104 19119 AAS 32564 b

1   packs, and a breast pump carrying case; and (2) is

2   pre-packaged as a breast pump kit by the breast pump

3   manufacturer or distributor.

4   (47) Tangible personal property sold by or on behalf

5   of the State Treasurer pursuant to the Revised Uniform

6   Unclaimed Property Act. This item (47) is exempt from the

7   provisions of Section 2-70.

8   (48) Beginning on January 1, 2024, tangible personal

9   property purchased by an active duty member of the armed

10  forces of the United States who presents valid military

11  identification and purchases the property using a form of

12  payment where the federal government is the payor. The

13  member of the armed forces must complete, at the point of

14  sale, a form prescribed by the Department of Revenue

15  documenting that the transaction is eligible for the

16  exemption under this paragraph. Retailers must keep the

17  form as documentation of the exemption in their records

18  for a period of not less than 6 years. "Armed forces of the

19  United States" means the United States Army, Navy, Air

20  Force, Space Force, Marine Corps, or Coast Guard. This

21  paragraph is exempt from the provisions of Section 2-70.

22  (49) Beginning July 1, 2024, home-delivered meals

23  provided to Medicare or Medicaid recipients when payment

24  is made by an intermediary, such as a Medicare

25  Administrative Contractor, a Managed Care Organization, or

26  a Medicare Advantage Organization, pursuant to a
    SB3222 Enrolled  - 303 - LRB104 19119 AAS 32564 b

1   government contract. This paragraph (49) is exempt from

2   the provisions of Section 2-70.

3   (50) Beginning on January 1, 2026, as further defined

4   in Section 2-10, food for human consumption that is to be

5   consumed off the premises where it is sold (other than

6   alcoholic beverages, food consisting of or infused with

7   adult use cannabis, soft drinks, candy, and food that has

8   been prepared for immediate consumption, and, beginning on

9   November 12, 2026, food that is a final consumer hemp

10  cannabinoid product as defined in the Illinois Hemp Act).

11  This item (50) is exempt from the provisions of Section

12  2-70.

13  (51) Gross receipts from the lease of the following

14  tangible personal property:

15         (1) computer software transferred subject to a

16  license that meets the following requirements:

17                   (A) it is evidenced by a written agreement

18         signed by the licensor and the customer;

19                   (i) an electronic agreement in which the

20                   customer accepts the license by means of an

21                   electronic signature that is verifiable and

22                   can be authenticated and is attached to or

23                   made part of the license will comply with this

24                   requirement;

25                   (ii) a license agreement in which the

26                   customer electronically accepts the terms by
    SB3222 Enrolled  - 304 - LRB104 19119 AAS 32564 b

1                    clicking "I agree" does not comply with this

2                    requirement;

3                    (B) it restricts the customer's duplication

4   and use of the software;

5                    (C) it prohibits the customer from licensing,

6   sublicensing, or transferring the software to a

7   third party (except to a related party) without

8   the permission and continued control of the

9   licensor;

10                   (D) the licensor has a policy of providing

11  another copy at minimal or no charge if the

12  customer loses or damages the software, or of

13  permitting the licensee to make and keep an

14  archival copy, and such policy is either stated in

15  the license agreement, supported by the licensor's

16  books and records, or supported by a notarized

17  statement made under penalties of perjury by the

18  licensor; and

19                   (E) the customer must destroy or return all

20  copies of the software to the licensor at the end

21  of the license period; this provision is deemed to

22  be met, in the case of a perpetual license,

23  without being set forth in the license agreement;

24  and

25  (2) property that is subject to a tax on lease

26  receipts imposed by a home rule unit of local
    SB3222 Enrolled         - 305 - LRB104 19119 AAS 32564 b

1   government if the ordinance imposing that tax was

2   adopted prior to January 1, 2023.

3 (Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;

4 103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.

5 6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,

6 eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;

7 103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.

8 6-16-25; 104-417, eff. 8-15-25.)

9   (35 ILCS 120/2-10) from Ch. 120, par. 441-10

10  Sec. 2-10. Rate of tax. Unless otherwise provided in this

11 Section, the tax imposed by this Act is at the rate of 6.25% of

12 gross receipts from sales, which, on and after January 1,

13 2025, includes leases, of tangible personal property made in

14 the course of business.

15  Beginning on July 1, 2000 and through December 31, 2000,

16 with respect to motor fuel, as defined in Section 1.1 of the

17 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

18 the Use Tax Act, the tax is imposed at the rate of 1.25%.

19  Beginning on August 6, 2010 through August 15, 2010, and

20 beginning again on August 5, 2022 through August 14, 2022,

21 with respect to sales tax holiday items as defined in Section

22 2-8 of this Act, the tax is imposed at the rate of 1.25%.

23  Within 14 days after July 1, 2000 (the effective date of

24 Public Act 91-872), each retailer of motor fuel and gasohol

25 shall cause the following notice to be posted in a prominently
    SB3222 Enrolled  - 306 - LRB104 19119 AAS 32564 b

1 visible place on each retail dispensing device that is used to

2 dispense motor fuel or gasohol in the State of Illinois: "As of

3 July 1, 2000, the State of Illinois has eliminated the State's

4 share of sales tax on motor fuel and gasohol through December

5 31, 2000. The price on this pump should reflect the

6 elimination of the tax." The notice shall be printed in bold

7 print on a sign that is no smaller than 4 inches by 8 inches.

8 The sign shall be clearly visible to customers. Any retailer

9 who fails to post or maintain a required sign through December

10 31, 2000 is guilty of a petty offense for which the fine shall

11 be $500 per day per each retail premises where a violation

12 occurs.

13  With respect to gasohol, as defined in the Use Tax Act, the

14 tax imposed by this Act applies to (i) 70% of the proceeds of

15 sales made on or after January 1, 1990, and before July 1,

16 2003, (ii) 80% of the proceeds of sales made on or after July

17 1, 2003 and on or before July 1, 2017, (iii) 100% of the

18 proceeds of sales made after July 1, 2017 and prior to January

19 1, 2024, (iv) 90% of the proceeds of sales made on or after

20 January 1, 2024 and on or before December 31, 2028, and (v)

21 100% of the proceeds of sales made after December 31, 2028. If,

22 at any time, however, the tax under this Act on sales of

23 gasohol, as defined in the Use Tax Act, is imposed at the rate

24 of 1.25%, then the tax imposed by this Act applies to 100% of

25 the proceeds of sales of gasohol made during that time.

26  With respect to mid-range ethanol blends, as defined in
    SB3222 Enrolled           - 307 - LRB104 19119 AAS 32564 b

1 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act

2 applies to (i) 80% of the proceeds of sales made on or after

3 January 1, 2024 and on or before December 31, 2028 and (ii)

4 100% of the proceeds of sales made after December 31, 2028. If,

5 at any time, however, the tax under this Act on sales of

6 mid-range ethanol blends is imposed at the rate of 1.25%, then

7 the tax imposed by this Act applies to 100% of the proceeds of

8 sales of mid-range ethanol blends made during that time.

9   With respect to majority blended ethanol fuel, as defined

10 in the Use Tax Act, the tax imposed by this Act does not apply

11 to the proceeds of sales made on or after July 1, 2003 and on

12 or before December 31, 2028 but applies to 100% of the proceeds

13 of sales made thereafter.

14  With respect to biodiesel blends, as defined in the Use

15 Tax Act, with no less than 1% and no more than 10% biodiesel,

16 the tax imposed by this Act applies to (i) 80% of the proceeds

17 of sales made on or after July 1, 2003 and on or before

18 December 31, 2018 and (ii) 100% of the proceeds of sales made

19 after December 31, 2018 and before January 1, 2024. On and

20 after January 1, 2024 and on or before December 31, 2030, the

21 taxation of biodiesel, renewable diesel, and biodiesel blends

22 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

23 at any time, however, the tax under this Act on sales of

24 biodiesel blends, as defined in the Use Tax Act, with no less

25 than 1% and no more than 10% biodiesel is imposed at the rate

26 of 1.25%, then the tax imposed by this Act applies to 100% of
    SB3222 Enrolled  - 308 - LRB104 19119 AAS 32564 b

1 the proceeds of sales of biodiesel blends with no less than 1%

2 and no more than 10% biodiesel made during that time.

3   With respect to biodiesel, as defined in the Use Tax Act,

4 and biodiesel blends, as defined in the Use Tax Act, with more

5 than 10% but no more than 99% biodiesel, the tax imposed by

6 this Act does not apply to the proceeds of sales made on or

7 after July 1, 2003 and on or before December 31, 2023. On and

8 after January 1, 2024 and on or before December 31, 2030, the

9 taxation of biodiesel, renewable diesel, and biodiesel blends

10 shall be as provided in Section 3-5.1 of the Use Tax Act.

11  Until July 1, 2022 and from July 1, 2023 through December

12 31, 2025, with respect to food for human consumption that is to

13 be consumed off the premises where it is sold (other than

14 alcoholic beverages, food consisting of or infused with adult

15 use cannabis, soft drinks, and food that has been prepared for

16 immediate consumption), the tax is imposed at the rate of 1%.

17 Beginning July 1, 2022 and until July 1, 2023, with respect to

18 food for human consumption that is to be consumed off the

19 premises where it is sold (other than alcoholic beverages,

20 food consisting of or infused with adult use cannabis, soft

21 drinks, and food that has been prepared for immediate

22 consumption, and, beginning on November 12, 2026, food that is

23 a final consumer hemp cannabinoid product as defined in the

24 Illinois Hemp Act), the tax is imposed at the rate of 0%. On

25 and after January 1, 2026, food for human consumption that is

26 to be consumed off the premises where it is sold (other than
    SB3222 Enrolled     - 309 - LRB104 19119 AAS 32564 b

1 alcoholic beverages, food consisting of or infused with adult

2 use cannabis, soft drinks, candy, and food that has been

3 prepared for immediate consumption) is exempt from the tax

4 imposed by this Act.

5   With respect to prescription and nonprescription

6 medicines, drugs, medical appliances, products classified as

7 Class III medical devices by the United States Food and Drug

8 Administration that are used for cancer treatment pursuant to

9 a prescription, as well as any accessories and components

10 related to those devices, modifications to a motor vehicle for

11 the purpose of rendering it usable by a person with a

12 disability, and insulin, blood sugar testing materials,

13 syringes, and needles used by human diabetics, the tax is

14 imposed at the rate of 1%. For the purposes of this Section,

15 until September 1, 2009: the term "soft drinks" means any

16 complete, finished, ready-to-use, non-alcoholic drink, whether

17 carbonated or not, including, but not limited to, soda water,

18 cola, fruit juice, vegetable juice, carbonated water, and all

19 other preparations commonly known as soft drinks of whatever

20 kind or description that are contained in any closed or sealed

21 bottle, can, carton, or container, regardless of size; but

22 "soft drinks" does not include coffee, tea, non-carbonated

23 water, infant formula, milk or milk products as defined in the

24 Grade A Pasteurized Milk and Milk Products Act, or drinks

25 containing 50% or more natural fruit or vegetable juice.

26  Notwithstanding any other provisions of this Act,
    SB3222 Enrolled  - 310 - LRB104 19119 AAS 32564 b

1 beginning September 1, 2009, "soft drinks" means non-alcoholic

2 beverages that contain natural or artificial sweeteners. "Soft

3 drinks" does not include beverages that contain milk or milk

4 products, soy, rice or similar milk substitutes, or greater

5 than 50% of vegetable or fruit juice by volume.

6   Until August 1, 2009, and notwithstanding any other

7 provisions of this Act, "food for human consumption that is to

8 be consumed off the premises where it is sold" includes all

9 food sold through a vending machine, except soft drinks and

10 food products that are dispensed hot from a vending machine,

11 regardless of the location of the vending machine. Beginning

12 August 1, 2009, and notwithstanding any other provisions of

13 this Act, "food for human consumption that is to be consumed

14 off the premises where it is sold" includes all food sold

15 through a vending machine, except soft drinks, candy, and food

16 products that are dispensed hot from a vending machine,

17 regardless of the location of the vending machine.

18  Notwithstanding any other provisions of this Act,

19 beginning September 1, 2009, "food for human consumption that

20 is to be consumed off the premises where it is sold" does not

21 include candy. For purposes of this Section, "candy" means a

22 preparation of sugar, honey, or other natural or artificial

23 sweeteners in combination with chocolate, fruits, nuts or

24 other ingredients or flavorings in the form of bars, drops, or

25 pieces. "Candy" does not include any preparation that contains

26 flour or requires refrigeration.
    SB3222 Enrolled       - 311 - LRB104 19119 AAS 32564 b

1   Notwithstanding any other provisions of this Act,

2 beginning September 1, 2009, "nonprescription medicines and

3 drugs" does not include grooming and hygiene products. For

4 purposes of this Section, "grooming and hygiene products"

5 includes, but is not limited to, soaps and cleaning solutions,

6 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

7 lotions and screens, unless those products are available by

8 prescription only, regardless of whether the products meet the

9 definition of "over-the-counter-drugs". For the purposes of

10 this paragraph, "over-the-counter-drug" means a drug for human

11 use that contains a label that identifies the product as a drug

12 as required by 21 CFR 201.66. The "over-the-counter-drug"

13 label includes:

14  (A) a "Drug Facts" panel; or

15  (B) a statement of the "active ingredient(s)" with a

16  list of those ingredients contained in the compound,

17  substance or preparation.

18  Beginning on January 1, 2014 (the effective date of Public

19 Act 98-122), "prescription and nonprescription medicines and

20 drugs" includes medical cannabis purchased from a registered

21 dispensing organization under the Compassionate Use of Medical

22 Cannabis Program Act.

23  Beginning 90 days after the effective date of this

24 amendatory Act of the 104th General Assembly, "prescription

25 and nonprescription medicines and drugs" includes cannabis or

26 cannabis-infused products purchased by a qualified patient,
    SB3222 Enrolled        - 312 - LRB104 19119 AAS 32564 b

1 provisional patient, designated caregiver, or Opioid

2 Alternative Patient Program participant as part of that

3 individual's adequate medical supply from any dispensary that

4 has been issued a Medical Cannabis Dispensing Organization

5 license, as these terms are defined under the Cannabis

6 Regulation and Tax Act.

7   Beginning on November 12, 2026, "prescription and

8 nonprescription medicines and drugs" does not include a final

9 consumer hemp cannabinoid product as defined in the Illinois

10 Hemp Act.

11  As used in this Section, "adult use cannabis" means

12 cannabis subject to tax under the Cannabis Cultivation

13 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

14 and does not include cannabis subject to tax under the

15 Compassionate Use of Medical Cannabis Program Act.

16  Beginning 90 days after the effective date of this

17 amendatory Act of the 104th General Assembly, as used in this

18 Section, "adult use cannabis" does not include cannabis or

19 cannabis-infused products purchased by a qualified patient,

20 provisional patient, designated caregiver, or Opioid

21 Alternative Patient Program participant as part of that

22 individual's adequate medical supply from any dispensary that

23 has been issued a Medical Cannabis Dispensing Organization

24 license.

25 (Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;

26 103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
         SB3222 Enrolled       - 313 - LRB104 19119 AAS 32564 b
1 8-15-25.)

2   (35 ILCS 120/11) (from Ch. 120, par. 450)

3   Sec. 11. All information received by the Department from

4 returns filed under this Act, or from any investigation

5 conducted under this Act, shall be confidential, except for

6 official purposes, and any person, including a third party as

7 defined in the Local Government Revenue Recapture Act, who

8 divulges any such information in any manner, except in

9 accordance with a proper judicial order or as otherwise

10 provided by law, including the Local Government Revenue

11 Recapture Act, shall be guilty of a Class B misdemeanor with a

12 fine not to exceed $7,500.

13  Nothing in this Act prevents the Director of Revenue from

14 publishing or making available to the public the names and

15 addresses of persons filing returns under this Act, or

16 reasonable statistics concerning the operation of the tax by

17 grouping the contents of returns so the information in any

18 individual return is not disclosed.

19  Nothing in this Act prevents the Director of Revenue from

20 divulging to the United States Government or the government of

21 any other state, or any officer or agency thereof, for

22 exclusively official purposes, information received by the

23 Department in administering this Act, provided that such other

24 governmental agency agrees to divulge requested tax

25 information to the Department.
    SB3222 Enrolled    - 314 - LRB104 19119 AAS 32564 b

1   The Department's furnishing of information derived from a

2 taxpayer's return or from an investigation conducted under

3 this Act to the surety on a taxpayer's bond that has been

4 furnished to the Department under this Act, either to provide

5 notice to such surety of its potential liability under the

6 bond or, in order to support the Department's demand for

7 payment from such surety under the bond, is an official

8 purpose within the meaning of this Section.

9   The furnishing upon request of information obtained by the

10 Department from returns filed under this Act or investigations

11 conducted under this Act to the Illinois Liquor Control

12 Commission for official use is deemed to be an official

13 purpose within the meaning of this Section.

14  Notice to a surety of potential liability shall not be

15 given unless the taxpayer has first been notified, not less

16 than 10 days prior thereto, of the Department's intent to so

17 notify the surety.

18  The furnishing upon request of the Auditor General, or his

19 authorized agents, for official use, of returns filed and

20 information related thereto under this Act is deemed to be an

21 official purpose within the meaning of this Section.

22  Where an appeal or a protest has been filed on behalf of a

23 taxpayer, the furnishing upon request of the attorney for the

24 taxpayer of returns filed by the taxpayer and information

25 related thereto under this Act is deemed to be an official

26 purpose within the meaning of this Section.
   SB3222 Enrolled  - 315 - LRB104 19119 AAS 32564 b

1  The furnishing of financial information to a municipality

2 or county, upon request of the chief executive officer

3 thereof, is an official purpose within the meaning of this

4 Section, provided the municipality or county agrees in writing

5 to the requirements of this Section. Information provided to

6 municipalities and counties under this paragraph shall be

7 limited to: (1) the business name; (2) the business address;

8 (3) the standard classification number assigned to the

9 business; (4) net revenue distributed to the requesting

10 municipality or county that is directly related to the

11 requesting municipality's or county's local share of the

12 proceeds under the Use Tax Act, the Service Use Tax Act, the

13 Service Occupation Tax Act, and the Retailers' Occupation Tax

14 Act distributed from the Local Government Tax Fund, and, if

15 applicable, any locally imposed retailers' occupation tax or

16 service occupation tax; and (5) a listing of all businesses

17 within the requesting municipality or county by account

18 identification number and address. On and after July 1, 2015,

19 the furnishing of financial information to municipalities and

20 counties under this paragraph may be by electronic means. If

21 the Department may furnish financial information to a

22 municipality or county under this paragraph, then the chief

23 executive officer of the municipality or county may, in turn,

24 provide that financial information to a third party pursuant

25 to the Local Government Revenue Recapture Act. However, the

26 third party shall agree in writing to the requirements of this
    SB3222 Enrolled       - 316 - LRB104 19119 AAS 32564 b

1 Section and meet the requirements of the Local Government

2 Revenue Recapture Act.

3   Information so provided shall be subject to all

4 confidentiality provisions of this Section. The written

5 agreement shall provide for reciprocity, limitations on

6 access, disclosure, and procedures for requesting information.

7 For the purposes of furnishing financial information to a

8 municipality or county under this Section, "chief executive

9 officer" means the mayor of a city, the village board

10 president of a village, the mayor or president of an

11 incorporated town, the county executive of a county that has

12 adopted the county executive form of government, the president

13 of the board of commissioners of Cook County, or the

14 chairperson of the county board or board of county

15 commissioners of any other county.

16  The Department may make available to the Board of Trustees

17 of any Metro East Mass Transit District information contained

18 on transaction reporting returns required to be filed under

19 Section 3 of this Act that report sales made within the

20 boundary of the taxing authority of that Metro East Mass

21 Transit District, as provided in Section 5.01 of the Local

22 Mass Transit District Act. The disclosure shall be made

23 pursuant to a written agreement between the Department and the

24 Board of Trustees of a Metro East Mass Transit District, which

25 is an official purpose within the meaning of this Section. The

26 written agreement between the Department and the Board of
   SB3222 Enrolled  - 317 - LRB104 19119 AAS 32564 b

1 Trustees of a Metro East Mass Transit District shall provide

2 for reciprocity, limitations on access, disclosure, and

3 procedures for requesting information. Information so provided

4 shall be subject to all confidentiality provisions of this

5 Section.

6  The Director may make available to any State agency,

7 including the Illinois Supreme Court, which licenses persons

8 to engage in any occupation, information that a person

9 licensed by such agency has failed to file returns under this

10 Act or pay the tax, penalty and interest shown therein, or has

11 failed to pay any final assessment of tax, penalty or interest

12 due under this Act. The Director may make available to any

13 State agency, including the Illinois Supreme Court,

14 information regarding whether a bidder, contractor, or an

15 affiliate of a bidder or contractor has failed to collect and

16 remit Illinois Use tax on sales into Illinois, or any tax under

17 this Act or pay the tax, penalty, and interest shown therein,

18 or has failed to pay any final assessment of tax, penalty, or

19 interest due under this Act, for the limited purpose of

20 enforcing bidder and contractor certifications. The Director

21 may make available to units of local government and school

22 districts that require bidder and contractor certifications,

23 as set forth in Sections 50-11 and 50-12 of the Illinois

24 Procurement Code, information regarding whether a bidder,

25 contractor, or an affiliate of a bidder or contractor has

26 failed to collect and remit Illinois Use tax on sales into
    SB3222 Enrolled  - 318 - LRB104 19119 AAS 32564 b

1 Illinois, file returns under this Act, or pay the tax,

2 penalty, and interest shown therein, or has failed to pay any

3 final assessment of tax, penalty, or interest due under this

4 Act, for the limited purpose of enforcing bidder and

5 contractor certifications. For purposes of this Section, the

6 term "affiliate" means any entity that (1) directly,

7 indirectly, or constructively controls another entity, (2) is

8 directly, indirectly, or constructively controlled by another

9 entity, or (3) is subject to the control of a common entity.

10 For purposes of this Section, an entity controls another

11 entity if it owns, directly or individually, more than 10% of

12 the voting securities of that entity. As used in this Section,

13 the term "voting security" means a security that (1) confers

14 upon the holder the right to vote for the election of members

15 of the board of directors or similar governing body of the

16 business or (2) is convertible into, or entitles the holder to

17 receive upon its exercise, a security that confers such a

18 right to vote. A general partnership interest is a voting

19 security.

20  The Director may make available to any State agency,

21 including the Illinois Supreme Court, units of local

22 government, and school districts, information regarding

23 whether a bidder or contractor is an affiliate of a person who

24 is not collecting and remitting Illinois Use taxes for the

25 limited purpose of enforcing bidder and contractor

26 certifications.
    SB3222 Enrolled  - 319 - LRB104 19119 AAS 32564 b

1   The Director may also make available to the Secretary of

2 State information that a limited liability company, which has

3 filed articles of organization with the Secretary of State, or

4 corporation which has been issued a certificate of

5 incorporation by the Secretary of State has failed to file

6 returns under this Act or pay the tax, penalty and interest

7 shown therein, or has failed to pay any final assessment of

8 tax, penalty or interest due under this Act. An assessment is

9 final when all proceedings in court for review of such

10 assessment have terminated or the time for the taking thereof

11 has expired without such proceedings being instituted.

12  It is an official purpose within the meaning of this

13 Section for the Department to publicly report the aggregate

14 amount of tax revenues from a given tax return type that the

15 Department allocates from a State fund or State trust fund to

16 each unit of local government, such as the amount of the

17 monthly allocation to each unit of local government of

18 Municipal Cannabis Retailers' Occupation Tax, County Cannabis

19 Retailers' Occupation Tax, or Business District Occupation

20 Tax, notwithstanding that some units of local government may

21 have as few as one retailer reporting revenues for a given tax

22 return type in any given reporting period.

23  The Director shall make available for public inspection in

24 the Department's principal office and for publication, at

25 cost, administrative decisions issued on or after January 1,

26 1995. These decisions are to be made available in a manner so
    SB3222 Enrolled  - 320 - LRB104 19119 AAS 32564 b

1 that the following taxpayer information is not disclosed:

2   (1) The names, addresses, and identification numbers

3   of the taxpayer, related entities, and employees.

4   (2) At the sole discretion of the Director, trade

5   secrets or other confidential information identified as

6   such by the taxpayer, no later than 30 days after receipt

7   of an administrative decision, by such means as the

8   Department shall provide by rule.

9   The Director shall determine the appropriate extent of the

10 deletions allowed in paragraph (2). In the event the taxpayer

11 does not submit deletions, the Director shall make only the

12 deletions specified in paragraph (1).

13  The Director shall make available for public inspection

14 and publication an administrative decision within 180 days

15 after the issuance of the administrative decision. The term

16 "administrative decision" has the same meaning as defined in

17 Section 3-101 of Article III of the Code of Civil Procedure.

18 Costs collected under this Section shall be paid into the Tax

19 Compliance and Administration Fund.

20  Nothing contained in this Act shall prevent the Director

21 from divulging information to any person pursuant to a request

22 or authorization made by the taxpayer or by an authorized

23 representative of the taxpayer.

24  The furnishing of information obtained by the Department

25 from returns filed under Public Act 101-10 to the Department

26 of Transportation for purposes of compliance with Public Act
    SB3222 Enrolled         - 321 - LRB104 19119 AAS 32564 b

1 101-10 regarding aviation fuel is deemed to be an official

2 purpose within the meaning of this Section.

3   The Director may make information available to the

4 Secretary of State for the purpose of administering Section

5 5-901 of the Illinois Vehicle Code.

6 (Source: P.A. 101-10, eff. 6-5-19; 101-628, eff. 6-1-20;

7 102-558, eff. 8-20-21; 102-941, eff. 7-1-22.)

8   Section 155. The Compassionate Use of Medical Cannabis

9 Program Act is amended by changing Sections 7, 7-15, 10, 15,

10 25, 30, 35, 57, 60, 62, 70, 75, 85, 100, 105, 115, 120, 130,

11 145, 150, 173, 195, 200, and 210 as follows:

12  (410 ILCS 130/7)

13  Sec. 7. Lawful user and lawful products. For the purposes

14 of this Act and to clarify the legislative findings on the

15 lawful use of cannabis:

16  (1) A cardholder under this Act shall not be

17  considered an unlawful user or addicted to narcotics

18  solely as a result of his or her qualifying patient,

19  provisional patient, or designated caregiver, or Opioid

20  Alternative Patient Program participant status.

21  (2) All medical cannabis products purchased by a

22  qualifying patient, provisional patient, designated

23  caregiver, or Opioid Alternative Patient Program

24  participant at a licensed dispensing organization shall be
    SB3222 Enrolled    - 322 - LRB104 19119 AAS 32564 b

1   lawful products and a distinction shall be made between

2   medical and non-medical uses of cannabis as a result of

3   the qualifying patient's cardholder status, provisional

4   registration for qualifying patient cardholder status, or

5   participation in the Opioid Alternative Pilot Program

6   under the authorized use granted under State law.

7   (3) An individual with a provisional registration for

8   qualifying patient cardholder status, a qualifying patient

9   in the Compassionate Use of Medical Cannabis Program, or

10  an Opioid Alternative Patient Pilot Program participant

11  under Section 62 shall not be considered an unlawful user

12  or addicted to narcotics solely as a result of his or her

13  application to or participation in the program.

14 (Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)

15  (410 ILCS 130/10)

16  Sec. 10. Definitions. The following terms, as used in this

17 Act, shall have the meanings set forth in this Section:

18  (a) "Adequate medical supply" means 2.5 ounces of usable

19 cannabis during a period of 14 days that is derived solely from

20 an intrastate source. Subject to the rules of the Department

21 of Public Health, a patient may apply for a waiver in which a

22 certifying health care professional provides a substantial

23 medical basis in a signed, written statement asserting that,

24 based on the patient's medical history, in the certifying

25 health care professional's professional judgment, 2.5 ounces
    SB3222 Enrolled    - 323 - LRB104 19119 AAS 32564 b

1 is an insufficient adequate medical supply for a 14-day period

2 to properly alleviate the patient's debilitating medical

3 condition or symptoms associated with the debilitating medical

4 condition. This definition may not be construed to authorize

5 the possession of more than 2.5 ounces at any time without

6 authority from the Department of Public Health. The pre-mixed

7 weight of medical cannabis used in making a cannabis-infused

8 product shall apply toward the limit on the total amount of

9 medical cannabis a registered qualifying patient may possess

10 at any one time. :

11  (1) 2.5 ounces of usable cannabis during a period of

12  14 days and that is derived solely from an intrastate

13  source.

14  (2) Subject to the rules of the Department of Public

15  Health, a patient may apply for a waiver where a

16  certifying health care professional provides a substantial

17  medical basis in a signed, written statement asserting

18  that, based on the patient's medical history, in the

19  certifying health care professional's professional

20  judgment, 2.5 ounces is an insufficient adequate supply

21  for a 14-day period to properly alleviate the patient's

22  debilitating medical condition or symptoms associated with

23  the debilitating medical condition.

24  (3) This subsection may not be construed to authorize

25  the possession of more than 2.5 ounces at any time without

26  authority from the Department of Public Health.
    SB3222 Enrolled  - 324 - LRB104 19119 AAS 32564 b

1   (4) The pre-mixed weight of medical cannabis used in

2   making a cannabis infused product shall apply toward the

3   limit on the total amount of medical cannabis a registered

4   qualifying patient may possess at any one time.

5   (a-5) "Advanced practice registered nurse" means a person

6 who is licensed under the Nurse Practice Act as an advanced

7 practice registered nurse and has a controlled substances

8 license under Article III of the Illinois Controlled

9 Substances Act.

10  (a-10) "Bona fide health care professional-patient

11 relationship" means a relationship in which the certifying

12 health care professional has an ongoing responsibility for the

13 assessment, care, and treatment of a patient's debilitating

14 medical condition or a symptom of the patient's debilitating

15 medical condition. A veteran who has received treatment at a

16 VA hospital shall be deemed to have a bona fide health care

17 professional-patient relationship with a VA certifying health

18 care professional if the patient has been seen for his or her

19 debilitating medical condition at the VA Hospital in

20 accordance with VA Hospital protocols. A bona fide health care

21 professional-patient relationship under this subsection is a

22 privileged communication within the meaning of Section 8-802

23 of the Code of Civil Procedure.

24  (b) "Cannabis" has the same meaning given to that term in

25 Section 1-10 3 of the Cannabis Regulation and Tax Control Act.

26  (c) "Cannabis plant monitoring system" means a system that
    SB3222 Enrolled          - 325 - LRB104 19119 AAS 32564 b

1 includes, but is not limited to, testing and data collection

2 established and maintained by the registered cultivation

3 center and available to the Department for the purposes of

4 documenting each cannabis plant and for monitoring plant

5 development throughout the life cycle of a cannabis plant

6 cultivated for the intended use by a qualifying patient from

7 seed planting to final packaging.

8   (d) "Cardholder" means a qualifying patient, provisional

9 patient, or a designated caregiver who has been issued and

10 possesses a valid registry identification card by the

11 Department of Public Health.

12  (d-5) "Certifying health care professional" means a

13 physician, an advanced practice registered nurse, or a

14 physician assistant.

15  (e) "Cultivation center" means a facility operated by an

16 organization or business that is registered by the Department

17 of Agriculture to perform necessary activities to provide only

18 registered medical cannabis dispensing organizations with

19 usable medical cannabis.

20  (f) "Cultivation center agent" means a principal officer,

21 board member, employee, or agent of a registered cultivation

22 center who is 21 years of age or older and has not been

23 convicted of an excluded offense.

24  (g) "Cultivation center agent identification card" means a

25 document issued by the Department of Agriculture that

26 identifies a person as a cultivation center agent.
    SB3222 Enrolled             - 326 - LRB104 19119 AAS 32564 b

1   (h) "Debilitating medical condition" means one or more of

2 the following:

3   (1) cancer, glaucoma, positive status for human

4   immunodeficiency virus, acquired immune deficiency

5   syndrome, hepatitis C, amyotrophic lateral sclerosis,

6   Crohn's disease (including, but not limited to, ulcerative

7   colitis),        agitation  of  Alzheimer's  disease,

8   cachexia/wasting syndrome, muscular dystrophy, severe

9   fibromyalgia, spinal cord disease, including but not

10  limited to arachnoiditis, Tarlov cysts, hydromyelia,

11  syringomyelia, Rheumatoid arthritis, fibrous dysplasia,

12  spinal cord injury, traumatic brain injury and

13  post-concussion  syndrome,      Multiple     Sclerosis,

14  Arnold-Chiari    malformation   and       Syringomyelia,

15  Spinocerebellar Ataxia (SCA), Parkinson's, Tourette's,

16  Myoclonus, Dystonia, Reflex Sympathetic Dystrophy, RSD

17  (Complex Regional Pain Syndromes Type I), Causalgia, CRPS

18  (Complex Regional Pain Syndromes Type II),

19  Neurofibromatosis, Chronic Inflammatory Demyelinating

20  Polyneuropathy, Sjogren's syndrome, Lupus, Interstitial

21  Cystitis, Myasthenia Gravis, Hydrocephalus, nail-patella

22  syndrome, residual limb pain, seizures (including those

23  characteristic of epilepsy), post-traumatic stress

24  disorder (PTSD), autism, chronic pain, irritable bowel

25  syndrome, migraines, osteoarthritis, anorexia nervosa,

26  Ehlers-Danlos Syndrome, Neuro-Behcet's Autoimmune
    SB3222 Enrolled  - 327 - LRB104 19119 AAS 32564 b

1   Disease, neuropathy, polycystic kidney disease, superior

2   canal dehiscence syndrome, endometriosis, ovarian cysts,

3   uterine fibroids, female orgasmic disorder, or the

4   treatment of these conditions;

5   (1.5) terminal illness with a diagnosis of 6 months or

6   less; if the terminal illness is not one of the qualifying

7   debilitating medical conditions, then the certifying

8   health care professional shall on the certification form

9   identify the cause of the terminal illness; or

10  (2) any other debilitating medical condition or its

11  treatment that is added by the Department of Public Health

12  by rule as provided in Section 45.

13  (i) "Designated caregiver" means a person who: (1) is at

14 least 21 years of age; (2) has agreed to assist with a

15 patient's medical use of cannabis; (3) has not been convicted

16 of an excluded offense; and (3) (4) assists no more than one

17 registered qualifying patient with the patient's his or her

18 medical use of cannabis, except the parent or guardian of a

19 registered qualifying patient may assist each of their

20 children who are registered qualifying patients.

21  (i-5) "Dispensing organization" or "dispensary" means a

22 facility operated by an organization or business that is

23 registered by the Department of Financial and Professional

24 Regulation to acquire cannabis from a registered cultivation

25 center for the purpose of dispensing cannabis, paraphernalia,

26 or related supplies and educational materials to registered
    SB3222 Enrolled    - 328 - LRB104 19119 AAS 32564 b

1 qualifying patients, individuals with a provisional

2 registration for qualifying patient cardholder status, or an

3 Opioid Alternative Patient Program participants, or, if also

4 licensed under the Cannabis Regulation and Tax Act, purchasers

5 over the age of 21.

6   (i-10) "Dispensing organization agent" means a principal

7 officer, board member, employee, or agent of a registered

8 medical cannabis dispensing organization who is 21 years of

9 age or older.

10  (j) "Dispensing organization agent identification card"

11 means a document issued by the Department of Financial and

12 Professional Regulation that identifies a person as a medical

13 cannabis dispensing organization agent.

14  (k) "Enclosed, locked facility" means a room, greenhouse,

15 building, or other enclosed area equipped with locks or other

16 security devices that permit access only by a cultivation

17 center's agents or a dispensing organization's agent working

18 for the registered cultivation center or the registered

19 dispensing organization to cultivate, store, and distribute

20 cannabis for registered qualifying patients.

21  (l) (Blank). "Excluded offense" for cultivation center

22 agents and dispensing organizations means:

23  (1) a violent crime defined in Section 3 of the Rights

24  of Crime Victims and Witnesses Act or a substantially

25  similar offense that was classified as a felony in the

26  jurisdiction where the person was convicted; or
    SB3222 Enrolled  - 329 - LRB104 19119 AAS 32564 b

1   (2) a violation of a state or federal controlled

2   substance law, the Cannabis Control Act, or the

3   Methamphetamine Control and Community Protection Act that

4   was classified as a felony in the jurisdiction where the

5   person was convicted, except that the registering

6   Department may waive this restriction if the person

7   demonstrates to the registering Department's satisfaction

8   that his or her conviction was for the possession,

9   cultivation, transfer, or delivery of a reasonable amount

10  of cannabis intended for medical use. This exception does

11  not apply if the conviction was under state law and

12  involved a violation of an existing medical cannabis law.

13  For purposes of this subsection, the Department of Public

14 Health shall determine by emergency rule within 30 days after

15 the effective date of this amendatory Act of the 99th General

16 Assembly what constitutes a "reasonable amount".

17  (l-5) (Blank).

18  (l-10) "Illinois Cannabis Tracking System" means a

19 web-based system established and maintained by the Department

20 of Public Health that is available to the Department of

21 Agriculture, the Department of Financial and Professional

22 Regulation, the Illinois State Police, and registered medical

23 cannabis dispensing organizations on a 24-hour basis to upload

24 written certifications for Opioid Alternative Patient Pilot

25 Program participants, to verify Opioid Alternative Patient

26 Pilot Program participants, to verify Opioid Alternative
    SB3222 Enrolled  - 330 - LRB104 19119 AAS 32564 b

1 Patient Pilot Program participants' available cannabis

2 allotment and assigned dispensary, and the tracking of the

3 date of sale, amount, and price of medical cannabis purchased

4 by an Opioid Alternative Patient Pilot Program participant.

5   (m) "Medical cannabis cultivation center registration"

6 means a registration issued by the Department of Agriculture.

7   (n) "Medical cannabis container" means a sealed,

8 traceable, food compliant, tamper resistant, tamper evident

9 container, or package used for the purpose of containment of

10 medical cannabis from a cultivation center to a dispensing

11 organization.

12  (o) (Blank). "Medical cannabis dispensing organization",

13 or "dispensing organization", or "dispensary organization"

14 means a facility operated by an organization or business that

15 is registered by the Department of Financial and Professional

16 Regulation to acquire medical cannabis from a registered

17 cultivation center for the purpose of dispensing cannabis,

18 paraphernalia, or related supplies and educational materials

19 to registered qualifying patients, individuals with a

20 provisional registration for qualifying patient cardholder

21 status, or an Opioid Alternative Pilot Program participant.

22  (p) (Blank). "Medical cannabis dispensing organization

23 agent" or "dispensing organization agent" means a principal

24 officer, board member, employee, or agent of a registered

25 medical cannabis dispensing organization who is 21 years of

26 age or older and has not been convicted of an excluded offense.
    SB3222 Enrolled  - 331 - LRB104 19119 AAS 32564 b

1   (q) "Medical cannabis infused product" means food, oils,

2 ointments, or other products containing usable cannabis that

3 are not smoked.

4   (r) "Medical use" means the acquisition; administration;

5 delivery; possession; transfer; transportation; or use of

6 cannabis to treat or alleviate a registered qualifying

7 patient's debilitating medical condition or symptoms

8 associated with the patient's debilitating medical condition.

9   (r-5) "Opioid" means a narcotic drug or substance that is

10 a Schedule II controlled substance under paragraph (1), (2),

11 (3), or (5) of subsection (b) or under subsection (c) of

12 Section 206 of the Illinois Controlled Substances Act.

13  (r-10) "Opioid Alternative Patient Pilot Program

14 participant" means an individual who has received a valid

15 written certification to participate in the Opioid Alternative

16 Patient Pilot Program for a medical condition for which an

17 opioid has been or could be prescribed by a certifying health

18 care professional based on generally accepted standards of

19 care.

20  (s) "Physician" means a doctor of medicine or doctor of

21 osteopathy licensed under the Medical Practice Act of 1987 to

22 practice medicine and who has a controlled substances license

23 under Article III of the Illinois Controlled Substances Act.

24 It does not include a licensed practitioner under any other

25 Act including but not limited to the Illinois Dental Practice

26 Act.
    SB3222 Enrolled  - 332 - LRB104 19119 AAS 32564 b

1   (s-1) "Physician assistant" means a physician assistant

2 licensed under the Physician Assistant Practice Act of 1987

3 and who has a controlled substances license under Article III

4 of the Illinois Controlled Substances Act.

5   (s-2) "Provisional patient" means a qualifying patient who

6 has received a provisional registration from the Department of

7 Public Health.

8   (s-5) "Provisional registration" means a document issued

9 by the Department of Public Health to a qualifying patient who

10 has submitted: (1) an online application and paid a fee to

11 participate in Compassionate Use of Medical Cannabis Program

12 pending approval or denial of the patient's application; or

13 (2) a completed application for terminal illness.

14  (t) "Qualifying patient" or "registered qualifying

15 patient" means a person who has been diagnosed by a certifying

16 health care professional as having a debilitating medical

17 condition.

18  (u) "Registered" means licensed, permitted, or otherwise

19 certified by the Department of Agriculture, Department of

20 Public Health, or Department of Financial and Professional

21 Regulation.

22  (v) "Registry identification card" means a document issued

23 by the Department of Public Health that identifies a person as

24 a registered qualifying patient, provisional patient, or

25 registered designated caregiver.

26  (w) "Usable cannabis" means the seeds, leaves, buds, and
    SB3222 Enrolled     - 333 - LRB104 19119 AAS 32564 b

1 flowers of the cannabis plant and any mixture or preparation

2 thereof, but does not include the stalks, and roots of the

3 plant. It does not include the weight of any non-cannabis

4 ingredients combined with cannabis, such as ingredients added

5 to prepare a topical administration, food, or drink.

6   (x) "Verification system" means a Web-based system

7 established and maintained by the Department of Public Health

8 that is available to the Department of Agriculture, the

9 Department of Financial and Professional Regulation, law

10 enforcement personnel, and registered medical cannabis

11 dispensing organization agents on a 24-hour basis for the

12 verification of registry identification cards, the tracking of

13 delivery of medical cannabis to medical cannabis dispensing

14 organizations, and the tracking of the date of sale, amount,

15 and price of medical cannabis purchased by a registered

16 qualifying patient.

17  (y) "Written certification" means a document dated and

18 signed by a certifying health care professional, stating (1)

19 that the qualifying patient has a debilitating medical

20 condition and specifying the debilitating medical condition

21 the qualifying patient has; and (2) that (A) the certifying

22 health care professional is treating or managing treatment of

23 the patient's debilitating medical condition; or (B) an Opioid

24 Alternative Patient Pilot Program participant has a medical

25 condition for which opioids have been or could be prescribed.

26 A written certification shall be made only in the course of a
    SB3222 Enrolled      - 334 - LRB104 19119 AAS 32564 b

1 bona fide health care professional-patient relationship, after

2 the certifying health care professional has completed an

3 assessment of either a qualifying patient's medical history or

4 Opioid Alternative Patient Pilot Program participant, reviewed

5 relevant records related to the patient's debilitating

6 condition, and conducted a physical examination.

7   (z) (Blank). "Bona fide health care professional-patient

8 relationship" means a relationship established at a hospital,

9 certifying health care professional's office, or other health

10 care facility in which the certifying health care professional

11 has an ongoing responsibility for the assessment, care, and

12 treatment of a patient's debilitating medical condition or a

13 symptom of the patient's debilitating medical condition.

14  A veteran who has received treatment at a VA hospital

15 shall be deemed to have a bona fide health care

16 professional-patient relationship with a VA certifying health

17 care professional if the patient has been seen for his or her

18 debilitating medical condition at the VA Hospital in

19 accordance with VA Hospital protocols.

20  A bona fide health care professional-patient relationship

21 under this subsection is a privileged communication within the

22 meaning of Section 8-802 of the Code of Civil Procedure.

23 (Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19.)

24  (410 ILCS 130/15)

25  Sec. 15. Authority.
    SB3222 Enrolled          - 335 - LRB104 19119 AAS 32564 b

1   (a) It is the duty of the Department of Public Health to

2 enforce the following provisions of this Act unless otherwise

3 provided for by this Act:

4   (1) establish and maintain a confidential registry of

5   qualifying patients authorized to engage in the medical

6   use of cannabis and their caregivers;

7   (2) distribute educational materials about the health

8   benefits and risks associated with the use of cannabis and

9   prescription medications;

10  (3) adopt rules to administer the patient and

11  caregiver registration program; and

12  (4) adopt rules establishing food handling

13  requirements for cannabis-infused products that are

14  prepared for human consumption.

15  (b) It is the duty of the Department of Agriculture to

16 enforce the provisions of this Act relating to the

17 registration and oversight of cultivation centers unless

18 otherwise provided for in this Act.

19  (c) It is the duty of the Department of Financial and

20 Professional Regulation to enforce the provisions of this Act

21 relating to the registration and oversight of dispensing

22 organizations unless otherwise provided for in this Act.

23  (d) The Department of Public Health, the Department of

24 Agriculture, or the Department of Financial and Professional

25 Regulation shall enter into intergovernmental agreements, as

26 necessary, to carry out the provisions of this Act including,
    SB3222 Enrolled          - 336 - LRB104 19119 AAS 32564 b

1 but not limited to, the provisions relating to the

2 registration and oversight of cultivation centers, dispensing

3 organizations, and qualifying patients and caregivers.

4 Beginning January 1, 2027, the Department of Public Health may

5 enter into intergovernmental agreements, as necessary, to

6 carry out the provisions of this Act, including, but not

7 limited to, the provisions relating to qualifying patients and

8 caregivers.

9   (e) The Department of Public Health, the Department of

10 Agriculture, or the Department of Financial and Professional

11 Regulation may suspend, revoke, or impose other penalties upon

12 a registration for violations of this Act and any rules

13 adopted in accordance thereto. The suspension or revocation

14 of, or imposition of any other penalty upon, a registration is

15 a final Agency action, subject to judicial review.

16 Jurisdiction and venue for judicial review are vested in the

17 Circuit Court.

18 (Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15;

19 99-519, eff. 6-30-16.)

20  (410 ILCS 130/25)

21  Sec. 25. Immunities and presumptions related to the

22 medical use of cannabis.

23  (a) A registered qualifying patient is not subject to

24 arrest, prosecution, or denial of any right or privilege,

25 including, but not limited to, civil penalty or disciplinary
    SB3222 Enrolled  - 337 - LRB104 19119 AAS 32564 b

1 action by an occupational or professional licensing board, for

2 the medical use of cannabis in accordance with this Act, if the

3 registered qualifying patient possesses an amount of cannabis

4 that does not exceed an adequate medical supply as defined in

5 subsection (a) of Section 10 of this Act of usable cannabis

6 and, where the registered qualifying patient is a licensed

7 professional, the use of cannabis does not impair that

8 licensed professional when he or she is engaged in the

9 practice of the profession for which he or she is licensed.

10  (b) A registered designated caregiver is not subject to

11 arrest, prosecution, or denial of any right or privilege,

12 including, but not limited to, civil penalty or disciplinary

13 action by an occupational or professional licensing board, for

14 acting in accordance with this Act to assist a registered

15 qualifying patient to whom he or she is connected through the

16 Department's registration process with the medical use of

17 cannabis if the designated caregiver possesses an amount of

18 cannabis that does not exceed an adequate medical supply as

19 defined in subsection (a) of Section 10 of this Act of usable

20 cannabis. A school nurse or school administrator is not

21 subject to arrest, prosecution, or denial of any right or

22 privilege, including, but not limited to, a civil penalty, for

23 acting in accordance with Section 22-33 of the School Code

24 relating to administering or assisting a student in

25 self-administering a medical cannabis infused product. The

26 total amount possessed between the qualifying patient and
    SB3222 Enrolled      - 338 - LRB104 19119 AAS 32564 b

1 caregiver shall not exceed the patient's adequate supply as

2 defined in subsection (a) of Section 10 of this Act.

3   (c) A registered qualifying patient, or registered

4 designated caregiver, or Opioid Alternative Patient Program

5 participant is not subject to arrest, prosecution, or denial

6 of any right or privilege, including, but not limited to,

7 civil penalty or disciplinary action by an occupational or

8 professional licensing board for possession of cannabis that

9 is incidental to medical use, but is not usable cannabis as

10 defined in this Act.

11  (d)(1) There is a rebuttable presumption that a registered

12 qualifying patient is engaged in, or a designated caregiver is

13 assisting with, the medical use of cannabis in accordance with

14 this Act if the qualifying patient or designated caregiver:

15  (A) is in possession of a valid registry

16  identification card; and

17  (B) is in possession of an amount of cannabis that

18  does not exceed the amount allowed under subsection (a) of

19  Section 10.

20  (2) The presumption may be rebutted by evidence that

21 conduct related to cannabis was not for the purpose of

22 treating or alleviating the qualifying patient's debilitating

23 medical condition or symptoms associated with the debilitating

24 medical condition in compliance with this Act.

25  (e) A certifying health care professional is not subject

26 to arrest, prosecution, or penalty in any manner, or denial of
    SB3222 Enrolled  - 339 - LRB104 19119 AAS 32564 b

1 any right or privilege, including, but not limited to, civil

2 penalty or disciplinary action by the Medical Disciplinary

3 Board or by any other occupational or professional licensing

4 board, solely for providing written certifications or for

5 otherwise stating that, in the certifying health care

6 professional's professional opinion, a patient is likely to

7 receive therapeutic or palliative benefit from the medical use

8 of cannabis to treat or alleviate the patient's debilitating

9 medical condition or symptoms associated with the debilitating

10 medical condition, provided that nothing shall prevent a

11 professional licensing or disciplinary board from sanctioning

12 a certifying health care professional for: (1) issuing a

13 written certification to a patient who is not under the

14 certifying health care professional's care for a debilitating

15 medical condition; or (2) failing to properly evaluate a

16 patient's medical condition or otherwise violating the

17 standard of care for evaluating medical conditions.

18  (f) No person may be subject to arrest, prosecution, or

19 denial of any right or privilege, including, but not limited

20 to, civil penalty or disciplinary action by an occupational or

21 professional licensing board, solely for: (1) selling cannabis

22 paraphernalia to a cardholder upon presentation of an

23 unexpired registry identification card in the recipient's name

24 or Opioid Alternative Patient Program participant upon

25 verification of certification, if employed and registered as a

26 dispensing agent by a registered dispensing organization; (2)
    SB3222 Enrolled       - 340 - LRB104 19119 AAS 32564 b

1 being in the presence or vicinity of the medical use of

2 cannabis as allowed under this Act; or (3) assisting a

3 registered qualifying patient with the act of administering

4 cannabis.

5   (g) A registered cultivation center is not subject to

6 prosecution; search or inspection, except by the Department of

7 Agriculture, Department of Public Health, or State or local

8 law enforcement under Section 130; seizure; or penalty in any

9 manner, or denial of any right or privilege, including, but

10 not limited to, civil penalty or disciplinary action by a

11 business licensing board or entity, for acting under this Act

12 and Department of Agriculture rules to: acquire, possess,

13 cultivate, manufacture, deliver, transfer, transport, supply,

14 or sell cannabis to registered dispensing organizations.

15  (h) A registered cultivation center agent is not subject

16 to prosecution, search, or penalty in any manner, or denial of

17 any right or privilege, including, but not limited to, civil

18 penalty or disciplinary action by a business licensing board

19 or entity, for working or volunteering for a registered

20 cannabis cultivation center under this Act and Department of

21 Agriculture rules, including to perform the actions listed

22 under subsection (g).

23  (i) A registered dispensing organization is not subject to

24 prosecution; search or inspection, except by the Department of

25 Financial and Professional Regulation or State or local law

26 enforcement pursuant to Section 130; seizure; or penalty in
    SB3222 Enrolled  - 341 - LRB104 19119 AAS 32564 b

1 any manner, or denial of any right or privilege, including,

2 but not limited to, civil penalty or disciplinary action by a

3 business licensing board or entity, for acting under this Act

4 and Department of Financial and Professional Regulation rules

5 to: acquire, possess, or dispense cannabis, or related

6 supplies, and educational materials to registered qualifying

7 patients or registered designated caregivers on behalf of

8 registered qualifying patients.

9   (j) A registered dispensing organization agent is not

10 subject to prosecution, search, or penalty in any manner, or

11 denial of any right or privilege, including, but not limited

12 to, civil penalty or disciplinary action by a business

13 licensing board or entity, for working or volunteering for a

14 dispensing organization under this Act and Department of

15 Financial and Professional Regulation rules, including to

16 perform the actions listed under subsection (i).

17  (k) Any cannabis, cannabis paraphernalia, illegal

18 property, or interest in legal property that is possessed,

19 owned, or used in connection with the medical use of cannabis

20 as allowed under this Act, or acts incidental to that use, may

21 not be seized or forfeited. This Act does not prevent the

22 seizure or forfeiture of cannabis exceeding the amounts

23 allowed under this Act or the Cannabis Regulation and Tax Act,

24 nor shall it prevent seizure or forfeiture if the basis for the

25 action is unrelated to the cannabis that is possessed,

26 manufactured, transferred, or used under this Act or the
    SB3222 Enrolled          - 342 - LRB104 19119 AAS 32564 b

1 Cannabis Regulation and Tax Act.

2   (l) Mere possession of, or application for, a registry

3 identification card or registration certificate does not

4 constitute probable cause or reasonable suspicion, nor shall

5 it be used as the sole basis to support the search of the

6 person, property, or home of the person possessing or applying

7 for the registry identification card. The possession of, or

8 application for, a registry identification card does not

9 preclude the existence of probable cause if probable cause

10 exists on other grounds.

11  (m) Nothing in this Act shall preclude local or State law

12 enforcement agencies from searching a registered cultivation

13 center where there is probable cause to believe that the

14 criminal laws of this State have been violated and the search

15 is conducted in conformity with the Illinois Constitution, the

16 Constitution of the United States, and all State statutes.

17  (n) Nothing in this Act shall preclude local or State law

18 enforcement agencies from searching a registered dispensing

19 organization where there is probable cause to believe that the

20 criminal laws of this State have been violated and the search

21 is conducted in conformity with the Illinois Constitution, the

22 Constitution of the United States, and all State statutes.

23  (o) No individual employed by the State of Illinois shall

24 be subject to criminal or civil penalties for taking any

25 action in accordance with the provisions of this Act, when the

26 actions are within the scope of his or her employment.
    SB3222 Enrolled         - 343 - LRB104 19119 AAS 32564 b

1 Representation and indemnification of State employees shall be

2 provided to State employees as set forth in Section 2 of the

3 State Employee Indemnification Act.

4   (p) No law enforcement or correctional agency, nor any

5 individual employed by a law enforcement or correctional

6 agency, shall be subject to criminal or civil liability,

7 except for willful and wanton misconduct, as a result of

8 taking any action within the scope of the official duties of

9 the agency or individual to prohibit or prevent the possession

10 or use of cannabis by a cardholder or Opioid Alternative

11 Patient Program participant incarcerated at a correctional

12 facility, jail, or municipal lockup facility, on parole or

13 mandatory supervised release, or otherwise under the lawful

14 jurisdiction of the agency or individual.

15 (Source: P.A. 101-363, eff. 8-19-19; 101-370, eff. 1-1-20;

16 102-558, eff. 8-20-21.)

17  (410 ILCS 130/30)

18  Sec. 30. Limitations and penalties.

19  (a) This Act does not permit any person to engage in, and

20 does not prevent the imposition of any civil, criminal, or

21 other penalties for engaging in, the following conduct:

22  (1) Undertaking any task under the influence of

23  cannabis, when doing so would constitute negligence,

24  professional malpractice, or professional misconduct;

25  (2) Possessing cannabis:
    SB3222 Enrolled      - 344 - LRB104 19119 AAS 32564 b

1   (A) except as provided under Section 22-33 of the

2   School Code, in a school bus;

3   (B) except as provided under Section 22-33 of the

4   School Code, on the grounds of any preschool or

5   primary or secondary school;

6   (C) in any correctional facility;

7   (D) in a vehicle under Section 11-502.1 of the

8   Illinois Vehicle Code;

9   (E) in a vehicle not open to the public unless the

10  medical cannabis is in a reasonably secured, sealed

11  container and reasonably inaccessible while the

12  vehicle is moving; or

13  (F) in a private residence that is used at any time

14  to provide licensed child care or other similar social

15  service care on the premises;

16  (3) Using cannabis:

17  (A) except as provided under Section 22-33 of the

18  School Code, in a school bus;

19  (B) except as provided under Section 22-33 of the

20  School Code, on the grounds of any preschool or

21  primary or secondary school;

22  (C) in any correctional facility;

23  (D) in any motor vehicle;

24  (E) in a private residence that is used at any time

25  to provide licensed child care or other similar social

26  service care on the premises;
    SB3222 Enrolled  - 345 - LRB104 19119 AAS 32564 b

1         (F) except as provided under Section 22-33 of the

2   School Code and Section 31 of this Act, in any public

3   place. "Public place" as used in this subsection means

4   any place where an individual could reasonably be

5   expected to be observed by others. A "public place"

6   includes all parts of buildings owned in whole or in

7   part, or leased, by the State or a local unit of

8   government. A "public place" does not include a

9   private residence unless the private residence is used

10  to provide licensed child care, foster care, or other

11  similar social service care on the premises. For

12  purposes of this subsection, a "public place" does not

13  include a health care facility. For purposes of this

14  Section, a "health care facility" includes, but is not

15  limited to, hospitals, nursing homes, hospice care

16  centers, and long-term care facilities;

17        (G) except as provided under Section 22-33 of the

18  School Code and Section 31 of this Act, knowingly in

19  close physical proximity to anyone under the age of 18

20  years of age;

21  (4) Smoking medical cannabis in any public place where

22  an individual could reasonably be expected to be observed

23  by others, in a health care facility, or any other place

24  where smoking is prohibited under the Smoke Free Illinois

25  Act;

26  (5) Operating, navigating, or being in actual physical
    SB3222 Enrolled  - 346 - LRB104 19119 AAS 32564 b

1   control of any motor vehicle, aircraft, or motorboat while

2   using or under the influence of cannabis in violation of

3   Sections 11-501 and 11-502.1 of the Illinois Vehicle Code;

4   (6) Using or possessing cannabis if that person does

5   not have a debilitating medical condition and is not a

6   registered qualifying patient or caregiver;

7   (7) Allowing any person who is not allowed to use

8   cannabis under this Act to use cannabis that a cardholder

9   is allowed to possess under this Act;

10  (8) Transferring cannabis to any person contrary to

11  the provisions of this Act;

12  (9) The use of medical cannabis by an active duty law

13  enforcement officer, correctional officer, correctional

14  probation officer, or firefighter; or

15  (10) The use of medical cannabis by a person who has a

16  school bus permit or a Commercial Driver's License.

17  (b) Nothing in this Act shall be construed to prevent the

18 arrest or prosecution of a registered qualifying patient for

19 reckless driving or driving under the influence of cannabis

20 where probable cause exists.

21  (c) Notwithstanding any other criminal penalties related

22 to the unlawful possession of cannabis, knowingly making a

23 misrepresentation to a law enforcement official of any fact or

24 circumstance relating to the medical use of cannabis to avoid

25 arrest or prosecution is a petty offense punishable by a fine

26 of up to $1,000, which shall be in addition to any other
    SB3222 Enrolled   - 347 - LRB104 19119 AAS 32564 b

1 penalties that may apply for making a false statement or for

2 the use of cannabis other than use undertaken under this Act.

3   (d) Notwithstanding any other criminal penalties related

4 to the unlawful possession of cannabis, any person who makes a

5 misrepresentation of a medical condition to a certifying

6 health care professional or fraudulently provides material

7 misinformation to a certifying health care professional in

8 order to obtain a written certification is guilty of a petty

9 offense punishable by a fine of up to $1,000.

10  (e) Any registered qualifying patient, provisional

11 patient, designated cardholder or registered caregiver, or

12 Opioid Alternative Patient Program participant who sells

13 cannabis shall have his or her registry identification card

14 revoked and is subject to other penalties for the unauthorized

15 sale of cannabis.

16  (f) Any registered qualifying patient, provisional

17 patient, or Opioid Alternative Patient Program participant who

18 commits a violation of Section 11-502.1 of the Illinois

19 Vehicle Code or refuses a properly requested test related to

20 operating a motor vehicle while under the influence of

21 cannabis shall have his or her registry identification card

22 revoked.

23  (g) No registered qualifying patient, provisional patient,

24 or designated caregiver, or Opioid Alternative Patient Program

25 participant shall knowingly obtain, seek to obtain, or

26 possess, individually or collectively, an amount of usable
    SB3222 Enrolled    - 348 - LRB104 19119 AAS 32564 b

1 cannabis from a registered medical cannabis dispensing

2 organization that would cause him or her to exceed the

3 authorized adequate medical supply under subsection (a) of

4 Section 10.

5   (h) Nothing in this Act shall prevent a private business

6 from restricting or prohibiting the medical use of cannabis on

7 its property.

8   (i) Nothing in this Act shall prevent a university,

9 college, or other institution of post-secondary education from

10 restricting or prohibiting the use of medical cannabis on its

11 property.

12 (Source: P.A. 101-363, eff. 8-9-19; 102-67, eff. 7-9-21.)

13  (410 ILCS 130/35)

14  Sec. 35. Certifying health care professional requirements.

15  (a) A certifying health care professional who certifies a

16 debilitating medical condition for a qualifying patient shall

17 comply with all of the following requirements:

18  (1) The certifying health care professional shall be

19  currently licensed under the Medical Practice Act of 1987

20  to practice medicine in all its branches, the Nurse

21  Practice Act, or the Physician Assistant Practice Act of

22  1987, shall be in good standing, and must hold a

23  controlled substances license under Article III of the

24  Illinois Controlled Substances Act.

25  (2) A certifying health care professional certifying a
    SB3222 Enrolled  - 349 - LRB104 19119 AAS 32564 b

1   patient's condition shall comply with generally accepted

2   standards of medical practice, the provisions of the Act

3   under which he or she is licensed and all applicable

4   rules.

5   (3) The physical examination required by this Act may

6   not be performed by remote means, including telemedicine.

7   (4) The certifying health care professional shall

8   maintain a record-keeping system for all patients for whom

9   the certifying health care professional has certified the

10  patient's medical condition. These records shall be

11  accessible to and subject to review by the Department of

12  Public Health and the Department of Financial and

13  Professional Regulation upon request.

14  (b) A certifying health care professional may not:

15  (1) accept, solicit, or offer any form of remuneration

16  from or to a qualifying patient, provisional patient,

17  designated primary caregiver, Opioid Alternative Patient

18  Program participant, cultivation center, or dispensing

19  organization, including each principal officer, board

20  member, agent, and employee, to certify a patient, other

21  than accepting payment from a patient for the fee

22  associated with the required examination, except for the

23  limited purpose of performing a medical cannabis-related

24  research study;

25  (1.5) accept, solicit, or offer any form of

26  remuneration from or to a medical cannabis cultivation
    SB3222 Enrolled  - 350 - LRB104 19119 AAS 32564 b

1   center or dispensary organization for the purposes of

2   referring a patient to a specific dispensary organization;

3   (1.10) engage in any activity that is prohibited under

4   Section 22.2 of the Medical Practice Act of 1987,

5   regardless of whether the certifying health care

6   professional is a physician, advanced practice registered

7   nurse, or physician assistant;

8   (2) offer a discount of any other item of value to a

9   qualifying patient, provisional patient, designated

10  caregiver, or Opioid Alternative Patient Program

11  participant who uses or agrees to use a particular

12  designated primary caregiver or dispensing organization to

13  obtain medical cannabis;

14  (3) conduct a personal certifying physical examination

15  of a patient for purposes of diagnosing a debilitating

16  medical condition at a location where medical cannabis is

17  sold or distributed or at the address of a principal

18  officer, agent, or employee or a medical cannabis

19  organization;

20  (4) hold a direct or indirect economic interest in a

21  cultivation center or dispensing organization if he or she

22  recommends the use of medical cannabis to qualified

23  patients or is in a partnership or other fee or

24  profit-sharing relationship with a certifying health care

25  professional who recommends medical cannabis, except for

26  the limited purpose of performing a medical
    SB3222 Enrolled  - 351 - LRB104 19119 AAS 32564 b

1   cannabis-related research study;

2   (5) serve on the board of directors or as an employee

3   of a cultivation center or dispensing organization;

4   (6) refer patients to a cultivation center, a

5   dispensing organization, or a registered designated

6   caregiver; or

7   (7) advertise in a cultivation center or a dispensing

8   organization.

9   (c) The Department of Public Health may with reasonable

10 cause refer a certifying health care professional, who has

11 certified a debilitating medical condition of a patient, to

12 the Illinois Department of Financial and Professional

13 Regulation for potential violations of this Section.

14  (d) Any violation of this Section or any other provision

15 of this Act or rules adopted under this Act is a violation of

16 the certifying health care professional's licensure act.

17  (e) A certifying health care professional who certifies a

18 debilitating medical condition for a qualifying patient may

19 notify the Department of Public Health in writing: (1) if the

20 certifying health care professional has reason to believe

21 either that the registered qualifying patient has ceased to

22 suffer from a debilitating medical condition; (2) that the

23 bona fide health care professional-patient relationship has

24 terminated; or (3) that continued use of medical cannabis

25 would result in contraindication with the patient's other

26 medication. The registered qualifying patient's registry
    SB3222 Enrolled    - 352 - LRB104 19119 AAS 32564 b

1 identification card shall be revoked by the Department of

2 Public Health after receiving the certifying health care

3 professional's notification.

4   (f) Nothing in this Act shall preclude a certifying health

5 care professional from referring a patient for health

6 services, except when the referral is limited to certification

7 purposes only, under this Act.

8 (Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)

9   (410 ILCS 130/57)

10  Sec. 57. Designated caregivers Qualifying patients.

11  (a) Qualifying patients or provisional patients that are

12 under the age of 18 years shall not be prohibited from

13 appointing up to 3 designated caregivers who meet the

14 definition of "designated caregiver" under Section 10 so long

15 as at least one designated caregiver is a biological parent or

16 legal guardian.

17  (b) Qualifying patients and provisional patients that are

18 18 years of age or older shall not be prohibited from

19 appointing up to 3 designated caregivers who meet the

20 definition of "designated caregiver" under Section 10.

21  (c) Beginning 90 days after the effective date of this

22 amendatory Act of the 104th General Assembly, designated

23 caregivers, qualifying patients, provisions patients, and

24 Opioid Alternative Patient Program participants registered

25 under this Act may purchase an adequate medical supply at any
    SB3222 Enrolled        - 353 - LRB104 19119 AAS 32564 b

1 dispensing organization that has been issued a Medical
2 Cannabis Dispensing Organization license by the Department of
3 Financial and Professional Regulation pursuant to Section
4 15-37 of the Cannabis Regulation and Tax Act.
5 (Source: P.A. 101-363, eff. 8-9-19.)

6   (410 ILCS 130/60)

7   Sec. 60. Issuance of registry identification cards.

8   (a) Except as provided in subsection (b), the Department

9 of Public Health shall:

10  (1) verify the information contained in an application

11  or renewal for a registry identification card submitted

12  under this Act, and approve or deny an application or

13  renewal, within 90 days of receiving a completed

14  application or renewal application and all supporting

15  documentation specified in Section 55;

16  (2) issue registry identification cards to a

17  qualifying patient and his or her designated caregiver, if

18  any, within 15 business days of approving the application

19  or renewal; and

20  (3) enter the registry identification number of the

21  registered dispensing organization the patient designates

22  into the verification system; and

23  (3) (4) allow for an electronic application process,

24  and provide a confirmation by electronic or other methods

25  that an application has been submitted.
    SB3222 Enrolled  - 354 - LRB104 19119 AAS 32564 b

1   Notwithstanding any other provision of this Act, the

2 Department of Public Health shall adopt rules for qualifying

3 patients and applicants with life-long debilitating medical

4 conditions, who may be charged annual renewal fees. The

5 Department of Public Health shall not require patients and

6 applicants with life-long debilitating medical conditions to

7 apply to renew registry identification cards.

8   (b) The Department of Public Health may not issue a

9 registry identification card to a qualifying patient who is

10 under 18 years of age, unless that patient suffers from

11 seizures, including those characteristic of epilepsy, or as

12 provided by administrative rule. The Department of Public

13 Health shall adopt rules for the issuance of a registry

14 identification card for qualifying patients who are under 18

15 years of age and suffering from seizures, including those

16 characteristic of epilepsy. The Department of Public Health

17 may adopt rules to allow other individuals under 18 years of

18 age to become registered qualifying patients under this Act

19 with the consent of a parent or legal guardian. Registered

20 qualifying patients under 18 years of age shall be prohibited

21 from consuming forms of cannabis other than medical cannabis

22 infused products and purchasing any usable cannabis.

23  (c) A veteran who has received treatment at a VA hospital

24 is deemed to have a bona fide health care professional-patient

25 relationship with a VA certifying health care professional if

26 the patient has been seen for his or her debilitating medical
    SB3222 Enrolled  - 355 - LRB104 19119 AAS 32564 b

1 condition at the VA hospital in accordance with VA hospital

2 protocols. All reasonable inferences regarding the existence

3 of a bona fide health care professional-patient relationship

4 shall be drawn in favor of an applicant who is a veteran and

5 has undergone treatment at a VA hospital.

6   (c-10) An individual who submits an application as someone

7 who is terminally ill shall have all fees waived. The

8 Department of Public Health shall within 30 days after this

9 amendatory Act of the 99th General Assembly adopt emergency

10 rules to expedite approval for terminally ill individuals.

11 These rules shall include, but not be limited to, rules that

12 provide that applications by individuals with terminal

13 illnesses shall be approved or denied within 14 days of their

14 submission.

15  (d) No later than 6 months after the effective date of this

16 amendatory Act of the 101st General Assembly, the Secretary of

17 State shall remove all existing notations on driving records

18 that the person is a registered qualifying patient or his or

19 her caregiver under this Act.

20  (e) Upon the approval of the registration and issuance of

21 a registry card under this Section, the Department of Public

22 Health shall electronically forward the registered qualifying

23 patient's identification card information to the Prescription

24 Monitoring Program established under the Illinois Controlled

25 Substances Act and certify that the individual is permitted to

26 engage in the medical use of cannabis. For the purposes of
    SB3222 Enrolled  - 356 - LRB104 19119 AAS 32564 b

1 patient care, the Prescription Monitoring Program shall make a

2 notation on the person's prescription record stating that the

3 person is a registered qualifying patient who is entitled to

4 the lawful medical use of cannabis. If the person no longer

5 holds a valid registry card, the Department of Public Health

6 shall notify the Prescription Monitoring Program and

7 Department of Human Services to remove the notation from the

8 person's record. The Department of Human Services and the

9 Prescription Monitoring Program shall establish a system by

10 which the information may be shared electronically. This

11 confidential list may not be combined or linked in any manner

12 with any other list or database except as provided in this

13 Section.

14  (f) (Blank).

15  (g) Identifying information of registered qualifying

16 patients is confidential and may not be combined or linked in

17 any manner with any other list or database, except (i) as

18 provided in this Section, (ii) to support the statutory

19 purpose of the Adult Use Cannabis Health Advisory Committee,

20 the Medical Cannabis Advisory Board, the Illinois Department

21 of Public Health, or the Illinois Department of Human

22 Services, or (iii) to support other medical research into the

23 effects of medical cannabis, so long as the data are readily

24 available, the requesting organization has standing as a

25 research institution, the research is approved by the

26 Department's Institutional Review Board and is compliant with
    SB3222 Enrolled    - 357 - LRB104 19119 AAS 32564 b

 1 data governance, privacy regulations, including 45 CFR
 2 164.512(i), as applicable, and other requirements as
 3 determined by the Department, and the identifying information
 4 of registered qualifying patients is removed after being used
 5 to match with other datasets. All research must protect and
 6 maintain the anonymity of medical cannabis patients and shall
 7 include only data related to patients who submitted initial
 8 applications after the effective date of this amendatory Act
 9 of the 104th General Assembly.
10 (Source: P.A. 100-1114, eff. 8-28-18; 101-363, eff. 8-9-19;
11 101-593, eff. 12-4-19.)

12  (410 ILCS 130/62)

13  Sec. 62. Opioid Alternative Patient Pilot Program.

14  (a) The Department of Public Health shall establish the

15 Opioid Alternative Patient Pilot Program. Licensed dispensing

16 organizations shall allow persons with a written certification

17 from a certifying health care professional under Section 36 to

18 purchase medical cannabis upon enrollment in the Opioid

19 Alternative Patient Pilot Program. The Department of Public

20 Health shall adopt rules or establish procedures allowing

21 qualified veterans to participate in the Opioid Alternative

22 Patient Pilot Program. For a person to receive medical

23 cannabis under this Section, the person must present the

24 written certification along with a valid driver's license or

25 state identification card to the licensed dispensing
    SB3222 Enrolled            - 358 - LRB104 19119 AAS 32564 b

1 organization specified in his or her application. The

2 dispensing organization shall verify the person's status as an

3 Opioid Alternative Patient Pilot Program participant through

4 the Department of Public Health's online verification system.

5   (b) The Opioid Alternative Patient Pilot Program shall be

6 limited to participation by Illinois residents age 21 and

7 older.

8   (c) The Department of Financial and Professional

9 Regulation shall specify that all licensed dispensing

10 organizations participating in the Opioid Alternative Patient

11 Pilot Program use the Illinois Cannabis Tracking System. The

12 Department of Public Health shall establish and maintain the

13 Illinois Cannabis Tracking System. The Illinois Cannabis

14 Tracking System shall be used to collect information about all

15 persons participating in the Opioid Alternative Patient Pilot

16 Program and shall be used to track the sale of medical cannabis

17 for verification purposes.

18  Each dispensing organization shall retain a copy of the

19 Opioid Alternative Patient Pilot Program certification and

20 other identifying information as required by the Department of

21 Financial and Professional Regulation, the Department of

22 Public Health, and the Illinois State Police in the Illinois

23 Cannabis Tracking System.

24  The Illinois Cannabis Tracking System shall be accessible

25 to the Department of Financial and Professional Regulation,

26 Department of Public Health, Department of Agriculture, and
    SB3222 Enrolled           - 359 - LRB104 19119 AAS 32564 b

1 the Illinois State Police.

2   The Department of Financial and Professional Regulation in

3 collaboration with the Department of Public Health shall

4 specify the data requirements for the Opioid Alternative

5 Patient Pilot Program by licensed dispensing organizations;

6 including, but not limited to, the participant's full legal

7 name, address, and date of birth, date on which the Opioid

8 Alternative Patient Pilot Program certification was issued,

9 length of the participation in the Program, including the

10 start and end date to purchase medical cannabis, name of the

11 issuing physician, copy of the participant's current driver's

12 license or State identification card, and phone number.

13  The Illinois Cannabis Tracking System shall provide

14 verification of a person's participation in the Opioid

15 Alternative Patient Pilot Program for law enforcement at any

16 time and on any day.

17  (d) The certification for Opioid Alternative Patient Pilot

18 Program participant must be issued by a certifying health care

19 professional who is licensed to practice in Illinois under the

20 Medical Practice Act of 1987, the Nurse Practice Act, or the

21 Physician Assistant Practice Act of 1987 and who is in good

22 standing and holds a controlled substances license under

23 Article III of the Illinois Controlled Substances Act.

24  The certification for an Opioid Alternative Patient Pilot

25 Program participant shall be written within 90 days before the

26 participant submits his or her certification to the dispensing
    SB3222 Enrolled  - 360 - LRB104 19119 AAS 32564 b

1 organization.

2   The written certification uploaded to the Illinois

3 Cannabis Tracking System shall be accessible to the Department

4 of Public Health.

5   (e) Upon verification of the individual's valid

6 certification and enrollment in the Illinois Cannabis Tracking

7 System, the dispensing organization may dispense the medical

8 cannabis, in amounts not exceeding 2.5 ounces of medical

9 cannabis per 14-day period to the participant at the

10 participant's specified dispensary for no more than 90 days.

11  An Opioid Alternative Patient Pilot Program participant

12 shall not be registered as a medical cannabis cardholder. The

13 dispensing organization shall verify that the person is not an

14 active registered qualifying patient prior to enrollment in

15 the Opioid Alternative Patient Pilot Program and each time

16 medical cannabis is dispensed.

17  Upon receipt of a written certification under the Opioid

18 Alternative Patient Pilot Program, the Department of Public

19 Health shall electronically forward the patient's

20 identification information to the Prescription Monitoring

21 Program established under the Illinois Controlled Substances

22 Act and certify that the individual is permitted to engage in

23 the medical use of cannabis. For the purposes of patient care,

24 the Prescription Monitoring Program shall make a notation on

25 the person's prescription record stating that the person has a

26 written certification under the Opioid Alternative Patient
    SB3222 Enrolled  - 361 - LRB104 19119 AAS 32564 b

1 Pilot Program and is a patient who is entitled to the lawful

2 medical use of cannabis. If the person is no longer authorized

3 to engage in the medical use of cannabis, the Department of

4 Public Health shall notify the Prescription Monitoring Program

5 and Department of Human Services to remove the notation from

6 the person's record. The Department of Human Services and the

7 Prescription Monitoring Program shall establish a system by

8 which the information may be shared electronically. This

9 confidential list may not be combined or linked in any manner

10 with any other list or database except as provided in this

11 Section.

12  (e-5) The confidential list described in subsection (a) of

13 Section 150 may not be combined or linked in any manner with

14 any other list or database, except as provided in this

15 Section. The confidential list may be linked by the Department

16 of Public Health so long as the data are readily available, the

17 requesting organization has standing as a bona fide agent of

18 the Department of Public Health, the research is approved by

19 the Department's Institutional Review Board, and the research

20 is compliant with data governance, privacy, and other

21 requirements as determined by the Department. All research

22 must protect and maintain the anonymity of medical cannabis

23 patients and shall include only data related to patients who

24 have provided consent. The Department shall adopt rules to

25 define a bona fide agent, the application process,

26 confidentiality protections, and any other requirements it
    SB3222 Enrolled           - 362 - LRB104 19119 AAS 32564 b

1 deems necessary for the implementation of this Section.

2   (f) An Opioid Alternative Patient Pilot Program

3 participant shall not be considered a qualifying patient with

4 a debilitating medical condition under this Act and shall be

5 provided access to medical cannabis solely for the duration of

6 the participant's certification. Nothing in this Section shall

7 be construed to limit or prohibit an Opioid Alternative

8 Patient Pilot Program participant who has a debilitating

9 medical condition from applying to the Compassionate Use of

10 Medical Cannabis Program.

11  (g) A person with a provisional registration under Section

12 55 shall not be considered an Opioid Alternative Patient Pilot

13 Program participant.

14  (h) (Blank). The Department of Financial and Professional

15 Regulation and the Department of Public Health shall submit

16 emergency rulemaking to implement the changes made by this

17 amendatory Act of the 100th General Assembly by December 1,

18 2018. The Department of Financial and Professional Regulation,

19 the Department of Agriculture, the Department of Human

20 Services, the Department of Public Health, and the Illinois

21 State Police shall utilize emergency purchase authority for 12

22 months after the effective date of this amendatory Act of the

23 100th General Assembly for the purpose of implementing the

24 changes made by this amendatory Act of the 100th General

25 Assembly.

26  (i) Dispensing organizations are not authorized to
    SB3222 Enrolled    - 363 - LRB104 19119 AAS 32564 b

1 dispense medical cannabis to Opioid Alternative Patient Pilot

2 Program participants until administrative rules are approved

3 by the Joint Committee on Administrative Rules and go into

4 effect.

5   (j) (Blank). The provisions of this Section are

6 inoperative on and after July 1, 2025.

7 (Source: P.A. 101-363, eff. 8-9-19; 102-16, eff. 6-17-21.)

8   (410 ILCS 130/70)

9   Sec. 70. Registry identification cards.

10  (a) A registered qualifying patient or designated

11 caregiver must keep their registry identification card in his

12 or her possession at all times when engaging in the medical use

13 of cannabis.

14  (b) Registry identification cards shall contain the

15 following:

16         (1) the name of the cardholder;

17         (2) a designation of whether the cardholder is a

18  designated caregiver or qualifying patient;

19         (3) the date of issuance and expiration date of the

20  registry identification card;

21         (4) a random alphanumeric identification number that

22  is unique to the cardholder;

23         (5) if the cardholder is a designated caregiver, the

24  random alphanumeric identification number of the

25  registered qualifying patient the designated caregiver is
    SB3222 Enrolled  - 364 - LRB104 19119 AAS 32564 b

1   receiving the registry identification card to assist; and

2   (6) a photograph of the cardholder, if required by

3   Department of Public Health rules.

4   (c) To maintain a valid registration identification card,

5 a registered qualifying patient and designated caregiver must

6 annually resubmit, at least 45 days prior to the expiration

7 date stated on the registry identification card, a completed

8 renewal application, renewal fee, and accompanying

9 documentation as described in Department of Public Health

10 rules. The Department of Public Health shall send a

11 notification to a registered qualifying patient or registered

12 designated caregiver 90 days prior to the expiration of the

13 registered qualifying patient's or registered designated

14 caregiver's identification card. If the Department of Public

15 Health fails to grant or deny a renewal application received

16 in accordance with this Section, then the renewal is deemed

17 granted and the registered qualifying patient or registered

18 designated caregiver may continue to use the expired

19 identification card until the Department of Public Health

20 denies the renewal or issues a new identification card.

21  (d) Except as otherwise provided in this Section, the

22 expiration date is 3 years after the date of issuance.

23  (e) The Department of Public Health may electronically

24 store in the card any or all of the information listed in

25 subsection (b), along with the address and date of birth of the

26 cardholder and the qualifying patient's designated dispensary
    SB3222 Enrolled          - 365 - LRB104 19119 AAS 32564 b

1 organization, to allow it to be read by law enforcement
2 agents.
3 (Source: P.A. 98-122, eff. 1-1-14; 99-519, eff. 6-30-16.)

4   (410 ILCS 130/75)

5   Sec. 75. Notifications to Department of Public Health and

6 responses; civil penalty.

7   (a) The following notifications and Department of Public

8 Health responses are required:

9   (1) A registered qualifying patient or Opioid

10  Alternative Patient Program participant shall notify the

11  Department of Public Health of any change in his or her

12  name or address, or if the registered qualifying patient

13  ceases to have his or her debilitating medical condition,

14  within 10 days of the change.

15  (2) A registered designated caregiver shall notify the

16  Department of Public Health of any change in his or her

17  name or address, or if the designated caregiver becomes

18  aware the registered qualifying patient passed away,

19  within 10 days of the change.

20  (3) Before a registered qualifying patient changes his

21  or her designated caregiver, the qualifying patient must

22  notify the Department of Public Health.

23  (4) (Blank). If a cardholder loses his or her registry

24  identification card, he or she shall notify the Department

25  within 10 days of becoming aware the card has been lost.
    SB3222 Enrolled      - 366 - LRB104 19119 AAS 32564 b

1   (b) When a cardholder notifies the Department of Public

2 Health of items listed in subsection (a), but remains eligible

3 under this Act, the Department of Public Health shall issue

4 the cardholder a new registry identification card with a new

5 random alphanumeric identification number within 15 business

6 days of receiving the updated information and a fee as

7 specified in Department of Public Health rules. If the person

8 notifying the Department of Public Health is a registered

9 qualifying patient, the Department shall also issue his or her

10 registered designated caregiver, if any, a new registry

11 identification card within 15 business days of receiving the

12 updated information.

13  (c) If a registered qualifying patient ceases to be a

14 registered qualifying patient or changes his or her registered

15 designated caregiver, the Department of Public Health shall

16 promptly notify the designated caregiver. The registered

17 designated caregiver's protections under this Act as to that

18 qualifying patient shall expire 15 days after notification by

19 the Department.

20  (d) A cardholder who fails to make a notification to the

21 Department of Public Health that is required by this Section

22 is subject to a civil infraction, punishable by a penalty of no

23 more than $150.

24  (e) (Blank). A registered qualifying patient shall notify

25 the Department of Public Health of any change to his or her

26 designated registered dispensing organization. The Department
    SB3222 Enrolled     - 367 - LRB104 19119 AAS 32564 b

1 of Public Health shall provide for immediate changes of a

2 registered qualifying patient's designated registered

3 dispensing organization. Registered dispensing organizations

4 must comply with all requirements of this Act.

5   (f) If the registered qualifying patient's certifying

6 health care professional notifies the Department in writing

7 that either the registered qualifying patient or Opioid

8 Alternative Patient Program participant has ceased to suffer

9 from a debilitating medical condition, that the bona fide

10 health care professional-patient relationship has terminated,

11 or that continued use of medical cannabis would result in

12 contraindication with the patient's other medication, the card

13 shall become null and void. However, the registered qualifying

14 patient shall have 15 days to destroy his or her remaining

15 medical cannabis and related paraphernalia.

16 (Source: P.A. 101-363, eff. 8-9-19; 102-558, eff. 8-20-21.)

17  (410 ILCS 130/85)

18  Sec. 85. Issuance and denial of medical cannabis

19 cultivation permit.

20  (a) The Department of Agriculture may register up to 22

21 cultivation center registrations for operation. The Department

22 of Agriculture may not issue more than one registration per

23 each Illinois State Police District boundary as specified on

24 the date of January 1, 2013. The Department of Agriculture may

25 not issue less than the 22 registrations if there are
    SB3222 Enrolled          - 368 - LRB104 19119 AAS 32564 b

1 qualified applicants who have applied with the Department.

2   (b) The registrations shall be issued and renewed annually

3 as determined by administrative rule.

4   (c) The Department of Agriculture shall determine a

5 registration fee by rule.

6   (d) A cultivation center may only operate if it has been

7 issued a valid registration from the Department of

8 Agriculture. When applying for a cultivation center

9 registration, the applicant shall submit the following in

10 accordance with Department of Agriculture rules:

11  (1) the proposed legal name of the cultivation center;

12  (2) the proposed physical address of the cultivation

13  center and description of the enclosed, locked facility as

14  it applies to cultivation centers where medical cannabis

15  will be grown, harvested, manufactured, packaged, or

16  otherwise prepared for distribution to a dispensing

17  organization;

18  (3) the name, address, and date of birth of each

19  principal officer and board member of the cultivation

20  center, provided that all those individuals shall be at

21  least 21 years of age;

22  (4) any instance in which a business that any of the

23  prospective board members of the cultivation center had

24  managed or served on the board of the business and was

25  convicted, fined, censured, or had a registration or

26  license suspended or revoked in any administrative or
    SB3222 Enrolled       - 369 - LRB104 19119 AAS 32564 b

1   judicial proceeding;

2   (5) cultivation, inventory, and packaging plans;

3   (6) proposed operating by-laws that include procedures

4   for the oversight of the cultivation center, development

5   and implementation of a plant monitoring system, medical

6   cannabis container tracking system, accurate record

7   keeping, staffing plan, and security plan reviewed by the

8   Illinois State Police that are in accordance with the

9   rules issued by the Department of Agriculture under this

10  Act. A physical inventory shall be performed of all plants

11  and medical cannabis containers on a weekly basis;

12  (7) experience with agricultural cultivation

13  techniques and industry standards;

14  (8) any academic degrees, certifications, or relevant

15  experience with related businesses;

16  (9) the identity of every person, association, trust,

17  or corporation having any direct or indirect pecuniary

18  interest in the cultivation center operation with respect

19  to which the registration is sought. If the disclosed

20  entity is a trust, the application shall disclose the

21  names and addresses of the beneficiaries; if a

22  corporation, the names and addresses of all stockholders

23  and directors; if a partnership, the names and addresses

24  of all partners, both general and limited;

25  (10) verification from the Illinois State Police that

26  all background checks of the principal officer, board
    SB3222 Enrolled  - 370 - LRB104 19119 AAS 32564 b

1   members, and registered agents have been conducted and

2   those individuals have not been convicted of an excluded

3   offense;

4   (11) provide a copy of the current local zoning

5   ordinance to the Department of Agriculture and verify that

6   proposed cultivation center is in compliance with the

7   local zoning rules issued in accordance with Section 140;

8   (12) an application fee set by the Department of

9   Agriculture by rule; and

10  (13) any other information required by Department of

11  Agriculture rules, including, but not limited to a

12  cultivation center applicant's experience with the

13  cultivation of agricultural or horticultural products,

14  operating an agriculturally related business, or operating

15  a horticultural business.

16  (e) An application for a cultivation center permit must be

17 denied if any of the following conditions are met:

18  (1) the applicant failed to submit the materials

19  required by this Section, including if the applicant's

20  plans do not satisfy the security, oversight, inventory,

21  or recordkeeping rules issued by the Department of

22  Agriculture;

23  (2) the applicant would not be in compliance with

24  local zoning rules issued in accordance with Section 140;

25  (3) (blank); one or more of the prospective principal

26  officers or board members has been convicted of an
    SB3222 Enrolled     - 371 - LRB104 19119 AAS 32564 b

1   excluded offense;

2   (4) one or more of the prospective principal officers

3   or board members has served as a principal officer or

4   board member for a registered dispensing organization or

5   cultivation center that has had its registration revoked;

6   (5) one or more of the principal officers or board

7   members is under 21 years of age;

8   (6) (blank); a principal officer or board member of

9   the cultivation center has been convicted of a felony

10  under the laws of this State, any other state, or the

11  United States;

12  (7) (blank); or a principal officer or board member of

13  the cultivation center has been convicted of any violation

14  of Article 28 of the Criminal Code of 2012, or

15  substantially similar laws of any other jurisdiction; or

16  (8) the person has submitted an application for a

17  certificate under this Act which contains false

18  information.

19 (Source: P.A. 102-538, eff. 8-20-21.)

20  (410 ILCS 130/100)

21  Sec. 100. Cultivation center agent identification card.

22  (a) The Department of Agriculture shall:

23  (1) verify the information contained in an application

24  or renewal for a cultivation center identification card

25  submitted under this Act, and approve or deny an
    SB3222 Enrolled  - 372 - LRB104 19119 AAS 32564 b

1   application or renewal, within 30 days of receiving a

2   completed application or renewal application and all

3   supporting documentation required by rule;

4   (2) issue a cultivation center agent identification

5   card to a qualifying agent within 15 business days of

6   approving the application or renewal;

7   (3) enter the registry identification number of the

8   cultivation center where the agent works; and

9   (4) allow for an electronic application process, and

10  provide a confirmation by electronic or other methods that

11  an application has been submitted.

12  (b) A cultivation center agent must keep his or her

13 identification card visible at all times when on the property

14 of a cultivation center and during the transportation of

15 medical cannabis to a registered dispensary organization.

16  (c) The cultivation center agent identification cards

17 shall contain the following:

18  (1) the name of the cardholder;

19  (2) the date of issuance and expiration date of

20  cultivation center agent identification cards;

21  (3) a random 10-digit alphanumeric identification

22  number containing at least 4 numbers and at least 4

23  letters that is unique to the holder; and

24  (4) a photograph of the cardholder.

25  (d) The cultivation center agent identification cards

26 shall be immediately returned to the cultivation center upon
    SB3222 Enrolled           - 373 - LRB104 19119 AAS 32564 b

1 termination of employment.

2   (e) Any card lost by a cultivation center agent shall be

3 reported to the Illinois State Police and the Department of

4 Agriculture immediately upon discovery of the loss.

5   (f) (Blank). An applicant shall be denied a cultivation

6 center agent identification card if he or she has been

7 convicted of an excluded offense.

8   (g) An agent applicant may begin employment at a

9 cultivation center while the agent applicant's identification

10 card application is pending. Upon approval, the Department

11 shall issue the agent's identification card to the agent. If

12 denied, the cultivation center and the agent applicant shall

13 be notified and the agent applicant must cease all activity at

14 the cultivation center immediately.

15 (Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;

16 102-813, eff. 5-13-22.)

17  (410 ILCS 130/105)

18  Sec. 105. Requirements; prohibitions; penalties for

19 cultivation centers.

20  (a) The operating documents of a registered cultivation

21 center shall include procedures for the oversight of the

22 cultivation center, a cannabis plant monitoring system

23 including a physical inventory recorded weekly, a cannabis

24 container system including a physical inventory recorded

25 weekly, accurate record keeping, and a staffing plan.
    SB3222 Enrolled    - 374 - LRB104 19119 AAS 32564 b

1   (b) A registered cultivation center shall implement a

2 security plan reviewed by the Illinois State Police and

3 including but not limited to: facility access controls,

4 perimeter intrusion detection systems, personnel

5 identification systems, 24-hour surveillance system to monitor

6 the interior and exterior of the registered cultivation center

7 facility and accessible to authorized law enforcement and the

8 Department of Agriculture in real-time.

9   (c) A registered cultivation center may not be located

10 within 2,500 feet of the property line of a pre-existing

11 public or private preschool or elementary or secondary school

12 or day care center, day care home, group day care home, part

13 day child care facility, or an area zoned for residential use.

14  (d) All cultivation of cannabis for distribution to a

15 registered dispensing organization must take place in an

16 enclosed, locked facility as it applies to cultivation centers

17 at the physical address provided to the Department of

18 Agriculture during the registration process. The cultivation

19 center location shall only be accessed by the cultivation

20 center agents working for the registered cultivation center,

21 Department of Agriculture staff performing inspections,

22 Department of Public Health staff performing inspections, law

23 enforcement or other emergency personnel, and contractors

24 working on jobs unrelated to medical cannabis, such as

25 installing or maintaining security devices or performing

26 electrical wiring.
    SB3222 Enrolled     - 375 - LRB104 19119 AAS 32564 b

1   (e) A cultivation center may not sell or distribute any

2 cannabis to any individual or entity other than another

3 cultivation center, a dispensing organization registered under

4 this Act, or a laboratory licensed by the Department of

5 Agriculture.

6   (f) All harvested cannabis intended for distribution to a

7 dispensing organization must be packaged in a labeled medical

8 cannabis container and entered into a data collection system.

9   (g) (Blank). No person who has been convicted of an

10 excluded offense may be a cultivation center agent.

11  (h) Registered cultivation centers are subject to random

12 inspection by the Illinois State Police.

13  (i) Registered cultivation centers are subject to random

14 inspections by the Department of Agriculture and the

15 Department of Public Health.

16  (j) A cultivation center agent shall notify local law

17 enforcement, the Illinois State Police, and the Department of

18 Agriculture within 24 hours of the discovery of any loss or

19 theft. Notification shall be made by phone or in-person, or by

20 written or electronic communication.

21  (k) A cultivation center shall comply with all State and

22 federal rules and regulations regarding the use of pesticides.

23 (Source: P.A. 101-363, eff. 8-9-19; 102-538, eff. 8-20-21.)

24  (410 ILCS 130/115)

25  Sec. 115. Dispensing Registration of dispensing
    SB3222 Enrolled          - 376 - LRB104 19119 AAS 32564 b

1 organizations. A dispensing organization may only operate if

2 it has been issued a dispensing organization license from the

3 Department of Financial and Professional Regulation, including

4 an Early Approval Adult Use Dispensing Organization at a

5 Same-Site License, an Adult Use Dispensing Organization

6 License, or a Medical Cannabis Dispensing Organization

7 License. If a dispensing organization holds both an Adult Use

8 Dispensing Organization License and a corresponding Medical

9 Cannabis Dispensing Organization License, the dispensing

10 organization shall correspondingly adhere to the provisions of

11 this Act, any administrative rules pursuant to this Act, the

12 Cannabis Regulation and Tax Act, and any administrative rules

13 adopted pursuant to the Cannabis Regulation and Tax Act.

14  (a) The Department of Financial and Professional

15 Regulation may issue up to 60 dispensing organization

16 registrations for operation. The Department of Financial and

17 Professional Regulation may not issue less than the 60

18 registrations if there are qualified applicants who have

19 applied with the Department of Financial and Professional

20 Regulation. The organizations shall be geographically

21 dispersed throughout the State to allow all registered

22 qualifying patients reasonable proximity and access to a

23 dispensing organization.

24  (a-5) The Department of Financial and Professional

25 Regulation shall adopt rules to create a registration process

26 for Social Equity Justice Involved Applicants and Qualifying
    SB3222 Enrolled            - 377 - LRB104 19119 AAS 32564 b

1 Applicants, a streamlined application, and a Social Equity

2 Justice Involved Medical Lottery under Section 115.5 to issue

3 the remaining available 5 dispensing organization

4 registrations for operation. For purposes of this Section:

5   "Disproportionately Impacted Area" means a census tract or

6 comparable geographic area that satisfies the following

7 criteria as determined by the Department of Commerce and

8 Economic Opportunity, that:

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

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

11  according to the latest federal decennial census; or

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

13  participate in the federal free lunch program

14  according to reported statistics from the State Board

15  of Education; or

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

17  receive assistance under the Supplemental Nutrition

18  Assistance Program; or

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

20  determined by the Illinois Department of Employment

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

22  unemployment average, as determined by the United

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

24  consecutive calendar years preceding the date of the

25  application; and

26  (2) has high rates of arrest, conviction, and
    SB3222 Enrolled  - 378 - LRB104 19119 AAS 32564 b

1   incarceration related to sale, possession, use,

2   cultivation, manufacture, or transport of cannabis.

3   "Qualifying Applicant" means an applicant that: (i)

4 submitted an application pursuant to Section 15-30 of the

5 Cannabis Regulation and Tax Act that received at least 85% of

6 250 application points available under Section 15-30 of the

7 Cannabis Regulation and Tax Act as the applicant's final

8 score; (ii) received points at the conclusion of the scoring

9 process for meeting the definition of a "Social Equity

10 Applicant" as set forth under the Cannabis Regulation and Tax

11 Act; and (iii) is an applicant that did not receive a

12 Conditional Adult Use Dispensing Organization License through

13 a Qualifying Applicant Lottery pursuant to Section 15-35 of

14 the Cannabis Regulation and Tax Act or any Tied Applicant

15 Lottery conducted under the Cannabis Regulation and Tax Act.

16  "Social Equity Justice Involved Applicant" means an

17 applicant that is an Illinois resident and one of the

18 following:

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

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

21  least 5 of the preceding 10 years in a Disproportionately

22  Impacted Area;

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

24  control by one or more individuals who have been arrested

25  for, convicted of, or adjudicated delinquent for any

26  offense that is eligible for expungement under subsection
    SB3222 Enrolled   - 379 - LRB104 19119 AAS 32564 b

1   (i) of Section 5.2 of the Criminal Identification Act; or

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

3   control by one or more members of an impacted family.

4   (b) A dispensing organization may only operate if it has

5 been issued a registration from the Department of Financial

6 and Professional Regulation. The Department of Financial and

7 Professional Regulation shall adopt rules establishing the

8 procedures for applicants for dispensing organizations.

9   (c) When applying for a dispensing organization

10 registration, the applicant shall submit, at a minimum, the

11 following in accordance with Department of Financial and

12 Professional Regulation rules:

13  (1) a non-refundable application fee established by

14  rule;

15  (2) the proposed legal name of the dispensing

16  organization;

17  (3) the proposed physical address of the dispensing

18  organization;

19  (4) the name, address, and date of birth of each

20  principal officer and board member of the dispensing

21  organization, provided that all those individuals shall be

22  at least 21 years of age;

23  (5) (blank);

24  (6) (blank); and

25  (7) (blank).

26  (d) The Department of Financial and Professional
    SB3222 Enrolled  - 380 - LRB104 19119 AAS 32564 b

1 Regulation shall conduct a background check of the prospective

2 dispensing organization agents in order to carry out this

3 Section. The Department of State Police shall charge a fee for

4 conducting the criminal history record check, which shall be

5 deposited in the State Police Services Fund and shall not

6 exceed the actual cost of the record check. Each person

7 applying as a dispensing organization agent shall submit a

8 full set of fingerprints to the Department of State Police for

9 the purpose of obtaining a State and federal criminal records

10 check. These fingerprints shall be checked against the

11 fingerprint records now and hereafter, to the extent allowed

12 by law, filed in the Department of State Police and Federal

13 Bureau of Investigation criminal history records databases.

14 The Department of State Police shall furnish, following

15 positive identification, all Illinois conviction information

16 to the Department of Financial and Professional Regulation.

17  (e) A dispensing organization must pay a registration fee

18 set by the Department of Financial and Professional

19 Regulation.

20  (f) An application for a medical cannabis dispensing

21 organization registration must be denied if any of the

22 following conditions are met:

23  (1) the applicant failed to submit the materials

24  required by this Section, including if the applicant's

25  plans do not satisfy the security, oversight, or

26  recordkeeping rules issued by the Department of Financial
    SB3222 Enrolled         - 381 - LRB104 19119 AAS 32564 b

1   and Professional Regulation;

2         (2) the applicant would not be in compliance with

3   local zoning rules issued in accordance with Section 140;

4         (3) the applicant does not meet the requirements of

5   Section 130;

6         (4) one or more of the prospective principal officers

7   or board members has been convicted of an excluded

8   offense;

9         (5) one or more of the prospective principal officers

10  or board members has served as a principal officer or

11  board member for a registered medical cannabis dispensing

12  organization that has had its registration revoked; and

13        (6) one or more of the principal officers or board

14  members is under 21 years of age.

15 (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)

16  (410 ILCS 130/120)

17  Sec. 120. Dispensing organization agent identification

18 card.

19  (a) This Section does not apply to any dispensing

20 organization agents who are employed at any dispensing

21 organization issued an Adult Use Dispensing Organization

22 License and a corresponding Medical Cannabis Dispensing

23 Organization License under Section 15-37 of the Cannabis

24 Regulation and Tax Act.

25  (a-5) The Department of Financial and Professional
    SB3222 Enrolled  - 382 - LRB104 19119 AAS 32564 b

1 Regulation shall:

2   (1) verify the information contained in an application

3   or renewal for a dispensing organization agent

4   identification card submitted under this Act, and approve

5   or deny an application or renewal, within 30 days of

6   receiving a completed application or renewal application

7   and all supporting documentation required by rule;

8   (2) issue a dispensing organization agent

9   identification card to a qualifying agent within 15

10  business days of approving the application or renewal;

11  (3) enter the registry identification number of the

12  dispensing organization where the agent works; and

13  (4) allow for an electronic application process, and

14  provide a confirmation by electronic or other methods that

15  an application has been submitted.

16  (b) A dispensing agent must keep his or her identification

17 card visible at all times when on the property of a dispensing

18 organization.

19  (c) The dispensing organization agent identification cards

20 shall contain the following:

21  (1) the name of the cardholder;

22  (2) the date of issuance and expiration date of the

23  dispensing organization agent identification cards;

24  (3) a random 10 digit alphanumeric identification

25  number containing at least 4 numbers and at least 4

26  letters; that is unique to the holder; and
    SB3222 Enrolled           - 383 - LRB104 19119 AAS 32564 b

1         (4) a photograph of the cardholder.

2   (d) The dispensing organization agent identification cards

3 shall be immediately returned to the dispensing organization

4 upon termination of employment.

5   (e) Any card lost by a dispensing organization agent shall

6 be reported to the Illinois State Police and the Department of

7 Financial and Professional Regulation immediately upon

8 discovery of the loss.

9   (f) (Blank) An applicant shall be denied a dispensing

10 organization agent identification card if he or she has been

11 convicted of an excluded offense.

12 (Source: P.A. 98-122, eff. 1-1-14; 98-1172, eff. 1-12-15.)

13  (410 ILCS 130/130)

14  Sec. 130. Requirements; prohibitions; penalties;

15 dispensing organizations.

16  (a) The Department of Financial and Professional

17 Regulation shall implement the provisions of this Section by

18 rule.

19  (b) A dispensing organization shall maintain operating

20 documents which shall include procedures for the oversight of

21 the registered dispensing organization and procedures to

22 ensure accurate recordkeeping.

23  (c) A dispensing organization shall implement appropriate

24 security measures, as provided by rule, to deter and prevent

25 the theft of cannabis and unauthorized entrance into areas
    SB3222 Enrolled        - 384 - LRB104 19119 AAS 32564 b

1 containing cannabis.

2   (d) A dispensing organization may not be located within

3 1,000 feet of the property line of a pre-existing public or

4 private preschool or elementary or secondary school or day

5 care center, day care home, group day care home, or part day

6 child care facility. A registered dispensing organization may

7 not be located in a house, apartment, condominium, or an area

8 zoned for residential use. This subsection shall not apply to

9 any dispensing organizations registered on or after July 1,

10 2019.

11  (e) A dispensing organization is prohibited from acquiring

12 cannabis from anyone other than a cultivation center, craft

13 grower, infuser organization processing organization, another

14 dispensing organization, or transporting organization licensed

15 or registered under this Act or the Cannabis Regulation and

16 Tax Act. A dispensing organization is prohibited from

17 obtaining cannabis from outside the State of Illinois.

18  (f) A registered dispensing organization is prohibited

19 from dispensing cannabis for any purpose except to assist

20 registered qualifying patients with the medical use of

21 cannabis directly or through the qualifying patients'

22 designated caregivers.

23  (g) The area in a dispensing organization where medical

24 cannabis is stored can only be accessed by dispensing

25 organization agents working for the dispensing organization,

26 Department of Financial and Professional Regulation staff
    SB3222 Enrolled   - 385 - LRB104 19119 AAS 32564 b

1 performing inspections, law enforcement or other emergency

2 personnel, and contractors working on jobs unrelated to

3 medical cannabis, such as installing or maintaining security

4 devices or performing electrical wiring.

5   (h) A dispensing organization may not dispense more than

6 an adequate medical supply 2.5 ounces of cannabis to a

7 registered qualifying patient, directly or via a designated

8 caregiver, in any 14-day period unless the qualifying patient

9 has a Department of Public Health-approved quantity waiver.

10 Any Department of Public Health-approved quantity waiver

11 process must be made available to qualified veterans.

12  (i) Except as provided in subsection (i-5), before medical

13 cannabis may be dispensed to a designated caregiver or a

14 registered qualifying patient, a dispensing organization agent

15 must determine that the individual is a current cardholder in

16 the verification system and must verify each of the following:

17  (1) that the registry identification card presented to

18  the registered dispensing organization is valid;

19  (2) that the person presenting the card is the person

20  identified on the registry identification card presented

21  to the dispensing organization agent;

22  (2.5) that the medical cannabis has the proper

23  labeling required under State and federal law;

24  (3) (blank); and

25  (4) that the registered qualifying patient has not

26  exceeded his or her adequate medical supply.
    SB3222 Enrolled     - 386 - LRB104 19119 AAS 32564 b

1   (i-5) A dispensing organization may dispense medical

2 cannabis to an Opioid Alternative Patient Pilot Program

3 participant under Section 62 and to a person presenting proof

4 of provisional registration under Section 55. Before

5 dispensing medical cannabis, the dispensing organization shall

6 comply with the requirements of Section 62 or Section 55,

7 whichever is applicable, and verify the following:

8   (1) that the written certification presented to the

9   registered dispensing organization is valid and an

10  original document;

11  (2) that the person presenting the written

12  certification is the person identified on the written

13  certification; and

14  (3) that the participant has not exceeded his or her

15  adequate supply.

16  (j) Dispensing organizations shall ensure compliance with

17 this limitation by maintaining internal, confidential records

18 that include records specifying how much medical cannabis is

19 dispensed to the registered qualifying patient and whether it

20 was dispensed directly to the registered qualifying patient or

21 to the designated caregiver. Each entry must include the date

22 and time the cannabis was dispensed. Additional recordkeeping

23 requirements may be set by rule.

24  (k) The health care professional-patient privilege as set

25 forth by Section 8-802 of the Code of Civil Procedure shall

26 apply between a qualifying patient and a registered dispensing
    SB3222 Enrolled  - 387 - LRB104 19119 AAS 32564 b

1 organization and its agents with respect to communications and

2 records concerning qualifying patients' debilitating

3 conditions.

4   (l) A dispensing organization may not permit any person to

5 consume cannabis on the property of a medical cannabis

6 organization.

7   (m) A dispensing organization may not share office space

8 with or refer patients to a certifying health care

9 professional.

10  (n) Notwithstanding any other criminal penalties related

11 to the unlawful possession of cannabis, the Department of

12 Financial and Professional Regulation may revoke, suspend,

13 place on probation, reprimand, refuse to issue or renew, or

14 take any other disciplinary or non-disciplinary action as the

15 Department of Financial and Professional Regulation may deem

16 proper with regard to the registration of any person issued

17 under this Act to operate a dispensing organization or act as a

18 dispensing organization agent, including imposing fines not to

19 exceed $10,000 for each violation, for any violations of this

20 Act and rules adopted in accordance with this Act. The

21 procedures for disciplining a registered dispensing

22 organization shall be determined by rule. All final

23 administrative decisions of the Department of Financial and

24 Professional Regulation are subject to judicial review under

25 the Administrative Review Law and its rules. The term

26 "administrative decision" is defined as in Section 3-101 of
    SB3222 Enrolled  - 388 - LRB104 19119 AAS 32564 b

1 the Code of Civil Procedure.

2   (o) Dispensing organizations are subject to random

3 inspection and cannabis testing by the Department of Financial

4 and Professional Regulation, the Illinois State Police, the

5 Department of Revenue, the Department of Public Health, the

6 Department of Agriculture, or as provided by rule.

7   (p) The Department of Financial and Professional

8 Regulation shall adopt rules permitting returns, and potential

9 refunds, for damaged or inadequate products.

10  (q) The Department of Financial and Professional

11 Regulation may issue nondisciplinary citations for minor

12 violations which may be accompanied by a civil penalty not to

13 exceed $10,000 per violation. The penalty shall be a civil

14 penalty or other condition as established by rule. The

15 citation shall be issued to the licensee and shall contain the

16 licensee's name, address, and license number, a brief factual

17 statement, the Sections of the law or rule allegedly violated,

18 and the civil penalty, if any, imposed. The citation must

19 clearly state that the licensee may choose, in lieu of

20 accepting the citation, to request a hearing. If the licensee

21 does not dispute the matter in the citation with the

22 Department of Financial and Professional Regulation within 30

23 days after the citation is served, then the citation shall

24 become final and shall not be subject to appeal.

25 (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21.)
    SB3222 Enrolled     - 389 - LRB104 19119 AAS 32564 b

1   (410 ILCS 130/145)

2   Sec. 145. Confidentiality.

3   (a) The following information received and records kept by

4 the Department of Public Health, Department of Financial and

5 Professional Regulation, Department of Agriculture, Department

6 of Commerce and Economic Opportunity, Office of the Executive

7 Inspector General, or Illinois State Police for purposes of

8 administering this Act are subject to all applicable federal

9 privacy laws, confidential, and exempt from the Freedom of

10 Information Act, and not subject to disclosure to any

11 individual or public or private entity, except as necessary

12 for authorized employees of those authorized agencies to

13 perform official duties under this Act and except as necessary

14 to those involved in enforcing the State Officials and

15 Employees Ethics Act, and the following information received

16 and records kept by Department of Public Health, Department of

17 Agriculture, Department of Commerce and Economic Opportunity,

18 Department of Financial and Professional Regulation, Office of

19 the Executive Inspector General, and Illinois State Police,

20 excluding any existing or non-existing Illinois or national

21 criminal history record information as defined in subsection

22 (d), may be disclosed to each other upon request:

23  (1) Applications and renewals, their contents, and

24  supporting information submitted by qualifying patients,

25  provisional patients, and designated caregivers, and

26  Opioid Alternative Patient Program participants, including
    SB3222 Enrolled  - 390 - LRB104 19119 AAS 32564 b

1   information regarding their designated caregivers and

2   certifying health care professionals.

3   (2) Applications and renewals, their contents, and

4   supporting information submitted by or on behalf of

5   cultivation centers and dispensing organizations in

6   compliance with this Act, including their physical

7   addresses. This does not preclude the release of ownership

8   information of cannabis business establishment licenses.

9   (3) The individual names and other information

10  identifying persons to whom the Department of Public

11  Health has issued registry identification cards.

12  (4) Any dispensing information required to be kept

13  under Section 135, Section 150, or Department of Public

14  Health, Department of Agriculture, or Department of

15  Financial and Professional Regulation rules shall identify

16  cardholders and registered cultivation centers by their

17  registry identification numbers and medical cannabis

18  dispensing organizations by their registration number and

19  not contain names or other personally identifying

20  information.

21  (5) All medical records provided to the Department of

22  Public Health in connection with an application for a

23  registry card.

24  (b) Nothing in this Section precludes the following:

25  (1) Department of Agriculture, Department of Financial

26  and Professional Regulation, or Public Health employees
    SB3222 Enrolled  - 391 - LRB104 19119 AAS 32564 b

1   may notify law enforcement about falsified or fraudulent

2   information submitted to the Departments if the employee

3   who suspects that falsified or fraudulent information has

4   been submitted conferred with his or her supervisor and

5   both agree that circumstances exist that warrant

6   reporting.

7   (2) If the employee conferred with his or her

8   supervisor and both agree that circumstances exist that

9   warrant reporting, Department of Public Health employees

10  may notify the Department of Financial and Professional

11  Regulation if there is reasonable cause to believe a

12  certifying health care professional:

13  (A) issued a written certification without a bona

14  fide health care professional-patient relationship

15  under this Act;

16  (B) issued a written certification to a person who

17  was not under the certifying health care

18  professional's care for the debilitating medical

19  condition; or

20  (C) failed to abide by the acceptable and

21  prevailing standard of care when evaluating a

22  patient's medical condition.

23  (3) The Department of Public Health, Department of

24  Agriculture, and Department of Financial and Professional

25  Regulation may notify State or local law enforcement about

26  apparent criminal violations of this Act if the employee
    SB3222 Enrolled     - 392 - LRB104 19119 AAS 32564 b

1   who suspects the offense has conferred with his or her

2   supervisor and both agree that circumstances exist that

3   warrant reporting.

4   (4) Medical cannabis cultivation center agents and

5   medical cannabis dispensing organizations may notify the

6   Department of Public Health, Department of Financial and

7   Professional Regulation, or Department of Agriculture of a

8   suspected violation or attempted violation of this Act or

9   the rules issued under it.

10  (5) Each Department may verify registry identification

11  cards under Section 150.

12  (6) The submission of the report to the General

13  Assembly under Section 160.

14  (b-5) Each Department responsible for licensure under this

15 Act shall publish on the Department's website a list of the

16 ownership information of cannabis business establishment

17 licensees under the Department's jurisdiction. The list shall

18 include, but shall not be limited to, the name of the person or

19 entity holding each cannabis business establishment license

20 and the address at which the entity is operating under this

21 Act. This list shall be published and updated monthly.

22  (c) (Blank). Except for any ownership information released

23 pursuant to subsection (b-5) or as otherwise authorized or

24 required by law, it is a Class B misdemeanor with a $1,000 fine

25 for any person, including an employee or official of the

26 Department of Public Health, Department of Financial and
    SB3222 Enrolled           - 393 - LRB104 19119 AAS 32564 b

1 Professional Regulation, or Department of Agriculture or

2 another State agency or local government, to breach the

3 confidentiality of information obtained under this Act.

4   (d) The Department of Public Health, the Department of

5 Agriculture, the Illinois State Police, and the Department of

6 Financial and Professional Regulation shall not share or

7 disclose any existing or non-existing Illinois or national

8 criminal history record information. For the purposes of this

9 Section, "any existing or non-existing Illinois or national

10 criminal history record information" means any Illinois or

11 national criminal history record information, including but

12 not limited to the lack of or non-existence of these records.

13 (Source: P.A. 101-363, eff. 8-9-19; 102-98, eff. 7-15-21;

14 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

15  (410 ILCS 130/150)

16  Sec. 150. Registry identification and registration

17 certificate verification.

18  (a) The Department of Public Health shall maintain a

19 confidential list of the persons to whom the Department of

20 Public Health has issued registry identification cards and

21 their addresses, phone numbers, and registry identification

22 numbers. This confidential list may not be combined or linked

23 in any manner with any other list or database except as

24 provided in this Section.

25  (b) Within 180 days of the effective date of this Act, the
SB3222 Enrolled  - 394 - LRB104 19119 AAS 32564 b

 1 Department of Public Health, Department of Financial and
 2 Professional Regulation, and Department of Agriculture shall
 3 together establish a computerized database or verification
 4 system. The database or verification system must allow law
 5 enforcement personnel and medical cannabis dispensary
 6 organization agents to determine whether or not the
 7 identification number corresponds with a current, valid
 8 registry identification card. The system shall only disclose
 9 whether the identification card is valid, whether the
10 cardholder is a registered qualifying patient, provisional
11 patient, or a registered designated caregiver, or Opioid
12 Alternative Patient Program participant the registry
13 identification number of the registered medical cannabis
14 dispensing organization designated to serve the registered
15 qualifying patient who holds the card, and the registry
16 identification number of the patient who is assisted by a
17 registered designated caregiver who holds the card. The
18 Department of Public Health, the Department of Agriculture,
19 the Illinois State Police, and the Department of Financial and
20 Professional Regulation shall not share or disclose any
21 existing or non-existing Illinois or national criminal history
22 record information. Notwithstanding any other requirements
23 established by this subsection, the Department of Public
24 Health shall issue registry cards to qualifying patients, the
25 Department of Financial and Professional Regulation may issue
26 registration cards to medical cannabis dispensing
    SB3222 Enrolled         - 395 - LRB104 19119 AAS 32564 b

1 organizations for the period during which the database is

2 being established, and the Department of Agriculture may issue

3 registration to medical cannabis cultivation organizations for

4 the period during which the database is being established.

5   (c) For the purposes of this Section, "any existing or

6 non-existing Illinois or national criminal history record

7 information" means any Illinois or national criminal history

8 record information, including but not limited to the lack of

9 or non-existence of these records.

10 (Source: P.A. 102-538, eff. 8-20-21.)

11  (410 ILCS 130/173)

12  Sec. 173. Conflicts of law. To the extent that any

13 provision of this Act conflicts with any Act that allows the

14 non-medical recreational use of cannabis, the provisions of

15 that Act shall control.

16 (Source: P.A. 101-363, eff. 8-9-19.)

17  (410 ILCS 130/195)

18  Sec. 195. Definitions. For the purposes of this Law:

19  "Cultivation center" has the meaning ascribed to that term

20 in the Compassionate Use of Medical Cannabis Program Act.

21  "Department" means the Department of Revenue.

22  "Dispensing organization" has the meaning ascribed to that

23 term in the Compassionate Use of Medical Cannabis Program Act.

24  "Gross receipts" means the total selling price, or the
    SB3222 Enrolled         - 396 - LRB104 19119 AAS 32564 b

1 amount of sale, as defined in this Article, except that, in the

2 case of charges and time sales, the amount thereof shall be

3 included only when payments are received by the cultivator of

4 medical cannabis, by a cultivator.

5   "Person" means an individual, partnership, corporation, or

6 public or private organization.

7   "Qualifying patient" means a qualifying patient registered

8 under the Compassionate Use of Medical Cannabis Program Act.

9   "Selling price" or "amount of sale" means the

10 consideration for a sale valued in money, whether received in

11 money or otherwise, including cash, credits, property, or

12 services, determined without any deduction on account of the

13 cost of the property sold, the cost of materials used, labor or

14 service cost, or any other expense whatsoever. "Selling price"

15 or "amount of sale" does not include separately stated charges

16 identified on the invoice by cultivators to reimburse

17 themselves for their tax liability.

18 (Source: P.A. 101-363, eff. 8-9-19.)

19  (410 ILCS 130/200)

20  Sec. 200. Tax imposed.

21  (a) Beginning on January 1, 2014 and through June 30, 2026

22 the effective date of this Act, a tax is imposed upon the

23 privilege of cultivating medical cannabis at a rate of 7% of

24 the sales price per ounce. Beginning July 1, 2026, a tax is

25 imposed on the privilege of cultivating medical cannabis at
    SB3222 Enrolled      - 397 - LRB104 19119 AAS 32564 b

1 the rate of 7% of the gross receipts from the first sale of

2 medical cannabis by a cultivator. The sale of any product that

3 contains any amount of medical cannabis or any derivative

4 thereof is subject to the tax under this Section on the full

5 selling price of the product. The Department may determine the

6 selling price of the medical cannabis when the seller and

7 purchaser are affiliated persons or when the sale and purchase

8 of medical cannabis is not an arm's length transaction and a

9 value is not established for the medical cannabis. The value

10 determined by the Department shall be commensurate with the

11 actual price received for products of like quality, character,

12 and use in the area. If there are no sales of medical cannabis

13 of like quality, character, and use in the area, then the

14 Department shall establish a reasonable value based on sales

15 of products of like quality, character, and use in the other

16 areas of the State, taking into consideration any other

17 relevant factors. The proceeds from this tax shall be

18 deposited into the Compassionate Use of Medical Cannabis Fund

19 created under the Compassionate Use of Medical Cannabis

20 Program Act. This tax shall be paid by a cultivation center and

21 is not the responsibility of a dispensing organization or a

22 qualifying patient.

23  (b) The tax imposed under this Act shall be in addition to

24 all other occupation or privilege taxes imposed by the State

25 of Illinois or by any municipal corporation or political

26 subdivision thereof.
    SB3222 Enrolled          - 398 - LRB104 19119 AAS 32564 b

1 (Source: P.A. 101-363, eff. 8-9-19.)

2   (410 ILCS 130/210)

3   Sec. 210. Returns.

4   (a) This subsection (a) applies to returns due on or

5 before the effective date of this amendatory Act of the 101st

6 General Assembly. On or before the twentieth day of each

7 calendar month, every person subject to the tax imposed under

8 this Law during the preceding calendar month shall file a

9 return with the Department, stating:

10  (1) The name of the taxpayer;

11  (2) The number of ounces of medical cannabis sold to a

12  dispensing organization or a registered qualifying patient

13  during the preceding calendar month;

14  (3) The amount of tax due;

15  (4) The signature of the taxpayer; and

16  (5) Such other reasonable information as the

17  Department may require.

18  If a taxpayer fails to sign a return within 30 days after

19 the proper notice and demand for signature by the Department,

20 the return shall be considered valid and any amount shown to be

21 due on the return shall be deemed assessed.

22  The taxpayer shall remit the amount of the tax due to the

23 Department at the time the taxpayer files his or her return.

24  (b) Beginning on the effective date of this amendatory Act

25 of the 101st General Assembly, Section 60-20 65-20 of the
    SB3222 Enrolled      - 399 - LRB104 19119 AAS 32564 b

1 Cannabis Regulation and Tax Act shall apply to returns filed
2 and taxes paid under this Act to the same extent as if those
3 provisions were set forth in full in this Section.
4 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

5   (410 ILCS 130/115.5 rep.)

6   Section 160. The Compassionate Use of Medical Cannabis

7 Program Act is amended by repealing Section 115.5.

8   Section 165. The Cannabis Regulation and Tax Act is

9 amended by changing Sections 1-10, 7-10, 7-15, 7-20, 10-10,

10 10-15, 15-10, 15-15, 15-20, 15-25, 15-35, 15-35.10, 15-36,

11 15-40, 15-45, 15-70, 15-85, 15-100, 15-135, 15-145, 15-155,

12 20-10, 20-15, 20-30, 20-35, 20-45, 25-35, 30-10, 30-30, 30-35,

13 30-45, 35-25, 35-30, 35-40, 40-5, 40-25, 40-30, 45-5, 50-5,

14 55-5, 55-21, 55-30, 55-65, 55-85, 60-5, 60-10, 65-5, 65-10,

15 65-30, 65-38, and 65-42 and by adding Sections 15-24, 15-37,

16 20-60, 35-18, 40-50, and 55-22 as follows:

17  (410 ILCS 705/1-10)

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

19  "Adequate medical supply" means 2.5 ounces of usable

20 cannabis during a period of 14 days that is derived solely from

21 an intrastate source. Subject to the rules of the Department

22 of Public Health, a patient may apply for a waiver in which a

23 certifying health care professional provides a substantial
    SB3222 Enrolled             - 400 - LRB104 19119 AAS 32564 b

1 medical basis in a signed, written statement asserting that,

2 based on the patient's medical history, in the certifying

3 health care professional's professional judgment, 2.5 ounces

4 is an insufficient adequate medical supply for a 14-day period

5 to properly alleviate the patient's debilitating medical

6 condition or symptoms associated with the debilitating medical

7 condition. This definition may not be construed to authorize

8 the possession of more than 2.5 ounces at any time without

9 authority from the Department of Public Health. The pre-mixed

10 weight of medical cannabis used in making a cannabis-infused

11 product shall apply toward the limit on the total amount of

12 medical cannabis a registered qualifying patient may possess

13 at any one time.

14  "Adult Use Cultivation Center License" means a license

15 issued by the Department of Agriculture that permits a person

16 to act as a cultivation center under this Act and any

17 administrative rule made in furtherance of this Act.

18  "Adult Use Dispensing Organization License" means a

19 license issued by the Department of Financial and Professional

20 Regulation that permits a person to act as a dispensing

21 organization under this Act and any administrative rule made

22 in furtherance of this Act.

23  "Advertise" means to engage in promotional activities

24 including, but not limited to: newspaper, radio, Internet and

25 electronic media, and television advertising; the distribution

26 of fliers and circulars; billboard advertising; and the
    SB3222 Enrolled   - 401 - LRB104 19119 AAS 32564 b

1 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,
    SB3222 Enrolled  - 402 - LRB104 19119 AAS 32564 b

1 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 and does not include hemp, industrial

12 hemp, or final consumer hemp cannabinoid products as defined

13 under the Illinois Hemp Act. "Cannabis" also means cannabis

14 flower, concentrate, and cannabis-infused products.

15  "Cannabis business establishment" means a cultivation

16 center, craft grower, processing organization, infuser

17 organization, dispensing organization, or transporting

18 organization.

19  "Cannabis concentrate" means a product derived from

20 cannabis that is produced by extracting cannabinoids,

21 including tetrahydrocannabinol (THC), from the plant through

22 the use of propylene glycol, glycerin, butter, olive oil, or

23 other typical cooking fats; water, ice, or dry ice; or butane,

24  propane, CO2, ethanol, or isopropanol and with the intended

25 use of smoking or making a cannabis-infused product. The use

26 of any other solvent is expressly prohibited unless and until
    SB3222 Enrolled        - 403 - LRB104 19119 AAS 32564 b

1 it is approved by the Department of Agriculture.

2   "Cannabis container" means a sealed or resealable,

3 traceable, container, or package used for the purpose of

4 containment of cannabis or cannabis-infused product during

5 transportation.

6   "Cannabis flower" means marijuana, hashish, and other

7 substances that are identified as including any parts of the

8 plant Cannabis sativa and including derivatives or subspecies,

9 such as indica, of all strains of cannabis; including raw

10 kief, leaves, and buds, but not resin that has been extracted

11 from any part of such plant; nor any compound, manufacture,

12 salt, derivative, mixture, or preparation of such plant, its

13 seeds, or resin.

14  "Cannabis-infused product" means a beverage, food, oil,

15 ointment, tincture, topical formulation, or another product

16 containing cannabis or cannabis concentrate that is not

17 intended to be smoked.

18  "Cannabis paraphernalia" means equipment, products, or

19 materials intended to be used for planting, propagating,

20 cultivating, growing, harvesting, manufacturing, producing,

21 processing, preparing, testing, analyzing, packaging,

22 repackaging, storing, containing, concealing, ingesting, or

23 otherwise introducing cannabis into the human body.

24  "Cannabis plant monitoring system" or "plant monitoring

25 system" means a system that includes, but is not limited to,

26 testing and data collection established and maintained by the
    SB3222 Enrolled  - 404 - LRB104 19119 AAS 32564 b

1 cultivation center, craft grower, or infuser processing

2 organization and that is available to the Department of

3 Revenue, the Department of Agriculture, the Department of

4 Financial and Professional Regulation, and the Illinois State

5 Police for the purposes of documenting each cannabis plant and

6 monitoring plant development throughout the life cycle of a

7 cannabis plant cultivated for the intended use by a customer

8 from seed planting to final packaging.

9       "Cannabis testing facility" means an entity licensed

10 registered by the Department of Agriculture to test cannabis

11 for potency and contaminants. Licensed cannabis testing

12 facilities are authorized under this Act to transport cannabis

13 from cannabis business establishments to the licensed cannabis

14 testing facility and are exempt from the transporting

15 organization license requirements.

16      "Cannabis transporter storage site" or "storage site"

17 means a secure, physical, nonretail facility operated by an

18 eligible transporter that is not affiliated with another

19 cannabis business establishment. "Cannabis transporter storage

20 site" or "storage site" includes a facility that an eligible

21 transporter may use to transfer, temporarily store, or both

22 transfer and temporarily store cannabis and cannabis infused

23 products in accordance with this Act and rules adopted under

24 it.

25      "Clone" means a plant section from a female cannabis plant

26 not yet rootbound, growing in a water solution or other
    SB3222 Enrolled            - 405 - LRB104 19119 AAS 32564 b

1 propagation matrix, that is capable of developing into a new

2 plant.

3   "Community College Cannabis Vocational Training Pilot

4 Program faculty participant" means a person who is 21 years of

5 age or older, licensed by the Department of Agriculture, and

6 is employed or contracted by an Illinois community college to

7 provide student instruction using cannabis plants at an

8 Illinois Community College.

9   "Community College Cannabis Vocational Training Pilot

10 Program faculty participant Agent Identification Card" means a

11 document issued by the Department of Agriculture that

12 identifies a person as a Community College Cannabis Vocational

13 Training Pilot Program faculty participant.

14  "Conditional Adult Use Dispensing Organization License"

15 means a contingent license awarded to applicants for an Adult

16 Use Dispensing Organization License that reserves the right to

17 an Adult Use Dispensing Organization License if the applicant

18 meets certain conditions described in this Act, but does not

19 entitle the recipient to begin purchasing or selling cannabis

20 or cannabis-infused products.

21  "Conditional Adult Use Cultivation Center License" means a

22 license awarded to top-scoring applicants for an Adult Use

23 Cultivation Center License that reserves the right to an Adult

24 Use Cultivation Center License if the applicant meets certain

25 conditions as determined by the Department of Agriculture by

26 rule, but does not entitle the recipient to begin growing,
    SB3222 Enrolled            - 406 - LRB104 19119 AAS 32564 b

1 processing, or selling cannabis or cannabis-infused products.

2   "Craft grower" means a facility operated by an

3 organization or business that is licensed by the Department of

4 Agriculture to cultivate, dry, cure, and package cannabis and

5 perform other necessary activities to make cannabis available

6 for sale at a dispensing organization or use at an infuser a

7 processing organization. A craft grower may contain up to

8 14,000 5,000 square feet of canopy space on its premises for

9 plants in the flowering state. The Department of Agriculture

10 may authorize an increase or decrease of flowering stage

11 cultivation space in increments of 3,000 square feet by rule

12 based on market need, craft grower capacity, and the

13 licensee's history of compliance or noncompliance, with a

14 maximum space of 14,000 square feet for cultivating plants in

15 the flowering stage, which must be cultivated in all stages of

16 growth in an enclosed and secure area. A craft grower may share

17 premises with an infuser a processing organization or a

18 dispensing organization, or both, provided each licensee

19 stores currency and cannabis or cannabis-infused products in a

20 separate secured vault to which the other licensee does not

21 have access or all licensees sharing a vault share more than

22 50% of the same ownership.

23  "Craft grower agent" means a principal officer, board

24 member, employee, or other agent of a craft grower who is 21

25 years of age or older.

26  "Craft Grower Agent Identification Card" means a document
    SB3222 Enrolled         - 407 - LRB104 19119 AAS 32564 b

1 issued by the Department of Agriculture that identifies a

2 person as a craft grower agent.

3   "Cultivation center" means a facility operated by an

4 organization or business that is licensed by the Department of

5 Agriculture to cultivate, process, transport (unless otherwise

6 limited by this Act), and perform other necessary activities

7 to provide cannabis and cannabis-infused products to cannabis

8 business establishments.

9   "Cultivation center agent" means a principal officer,

10 board member, employee, or other agent of a cultivation center

11 who is 21 years of age or older.

12  "Cultivation Center Agent Identification Card" means a

13 document issued by the Department of Agriculture that

14 identifies a person as a cultivation center agent.

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

16  "Designated caregiver" means a person who assists no more

17 than one registered qualifying patient with the patient's

18 medical use of cannabis, except the parent or legal guardian

19 of a registered qualifying patient may assist each of their

20 children who are registered qualifying patients.

21  "Dispensary" means a facility operated by a dispensing

22 organization at which activities licensed by this Act may

23 occur.

24  "Dispensary Applicant" means the Proposed Dispensing

25 Organization Name as stated on an application for a

26 Conditional Adult Use Dispensing Organization License.
    SB3222 Enrolled        - 408 - LRB104 19119 AAS 32564 b

1   "Dispensing organization" or "dispensary" means a facility

2 operated by an organization or business that is licensed by

3 the Department of Financial and Professional Regulation to

4 acquire cannabis from a cultivation center, craft grower, or

5 infuser processing organization licensed by the Department of

6 Agriculture, or another dispensary licensed by the Department

7 of Financial and Professional Regulation, for the purpose of

8 selling or dispensing cannabis, cannabis-infused products,

9 cannabis seeds, paraphernalia, or related supplies under this

10 Act to purchasers or to qualified registered medical cannabis

11 patients and caregivers. As used in this Act, "dispensing

12 organization" or "dispensary" includes a registered medical

13 cannabis organization as defined in the Compassionate Use of

14 Medical Cannabis Program Act or its successor Act that has

15 obtained an Early Approval Adult Use Dispensing Organization

16 License or Early Approval Adult Use Dispensing Organization

17 License at a Secondary Site, or an entity that has obtained a

18 Medical Cannabis Dispensing Organization License under Section

19 15-37 of this Act.

20  "Dispensing organization agent" means a principal officer,

21 employee, or agent of a dispensing organization who is 21

22 years of age or older.

23  "Dispensing organization agent identification card" means

24 a document issued by the Department of Financial and

25 Professional Regulation that identifies a person as a

26 dispensing organization agent.
    SB3222 Enrolled            - 409 - LRB104 19119 AAS 32564 b

1   "Disproportionately Impacted Area" means a census tract or

2 comparable geographic area that satisfies the following

3 criteria as determined by the Department of Commerce and

4 Economic Opportunity, that:

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

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

7   according to the latest federal decennial census; or

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

9   participate in the federal free lunch program

10  according to reported statistics from the State Board

11  of Education; or

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

13  receive assistance under the Supplemental Nutrition

14  Assistance Program; or

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

16  determined by the Illinois Department of Employment

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

18  unemployment average, as determined by the United

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

20  consecutive calendar years preceding the date of the

21  application; and

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

23  incarceration related to the sale, possession, use,

24  cultivation, manufacture, or transport of cannabis.

25  "Early Approval Adult Use Cultivation Center License"

26 means a license that permits a medical cannabis cultivation
    SB3222 Enrolled           - 410 - LRB104 19119 AAS 32564 b

1 center licensed under the Compassionate Use of Medical

2 Cannabis Program Act as of the effective date of this Act to

3 begin cultivating, infusing, packaging, transporting (unless

4 otherwise provided in this Act), processing, and selling

5 cannabis or cannabis-infused product to cannabis business

6 establishments for resale to purchasers as permitted by this

7 Act as of January 1, 2020.

8   "Early Approval Adult Use Dispensing Organization License"

9 means a license that permits a medical cannabis dispensing

10 organization licensed under the Compassionate Use of Medical

11 Cannabis Program Act as of the effective date of this Act to

12 begin selling cannabis or cannabis-infused product to

13 purchasers as permitted by this Act as of January 1, 2020.

14  "Early Approval Adult Use Dispensing Organization at a

15 secondary site" means a license that permits a medical

16 cannabis dispensing organization licensed under the

17 Compassionate Use of Medical Cannabis Program Act as of the

18 effective date of this Act to begin selling cannabis or

19 cannabis-infused product to purchasers as permitted by this

20 Act on January 1, 2020 at a different dispensary location from

21 its existing registered medical dispensary location.

22  "Eligible Tied Applicant" means a Tied Applicant that is

23 eligible to participate in the process by which a remaining

24 available license is distributed by lot pursuant to a Tied

25 Applicant Lottery.

26  "Enclosed, locked facility" means a room, greenhouse,
    SB3222 Enrolled  - 411 - LRB104 19119 AAS 32564 b

1 building, or other enclosed area equipped with locks or other

2 security devices that permit access only by cannabis business

3 establishment agents working for the licensed cannabis

4 business establishment or acting pursuant to this Act to

5 cultivate, process, store, or distribute cannabis.

6   "Enclosed, locked space" means a closet, room, greenhouse,

7 building, or other enclosed area equipped with locks or other

8 security devices that permit access only by authorized

9 individuals under this Act. "Enclosed, locked space" may

10 include:

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

12  the primary residence of the individual cultivating 5 or

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

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

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

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

17  the residential building from the exterior; or

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

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

20  that (i) includes sleeping quarters and indoor plumbing

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

22  cultivating 5 or fewer cannabis plants that are more than

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

24  must remain locked when it is unoccupied by people.

25  "Financial institution" has the same meaning as "financial

26 organization" as defined in Section 1501 of the Illinois
    SB3222 Enrolled             - 412 - LRB104 19119 AAS 32564 b

1 Income Tax Act, and also includes the holding companies,

2 subsidiaries, and affiliates of such financial organizations.

3   "Flowering stage" means the stage of cultivation where and

4 when a cannabis plant is cultivated to produce plant material

5 for cannabis products. This includes mature plants as follows:

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

7   internode of the plant; or

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

9   intentionally deprived of light for a period of time

10  intended to produce flower buds and induce maturation,

11  from the moment the light deprivation began through the

12  remainder of the marijuana plant growth cycle.

13  "Individual" means a natural person.

14  "Infuser organization" or "infuser" means a facility

15 operated by an organization or business that is licensed by

16 the Department of Agriculture to directly incorporate cannabis

17 or cannabis concentrate into a product formulation to produce

18 a cannabis-infused product.

19  "Infuser organization agent" means a principal officer,

20 board member, employee, or other agent of an infuser

21 organization.

22  "Infuser organization agent identification card" means a

23 document issued by the Department of Agriculture that

24 identifies a person as an infuser organization agent.

25  "Kief" means the resinous crystal-like trichomes that are

26 found on cannabis and that are accumulated, resulting in a
    SB3222 Enrolled          - 413 - LRB104 19119 AAS 32564 b

1 higher concentration of cannabinoids, untreated by heat or

2 pressure, or extracted using a solvent.

3   "Labor peace agreement" means an agreement between a

4 cannabis business establishment and any labor organization

5 recognized under the National Labor Relations Act, referred to

6 in this Act as a bona fide labor organization, that prohibits

7 labor organizations and members from engaging in picketing,

8 work stoppages, boycotts, and any other economic interference

9 with the cannabis business establishment. This agreement means

10 that the cannabis business establishment has agreed not to

11 disrupt efforts by the bona fide labor organization to

12 communicate with, and attempt to organize and represent, the

13 cannabis business establishment's employees. The agreement

14 shall provide a bona fide labor organization access at

15 reasonable times to areas in which the cannabis business

16 establishment's employees work, for the purpose of meeting

17 with employees to discuss their right to representation,

18 employment rights under State law, and terms and conditions of

19 employment. This type of agreement shall not mandate a

20 particular method of election or certification of the bona

21 fide labor organization.

22  "Limited access area" means a room or other area under the

23 control of a cannabis dispensing organization licensed under

24 this Act and upon the licensed premises where cannabis sales

25 occur with access limited to purchasers, dispensing

26 organization owners and other dispensing organization agents,
    SB3222 Enrolled  - 414 - LRB104 19119 AAS 32564 b

1 or service professionals conducting business with the

2 dispensing organization, or, if sales to registered qualifying

3 patients, caregivers, provisional patients, and Opioid

4 Alternative Patient Pilot Program participants licensed

5 pursuant to the Compassionate Use of Medical Cannabis Program

6 Act are also permitted at the dispensary, registered

7 qualifying patients, caregivers, provisional patients, and

8 Opioid Alternative Patient Pilot Program participants.

9   "Medical cannabis dispensing organization license" means a

10 license issued to an entity holding an Adult Use Dispensing

11 Organization License enabling the license holder to acquire

12 cannabis or cannabis-infused products from a registered

13 cultivation center, craft grower, infuser organization, or

14 transporting organization for the purpose of dispensing

15 cannabis, cannabis-infused products, paraphernalia, or related

16 supplies and educational materials to registered qualifying

17 patients, provisional patients, designated caregivers, and

18 Opioid Alternative Patient Program participants.

19  "Member of an impacted family" means an individual who has

20 a parent, legal guardian, child, spouse, or dependent, or was

21 a dependent of an individual who, prior to the effective date

22 of this Act, was arrested for, convicted of, or adjudicated

23 delinquent for any offense that is eligible for expungement

24 under this Act.

25  "Mother plant" means a cannabis plant that is cultivated

26 or maintained for the purpose of generating clones, and that
    SB3222 Enrolled        - 415 - LRB104 19119 AAS 32564 b

1 will not be used to produce plant material for sale to an

2 infuser or dispensing organization.

3   "Opioid Alternative Patient Program participant" means an

4 individual who has received a valid written certification to

5 participate in the Opioid Alternative Patient Program for a

6 medical condition for which an opioid has been or could be

7 prescribed by a certifying health care professional based on

8 generally accepted standards of care.

9   "Ordinary public view" means within the sight line with

10 normal visual range of a person, unassisted by visual aids,

11 from a public street or sidewalk adjacent to real property, or

12 from within an adjacent property.

13  "Ownership and control" means ownership of at least 51% of

14 the business, including corporate stock if a corporation, and

15 control over the management and day-to-day operations of the

16 business and an interest in the capital, assets, and profits

17 and losses of the business proportionate to percentage of

18 ownership.

19  "Person" means a natural individual, firm, partnership,

20 association, joint stock company, joint venture, public or

21 private corporation, limited liability company, or a receiver,

22 executor, trustee, guardian, or other representative appointed

23 by order of any court.

24  "Possession limit" means the amount of cannabis under

25 Section 10-10 that may be possessed at any one time by a person

26 21 years of age or older or who is a registered qualifying
    SB3222 Enrolled  - 416 - LRB104 19119 AAS 32564 b

1 medical cannabis patient, designated or caregiver, provisional

2 patient, or Opioid Alternative Patient Program participant

3 under the Compassionate Use of Medical Cannabis Program Act.

4   "Primary residence" means a dwelling where a person

5 usually stays or stays more often than other locations. It may

6 be determined by, without limitation, presence, tax filings,

7 address on an Illinois driver's license, an Illinois

8 Identification Card, an Illinois Person with a Disability

9 Identification Card, or voter registration. No person may have

10 more than one primary residence.

11  "Principal officer" includes a cannabis business

12 establishment applicant or licensed cannabis business

13 establishment's board member, owner with more than 5% 1%

14 interest of the total cannabis business establishment or more

15 than 5% interest of the total cannabis business establishment

16 of a publicly traded company, president, vice president,

17 secretary, treasurer, partner, officer, member, manager

18 member, or person with a profit sharing, financial interest,

19 or revenue sharing arrangement. The definition includes a

20 person with authority to control the cannabis business

21 establishment, a person who assumes responsibility for the

22 debts of the cannabis business establishment and who is

23 further defined in this Act.

24  "Primary residence" means a dwelling where a person

25 usually stays or stays more often than other locations. It may

26 be determined by, without limitation, presence, tax filings;
    SB3222 Enrolled      - 417 - LRB104 19119 AAS 32564 b

1 address on an Illinois driver's license, an Illinois

2 Identification Card, or an Illinois Person with a Disability

3 Identification Card; or voter registration. No person may have

4 more than one primary residence.

5   "Processor license" means a license issued to an infuser

6 organization that is licensed by the Department of Agriculture

7 under subsection (f) of Section 35-31 to extract raw materials

8 from cannabis flower.

9   "Provisional patient" means a qualifying patient who has

10 received a provisional registration from the Department of

11 Public Health.

12  "Processing organization" or "processor" means a facility

13 operated by an organization or business that is licensed by

14 the Department of Agriculture to either extract constituent

15 chemicals or compounds to produce cannabis concentrate or

16 incorporate cannabis or cannabis concentrate into a product

17 formulation to produce a cannabis product.

18  "Processing organization agent" means a principal officer,

19 board member, employee, or agent of a processing organization.

20  "Processing organization agent identification card" means

21 a document issued by the Department of Agriculture that

22 identifies a person as a processing organization agent.

23  "Purchaser" means a person 21 years of age or older who

24 acquires cannabis for a valuable consideration. "Purchaser"

25 includes does not include a cardholder under the Compassionate

26 Use of Medical Cannabis Program Act using the cardholder's
    SB3222 Enrolled  - 418 - LRB104 19119 AAS 32564 b

1 card at a dispensing organization that is authorized to serve

2 registered qualifying patients, provisional patients,

3 designated caregivers, and Opioid Alternative Patient Program

4 participants.

5   "Qualifying Applicant" means an applicant that submitted

6 an application pursuant to Section 15-30 that received at

7 least 85% of 250 application points available under Section

8 15-30 as the applicant's final score and meets the definition

9 of "Social Equity Applicant" as set forth under this Section.

10  "Qualifying patient" or "qualified patient" means a person

11 who has been diagnosed by a certifying health care

12 professional as having a debilitating medical condition as

13 defined under the Compassionate Use of Medical Cannabis

14 Program Act.

15  "Qualifying Social Equity Justice Involved Applicant"

16 means an applicant that submitted an application pursuant to

17 Section 15-30 that received at least 85% of 250 application

18 points available under Section 15-30 as the applicant's final

19 score and meets the criteria of either paragraph (1) or (2) of

20 the definition of "Social Equity Applicant" as set forth under

21 this Section.

22  "Qualified Social Equity Applicant" means a Social Equity

23 Applicant who has been awarded a conditional license under

24 this Act to operate a cannabis business establishment.

25  "Resided" means an individual's primary residence was

26 located within the relevant geographic area as established by
    SB3222 Enrolled         - 419 - LRB104 19119 AAS 32564 b

1 2 of the following:

2   (1) a signed lease agreement that includes the

3   applicant's name;

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

5   name;

6   (3) school records;

7   (4) a voter registration card;

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

9   Identification Card, or an Illinois Person with a

10  Disability Identification Card;

11  (6) a paycheck stub;

12  (7) a utility bill;

13  (8) tax records; or

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

15  necessary to establish residence as provided by rule.

16  "Smoking" means the inhalation of smoke caused by the

17 combustion of cannabis.

18  "Social Equity Applicant" means an applicant that is an

19 Illinois resident that meets one of the following criteria:

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

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

22  least 5 of the preceding 10 years in a Disproportionately

23  Impacted Area;

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

25  control by one or more individuals who:

26         (i) have been arrested for, convicted of, or
    SB3222 Enrolled    - 420 - LRB104 19119 AAS 32564 b

1   adjudicated delinquent for any offense that is

2   eligible for expungement under this Act; or

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

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

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

6   employees who:

7   (i) currently reside in a Disproportionately

8   Impacted Area; or

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

10  adjudicated delinquent for any offense that is

11  eligible for expungement under this Act or are members

12  member of an impacted family that have been impacted

13  by arrests, convictions, or adjudications of

14  delinquency that are eligible for expungement under

15  this Act.

16  Nothing in this Act shall be construed to preempt or limit

17 the duties of any employer under the Job Opportunities for

18 Qualified Applicants Act. Nothing in this Act shall permit an

19 employer to require an employee to disclose sealed or expunged

20 offenses, unless otherwise required by law.

21  "Social Equity Lottery Licensee" means a holder of an

22 adult use cannabis dispensary license or a conditional adult

23 use cannabis dispensary license awarded through a lottery held

24 under subsection (c) of Section 15-35.20 of this Act.

25  "Tied Applicant" means an application submitted by a

26 Dispensary Applicant pursuant to Section 15-30 that received
    SB3222 Enrolled  - 421 - LRB104 19119 AAS 32564 b

1 the same number of application points under Section 15-30 as

2 the Dispensary Applicant's final score as one or more

3 top-scoring applications in the same BLS Region and would have

4 been awarded a license but for the one or more other

5 top-scoring applications that received the same number of

6 application points. Each application for which a Dispensary

7 Applicant was required to pay a required application fee for

8 the application period ending January 2, 2020 shall be

9 considered an application of a separate Tied Applicant.

10  "Tied Applicant Lottery" means the process established

11 under 68 Ill. Adm. Code 1291.50 for awarding Conditional Adult

12 Use Dispensing Organization Licenses pursuant to Sections

13 15-25 and 15-30 among Eligible Tied Applicants.

14  "Tincture" means a cannabis-infused solution, typically

15 comprised of alcohol, glycerin, or vegetable oils, derived

16 either directly from the cannabis plant or from a processed

17 cannabis extract. A tincture is not an alcoholic liquor as

18 defined in the Liquor Control Act of 1934. A tincture shall

19 include a calibrated dropper or other similar device capable

20 of accurately measuring servings.

21  "Transporting organization" or "transporter" means an

22 organization or business that is licensed by the Department of

23 Agriculture to transport cannabis or cannabis-infused product

24 on behalf of a cannabis business establishment or a community

25 college licensed under the Community College Cannabis

26 Vocational Training Pilot Program.
    SB3222 Enrolled             - 422 - LRB104 19119 AAS 32564 b

1   "Transporting organization agent" means a principal

2 officer, board member, employee, or agent of a transporting

3 organization.

4   "Transporting organization agent identification card"

5 means a document issued by the Department of Agriculture that

6 identifies a person as a transporting organization agent.

7   "Unit of local government" means any county, city,

8 village, or incorporated town.

9   "Vegetative stage" means the stage of cultivation in which

10 a cannabis plant is propagated to produce additional cannabis

11 plants or reach a sufficient size for production. This

12 includes seedlings, clones, mothers, and other immature

13 cannabis plants as follows:

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

15  been intentionally deprived of light for a period of time

16  intended to produce flower buds and induce maturation, it

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

18  cannabis plant; or

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

20  the purpose of propagating clones and is never used to

21  produce cannabis.

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

23 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

24 5-13-22.)

25  (410 ILCS 705/7-10)
    SB3222 Enrolled  - 423 - LRB104 19119 AAS 32564 b

1   Sec. 7-10. Cannabis Business Development Fund.

2   (a) There is created in the State treasury a special fund,

3 which shall be held separate and apart from all other State

4 moneys, to be known as the Cannabis Business Development Fund.

5 The Cannabis Business Development Fund shall be exclusively

6 used for the following purposes:

7   (1) to provide low-interest rate loans to Qualified

8   Social Equity Applicants and holders of a conditional or

9   adult use dispensing organization license issued pursuant

10  to Section 15-25, 15-35, or 15-35.10 or subsection (c) of

11  Section 15-35.20 to pay for ordinary and necessary

12  expenses to start and operate a cannabis business

13  establishment permitted by this Act, so long as the entity

14  meets the definition of a "Social Equity Applicant"

15  pursuant to Section 1-10; the Department of Commerce and

16  Economic Opportunity may review that an applicant for a

17  loan continues to meet the statutory definition of a

18  "Social Equity Applicant";

19  (2) to provide grants to Qualified Social Equity

20  Applicants and holders of a conditional or adult use

21  dispensing organization license issued pursuant to Section

22  15-25, 15-35, or 15-35.10 or subsection (c) of Section

23  15-35.20 to pay for ordinary and necessary expenses to

24  start and operate a cannabis business establishment

25  permitted by this Act, so long as the entity meets the

26  definition of a "Social Equity Applicant" pursuant to
    SB3222 Enrolled     - 424 - LRB104 19119 AAS 32564 b

1   Section 1-10; the Department of Commerce and Economic

2   Opportunity may review that an applicant for a loan

3   continues to meet the statutory definition of a "Social

4   Equity Applicant";

5   (3) to compensate the Department of Commerce and

6   Economic Opportunity for any costs related to the

7   provision of financial assistance low-interest loans and

8   grants to Qualified Social Equity Applicants and holders

9   of a conditional or adult use dispensing organization

10  license issued pursuant to Section 15-25, 15-35, or

11  15-35.10 or subsection (c) of Section 15-35.20, so long as

12  the entity meets the definition of a "Social Equity

13  Applicant" pursuant to Section 1-10; the Department of

14  Commerce and Economic Opportunity may review that an

15  applicant for a loan continues to meet the statutory

16  definition of a "Social Equity Applicant";

17  (4) to pay for outreach that may be provided or

18  targeted to attract and support Social Equity Applicants,

19  and Qualified Social Equity Applicants, and holders of a

20  conditional or adult use dispensing organization license

21  issued pursuant to Section 15-25, 15-35, or 15-35.10 or

22  subsection (c) of Section 15-35.20, so long as the entity

23  meets the definition of a "Social Equity Applicant"

24  pursuant to Section 1-10; the Department of Commerce and

25  Economic Opportunity may review that an applicant for a

26  loan continues to meet the statutory definition of a
    SB3222 Enrolled  - 425 - LRB104 19119 AAS 32564 b

1   "Social Equity Applicant";

2   (5) to provide financial assistance to, to support

3   lending to, to support private investment in, or to

4   facilitate access to the facilities needed to commence

5   operations as a cannabis business establishment for

6   Qualified Social Equity Applicants, Social Equity Lottery

7   Licensees, and holders of a conditional or adult use

8   dispensing organization licenses issued pursuant to

9   Section 15-25, 15-35, 15-35.10, or subsection (c) of

10  Section 15-35.20, so long as the entity meets the

11  definition of a "Social Equity Applicant" pursuant to

12  Section 1-10; the Department of Commerce and Economic

13  Opportunity may review that an applicant for a loan

14  continues to meet the statutory definition of a "Social

15  Equity Applicant" (blank);

16  (6) to conduct any study or research concerning the

17  participation of minorities, women, veterans, or people

18  with disabilities in the cannabis industry, including,

19  without limitation, barriers to such individuals entering

20  the industry as equity owners of cannabis business

21  establishments;

22  (6.5) to enter into financial intermediary agreements

23  to facilitate lending to or investment in Qualified Social

24  Equity Applicants and holders of a conditional or adult

25  use dispensing organization licenses issued pursuant to

26  Section 15-25, 15-35, or 15-35.10 or subsection (c) of
    SB3222 Enrolled            - 426 - LRB104 19119 AAS 32564 b

1   Section 15-35.20, with the goal of ensuring the

2   availability of facilities necessary to operate a cannabis

3   business establishment, so long as the entity meets the

4   definition of a "Social Equity Applicant" pursuant to

5   Section 1-10; the Department of Commerce and Economic

6   Opportunity may review that an applicant for a loan

7   continues to meet the statutory definition of a "Social

8   Equity Applicant";

9   (7) (blank); and

10  (8) to assist with job training and technical

11  assistance for residents in Disproportionately Impacted

12  Areas.

13  (b) All moneys collected under Sections 15-15 and 15-20

14 for Early Approval Adult Use Dispensing Organization Licenses

15 issued before January 1, 2021 and remunerations made as a

16 result of transfers of permits awarded to Qualified Social

17 Equity Applicants shall be deposited into the Cannabis

18 Business Development Fund.

19  (c) (Blank).

20  (c-5) In addition to any other transfers that may be

21 provided for by law, on July 1, 2023, or as soon thereafter as

22 practical, the State Comptroller shall direct and the State

23 Treasurer shall transfer the sum of $40,000,000 from the

24 Compassionate Use of Medical Cannabis Fund to the Cannabis

25 Business Development Fund.

26  (d) Notwithstanding any other law to the contrary, the
    SB3222 Enrolled      - 427 - LRB104 19119 AAS 32564 b

1 Cannabis Business Development Fund is not subject to sweeps,
2 administrative charge-backs, or any other fiscal or budgetary
3 maneuver that would in any way transfer any amounts from the
4 Cannabis Business Development Fund into any other fund of the
5 State.
6 (Source: P.A. 103-8, eff. 6-7-23.)

7   (410 ILCS 705/7-15)

8   Sec. 7-15. Loans, financial assistance, and grants to

9 Qualified Social Equity Applicants and Social Equity Lottery

10 Licensees.

11  (a) The Department of Commerce and Economic Opportunity

12 shall establish grant, and loan, and financial assistance

13 programs, subject to appropriations from the Cannabis Business

14 Development Fund, for the purposes of providing financial

15 assistance, loans, grants, and technical assistance to

16 Qualified Social Equity Applicants and holders of a

17 conditional or adult use dispensing organization licenses

18 issued pursuant to Section 15-25, 15-35, 15-35.10, or

19 subsection (c) of Section 15-35.20, so long as the entity

20 meets the definition of a "Social Equity Applicant" pursuant

21 to Section 1-10; the Department of Commerce and Economic

22 Opportunity may review that an applicant for a loan continues

23 to meet the statutory definition of a "Social Equity

24 Applicant".

25  (b) The Department of Commerce and Economic Opportunity
    SB3222 Enrolled  - 428 - LRB104 19119 AAS 32564 b

1 has the power to:

2   (1) provide Cannabis Social Equity loans, financial

3   assistance, and grants from appropriations from the

4   Cannabis Business Development Fund to assist Qualified

5   Social Equity Applicants and holders of a conditional or

6   adult use dispensing organization license issued pursuant

7   to Section 15-25, 15-35, 15-35.10, or subsection (c) of

8   Section 15-35.20 in gaining entry to, and successfully

9   operating in, the State's regulated cannabis marketplace,

10  so long as the entity meets the definition of a "Social

11  Equity Applicant" pursuant to Section 1-10; the Department

12  of Commerce and Economic Opportunity may review that an

13  applicant for a loan continues to meet the statutory

14  definition of a "Social Equity Applicant";

15  (2) enter into agreements that set forth terms and

16  conditions of the financial assistance, accept funds or

17  grants, and engage in cooperation with private entities

18  and agencies of State or local government to carry out the

19  purposes of this Section;

20  (3) fix, determine, charge, and collect any premiums,

21  fees, charges, costs and expenses, including application

22  fees, commitment fees, program fees, financing charges, or

23  publication fees in connection with its activities under

24  this Section;

25  (4) coordinate assistance under the financial

26  assistance these loan programs with activities of the
    SB3222 Enrolled          - 429 - LRB104 19119 AAS 32564 b

1   Illinois Department of Financial and Professional

2   Regulation, the Illinois Department of Agriculture, and

3   other agencies as needed to maximize the effectiveness and

4   efficiency of this Act;

5   (5) provide staff, administration, and related support

6   required to administer this Section;

7   (6) take whatever actions are necessary or appropriate

8   to protect the State's interest in the event of

9   bankruptcy, default, foreclosure, or noncompliance with

10  the terms and conditions of financial assistance provided

11  under this Section, including the ability to recapture

12  funds if the recipient is found to be noncompliant with

13  the terms and conditions of the financial assistance

14  agreement;

15  (6.5) enter into financial intermediary agreements and

16  charge fees to financial institutions required to

17  facilitate lending to or investment in Qualified Social

18  Equity Applicants and holders of a conditional or adult

19  use dispensing organization licenses issued pursuant to

20  Section 15-25, 15-35, 15-35.10, or subsection (c) of

21  Section 15-35.20, with the goal of ensuring the

22  availability of facilities necessary to operate a cannabis

23  business establishment, so long as the entity meets the

24  definition of a "Social Equity Applicant" pursuant to

25  Section 1-10; the Department of Commerce and Economic

26  Opportunity may review that an applicant for a loan
    SB3222 Enrolled     - 430 - LRB104 19119 AAS 32564 b

1   continues to meet the statutory definition of a "Social

2   Equity Applicant";

3   (7) establish application, notification, contract, and

4   other forms, procedures, or rules deemed necessary and

5   appropriate; and

6   (8) utilize vendors or contract work to carry out the

7   purposes of this Act; and .

8   (9) review that an applicant for financial assistance

9   meets the statutory definition of a "Social Equity

10  Applicant" as that term is defined in Section 1-10 of this

11  Act, for the purposes of providing financial assistance

12  pursuant to this Section.

13  (c) Financial assistance Loans made under this Section:

14  (1) shall only be made if, in the Department's

15  judgment, the project furthers the goals set forth in this

16  Act; and

17  (2) shall be in such principal amount and form and

18  contain such terms and provisions with respect to

19  security, insurance, reporting, delinquency charges,

20  default remedies, forgiveness, and other matters as the

21  Department shall determine appropriate to protect the

22  public interest and to be consistent with the purposes of

23  this Section. The terms and provisions may be less than

24  required for similar loans not covered by this Section;

25  and.

26  (3) may be distributed by lottery if the Department
   SB3222 Enrolled  - 431 - LRB104 19119 AAS 32564 b

1  determines that the amount of funding available is

2  insufficient to provide an adequate amount of funding for

3  all of the applicants eligible to receive financial

4  assistance. The Department may communicate the number of

5  awards for financial assistance available on the

6  application for financial assistance. The Department may

7  use competitive criteria to establish which applicants are

8  eligible to receive financial assistance.

9  (d) Grants made under this Section shall be awarded on a

10 competitive and annual basis in compliance with under the

11 Grant Accountability and Transparency Act; however, to the

12 extent registration with the federal System for Award

13 Management requires a grant applicant to certify compliance

14 with all federal laws, the grant applicants under this Section

15 shall not be required to register for a unique entity

16 identifier through the federal System for Award Management to

17 be qualified to receive financial assistance under this

18 Section, so long as federal law prohibits the cultivation and

19 sale of cannabis. Grants made under this Section shall further

20 and promote the goals of this Act, including promotion of

21 Social Equity Applicants, Qualified Social Equity Applicants,

22 and holders of a conditional or adult use dispensing

23 organization license issued pursuant to Section 15-25, 15-35,

24 15-35.10, or subsection (c) of Section 15-35.20, so long as

25 the entity meets the definition of a "Social Equity Applicant"

26 pursuant to Section 1-10 and the Department of Commerce and
    SB3222 Enrolled  - 432 - LRB104 19119 AAS 32564 b

1 Economic Opportunity may review that an applicant for a loan

2 continues to meet the statutory definition of a "Social Equity

3 Applicant", as well as including promotion of job training and

4 workforce development, and technical assistance to Social

5 Equity Applicants, Qualified Social Equity Applicants, and

6 holders of a conditional or adult use dispensing organization

7 licenses issued pursuant to Section 15-25, 15-35, 15-35.10, or

8 subsection (c) of Section 15-35.20, so long as the entity

9 meets the definition of a "Social Equity Applicant" pursuant

10 to Section 1-10 and the Department of Commerce and Economic

11 Opportunity may review that an applicant for a loan continues

12 to meet the statutory definition of a "Social Equity

13 Applicant".

14  (d-5) Financial intermediary agreements to provide

15 financial assistance must further the goals set forth in this

16 Act and shall result in financing or lease costs that are

17 affordable or below market rate.

18  (e) Beginning January 1, 2021 and each year thereafter,

19 the Department shall annually report to the Governor and the

20 General Assembly on the outcomes and effectiveness of this

21 Section that shall include the following:

22  (1) the number of persons or businesses receiving

23  financial assistance under this Section;

24  (2) the amount in financial assistance awarded in the

25  aggregate, in addition to the amount of loans made that

26  are outstanding and the amount of grants awarded;
    SB3222 Enrolled          - 433 - LRB104 19119 AAS 32564 b

1   (3) the location of the project engaged in by the

2   person or business; and

3   (4) if applicable, the number of new jobs and other

4   forms of economic output created as a result of the

5   financial assistance.

6   (f) The Department of Commerce and Economic Opportunity

7 shall include engagement with individuals with limited English

8 proficiency as part of its outreach provided or targeted to

9 attract and support Social Equity Applicants.

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

11  (410 ILCS 705/7-20)

12  Sec. 7-20. Fee waivers.

13  (a) For Social Equity Applicants and any dispensing

14 organization issued an adult use dispensing organization

15 license pursuant to a lottery conducted under subsection (c)

16 of Section 15-35.20 of this Act, the Department of Financial

17 and Professional Regulation and the Department of Agriculture

18 shall waive 50% of any nonrefundable license application fees,

19 any nonrefundable fees associated with purchasing a license to

20 operate a cannabis business establishment, and any surety bond

21 or other financial requirements, provided a Social Equity

22 Applicant meets the following qualifications at the time the

23 payment is due:

24  (1) the applicant, including all individuals and

25  entities with 10% or greater ownership and all parent
    SB3222 Enrolled         - 434 - LRB104 19119 AAS 32564 b

1   companies, subsidiaries, and affiliates, has less than a

2   total of $750,000 of gross income in the previous calendar

3   year; and

4   (2) the applicant, including all individuals and

5   entities with 10% or greater ownership and all parent

6   companies, subsidiaries, and affiliates, has no more than

7   2 other licenses for cannabis business establishments in

8   the State of Illinois.

9   (b) The Department of Financial and Professional

10 Regulation and the Department of Agriculture may require

11 Social Equity Applicants to attest that they meet the

12 requirements for a fee waiver as provided in subsection (a)

13 and to provide evidence of annual total income in the previous

14 calendar year.

15  (c) If the Department of Financial and Professional

16 Regulation or the Department of Agriculture determines that an

17 applicant who applied as a Social Equity Applicant is not

18 eligible for such status, the applicant shall be provided an

19 additional 10 days to provide alternative evidence that he or

20 she qualifies as a Social Equity Applicant. Alternatively, the

21 applicant may pay the remainder of the waived fee and be

22 considered as a non-Social Equity Applicant. If the applicant

23 cannot do either, then the Departments may keep the initial

24 application fee and the application shall not be graded.

25  (d) The Department of Agriculture shall provide hardship

26 waivers for craft grower, infuser, and transporter license and
    SB3222 Enrolled       - 435 - LRB104 19119 AAS 32564 b

1 renewal fees due to the Department pursuant to the following:

2   (1) The craft grower, infuser, and transporter

3   organization attests that the craft grower, infuser, and

4   transporter organization or applicant for renewal,

5   including all individuals and entities with 10% or greater

6   ownership and all parent companies, subsidiaries, and

7   affiliates, have no more than 2 other licenses for

8   cannabis business establishments in the State.

9   (2) For craft grower, infuser, and transporter

10  organizations that have a total of $50,000 or less of

11  reported gross income for the prior fiscal year, the

12  Department shall waive the full license or renewal fee.

13  The craft grower, infuser, and transporter organization

14  shall verify its income to the Department.

15  (3) For craft grower, infuser, and transporter

16  organizations that have a gross income of more than

17  $50,000 and less than or equal to $750,000, the Department

18  shall waive 50% of the full license or renewal fee. The

19  craft grower, infuser, and transporter organization shall

20  verify its income to the Department.

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

22  (410 ILCS 705/10-10)

23  Sec. 10-10. Possession limit.

24  (a) Except if otherwise authorized by this Act, for a

25 person who is 21 years of age or older and a resident of this
    SB3222 Enrolled  - 436 - LRB104 19119 AAS 32564 b

1 State, the possession limit is as follows:

2   (1) 60 30 grams of cannabis flower;

3   (2) no more than 1000 500 milligrams of THC contained

4   in cannabis-infused product;

5   (3) 10 5 grams of cannabis concentrate; and

6   (4) for registered qualifying patients, any cannabis

7   produced by cannabis plants grown under subsection (b) of

8   Section 10-5, provided any amount of cannabis produced in

9   excess of 60 30 grams of raw cannabis or its equivalent

10  must remain secured within the residence or residential

11  property in which it was grown.

12  (b) For a person who is 21 years of age or older and who is

13 not a resident of this State, the possession limit is:

14  (1) 30 15 grams of cannabis flower;

15  (2) 5 2.5 grams of cannabis concentrate; and

16  (3) 500 250 milligrams of THC contained in a

17  cannabis-infused product.

18  (c) The possession limits found in subsections (a) and (b)

19 of this Section are to be considered cumulative.

20  (d) No person shall knowingly obtain, seek to obtain, or

21 possess an amount of cannabis from a dispensing organization

22 or craft grower that would cause him or her to exceed the

23 possession limit under this Section, including cannabis that

24 is cultivated by a person under this Act or obtained as a

25 qualified registered medical patient, provisional patient,

26 designated caregiver, or Opioid Alternative Patient Program
    SB3222 Enrolled       - 437 - LRB104 19119 AAS 32564 b

1 participant.

2   (d-1) No qualified patient, provisional patient,

3 designated caregiver, or Opioid Alternative Patient Program

4 participant shall knowingly obtain, seek to obtain, or

5 possess, individually or collectively, an amount that would

6 cause the individual to exceed that individual's adequate

7 medical supply under the Compassionate Use of Medical Cannabis

8 Program Act.

9   (e) (Blank). Cannabis and cannabis-derived substances

10 regulated under the Industrial Hemp Act are not covered by

11 this Act.

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

13  (410 ILCS 705/10-15)

14  Sec. 10-15. Persons under 21 years of age.

15  (a) Nothing in this Act is intended to permit the transfer

16 of cannabis, with or without remuneration, to a person under

17 21 years of age, or to allow a person under 21 years of age to

18 purchase, possess, use, process, transport, grow, or consume

19 cannabis except where authorized by this Act, the

20 Compassionate Use of Medical Cannabis Program Act, or by the

21 Community College Cannabis Vocational Pilot Program.

22  (b) Notwithstanding any other provisions of law

23 authorizing the possession of medical cannabis or

24 cannabis-infused products by a qualified registered medical

25 patient, provisional patient, designated caregiver, or Opioid
    SB3222 Enrolled  - 438 - LRB104 19119 AAS 32564 b

1 Alternative Patient Program participant, nothing in this Act

2 authorizes a person who is under 21 years of age to possess

3 cannabis. A person under 21 years of age with cannabis in his

4 or her possession is guilty of a civil law violation as

5 outlined in paragraph (a) of Section 4 of the Cannabis Control

6 Act.

7   (c) If the person under the age of 21 was in a motor

8 vehicle at the time of the offense, the Secretary of State may

9 suspend or revoke the driving privileges of any person for a

10 violation of this Section under Section 6-206 of the Illinois

11 Vehicle Code and the rules adopted under it.

12  (d) It is unlawful for any parent or guardian to knowingly

13 permit his or her residence, any other private property under

14 his or her control, or any vehicle, conveyance, or watercraft

15 under his or her control to be used by an invitee of the

16 parent's child or the guardian's ward, if the invitee is under

17 the age of 21, in a manner that constitutes a violation of this

18 Section. A parent or guardian is deemed to have knowingly

19 permitted his or her residence, any other private property

20 under his or her control, or any vehicle, conveyance, or

21 watercraft under his or her control to be used in violation of

22 this Section if he or she knowingly authorizes or permits

23 consumption of cannabis by underage invitees. Any person who

24 violates this subsection (d) is guilty of a Class A

25 misdemeanor and the person's sentence shall include, but shall

26 not be limited to, a fine of not less than $500. If a violation
    SB3222 Enrolled       - 439 - LRB104 19119 AAS 32564 b

1 of this subsection (d) directly or indirectly results in great
2 bodily harm or death to any person, the person violating this
3 subsection is guilty of a Class 4 felony. In this subsection
4 (d), where the residence or other property has an owner and a
5 tenant or lessee, the trier of fact may infer that the
6 residence or other property is occupied only by the tenant or
7 lessee.
8 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)

9   (410 ILCS 705/15-10)

10  Sec. 15-10. Medical cannabis dispensing organization

11 exemption. Beginning 90 days after the effective date of this

12 amendatory Act of the 104th General Assembly, this This

13 Article does not apply to medical cannabis dispensing

14 organizations registered pursuant to Section 15-15 or Section

15 15-37 of this Act under the Compassionate Use of Medical

16 Cannabis Pilot Program Act, except where otherwise specified.

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

18  (410 ILCS 705/15-15)

19  Sec. 15-15. Early Approval Adult Use Dispensing

20 Organization License.

21  (a) Any medical cannabis dispensing organization holding a

22 valid registration under the Compassionate Use of Medical

23 Cannabis Program Act as of the effective date of this Act may,

24 within 60 days of the effective date of this Act, apply to the
    SB3222 Enrolled  - 440 - LRB104 19119 AAS 32564 b

1 Department for an Early Approval Adult Use Dispensing

2 Organization License to serve purchasers at any medical

3 cannabis dispensing location in operation on the effective

4 date of this Act, pursuant to this Section.

5   (b) A medical cannabis dispensing organization seeking

6 issuance of an Early Approval Adult Use Dispensing

7 Organization License to serve purchasers at any medical

8 cannabis dispensing location in operation as of the effective

9 date of this Act shall submit an application on forms provided

10 by the Department. The application must be submitted by the

11 same person or entity that holds the medical cannabis

12 dispensing organization registration and include the

13 following:

14  (1) Payment of a nonrefundable fee of $30,000 to be

15  deposited into the Cannabis Regulation Fund;

16  (2) Proof of registration as a medical cannabis

17  dispensing organization that is in good standing;

18  (3) Certification that the applicant will comply with

19  the requirements contained in the Compassionate Use of

20  Medical Cannabis Program Act except as provided in this

21  Act;

22  (4) The legal name of the dispensing organization;

23  (5) The physical address of the dispensing

24  organization;

25  (6) The name, address, social security number, and

26  date of birth of each principal officer and board member
    SB3222 Enrolled         - 441 - LRB104 19119 AAS 32564 b

1   of the dispensing organization, each of whom must be at

2   least 21 years of age;

3   (7) A nonrefundable Cannabis Business Development Fee

4   equal to 3% of the dispensing organization's total sales

5   between June 1, 2018 to June 1, 2019, or $100,000,

6   whichever is less, to be deposited into the Cannabis

7   Business Development Fund; and

8   (8) Identification of one of the following Social

9   Equity Inclusion Plans to be completed by March 31, 2021:

10  (A) Make a contribution of 3% of total sales from

11  June 1, 2018 to June 1, 2019, or $100,000, whichever is

12  less, to the Cannabis Business Development Fund. This

13  is in addition to the fee required by item (7) of this

14  subsection (b);

15  (B) Make a grant of 3% of total sales from June 1,

16  2018 to June 1, 2019, or $100,000, whichever is less,

17  to a cannabis industry training or education program

18  at an Illinois community college as defined in the

19  Public Community College Act;

20  (C) Make a donation of $100,000 or more to a

21  program that provides job training services to persons

22  recently incarcerated or that operates in a

23  Disproportionately Impacted Area;

24  (D) Participate as a host in a cannabis business

25  establishment incubator program approved by the

26  Department of Commerce and Economic Opportunity, and
    SB3222 Enrolled  - 442 - LRB104 19119 AAS 32564 b

1   in which an Early Approval Adult Use Dispensing

2   Organization License holder agrees to provide a loan

3   of at least $100,000 and mentorship to incubate, for

4   at least a year, a Social Equity Applicant intending

5   to seek a license or a licensee that qualifies as a

6   Social Equity Applicant. As used in this Section,

7   "incubate" means providing direct financial assistance

8   and training necessary to engage in licensed cannabis

9   industry activity similar to that of the host

10  licensee. The Early Approval Adult Use Dispensing

11  Organization License holder or the same entity holding

12  any other licenses issued pursuant to this Act shall

13  not take an ownership stake of greater than 10% in any

14  business receiving incubation services to comply with

15  this subsection. If an Early Approval Adult Use

16  Dispensing Organization License holder fails to find a

17  business to incubate to comply with this subsection

18  before its Early Approval Adult Use Dispensing

19  Organization License expires, it may opt to meet the

20  requirement of this subsection by completing another

21  item from this subsection; or

22  (E) Participate in a sponsorship program for at

23  least 2 years approved by the Department of Commerce

24  and Economic Opportunity in which an Early Approval

25  Adult Use Dispensing Organization License holder

26  agrees to provide an interest-free loan of at least
    SB3222 Enrolled         - 443 - LRB104 19119 AAS 32564 b

1   $200,000 to a Social Equity Applicant. The sponsor

2   shall not take an ownership stake in any cannabis

3   business establishment receiving sponsorship services

4   to comply with this subsection.

5   (b-5) Beginning 90 days after the effective date of this

6 amendatory Act of the 102nd General Assembly, an Early

7 Approval Adult Use Dispensing Organization licensee whose

8 license was issued pursuant to this Section may apply to

9 relocate within the same geographic district where its

10 existing associated medical cannabis dispensing organization

11 dispensary licensed under the Compassionate Use of Medical

12 Cannabis Program Act is authorized to operate. A request to

13 relocate under this subsection is subject to approval by the

14 Department. An Early Approval Adult Use Dispensing

15 Organization's application to relocate its license under this

16 subsection shall be deemed approved 30 days following the

17 submission of a complete application to relocate, unless

18 sooner approved or denied in writing by the Department. If an

19 application to relocate is denied, the Department shall

20 provide, in writing, the specific reason for denial.

21  An Early Approval Adult Use Dispensing Organization may

22 request to relocate under this subsection if:

23  (1) its existing location is within the boundaries of

24  a unit of local government that prohibits the sale of

25  adult use cannabis; or

26  (2) the Early Approval Adult Use Dispensing
    SB3222 Enrolled  - 444 - LRB104 19119 AAS 32564 b

1   Organization has obtained the approval of the municipality

2   or, if outside the boundaries of a municipality in an

3   unincorporated area of the county, the approval of the

4   county where the existing license is located to move to

5   another location within that unit of local government.

6   At no time may an Early Approval Adult Use Dispensing

7 Organization dispensary licensed under this Section operate in

8 a separate facility from its associated medical cannabis

9 dispensing organization dispensary licensed under the

10 Compassionate Use of Medical Cannabis Program Act. The

11 relocation of an Early Approval Adult Use Dispensing

12 Organization License under this subsection shall be subject to

13 Sections 55-25 and 55-28 of this Act.

14  (c) The license fee required by paragraph (1) of

15 subsection (b) of this Section shall be in addition to any

16 license fee required for the renewal of a registered medical

17 cannabis dispensing organization license.

18  (d) Applicants must submit all required information,

19 including the requirements in subsection (b) of this Section,

20 to the Department. Failure by an applicant to submit all

21 required information may result in the application being

22 disqualified.

23  (e) If the Department receives an application that fails

24 to provide the required elements contained in subsection (b),

25 the Department shall issue a deficiency notice to the

26 applicant. The applicant shall have 10 calendar days from the
    SB3222 Enrolled  - 445 - LRB104 19119 AAS 32564 b

1 date of the deficiency notice to submit complete information.

2 Applications that are still incomplete after this opportunity

3 to cure may be disqualified.

4   (f) If an applicant meets all the requirements of

5 subsection (b) of this Section, the Department shall issue the

6 Early Approval Adult Use Dispensing Organization License

7 within 14 days of receiving a completed application unless:

8            (1) The licensee or a principal officer is delinquent

9   in filing any required tax returns or paying any amounts

10  owed to the State of Illinois;

11           (2) The Secretary of Financial and Professional

12  Regulation determines there is reason, based on documented

13  compliance violations, the licensee is not entitled to an

14  Early Approval Adult Use Dispensing Organization License;

15  or

16           (3) Any principal officer fails to register and remain

17  in compliance with this Act or the Compassionate Use of

18  Medical Cannabis Program Act.

19  (g) A registered medical cannabis dispensing organization

20 that obtains an Early Approval Adult Use Dispensing

21 Organization License may begin selling cannabis,

22 cannabis-infused products, paraphernalia, and related items to

23 purchasers under the rules of this Act no sooner than January

24 1, 2020.

25  (h) A dispensing organization holding a medical cannabis

26 dispensing organization license issued under the Compassionate
    SB3222 Enrolled       - 446 - LRB104 19119 AAS 32564 b

1 Use of Medical Cannabis Program Act must maintain an adequate

2 supply of cannabis and cannabis-infused products for purchase

3 by qualifying patients, designated caregivers, provisional

4 patients, and Opioid Alternative Patient Pilot Program

5 participants. For the purposes of this subsection, "adequate

6 supply" means a monthly inventory level that is comparable in

7 type and quantity to those medical cannabis products provided

8 to patients and caregivers on an average monthly basis for the

9 6 months before the effective date of this Act.

10  (i) If there is a shortage of cannabis or cannabis-infused

11 products, a dispensing organization holding both a dispensing

12 organization license under the Compassionate Use of Medical

13 Cannabis Program Act and this Act shall prioritize serving

14 qualifying patients, designated caregivers, provisional

15 patients, and Opioid Alternative Patient Pilot Program

16 participants before serving purchasers.

17  (j) Notwithstanding any law or rule to the contrary, a

18 person that holds a medical cannabis dispensing organization

19 license issued under the Compassionate Use of Medical Cannabis

20 Program Act and an Early Approval Adult Use Dispensing

21 Organization License may permit purchasers into a limited

22 access area as that term is defined in administrative rules

23 made under the authority in the Compassionate Use of Medical

24 Cannabis Program Act.

25  (k) An Early Approval Adult Use Dispensing Organization

26 License is valid until March 31, 2021. A dispensing
    SB3222 Enrolled      - 447 - LRB104 19119 AAS 32564 b

1 organization that obtains an Early Approval Adult Use

2 Dispensing Organization License shall receive written or

3 electronic notice 90 days before the expiration of the license

4 that the license will expire, and that informs the license

5 holder that it may apply to renew its Early Approval Adult Use

6 Dispensing Organization License on forms provided by the

7 Department. The Department shall renew the Early Approval

8 Adult Use Dispensing Organization License within 60 days of

9 the renewal application being deemed complete if:

10  (1) the dispensing organization submits an application

11  and the required nonrefundable renewal fee of $30,000, to

12  be deposited into the Cannabis Regulation Fund;

13  (2) the Department has not suspended or permanently

14  revoked the Early Approval Adult Use Dispensing

15  Organization License or a medical cannabis dispensing

16  organization license on the same premises for violations

17  of this Act, the Compassionate Use of Medical Cannabis

18  Program Act, or rules adopted pursuant to those Acts;

19  (3) the dispensing organization has completed a Social

20  Equity Inclusion Plan as provided by parts (A), (B), and

21  (C) of paragraph (8) of subsection (b) of this Section or

22  has made substantial progress toward completing a Social

23  Equity Inclusion Plan as provided by parts (D) and (E) of

24  paragraph (8) of subsection (b) of this Section; and

25  (4) the dispensing organization is in compliance with

26  this Act and rules.
    SB3222 Enrolled  - 448 - LRB104 19119 AAS 32564 b

1   (l) The Early Approval Adult Use Dispensing Organization

2 License renewed pursuant to subsection (k) of this Section

3 shall expire March 31, 2022. The Early Approval Adult Use

4 Dispensing Organization Licensee shall receive written or

5 electronic notice 90 days before the expiration of the license

6 that the license will expire, and that informs the license

7 holder that it may apply for an Adult Use Dispensing

8 Organization License on forms provided by the Department. The

9 Department shall grant an Adult Use Dispensing Organization

10 License within 60 days of an application being deemed complete

11 if the applicant has met all of the criteria in Section 15-36.

12  (m) If a dispensing organization fails to submit an

13 application for renewal of an Early Approval Adult Use

14 Dispensing Organization License or for an Adult Use Dispensing

15 Organization License before the expiration dates provided in

16 subsections (k) and (l) of this Section, the dispensing

17 organization shall cease serving purchasers and cease all

18 operations until it receives a renewal or an Adult Use

19 Dispensing Organization License, as the case may be.

20  (n) A dispensing organization agent who holds a valid

21 dispensing organization agent identification card issued under

22 the Compassionate Use of Medical Cannabis Program Act and is

23 an officer, director, manager, or employee of the dispensing

24 organization licensed under this Section may engage in all

25 activities authorized by this Article to be performed by a

26 dispensing organization agent.
    SB3222 Enrolled        - 449 - LRB104 19119 AAS 32564 b

1   (o) If the Department suspends, permanently revokes, or

2 otherwise disciplines the Early Approval Adult Use Dispensing

3 Organization License of a dispensing organization that also

4 holds a medical cannabis dispensing organization license

5 issued under the Compassionate Use of Medical Cannabis Program

6 Act, the Department may consider the suspension, permanent

7 revocation, or other discipline of the medical cannabis

8 dispensing organization license.

9   (p) All fees collected pursuant to this Section shall be

10 deposited into the Cannabis Regulation Fund, unless otherwise

11 specified.

12  (q) Beginning 90 days after the effective date of this

13 amendatory Act of the 104th General Assembly, the Department

14 may update any existing Early Approval Adult Use Dispensing

15 Organization License to become both an Adult Use Dispensing

16 Organization License issued under Section 15-36 and a

17 corresponding Medical Cannabis Dispensing Organization License

18 under Section 15-37.

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

20 102-98, eff. 7-15-21.)

21  (410 ILCS 705/15-20)

22  Sec. 15-20. Early Approval Adult Use Dispensing

23 Organization License; secondary site.

24  (a) Any medical cannabis dispensing organization holding a

25 valid registration under the Compassionate Use of Medical
    SB3222 Enrolled  - 450 - LRB104 19119 AAS 32564 b

1 Cannabis Program Act as of the effective date of this Act may,

2 within 60 days of the effective date of this Act, apply to the

3 Department for an Early Approval Adult Use Dispensing

4 Organization License to operate a dispensing organization to

5 serve purchasers at a secondary site not within 1,500 feet of

6 another medical cannabis dispensing organization or adult use

7 dispensing organization. The Early Approval Adult Use

8 Dispensing Organization secondary site shall be within any BLS

9 Region that shares territory with the dispensing organization

10 district to which the medical cannabis dispensing organization

11 is assigned under the administrative rules for dispensing

12 organizations under the Compassionate Use of Medical Cannabis

13 Program Act.

14  (a-5) If, within 360 days of the effective date of this

15 Act, a dispensing organization is unable to find a location

16 within the BLS Regions prescribed in subsection (a) of this

17 Section in which to operate an Early Approval Adult Use

18 Dispensing Organization at a secondary site because no

19 jurisdiction within the prescribed area allows the operation

20 of an Adult Use Dispensing Organization, the Department of

21 Financial and Professional Regulation may waive the geographic

22 restrictions of subsection (a) of this Section and specify

23 another BLS Region into which the dispensary may be placed.

24  (b) (Blank).

25  (c) A medical cannabis dispensing organization seeking

26 issuance of an Early Approval Adult Use Dispensing
    SB3222 Enrolled         - 451 - LRB104 19119 AAS 32564 b

1 Organization License at a secondary site to serve purchasers

2 at a secondary site as prescribed in subsection (a) of this

3 Section shall submit an application on forms provided by the

4 Department. The application must meet or include the following

5 qualifications:

6   (1) a payment of a nonrefundable application fee of

7   $30,000;

8   (2) proof of registration as a medical cannabis

9   dispensing organization that is in good standing;

10  (3) submission of the application by the same person

11  or entity that holds the medical cannabis dispensing

12  organization registration;

13  (4) the legal name of the medical cannabis dispensing

14  organization;

15  (5) the physical address of the medical cannabis

16  dispensing organization and the proposed physical address

17  of the secondary site;

18  (6) a copy of the current local zoning ordinance

19  Sections relevant to dispensary operations and

20  documentation of the approval, the conditional approval or

21  the status of a request for zoning approval from the local

22  zoning office that the proposed dispensary location is in

23  compliance with the local zoning rules;

24  (7) a plot plan of the dispensary drawn to scale. The

25  applicant shall submit general specifications of the

26  building exterior and interior layout;
    SB3222 Enrolled  - 452 - LRB104 19119 AAS 32564 b

1   (8) a statement that the dispensing organization

2   agrees to respond to the Department's supplemental

3   requests for information;

4   (9) for the building or land to be used as the proposed

5   dispensary:

6   (A) if the property is not owned by the applicant,

7   a written statement from the property owner and

8   landlord, if any, certifying consent that the

9   applicant may operate a dispensary on the premises; or

10  (B) if the property is owned by the applicant,

11  confirmation of ownership;

12  (10) a copy of the proposed operating bylaws;

13  (11) a copy of the proposed business plan that

14  complies with the requirements in this Act, including, at

15  a minimum, the following:

16  (A) a description of services to be offered; and

17  (B) a description of the process of dispensing

18  cannabis;

19  (12) a copy of the proposed security plan that

20  complies with the requirements in this Article, including:

21  (A) a description of the delivery process by which

22  cannabis will be received from a transporting

23  organization, including receipt of manifests and

24  protocols that will be used to avoid diversion, theft,

25  or loss at the dispensary acceptance point; and

26  (B) the process or controls that will be
    SB3222 Enrolled           - 453 - LRB104 19119 AAS 32564 b

1   implemented to monitor the dispensary, secure the

2   premises, agents, patients, and currency, and prevent

3   the diversion, theft, or loss of cannabis; and

4   (C) the process to ensure that access to the

5   restricted access areas is restricted to, registered

6   agents,          service  professionals,  transporting

7   organization agents, Department inspectors, and

8   security personnel;

9   (13) a proposed inventory control plan that complies

10  with this Section;

11  (14) the name, address, social security number, and

12  date of birth of each principal officer and board member

13  of the dispensing organization; each of those individuals

14  shall be at least 21 years of age;

15  (15) a nonrefundable Cannabis Business Development Fee

16  equal to $200,000, to be deposited into the Cannabis

17  Business Development Fund; and

18  (16) a commitment to completing one of the following

19  Social Equity Inclusion Plans in subsection (d).

20  (d) Before receiving an Early Approval Adult Use

21 Dispensing Organization License at a secondary site, a

22 dispensing organization shall indicate the Social Equity

23 Inclusion Plan that the applicant plans to achieve before the

24 expiration of the Early Approval Adult Use Dispensing

25 Organization License from the list below:

26  (1) make a contribution of 3% of total sales from June
    SB3222 Enrolled         - 454 - LRB104 19119 AAS 32564 b

1   1, 2018 to June 1, 2019, or $100,000, whichever is less, to

2   the Cannabis Business Development Fund. This is in

3   addition to the fee required by paragraph (16) of

4   subsection (c) of this Section;

5   (2) make a grant of 3% of total sales from June 1, 2018

6   to June 1, 2019, or $100,000, whichever is less, to a

7   cannabis industry training or education program at an

8   Illinois community college as defined in the Public

9   Community College Act;

10  (3) make a donation of $100,000 or more to a program

11  that provides job training services to persons recently

12  incarcerated or that operates in a Disproportionately

13  Impacted Area;

14  (4) participate as a host in a cannabis business

15  establishment incubator program approved by the Department

16  of Commerce and Economic Opportunity, and in which an

17  Early Approval Adult Use Dispensing Organization License

18  at a secondary site holder agrees to provide a loan of at

19  least $100,000 and mentorship to incubate, for at least a

20  year, a Social Equity Applicant intending to seek a

21  license or a licensee that qualifies as a Social Equity

22  Applicant. In this paragraph (4), "incubate" means

23  providing direct financial assistance and training

24  necessary to engage in licensed cannabis industry activity

25  similar to that of the host licensee. The Early Approval

26  Adult Use Dispensing Organization License holder or the
    SB3222 Enrolled      - 455 - LRB104 19119 AAS 32564 b

1   same entity holding any other licenses issued under this

2   Act shall not take an ownership stake of greater than 10%

3   in any business receiving incubation services to comply

4   with this subsection. If an Early Approval Adult Use

5   Dispensing Organization License at a secondary site holder

6   fails to find a business to incubate in order to comply

7   with this subsection before its Early Approval Adult Use

8   Dispensing Organization License at a secondary site

9   expires, it may opt to meet the requirement of this

10  subsection by completing another item from this subsection

11  before the expiration of its Early Approval Adult Use

12  Dispensing Organization License at a secondary site to

13  avoid a penalty; or

14  (5) participate in a sponsorship program for at least

15  2 years approved by the Department of Commerce and

16  Economic Opportunity in which an Early Approval Adult Use

17  Dispensing Organization License at a secondary site holder

18  agrees to provide an interest-free loan of at least

19  $200,000 to a Social Equity Applicant. The sponsor shall

20  not take an ownership stake of greater than 10% in any

21  business receiving sponsorship services to comply with

22  this subsection.

23  (e) The license fee required by paragraph (1) of

24 subsection (c) of this Section is in addition to any license

25 fee required for the renewal of a registered medical cannabis

26 dispensing organization license.
    SB3222 Enrolled  - 456 - LRB104 19119 AAS 32564 b

1   (f) Applicants must submit all required information,

2 including the requirements in subsection (c) of this Section,

3 to the Department. Failure by an applicant to submit all

4 required information may result in the application being

5 disqualified. Principal officers shall not be required to

6 submit to the fingerprint and background check requirements of

7 Section 5-20.

8   (g) If the Department receives an application that fails

9 to provide the required elements contained in subsection (c),

10 the Department shall issue a deficiency notice to the

11 applicant. The applicant shall have 10 calendar days from the

12 date of the deficiency notice to submit complete information.

13 Applications that are still incomplete after this opportunity

14 to cure may be disqualified.

15  (h) Once all required information and documents have been

16 submitted, the Department will review the application. The

17 Department may request revisions and retains final approval

18 over dispensary features. Once the application is complete and

19 meets the Department's approval, the Department shall

20 conditionally approve the license. Final approval is

21 contingent on the build-out and Department inspection.

22  (i) Upon submission of the Early Approval Adult Use

23 Dispensing Organization at a secondary site application, the

24 applicant shall request an inspection and the Department may

25 inspect the Early Approval Adult Use Dispensing Organization's

26 secondary site to confirm compliance with the application and
    SB3222 Enrolled         - 457 - LRB104 19119 AAS 32564 b

1 this Act.

2   (j) The Department shall only issue an Early Approval

3 Adult Use Dispensing Organization License at a secondary site

4 after the completion of a successful inspection.

5   (k) If an applicant passes the inspection under this

6 Section, the Department shall issue the Early Approval Adult

7 Use Dispensing Organization License at a secondary site within

8 10 business days unless:

9   (1) the licensee, any principal officer or board

10  member of the licensee, or any person having a financial

11  or voting interest of 5% or greater in the licensee is

12  delinquent in filing any required tax returns or paying

13  any amounts owed to the State of Illinois; or

14  (2) the Secretary of Financial and Professional

15  Regulation determines there is reason, based on documented

16  compliance violations, the licensee is not entitled to an

17  Early Approval Adult Use Dispensing Organization License

18  at its secondary site.

19  (l) Once the Department has issued a license, the

20 dispensing organization shall notify the Department of the

21 proposed opening date.

22  (m) A registered medical cannabis dispensing organization

23 that obtains an Early Approval Adult Use Dispensing

24 Organization License at a secondary site may begin selling

25 cannabis, cannabis-infused products, paraphernalia, and

26 related items to purchasers under the rules of this Act no
    SB3222 Enrolled  - 458 - LRB104 19119 AAS 32564 b

1 sooner than January 1, 2020.

2   (n) If there is a shortage of cannabis or cannabis-infused

3 products, a dispensing organization holding both a dispensing

4 organization license under the Compassionate Use of Medical

5 Cannabis Program Act and this Article shall prioritize serving

6 qualifying patients and caregivers before serving purchasers.

7   (o) An Early Approval Adult Use Dispensing Organization

8 License at a secondary site is valid until March 31, 2021. A

9 dispensing organization that obtains an Early Approval Adult

10 Use Dispensing Organization License at a secondary site shall

11 receive written or electronic notice 90 days before the

12 expiration of the license that the license will expire, and

13 inform the license holder that it may renew its Early Approval

14 Adult Use Dispensing Organization License at a secondary site.

15 The Department shall renew an Early Approval Adult Use

16 Dispensing Organization License at a secondary site within 60

17 days of submission of the renewal application being deemed

18 complete if:

19  (1) the dispensing organization submits an application

20  and the required nonrefundable renewal fee of $30,000, to

21  be deposited into the Cannabis Regulation Fund;

22  (2) the Department has not suspended or permanently

23  revoked the Early Approval Adult Use Dispensing

24  Organization License or a medical cannabis dispensing

25  organization license held by the same person or entity for

26  violating this Act or rules adopted under this Act or the
    SB3222 Enrolled  - 459 - LRB104 19119 AAS 32564 b

1   Compassionate Use of Medical Cannabis Program Act or rules

2   adopted under that Act; and

3   (3) the dispensing organization has completed a Social

4   Equity Inclusion Plan provided by paragraph (1), (2), or

5   (3) of subsection (d) of this Section or has made

6   substantial progress toward completing a Social Equity

7   Inclusion Plan provided by paragraph (4) or (5) of

8   subsection (d) of this Section.

9   (p) The Early Approval Adult Use Dispensing Organization

10 Licensee at a secondary site renewed pursuant to subsection

11 (o) shall receive written or electronic notice 90 days before

12 the expiration of the license that the license will expire,

13 and that informs the license holder that it may apply for an

14 Adult Use Dispensing Organization License on forms provided by

15 the Department. The Department shall grant an Adult Use

16 Dispensing Organization License within 60 days of an

17 application being deemed complete if the applicant has met

18 meet all of the criteria in Section 15-36.

19  (q) If a dispensing organization fails to submit an

20 application for renewal of an Early Approval Adult Use

21 Dispensing Organization License or for an Adult Use Dispensing

22 Organization License before the expiration dates provided in

23 subsections (o) and (p) of this Section, the dispensing

24 organization shall cease serving purchasers until it receives

25 a renewal or an Adult Use Dispensing Organization License.

26  (r) A dispensing organization agent who holds a valid
    SB3222 Enrolled  - 460 - LRB104 19119 AAS 32564 b

1 dispensing organization agent identification card issued under

2 the Compassionate Use of Medical Cannabis Program Act and is

3 an officer, director, manager, or employee of the dispensing

4 organization licensed under this Section may engage in all

5 activities authorized by this Article to be performed by a

6 dispensing organization agent.

7   (s) If the Department suspends, permanently revokes, or

8 otherwise disciplines the Early Approval Adult Use Dispensing

9 Organization License of a dispensing organization that also

10 holds a medical cannabis dispensing organization license

11 issued under the Compassionate Use of Medical Cannabis Program

12 Act, the Department may consider the suspension, permanent

13 revocation, or other discipline as grounds to take

14 disciplinary action against the medical cannabis dispensing

15 organization.

16  (t) All fees collected pursuant to this Section shall be

17 deposited into the Cannabis Regulation Fund, unless otherwise

18 specified.

19 (Source: P.A. 104-417, eff. 8-15-25.)

20  (410 ILCS 705/15-24 new)

21  Sec. 15-24. Adult Use Dispensing Organization Licensee

22 relocation.

23  (a) An Adult Use Dispensing Organization licensee may

24 apply to relocate within the licensee's specific BLS Region

25 consistent with this Section. A request to relocate under this
    SB3222 Enrolled  - 461 - LRB104 19119 AAS 32564 b

1 Section is subject to approval by the Department. An Adult Use

2 Dispensing Organization's application to relocate its license

3 under this Section shall be considered to be approved 30 days

4 following the submission of a complete application to

5 relocate, unless the request is sooner approved or denied in

6 writing by the Department. If an application to relocate is

7 denied, the Department shall provide, in writing, the specific

8 reason for denial. An Adult Use Dispensing Organization may

9 request to relocate under this Section only if:

10  (1) the Adult Use Dispensing Organization's existing

11  location is within the boundaries of a unit of local

12  government that prohibits the sale of adult use cannabis;

13  (2) the Adult Use Dispensing Organization has obtained

14  the zoning approval of a new location by the municipality

15  it currently operates in if the new location is within

16  that same municipality, or if outside the boundaries of a

17  municipality in an unincorporated area of the county, the

18  zoning approval of a new location by the county where it

19  currently operates in if the new location is within the

20  same county, to move to a different location within that

21  unit of local government; or

22  (3) the Adult Use Dispensing Organization has obtained

23  the approval, as evidenced by a letter of intent or full

24  zoning approval, to operate within the boundaries of a new

25  unit of local government, so long as the new unit of local

26  government is within the dispensing organization's
    SB3222 Enrolled       - 462 - LRB104 19119 AAS 32564 b

1   specific BLS Region.

2   (b) The relocation of an Adult Use Dispensing Organization

3 Licensee under this Section shall be subject to Sections 55-25

4 and 55-28.

5   (410 ILCS 705/15-25)

6   Sec. 15-25. Awarding of Conditional Adult Use Dispensing

7 Organization Licenses prior to January 1, 2021.

8   (a) The Department shall issue up to 75 Conditional Adult

9 Use Dispensing Organization Licenses before May 1, 2020.

10  (b) The Department shall make the application for a

11 Conditional Adult Use Dispensing Organization License

12 available no later than October 1, 2019 and shall accept

13 applications no later than January 1, 2020.

14  (c) To ensure the geographic dispersion of Conditional

15 Adult Use Dispensing Organization License holders, the

16 following number of licenses shall be awarded in each BLS

17 Region as determined by each region's percentage of the

18 State's population:

19  (1) Bloomington: 1

20  (2) Cape Girardeau: 1

21  (3) Carbondale-Marion: 1

22  (4) Champaign-Urbana: 1

23  (5) Chicago-Naperville-Elgin: 47

24  (6) Danville: 1

25  (7) Davenport-Moline-Rock Island: 1
    SB3222 Enrolled      - 463 - LRB104 19119 AAS 32564 b

1   (8) Decatur: 1

2   (9) Kankakee: 1

3   (10) Peoria: 3

4   (11) Rockford: 2

5   (12) St. Louis: 4

6   (13) Springfield: 1

7   (14) Northwest Illinois nonmetropolitan: 3

8   (15) West Central Illinois nonmetropolitan: 3

9   (16) East Central Illinois nonmetropolitan: 2

10  (17) South Illinois nonmetropolitan: 2

11  (d) An applicant seeking issuance of a Conditional Adult

12 Use Dispensing Organization License shall submit an

13 application on forms provided by the Department. An applicant

14 must meet the following requirements:

15  (1) Payment of a nonrefundable application fee of

16  $5,000 for each license for which the applicant is

17  applying, which shall be deposited into the Cannabis

18  Regulation Fund;

19  (2) Certification that the applicant will comply with

20  the requirements contained in this Act;

21  (3) The legal name of the proposed dispensing

22  organization;

23  (4) A statement that the dispensing organization

24  agrees to respond to the Department's supplemental

25  requests for information;

26  (5) From each principal officer, a statement
    SB3222 Enrolled  - 464 - LRB104 19119 AAS 32564 b

1   indicating whether that person:

2   (A) has previously held or currently holds an

3   ownership interest in a cannabis business

4   establishment in Illinois; or

5   (B) has held an ownership interest in a dispensing

6   organization or its equivalent in another state or

7   territory of the United States that had the dispensing

8   organization registration or license suspended,

9   revoked, placed on probationary status, or subjected

10  to other disciplinary action;

11  (6) Disclosure of whether any principal officer has

12  ever filed for bankruptcy or defaulted on spousal support

13  or child support obligation;

14  (7) A resume for each principal officer, including

15  whether that person has an academic degree, certification,

16  or relevant experience with a cannabis business

17  establishment or in a related industry;

18  (8) A description of the training and education that

19  will be provided to dispensing organization agents;

20  (9) A copy of the proposed operating bylaws;

21  (10) A copy of the proposed business plan that

22  complies with the requirements in this Act, including, at

23  a minimum, the following:

24  (A) A description of services to be offered; and

25  (B) A description of the process of dispensing

26  cannabis;
    SB3222 Enrolled           - 465 - LRB104 19119 AAS 32564 b

1   (11) A copy of the proposed security plan that

2   complies with the requirements in this Article, including:

3   (A) The process or controls that will be

4   implemented to monitor the dispensary, secure the

5   premises, agents, and currency, and prevent the

6   diversion, theft, or loss of cannabis; and

7   (B) The process to ensure that access to the

8   restricted access areas is restricted to, registered

9   agents,          service  professionals,    transporting

10  organization agents, Department inspectors, and

11  security personnel;

12  (12) A proposed inventory control plan that complies

13  with this Section;

14  (13) A proposed floor plan, a square footage estimate,

15  and a description of proposed security devices, including,

16  without limitation, cameras, motion detectors, servers,

17  video storage capabilities, and alarm service providers;

18  (14) The name, address, social security number, and

19  date of birth of each principal officer and board member

20  of the dispensing organization; each of those individuals

21  shall be at least 21 years of age;

22  (15) Evidence of the applicant's status as a Social

23  Equity Applicant, if applicable, and whether a Social

24  Equity Applicant plans to apply for a loan or grant issued

25  by the Department of Commerce and Economic Opportunity;

26  (16) The address, telephone number, and email address
    SB3222 Enrolled         - 466 - LRB104 19119 AAS 32564 b

1   of the applicant's principal place of business, if

2   applicable. A post office box is not permitted;

3   (17) Written summaries of any information regarding

4   instances in which a business or not-for-profit that a

5   prospective board member previously managed or served on

6   were fined or censured, or any instances in which a

7   business or not-for-profit that a prospective board member

8   previously managed or served on had its registration

9   suspended or revoked in any administrative or judicial

10  proceeding;

11  (18) A plan for community engagement;

12  (19) Procedures to ensure accurate recordkeeping and

13  security measures that are in accordance with this Article

14  and Department rules;

15  (20) The estimated volume of cannabis it plans to

16  store at the dispensary;

17  (21) A description of the features that will provide

18  accessibility to purchasers as required by the Americans

19  with Disabilities Act;

20  (22) A detailed description of air treatment systems

21  that will be installed to reduce odors;

22  (23) A reasonable assurance that the issuance of a

23  license will not have a detrimental impact on the

24  community in which the applicant wishes to locate;

25  (24) The dated signature of each principal officer;

26  (25) A description of the enclosed, locked facility
    SB3222 Enrolled  - 467 - LRB104 19119 AAS 32564 b

1   where cannabis will be stored by the dispensing

2   organization;

3   (26) Signed statements from each dispensing

4   organization agent stating that he or she will not divert

5   cannabis;

6   (27) The number of licenses it is applying for in each

7   BLS Region;

8   (28) A diversity plan that includes a narrative of at

9   least 2,500 words that establishes a goal of diversity in

10  ownership, management, employment, and contracting to

11  ensure that diverse participants and groups are afforded

12  equality of opportunity;

13  (29) A contract with a private security contractor

14  agency that is licensed under Section 10-5 of the Private

15  Detective, Private Alarm, Private Security, Fingerprint

16  Vendor, and Locksmith Act of 2004 in order for the

17  dispensary to have adequate security at its facility; and

18  (30) Other information deemed necessary by the

19  Illinois Cannabis Regulation Oversight Officer to conduct

20  the disparity and availability study referenced in

21  subsection (e) of Section 5-45.

22  (e) An applicant who receives a Conditional Adult Use

23 Dispensing Organization License under this Section has 180

24 days from the date of award to identify a physical location for

25 the dispensing organization retail storefront. The applicant

26 shall provide evidence that the location is not within 1,500
SB3222 Enrolled  - 468 - LRB104 19119 AAS 32564 b

 1 feet of an existing dispensing organization, unless the
 2 applicant is a Social Equity Applicant or Social Equity
 3 Justice Involved Applicant located or seeking to locate within
 4 1,500 feet of a dispensing organization licensed under Section
 5 15-15 or Section 15-20. If an applicant is unable to find a
 6 suitable physical address in the opinion of the Department
 7 within 180 days of the issuance of the Conditional Adult Use
 8 Dispensing Organization License, the Department may extend the
 9 period for finding a physical address an additional 540 days
10 if the Conditional Adult Use Dispensing Organization License
11 holder demonstrates concrete attempts to secure a location and
12 a hardship. If the Department denies the extension or the
13 Conditional Adult Use Dispensing Organization License holder
14 is unable to either find a location within 720 days of being
15 awarded a conditional license and become operational within
16 180 days thereafter or become operational within 720 days of
17 being awarded a conditional license, the Department may,
18 considering the totality of the circumstances, rescind the
19 conditional license. If the conditional license holder does
20 not become operational within 365 days after having found a
21 location, the Department may mandate a date by which the
22 conditional license holder shall become operational prior to
23 the Department rescinding the conditional license. If the
24 Department rescinds shall rescind the conditional license it
25 may and award it to the next highest scoring applicant in the
26 BLS Region for which the license was assigned, provided the
    SB3222 Enrolled  - 469 - LRB104 19119 AAS 32564 b

1 applicant receiving the license: (i) confirms a continued

2 interest in operating a dispensing organization; (ii) can

3 provide evidence that the applicant continues to meet all

4 requirements for holding a Conditional Adult Use Dispensing

5 Organization License set forth in this Act; and (iii) has not

6 otherwise become ineligible to be awarded a dispensing

7 organization license. If the new awardee is unable to accept

8 the Conditional Adult Use Dispensing Organization License, the

9 Department may issue shall award the Conditional Adult Use

10 Dispensing Organization License to the next highest scoring

11 applicant in the same manner. The new awardee shall be subject

12 to the same required deadlines as provided in this subsection.

13  (e-5) If, within 720 days of being awarded a Conditional

14 Adult Use Dispensing Organization License, a dispensing

15 organization is unable to find a location within the BLS

16 Region in which it was awarded a Conditional Adult Use

17 Dispensing Organization License because no jurisdiction within

18 the BLS Region allows for the operation of an Adult Use

19 Dispensing Organization, the Department of Financial and

20 Professional Regulation may authorize the Conditional Adult

21 Use Dispensing Organization License holder to transfer its

22 license to a BLS Region specified by the Department.

23  (f) A dispensing organization that is awarded a

24 Conditional Adult Use Dispensing Organization License pursuant

25 to the criteria in Section 15-30 shall not purchase, possess,

26 sell, or dispense cannabis or cannabis-infused products until
    SB3222 Enrolled       - 470 - LRB104 19119 AAS 32564 b

1 the person has received an Adult Use Dispensing Organization

2 License issued by the Department pursuant to Section 15-36 of

3 this Act.

4   (g) The Department shall conduct a background check of the

5 prospective organization agents in order to carry out this

6 Article. The Illinois State Police shall charge the applicant

7 a fee for conducting the criminal history record check, which

8 shall be deposited into the State Police Services Fund and

9 shall not exceed the actual cost of the record check. Each

10 person applying as a dispensing organization agent shall

11 submit a full set of fingerprints to the Illinois State Police

12 for the purpose of obtaining a State and federal criminal

13 records check. These fingerprints shall be checked against the

14 fingerprint records now and hereafter, to the extent allowed

15 by law, filed in the Illinois State Police and Federal Bureau

16 of Identification criminal history records databases. The

17 Illinois State Police shall furnish, following positive

18 identification, all Illinois conviction information to the

19 Department.

20 (Source: P.A. 102-98, eff. 7-15-21; 102-538, eff. 8-20-21;

21 102-813, eff. 5-13-22; 103-8, eff. 6-7-23.)

22  (410 ILCS 705/15-35)

23  Sec. 15-35. Qualifying Applicant Lottery for Conditional

24 Adult Use Dispensing Organization Licenses.

25  (a) In addition to any of the licenses issued under
    SB3222 Enrolled      - 471 - LRB104 19119 AAS 32564 b

1 Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,

2 or Section 15-35.10 of this Act, within 10 business days after

3 the resulting final scores for all scored applications

4 pursuant to Sections 15-25 and 15-30 are released, the

5 Department shall issue up to 55 Conditional Adult Use

6 Dispensing Organization Licenses by lot, pursuant to the

7 application process adopted under this Section. In order to be

8 eligible to be awarded a Conditional Adult Use Dispensing

9 Organization License by lot under this Section, a Dispensary

10 Applicant must be a Qualifying Applicant.

11  The licenses issued under this Section shall be awarded in

12 each BLS Region in the following amounts:

13  (1) Bloomington: 1.

14  (2) Cape Girardeau: 1.

15  (3) Carbondale-Marion: 1.

16  (4) Champaign-Urbana: 1.

17  (5) Chicago-Naperville-Elgin: 36.

18  (6) Danville: 1.

19  (7) Davenport-Moline-Rock Island: 1.

20  (8) Decatur: 1.

21  (9) Kankakee: 1.

22  (10) Peoria: 2.

23  (11) Rockford: 1.

24  (12) St. Louis: 3.

25  (13) Springfield: 1.

26  (14) Northwest Illinois nonmetropolitan: 1.
    SB3222 Enrolled      - 472 - LRB104 19119 AAS 32564 b

1   (15) West Central Illinois nonmetropolitan: 1.

2   (16) East Central Illinois nonmetropolitan: 1.

3   (17) South Illinois nonmetropolitan: 1.

4   (a-5) Prior to issuing licenses under subsection (a), the

5 Department may adopt rules through emergency rulemaking in

6 accordance with subsection (kk) of Section 5-45 of the

7 Illinois Administrative Procedure Act. The General Assembly

8 finds that the adoption of rules to regulate cannabis use is

9 deemed an emergency and necessary for the public interest,

10 safety, and welfare.

11  (b) The Department shall distribute the available licenses

12 established under this Section subject to the following:

13  (1) The drawing by lot for all available licenses

14  issued under this Section shall occur on the same day when

15  practicable.

16  (2) Within each BLS Region, the first Qualifying

17  Applicant drawn will have the first right to an available

18  license. The second Qualifying Applicant drawn will have

19  the second right to an available license. The same pattern

20  will continue for each subsequent Qualifying Applicant

21  drawn.

22  (3) The process for distributing available licenses

23  under this Section shall be recorded by the Department in

24  a format selected by the Department.

25  (4) A Dispensary Applicant is prohibited from becoming

26  a Qualifying Applicant if a principal officer resigns
    SB3222 Enrolled  - 473 - LRB104 19119 AAS 32564 b

1   after the resulting final scores for all scored

2   applications pursuant to Sections 15-25 and 15-30 are

3   released.

4   (5) No Qualifying Applicant may be awarded more than 2

5   Conditional Adult Use Dispensing Organization Licenses at

6   the conclusion of a lottery conducted under this Section.

7   (6) No individual may be listed as a principal officer

8   of more than 2 Conditional Adult Use Dispensing

9   Organization Licenses awarded under this Section.

10  (7) If, upon being selected for an available license

11  established under this Section, a Qualifying Applicant

12  exceeds the limits under paragraph (5) or (6), the

13  Qualifying Applicant must choose which license to abandon

14  and notify the Department in writing within 5 business

15  days. If the Qualifying Applicant does not notify the

16  Department as required, the Department shall refuse to

17  issue the Qualifying Applicant all available licenses

18  established under this Section obtained by lot in all BLS

19  Regions.

20  (8) If, upon being selected for an available license

21  established under this Section, a Qualifying Applicant has

22  a principal officer who is a principal officer in more

23  than 10 Early Approval Adult Use Dispensing Organization

24  Licenses, Conditional Adult Use Dispensing Organization

25  Licenses, Adult Use Dispensing Organization Licenses, or

26  any combination thereof, the licensees and the Qualifying
    SB3222 Enrolled  - 474 - LRB104 19119 AAS 32564 b

1   Applicant listing that principal officer must choose which

2   license to abandon pursuant to subsection (d) of Section

3   15-36 and notify the Department in writing within 5

4   business days. If the Qualifying Applicant or licensees do

5   not notify the Department as required, the Department

6   shall refuse to issue the Qualifying Applicant all

7   available licenses established under this Section obtained

8   by lot in all BLS Regions.

9   (9) All available licenses that have been abandoned

10  under paragraph (7) or (8) shall be distributed to the

11  next Qualifying Applicant drawn by lot.

12  Any and all rights conferred or obtained under this

13 Section shall be limited to the provisions of this Section.

14  (c) An applicant who receives a Conditional Adult Use

15 Dispensing Organization License under this Section has 180

16 days from the date it is awarded to identify a physical

17 location for the dispensing organization's retail storefront.

18 The applicant shall provide evidence that the location is not

19 within 1,500 feet of an existing dispensing organization,

20 unless the applicant is a Social Equity Applicant or Social

21 Equity Justice Involved Applicant located or seeking to locate

22 within 1,500 feet of a dispensing organization licensed under

23 Section 15-15 or Section 15-20. If an applicant is unable to

24 find a suitable physical address in the opinion of the

25 Department within 180 days from the issuance of the

26 Conditional Adult Use Dispensing Organization License, the
SB3222 Enrolled  - 475 - LRB104 19119 AAS 32564 b

 1 Department may extend the period for finding a physical
 2 address an additional 540 days if the Conditional Adult Use
 3 Dispensing Organization License holder demonstrates a concrete
 4 attempt to secure a location and a hardship. If the Department
 5 denies the extension or the Conditional Adult Use Dispensing
 6 Organization License holder is unable to either find a
 7 location within 720 days of being awarded a conditional
 8 license and become operational within 180 days thereafter or
 9 become operational within 720 days of being awarded a
10 Conditional Adult Use Dispensing Organization License, the
11 Department may, considering the totality of the circumstances,
12 rescind the conditional license. If the conditional license
13 holder does not become operational within 365 days after
14 having found a location, the Department may mandate a date by
15 which the conditional license holder shall become operational
16 prior to the Department rescinding the conditional license. If
17 under this Section, the Department rescinds shall rescind the
18 Conditional Adult Use Dispensing Organization License, it may
19 issue and award it pursuant to subsection (b), provided the
20 applicant receiving the Conditional Adult Use Dispensing
21 Organization License: (i) confirms a continued interest in
22 operating a dispensing organization; (ii) can provide evidence
23 that the applicant continues to meet all requirements for
24 holding a Conditional Adult Use Dispensing Organization
25 License set forth in this Act; and (iii) has not otherwise
26 become ineligible to be awarded a Conditional Adult Use
    SB3222 Enrolled  - 476 - LRB104 19119 AAS 32564 b

1 Dispensing Organization License. If the new awardee is unable

2 to accept the Conditional Adult Use Dispensing Organization

3 License, the Department may issue shall award the Conditional

4 Adult Use Dispensing Organization License pursuant to

5 subsection (b). The new awardee shall be subject to the same

6 required deadlines as provided in this subsection.

7   (d) If, within 720 days of being awarded a Conditional

8 Adult Use Dispensing Organization License, a dispensing

9 organization is unable to find a location within the BLS

10 Region in which it was awarded a Conditional Adult Use

11 Dispensing Organization License because no jurisdiction within

12 the BLS Region allows for the operation of an Adult Use

13 Dispensing Organization, the Department may authorize the

14 Conditional Adult Use Dispensing Organization License holder

15 to transfer its Conditional Adult Use Dispensing Organization

16 License to a BLS Region specified by the Department.

17  (e) A dispensing organization that is awarded a

18 Conditional Adult Use Dispensing Organization License under

19 this Section shall not purchase, possess, sell, or dispense

20 cannabis or cannabis-infused products until the dispensing

21 organization has received an Adult Use Dispensing Organization

22 License issued by the Department pursuant to Section 15-36.

23  (f) The Department shall conduct a background check of the

24 prospective dispensing organization agents in order to carry

25 out this Article. The Illinois State Police shall charge the

26 applicant a fee for conducting the criminal history record
    SB3222 Enrolled  - 477 - LRB104 19119 AAS 32564 b

1 check, which shall be deposited into the State Police Services

2 Fund and shall not exceed the actual cost of the record check.

3 Each person applying as a dispensing organization agent shall

4 submit a full set of fingerprints to the Illinois State Police

5 for the purpose of obtaining a State and federal criminal

6 records check. These fingerprints shall be checked against the

7 fingerprint records now and hereafter, to the extent allowed

8 by law, filed with the Illinois State Police and the Federal

9 Bureau of Investigation criminal history records databases.

10 The Illinois State Police shall furnish, following positive

11 identification, all Illinois conviction information to the

12 Department.

13  (g) The Department may verify information contained in

14 each application and accompanying documentation to assess the

15 applicant's veracity and fitness to operate a dispensing

16 organization.

17  (h) The Department may, in its discretion, refuse to issue

18 authorization to an applicant who meets any of the following

19 criteria:

20  (1) An applicant who is unqualified to perform the

21  duties required of the applicant.

22  (2) An applicant who fails to disclose or states

23  falsely any information called for in the application.

24  (3) An applicant who has been found guilty of a

25  violation of this Act, who has had any disciplinary order

26  entered against the applicant by the Department, who has
    SB3222 Enrolled  - 478 - LRB104 19119 AAS 32564 b

1   entered into a disciplinary or nondisciplinary agreement

2   with the Department, whose medical cannabis dispensing

3   organization, medical cannabis cultivation organization,

4   Early Approval Adult Use Dispensing Organization License,

5   Early Approval Adult Use Dispensing Organization License

6   at a secondary site, Early Approval Cultivation Center

7   License, Conditional Adult Use Dispensing Organization

8   License, or Adult Use Dispensing Organization License was

9   suspended, restricted, revoked, or denied for just cause,

10  or whose cannabis business establishment license was

11  suspended, restricted, revoked, or denied in any other

12  state.

13  (4) An applicant who has engaged in a pattern or

14  practice of unfair or illegal practices, methods, or

15  activities in the conduct of owning a cannabis business

16  establishment or other business.

17  (i) The Department shall deny issuance of a license under

18 this Section if any principal officer, board member, or person

19 having a financial or voting interest of 5% or greater in the

20 licensee is delinquent in filing any required tax return or

21 paying any amount owed to the State of Illinois.

22  (j) The Department shall verify an applicant's compliance

23 with the requirements of this Article and rules adopted under

24 this Article before issuing a Conditional Adult Use Dispensing

25 Organization License under this Section.

26  (k) If an applicant is awarded a Conditional Adult Use
    SB3222 Enrolled  - 479 - LRB104 19119 AAS 32564 b

1 Dispensing Organization License under this Section, the

2 information and plans provided in the application, including

3 any plans submitted for bonus points, shall become a condition

4 of the Conditional Adult Use Dispensing Organization License

5 and any Adult Use Dispensing Organization License issued to

6 the holder of the Conditional Adult Use Dispensing

7 Organization License, except as otherwise provided by this Act

8 or by rule. A dispensing organization has a duty to disclose

9 any material changes to the application. The Department shall

10 review all material changes disclosed by the dispensing

11 organization and may reevaluate its prior decision regarding

12 the awarding of a Conditional Adult Use Dispensing

13 Organization License, including, but not limited to,

14 suspending or permanently revoking a Conditional Adult Use

15 Dispensing Organization License. Failure to comply with the

16 conditions or requirements in the application may subject the

17 dispensing organization to discipline up to and including

18 suspension or permanent revocation of its authorization or

19 Conditional Adult Use Dispensing Organization License by the

20 Department.

21  (l) If an applicant has not begun operating as a

22 dispensing organization within one year after the issuance of

23 the Conditional Adult Use Dispensing Organization License

24 under this Section, the Department may permanently revoke the

25 Conditional Adult Use Dispensing Organization License and

26 award it to the next highest scoring applicant in the BLS
    SB3222 Enrolled          - 480 - LRB104 19119 AAS 32564 b

1 Region if a suitable applicant indicates a continued interest
2 in the Conditional Adult Use Dispensing Organization License
3 or may begin a new selection process to award a Conditional
4 Adult Use Dispensing Organization License.
5 (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)

6   (410 ILCS 705/15-35.10)

7   Sec. 15-35.10. Social Equity Justice Involved Lottery for

8 Conditional Adult Use Dispensing Organization Licenses.

9   (a) In addition to any of the licenses issued under

10 Section 15-15, Section 15-20, Section 15-25, Section 15-30.20,

11 or Section 15-35, within 10 business days after the resulting

12 final scores for all scored applications pursuant to Sections

13 15-25 and 15-30 are released, the Department shall issue up to

14 55 Conditional Adult Use Dispensing Organization Licenses by

15 lot, pursuant to the application process adopted under this

16 Section. In order to be eligible to be awarded a Conditional

17 Adult Use Dispensing Organization License by lot, a Dispensary

18 Applicant must be a Qualifying Social Equity Justice Involved

19 Applicant.

20  The licenses issued under this Section shall be awarded in

21 each BLS Region in the following amounts:

22  (1) Bloomington: 1.

23  (2) Cape Girardeau: 1.

24  (3) Carbondale-Marion: 1.

25  (4) Champaign-Urbana: 1.
    SB3222 Enrolled      - 481 - LRB104 19119 AAS 32564 b

1   (5) Chicago-Naperville-Elgin: 36.

2   (6) Danville: 1.

3   (7) Davenport-Moline-Rock Island: 1.

4   (8) Decatur: 1.

5   (9) Kankakee: 1.

6   (10) Peoria: 2.

7   (11) Rockford: 1.

8   (12) St. Louis: 3.

9   (13) Springfield: 1.

10  (14) Northwest Illinois nonmetropolitan: 1.

11  (15) West Central Illinois nonmetropolitan: 1.

12  (16) East Central Illinois nonmetropolitan: 1.

13  (17) South Illinois nonmetropolitan: 1.

14  (a-5) Prior to issuing licenses under subsection (a), the

15 Department may adopt rules through emergency rulemaking in

16 accordance with subsection (kk) of Section 5-45 of the

17 Illinois Administrative Procedure Act. The General Assembly

18 finds that the adoption of rules to regulate cannabis use is

19 deemed an emergency and necessary for the public interest,

20 safety, and welfare.

21  (b) The Department shall distribute the available licenses

22 established under this Section subject to the following:

23  (1) The drawing by lot for all available licenses

24  established under this Section shall occur on the same day

25  when practicable.

26  (2) Within each BLS Region, the first Qualifying
    SB3222 Enrolled      - 482 - LRB104 19119 AAS 32564 b

1   Social Equity Justice Involved Applicant drawn will have

2   the first right to an available license. The second

3   Qualifying Social Equity Justice Involved Applicant drawn

4   will have the second right to an available license. The

5   same pattern will continue for each subsequent applicant

6   drawn.

7   (3) The process for distributing available licenses

8   under this Section shall be recorded by the Department in

9   a format selected by the Department.

10  (4) A Dispensary Applicant is prohibited from becoming

11  a Qualifying Social Equity Justice Involved Applicant if a

12  principal officer resigns after the resulting final scores

13  for all scored applications pursuant to Sections 15-25 and

14  15-30 are released.

15  (5) No Qualifying Social Equity Justice Involved

16  Applicant may be awarded more than 2 Conditional Adult Use

17  Dispensing Organization Licenses at the conclusion of a

18  lottery conducted under this Section.

19  (6) No individual may be listed as a principal officer

20  of more than 2 Conditional Adult Use Dispensing

21  Organization Licenses awarded under this Section.

22  (7) If, upon being selected for an available license

23  established under this Section, a Qualifying Social Equity

24  Justice Involved Applicant exceeds the limits under

25  paragraph (5) or (6), the Qualifying Social Equity Justice

26  Involved Applicant must choose which license to abandon
    SB3222 Enrolled  - 483 - LRB104 19119 AAS 32564 b

1   and notify the Department in writing within 5 business

2   days on forms prescribed by the Department. If the

3   Qualifying Social Equity Justice Involved Applicant does

4   not notify the Department as required, the Department

5   shall refuse to issue the Qualifying Social Equity Justice

6   Involved Applicant all available licenses established

7   under this Section obtained by lot in all BLS Regions.

8   (8) If, upon being selected for an available license

9   established under this Section, a Qualifying Social Equity

10  Justice Involved Applicant has a principal officer who is

11  a principal officer in more than 10 Early Approval Adult

12  Use Dispensing Organization Licenses, Conditional Adult

13  Use Dispensing Organization Licenses, Adult Use Dispensing

14  Organization Licenses, or any combination thereof, the

15  licensees and the Qualifying Social Equity Justice

16  Involved Applicant listing that principal officer must

17  choose which license to abandon pursuant to subsection (d)

18  of Section 15-36 and notify the Department in writing

19  within 5 business days on forms prescribed by the

20  Department. If the Dispensary Applicant or licensees do

21  not notify the Department as required, the Department

22  shall refuse to issue the Qualifying Social Equity Justice

23  Involved Applicant all available licenses established

24  under this Section obtained by lot in all BLS Regions.

25  (9) All available licenses that have been abandoned

26  under paragraph (7) or (8) shall be distributed to the
   SB3222 Enrolled  - 484 - LRB104 19119 AAS 32564 b

1  next Qualifying Social Equity Justice Involved Applicant

2  drawn by lot.

3  Any and all rights conferred or obtained under this

4 subsection shall be limited to the provisions of this

5 subsection.

6  (c) An applicant who receives a Conditional Adult Use

7 Dispensing Organization License under this Section has 180

8 days from the date of the award to identify a physical location

9 for the dispensing organization's retail storefront. The

10 applicant shall provide evidence that the location is not

11 within 1,500 feet of an existing dispensing organization,

12 unless the applicant is a Social Equity Applicant or Social

13 Equity Justice Involved Applicant located or seeking to locate

14 within 1,500 feet of a dispensing organization licensed under

15 Section 15-15 or Section 15-20. If an applicant is unable to

16 find a suitable physical address in the opinion of the

17 Department within 180 days from the issuance of the

18 Conditional Adult Use Dispensing Organization License, the

19 Department may extend the period for finding a physical

20 address an additional 540 days if the Conditional Adult Use

21 Dispensing Organization License holder demonstrates a concrete

22 attempt to secure a location and a hardship. If the Department

23 denies the extension or the Conditional Adult Use Dispensing

24 Organization License holder is unable to either find a

25 location within 720 days of being awarded a conditional

26 license and become operational within 180 days thereafter or
SB3222 Enrolled  - 485 - LRB104 19119 AAS 32564 b

 1 become operational within 720 days of being awarded a
 2 Conditional Adult Use Dispensing Organization License, the
 3 Department may, considering the totality of the circumstances,
 4 rescind the conditional license. If the conditional license
 5 holder does not become operational within 365 days after
 6 having found a location, the Department may mandate a date by
 7 which the conditional license holder shall become operational
 8 prior to the Department rescinding the conditional license. If
 9 under this Section, the Department rescinds shall rescind the
10 Conditional Adult Use Dispensing Organization License it may
11 issue and award it pursuant to subsection (b) and notify the
12 new awardee at the email address provided in the awardee's
13 application, provided the applicant receiving the Conditional
14 Adult Use Dispensing Organization License: (i) confirms a
15 continued interest in operating a dispensing organization;
16 (ii) can provide evidence that the applicant continues to meet
17 all requirements for holding a Conditional Adult Use
18 Dispensing Organization License set forth in this Act; and
19 (iii) has not otherwise become ineligible to be awarded a
20 Conditional Adult Use Dispensing Organization License. If the
21 new awardee is unable to accept the Conditional Adult Use
22 Dispensing Organization License, the Department may issue
23 shall award the Conditional Adult Use Dispensing Organization
24 License pursuant to subsection (b). The new awardee shall be
25 subject to the same required deadlines as provided in this
26 subsection.
    SB3222 Enrolled  - 486 - LRB104 19119 AAS 32564 b

1   (d) If, within 720 180 days of being awarded a Conditional

2 Adult Use Dispensing Organization License, a dispensing

3 organization is unable to find a location within the BLS

4 Region in which it was awarded a Conditional Adult Use

5 Dispensing Organization License under this Section because no

6 jurisdiction within the BLS Region allows for the operation of

7 an Adult Use Dispensing Organization, the Department may

8 authorize the Conditional Adult Use Dispensing Organization

9 License holder to transfer its Conditional Adult Use

10 Dispensing Organization License to a BLS Region specified by

11 the Department.

12  (e) A dispensing organization that is awarded a

13 Conditional Adult Use Dispensing Organization License under

14 this Section shall not purchase, possess, sell, or dispense

15 cannabis or cannabis-infused products until the dispensing

16 organization has received an Adult Use Dispensing Organization

17 License issued by the Department pursuant to Section 15-36.

18  (f) The Department shall conduct a background check of the

19 prospective dispensing organization agents in order to carry

20 out this Article. The Illinois State Police shall charge the

21 applicant a fee for conducting the criminal history record

22 check, which shall be deposited into the State Police Services

23 Fund and shall not exceed the actual cost of the record check.

24 Each person applying as a dispensing organization agent shall

25 submit a full set of fingerprints to the Illinois State Police

26 for the purpose of obtaining a State and federal criminal
    SB3222 Enrolled     - 487 - LRB104 19119 AAS 32564 b

1 records check. These fingerprints shall be checked against the

2 fingerprint records now and hereafter, to the extent allowed

3 by law, filed with the Illinois State Police and the Federal

4 Bureau of Investigation criminal history records databases.

5 The Illinois State Police shall furnish, following positive

6 identification, all Illinois conviction information to the

7 Department.

8   (g) The Department may verify information contained in

9 each application and accompanying documentation to assess the

10 applicant's veracity and fitness to operate a dispensing

11 organization.

12  (h) The Department may, in its discretion, refuse to issue

13 an authorization to an applicant who meets any of the

14 following criteria:

15  (1) An applicant who is unqualified to perform the

16  duties required of the applicant.

17  (2) An applicant who fails to disclose or states

18  falsely any information called for in the application.

19  (3) An applicant who has been found guilty of a

20  violation of this Act, who has had any disciplinary order

21  entered against the applicant by the Department, who has

22  entered into a disciplinary or nondisciplinary agreement

23  with the Department, whose medical cannabis dispensing

24  organization, medical cannabis cultivation organization,

25  Early Approval Adult Use Dispensing Organization License,

26  Early Approval Adult Use Dispensing Organization License
    SB3222 Enrolled       - 488 - LRB104 19119 AAS 32564 b

1   at a secondary site, Early Approval Cultivation Center

2   License, Conditional Adult Use Dispensing Organization

3   License, or Adult Use Dispensing Organization License was

4   suspended, restricted, revoked, or denied for just cause,

5   or whose cannabis business establishment license was

6   suspended, restricted, revoked, or denied in any other

7   state.

8   (4) An applicant who has engaged in a pattern or

9   practice of unfair or illegal practices, methods, or

10  activities in the conduct of owning a cannabis business

11  establishment or other business.

12  (i) The Department shall deny the license if any principal

13 officer, board member, or person having a financial or voting

14 interest of 5% or greater in the licensee is delinquent in

15 filing any required tax return or paying any amount owed to the

16 State of Illinois.

17  (j) The Department shall verify an applicant's compliance

18 with the requirements of this Article and rules adopted under

19 this Article before issuing a Conditional Adult Use Dispensing

20 Organization License.

21  (k) If an applicant is awarded a Conditional Adult Use

22 Dispensing Organization License under this Section, the

23 information and plans provided in the application, including

24 any plans submitted for bonus points, shall become a condition

25 of the Conditional Adult Use Dispensing Organization License

26 and any Adult Use Dispensing Organization License issued to
    SB3222 Enrolled  - 489 - LRB104 19119 AAS 32564 b

1 the holder of the Conditional Adult Use Dispensing

2 Organization License, except as otherwise provided by this Act

3 or by rule. Dispensing organizations have a duty to disclose

4 any material changes to the application. The Department shall

5 review all material changes disclosed by the dispensing

6 organization and may reevaluate its prior decision regarding

7 the awarding of a Conditional Adult Use Dispensing

8 Organization License, including, but not limited to,

9 suspending or permanently revoking a Conditional Adult Use

10 Dispensing Organization License. Failure to comply with the

11 conditions or requirements in the application may subject the

12 dispensing organization to discipline up to and including

13 suspension or permanent revocation of its authorization or

14 Conditional Adult Use Dispensing Organization License by the

15 Department.

16  (l) If an applicant has not begun operating as a

17 dispensing organization within one year after the issuance of

18 the Conditional Adult Use Dispensing Organization License

19 under this Section, the Department may permanently revoke the

20 Conditional Adult Use Dispensing Organization License and

21 award it to the next highest scoring applicant in the BLS

22 Region if a suitable applicant indicates a continued interest

23 in the Conditional Adult Use Dispensing Organization License

24 or may begin a new selection process to award a Conditional

25 Adult Use Dispensing Organization License.

26 (Source: P.A. 102-98, eff. 7-15-21; 103-8, eff. 6-7-23.)
    SB3222 Enrolled             - 490 - LRB104 19119 AAS 32564 b

1   (410 ILCS 705/15-36)

2   Sec. 15-36. Adult Use Dispensing Organization License.

3   (a) A person is only eligible to receive or hold an Adult

4 Use Dispensing Organization License if the person has been

5 issued awarded a Conditional Adult Use Dispensing Organization

6 License, an Early Approval Adult Use Dispensing Organization

7 License, or an Early Approval Adult Use Dispensing

8 Organization License at a Secondary Site pursuant to this Act

9 or its administrative rules or has renewed its license

10 pursuant to subsection (k) of Section 15-15 or subsection (p)

11 of Section 15-20.

12  (b) The Department shall not issue an Adult Use Dispensing

13 Organization License until:

14  (1) the Department has inspected the dispensary site

15  and proposed operations and verified that they are in

16  compliance with this Act and local zoning laws;

17  (2) the Conditional Adult Use Dispensing Organization

18  License holder has paid a license fee of $60,000 or a

19  prorated amount accounting for the difference of time

20  between when the Adult Use Dispensing Organization License

21  is issued and March 31 of the next even-numbered year; and

22  (3) the Conditional Adult Use Dispensing Organization

23  License holder has met all the requirements in this Act

24  and rules.

25  (c) No person or entity shall hold any legal, equitable,
    SB3222 Enrolled  - 491 - LRB104 19119 AAS 32564 b

1 ownership, or beneficial interest, directly or indirectly, of

2 more than 10 dispensing organizations, including through any

3 management contract, consultant contract, or other similar

4 arrangement. licensed under this Article. Further, no

5   (c-1) No person or entity that is: (1) employed by, is an

6 agent of, or participates in the management of a dispensing

7 organization or registered medical cannabis dispensing

8 organization; no person who is (2) a principal officer of a

9 dispensing organization or registered medical cannabis

10 dispensing organization; and no or (3) an entity controlled by

11 or affiliated with a principal officer of a dispensing

12 organization or registered medical cannabis dispensing

13 organization; shall hold any legal, equitable, ownership, or

14 beneficial interest, directly or indirectly, in a dispensing

15 organization that would result in such person or entity owning

16 or participating in the management of more than 10 dispensing

17 organizations licensed under this Article, including through

18 any management contract, consulting contract, or similar

19 arrangement Early Approval Adult Use Dispensing Organization

20 Licenses, Early Approval Adult Use Dispensing Organization

21 Licenses at a secondary site, Conditional Adult Use Dispensing

22 Organization Licenses, or Adult Use Dispensing Organization

23 Licenses.

24  (c-2) Notwithstanding subsections (c) and (c-1), if a

25 person or entity enters an arrangement that could or does

26 result in the person or entity receiving payments from a
    SB3222 Enrolled           - 492 - LRB104 19119 AAS 32564 b

1 dispensing organization in an amount exceeding any of the

2 amounts in paragraphs (1) through (3) of this subsection,

3 then, unless the dispensing organization is approved by the

4 Department for a limited waiver as identified in this Section,

5 the person or entity is considered to be a principal officer of

6 the dispensing organization requiring the Department's

7 approval and registration:

8   (1) 10% of the dispensing organization's monthly gross

9   revenue;

10  (2) 50% of the dispensing organizations 's net profits

11  in a calendar year; or

12  (3) $250,000, or an amount otherwise determined by the

13  Department via administrative rulemaking, in a calendar

14  year.

15  The Department may grant a limited waiver to the

16  requirements of this subsection if the dispensing

17  organization demonstrates good cause and there is no

18  transfer of ownership and control.

19  For the purpose of this subsection, participating in

20 management may include, without limitation, controlling

21 decisions regarding staffing, pricing, purchasing, marketing,

22 store design, hiring, and website design.

23  (d) The Department shall deny an application if granting

24 that application would result in a person or entity obtaining

25 direct or indirect financial interest in more than 10 Early

26 Approval Adult Use Dispensing Organization Licenses or
    SB3222 Enrolled          - 493 - LRB104 19119 AAS 32564 b

1 Dispensing Organization Licenses, Conditional Adult Use

2 Dispensing Organization Licenses, Adult Use Dispensing

3 Organization Licenses, or any combination thereof. If a person

4 or entity is awarded a Conditional Adult Use Dispensing

5 Organization License that would cause the person or entity to

6 be in violation of this subsection, he, she, or it shall choose

7 which license application it wants to abandon and such

8 licenses shall become available to the next qualified

9 applicant in the region in which the abandoned license was

10 awarded.

11  (e) As used in this Section:

12  "Equitable or beneficial ownership" includes the interests

13 arising under or in connection with any arrangement that has

14 the effect of granting the person or entity the power or

15 authority to participate in the operation or management of the

16 dispensing organization.

17  "Participating in the operation or management of a

18 dispensing organization" includes, without limitation,

19 controlling decisions regarding staffing, pricing, purchasing,

20 marketing, store design, and hiring. "Participating in the

21 operation or management" does not include third parties who

22 provide administrative services marketed and delivered to the

23 general population of business in Illinois, such as accounting

24 or information technology support.

25 (Source: P.A. 104-417, eff. 8-15-25.)
    SB3222 Enrolled   - 494 - LRB104 19119 AAS 32564 b

1   (410 ILCS 705/15-37 new)

2   Sec. 15-37. Medical Cannabis Dispensing Organization

3 License.

4   (a) Beginning 90 days after the effective date of this

5 amendatory Act of the 104th General Assembly, the Department

6 may issue a Medical Cannabis Dispensing Organization License

7 to any entity holding an Adult Use Dispensing Organization

8 License.

9   (b) The Medical Cannabis Dispensing Organization License

10 shall be issued to the same entity holding the Adult Use

11 Dispensing Organization License and for the same address of

12 the corresponding dispensary.

13  (c) The Department shall provide an approval process for

14 issuing Medical Cannabis Dispensing Organization Licenses to

15 corresponding Adult Use Dispensing Organization Licensees,

16 which shall include, but shall not be limited to, the

17 following:

18  (1) payment of a one-time, nonrefundable fee of

19  $5,000, which shall be deposited into the Cannabis

20  Regulation Fund;

21  (2) proof of the corresponding Adult Use Dispensing

22  Organization License that is in active status;

23  (3) certification that the licensee shall comply with

24  the requirements contained in the Compassionate Use of

25  Medical Cannabis Program Act;

26  (4) the legal name of the dispensing organization;
    SB3222 Enrolled  - 495 - LRB104 19119 AAS 32564 b

1   (5) the physical address of the dispensing

2   organization;

3   (6) affirmation that the dispensing organization

4   understands it is prohibited from separating its Medical

5   Cannabis Dispensing Organization License from its Adult

6   Use Dispensing Organization License;

7   (7) proof of proper zoning for both medical and adult

8   use sales in a form and manner prescribed by the

9   Department; and

10  (8) any other information which the Department may

11  request.

12  (d) If an Adult Use Dispensing Organization is issued a

13 corresponding Medical Cannabis Dispensing Organization

14 License, the entity holding the 2 corresponding licenses is

15 prohibited from separating the 2 licenses from each other. In

16 this subsection, "separating" means, but is not limited to,

17 the following:

18  (1) relocating either license without relocating the

19  other to the same facility; or

20  (2) changing the ownership for only one of the

21  licenses.

22  (e) For the purpose of subsection (c) of Section 15-36, a

23 dispensing organization holding an Adult Use Dispensing

24 Organization License and a Medical Cannabis Dispensing

25 Organization License at a single location pursuant to this

26 Section 15-37 shall count as a single dispensing organization.
    SB3222 Enrolled       - 496 - LRB104 19119 AAS 32564 b

1   (410 ILCS 705/15-40)

2   Sec. 15-40. Dispensing organization agent identification

3 card; agent training.

4   (a) The Department shall:

5   (1) verify the information contained in an application

6   or renewal for a dispensing organization agent

7   identification card submitted under this Article, and

8   approve or deny an application or renewal, within 30 days

9   of receiving a completed application or renewal

10  application and all supporting documentation required by

11  rule;

12  (2) issue a dispensing organization agent

13  identification card to a qualifying agent within 15

14  business days of approving the application or renewal;

15  (3) (blank); enter the registry identification number

16  of the dispensing organization where the agent works;

17  (4) within one year from the effective date of this

18  Act, allow for an electronic application process and

19  provide a confirmation by electronic or other methods that

20  an application has been submitted; and

21  (5) collect a $100 nonrefundable fee from the

22  applicant to be deposited into the Cannabis Regulation

23  Fund.

24  (b) A dispensing organization agent must keep his or her

25 identification card visible at all times when in the
    SB3222 Enrolled  - 497 - LRB104 19119 AAS 32564 b

1 dispensary. This may include providing the card via electronic

2 means available upon request.

3   (c) The dispensing organization agent identification cards

4 shall contain the following:

5   (1) the name of the cardholder;

6   (2) the date of issuance and expiration date of the

7   dispensing organization agent identification cards;

8   (3) a random 10-digit alphanumeric identification

9   number containing at least 4 numbers and at least 4

10  letters that is unique to the cardholder; and

11  (4) a photograph of the cardholder.

12  (c-5) A dispensing organization agent identification card

13 issued pursuant to this Section authorizes a dispensing

14 organization agent to perform work at the dispensing

15 organization with both an Adult Use Dispensing Organization

16 License and the corresponding Medical Cannabis Dispensing

17 Organization License issued under Section 15-37 of this Act.

18  (d) (Blank). The dispensing organization agent

19 identification cards shall be immediately returned to the

20 dispensing organization upon termination of employment.

21  (e) The Department shall not issue an agent identification

22 card if the applicant is delinquent in filing any required tax

23 returns or paying any amounts owed to the State of Illinois.

24  (f) Any card lost by a dispensing organization agent shall

25 be reported to the Illinois State Police and the Department

26 immediately upon discovery of the loss.
    SB3222 Enrolled          - 498 - LRB104 19119 AAS 32564 b

1   (g) An applicant shall be denied a dispensing organization

2 agent identification card renewal if he or she fails to

3 complete the training provided for in this Section.

4   (h) A dispensing organization agent shall only be required

5 to hold one dispensing organization agent identification card

6 for the same employer regardless of what type of dispensing

7 organization license the employer holds. For agent cards

8 issued to all agents except agents-in-charge and principal

9 officers, the card shall not be specific to any individual

10 dispensing organization.

11  (i) Cannabis retail sales training requirements.

12  (1) Within 90 days of September 1, 2019, or 90 days of

13  employment, whichever is later, all owners, managers,

14  employees, and agents involved in the handling or sale of

15  cannabis or cannabis-infused product employed by an adult

16  use dispensing organization or medical cannabis dispensing

17  organization as defined in Section 10 of the Compassionate

18  Use of Medical Cannabis Program Act shall attend and

19  successfully complete a Responsible Vendor Program.

20  (2) Each owner, manager, employee, and agent of an

21  adult use dispensing organization or medical cannabis

22  dispensing organization shall successfully complete the

23  program annually.

24  (3) Responsible Vendor Program Training modules shall

25  include at least 2 hours of instruction time approved by

26  the Department including:
    SB3222 Enrolled      - 499 - LRB104 19119 AAS 32564 b

1   (i) Health and safety concerns of cannabis use,

2   including the responsible use of cannabis, its

3   physical effects, onset of physiological effects,

4   recognizing signs of impairment, and appropriate

5   responses in the event of overconsumption.

6   (ii) Training on laws and regulations on driving

7   while under the influence and operating a watercraft

8   or snowmobile while under the influence.

9   (iii) Sales to minors prohibition. Training shall

10  cover all relevant Illinois laws and rules.

11  (iv) Quantity limitations on sales to purchasers.

12  Training shall cover all relevant Illinois laws and

13  rules.

14  (v) Acceptable forms of identification. Training

15  shall include:

16                   (I) How to check identification; and

17                   (II) Common mistakes made in verification;

18  (vi) Safe storage of cannabis;

19  (vii) Compliance with all inventory tracking

20  system regulations;

21  (viii) Waste handling, management, and disposal;

22  (ix) Health and safety standards;

23  (x) Maintenance of records;

24  (xi) Security and surveillance requirements;

25  (xii) Permitting inspections by State and local

26  licensing and enforcement authorities;
    SB3222 Enrolled  - 500 - LRB104 19119 AAS 32564 b

1   (xiii) Privacy issues;

2   (xiv) Packaging and labeling requirements

3   requirement for sales to purchasers; and

4   (xv) Other areas as determined by rule.

5   (j) Blank.

6   (k) Upon the successful completion of the Responsible

7 Vendor Program, the provider shall deliver proof of completion

8 either through mail or electronic communication to the

9 dispensing organization, which shall retain a copy of the

10 certificate.

11  (l) The license of a dispensing organization or medical

12 cannabis dispensing organization whose owners, managers,

13 employees, or agents fail to comply with this Section may be

14 suspended or permanently revoked under Section 15-145 or may

15 face other disciplinary action.

16  (m) The regulation of dispensing organization and medical

17 cannabis dispensing employer and employee training is an

18 exclusive function of the State, and regulation by a unit of

19 local government, including a home rule unit, is prohibited.

20 This subsection (m) is a denial and limitation of home rule

21 powers and functions under subsection (h) of Section 6 of

22 Article VII of the Illinois Constitution.

23  (n) Persons seeking Department approval to offer the

24 training required by paragraph (3) of subsection (i) may apply

25 for such approval between August 1 and August 15 of each

26 odd-numbered year in a manner prescribed by the Department.
    SB3222 Enrolled            - 501 - LRB104 19119 AAS 32564 b

1   (o) Persons seeking Department approval to offer the

2 training required by paragraph (3) of subsection (i) shall

3 submit a nonrefundable application fee of $2,000 to be

4 deposited into the Cannabis Regulation Fund or a fee as may be

5 set by rule. Any changes made to the training module shall be

6 approved by the Department.

7   (p) The Department shall not unreasonably deny approval of

8 a training module that meets all the requirements of paragraph

9 (3) of subsection (i). A denial of approval shall include a

10 detailed description of the reasons for the denial.

11  (q) Any person approved to provide the training required

12 by paragraph (3) of subsection (i) shall submit an application

13 for re-approval every 2 years from the date of approval

14 between August 1 and August 15 of each odd-numbered year and

15 include a nonrefundable application fee of $2,000 to be

16 deposited into the Cannabis Regulation Fund or a fee as may be

17 set by rule.

18  (r) All persons applying to become or renewing their

19 registrations to be agents, including agents-in-charge and

20 principal officers, shall disclose any disciplinary action

21 taken against them that may have occurred in Illinois, another

22 state, or another country in relation to their employment at a

23 cannabis business establishment or at any cannabis cultivation

24 center, processor, infuser, dispensary, or other cannabis

25 business establishment.

26  (s) An agent applicant may begin employment at a
    SB3222 Enrolled           - 502 - LRB104 19119 AAS 32564 b

1 dispensing organization while the agent applicant's

2 identification card application is pending. Upon approval, the

3 Department shall issue the agent's identification card to the

4 agent. If denied, the dispensing organization and the agent

5 applicant shall be notified and the agent applicant must cease

6 all activity at the dispensing organization immediately.

7   (t) The Department and the Department of Agriculture may

8 develop and implement an integrated system to issue an agent

9 identification card which identifies a dispensary agent

10 licensed by the Department as well as any cultivator, craft

11 grower, transporter, community college program, or infuser

12 license or registration the agent may simultaneously hold.

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

14 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

15 5-13-22.)

16  (410 ILCS 705/15-45)

17  Sec. 15-45. Renewal.

18  (a) All Adult Use Dispensing Organization Licenses shall

19 expire on March 31 of even-numbered years.

20  (b) Agent identification cards shall expire one year from

21 the date they are issued.

22  (c) Dispensing organizations Licensees and dispensing

23 agents shall submit a renewal application as provided by the

24 Department and pay the required renewal fee. The Department

25 shall require an agent, employee, contracting, and
    SB3222 Enrolled        - 503 - LRB104 19119 AAS 32564 b

1 subcontracting diversity report and an environmental impact

2 report with its renewal application. No license or agent

3 identification card shall be renewed if it is currently under

4 revocation or suspension for violation of this Article or any

5 rules that may be adopted under this Article or the licensee,

6 principal officer, board member, person having a financial or

7 voting interest of 5% or greater in the licensee, or agent is

8 delinquent in filing any required tax returns or paying any

9 amounts owed to the State of Illinois.

10  (d) Renewal fees are:

11  (1) For a dispensing organization, except as provided

12  in subsection (d-5):

13  (A) $60,000 or the proportional prorated amount,

14  to be deposited into the Cannabis Regulation Fund; and

15  (B) $10,000 or the proportional prorated amount,

16  to be deposited into the Compassionate Use of Medical

17  Cannabis Fund, if the dispensing organization also

18  holds a Medical Cannabis Dispensing Organization

19  License issued pursuant to Section 15-37 of this Act.

20  (2) For an agent identification card, $100, to be

21  deposited into the Cannabis Regulation Fund.

22  (d-5) The Department of Financial and Professional

23 Regulation shall provide hardship waivers for dispensing

24 organization renewal fees due to the Department pursuant to

25 the provisions below:

26  (1) The dispensing organization attests that the
    SB3222 Enrolled  - 504 - LRB104 19119 AAS 32564 b

1   dispensing organization or applicant for renewal,

2   including all individuals and entities with 10% or greater

3   ownership and all parent companies, subsidiaries, and

4   affiliates, have no more than 2 other licenses for

5   cannabis business establishments in the State.

6   (2) For dispensing organizations that have a gross

7   income of $50,000 or less from the prior calendar year,

8   the Department shall waive the full renewal fee. In order

9   to qualify for this full waiver, the dispensing

10  organization shall provide income verification from the

11  Department of Revenue and any other information the

12  Department may require in a form or manner prescribed by

13  the Department.

14  (3) For dispensing organizations that have a gross

15  income of more than $50,000 and less than or equal to

16  $750,000 from the prior calendar year, the Department

17  shall waive 50% of the full renewal fee. In order to

18  qualify for this waiver, the dispensing organization shall

19  provide income verification from the Department of Revenue

20  and any other information the Department may require in a

21  form or manner prescribed by the Department.

22  (e) If a dispensing organization fails to renew its

23 license before expiration, the dispensing organization shall

24 cease operations until the license is renewed.

25  (f) If a dispensing organization agent fails to renew his

26 or her registration before its expiration, he or she shall
    SB3222 Enrolled       - 505 - LRB104 19119 AAS 32564 b

1 cease to perform duties authorized by this Article at a

2 dispensing organization until his or her registration is

3 renewed.

4   (g) Any dispensing organization that continues to operate

5 or dispensing agent that continues to perform duties

6 authorized by this Article at a dispensing organization that

7 fails to renew its license is subject to penalty as provided in

8 this Article, or any rules that may be adopted pursuant to this

9 Article.

10  (h) The Department shall not renew a license if the

11 applicant is delinquent in filing any required tax returns or

12 paying any amounts owed to the State of Illinois. The

13 Department shall not renew a dispensing agent identification

14 card if the applicant is delinquent in filing any required tax

15 returns or paying any amounts owed to the State of Illinois.

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

17  (410 ILCS 705/15-70)

18  Sec. 15-70. Operational requirements; prohibitions.

19  (a) A dispensing organization shall operate in accordance

20 with the representations made in its application and license

21 materials. It shall be in compliance with this Act and rules.

22  (b) (Blank) A dispensing organization must include the

23 legal name of the dispensary on the packaging of any cannabis

24 product it sells.

25  (c) All cannabis, cannabis-infused products, and cannabis
    SB3222 Enrolled  - 506 - LRB104 19119 AAS 32564 b

1 seeds must be obtained from an Illinois registered adult use

2 cultivation center, craft grower, infuser, or another

3 dispensary.

4   (c-5) A dispensing organization with a Medical Cannabis

5 Dispensing Organization license may sell cannabis and

6 cannabis-infused products purchased from any cultivation

7 center, craft grower, infuser, or other dispensary to persons

8 over 21 years of age and to qualifying patients, designated

9 caregivers, provisional patients, and Opioid Alternative

10 Patient Program participants.

11  (d) Dispensing organizations are prohibited from selling

12 any product containing alcohol except tinctures, which must be

13 limited to containers that are no larger than 100 milliliters.

14  (e) A dispensing organization shall inspect and count

15 product received from a transporting organization, adult use

16 cultivation center, craft grower, infuser organization, or

17 other dispensing organization before dispensing it.

18  (f) A dispensing organization may only accept cannabis

19 deliveries into a restricted access area. Deliveries may not

20 be accepted through the public or limited access areas unless

21 otherwise approved by the Department.

22  (g) A dispensing organization shall maintain compliance

23 with State and local building, fire, and zoning requirements

24 or regulations.

25  (h) A dispensing organization shall submit a list to the

26 Department of the names of all service professionals that will
    SB3222 Enrolled         - 507 - LRB104 19119 AAS 32564 b

1 work at the dispensary. The list shall include a description

2 of the type of business or service provided. Changes to the

3 service professional list shall be promptly provided. No

4 service professional shall work in the dispensary until the

5 name is provided to the Department on the service professional

6 list.

7   (i) A dispensing organization's license allows for a

8 dispensary to be operated only at a single location.

9   (j) A dispensary may operate between 6 a.m. and 2 a.m. 10

10 p.m. local time, subject to local zoning ordinances or

11 resolutions.

12  (k) A dispensing organization must keep all lighting

13 outside and inside the dispensary in good working order and

14 wattage sufficient for security cameras.

15  (l) A dispensing organization must keep all air treatment

16 systems that will be installed to reduce odors in good working

17 order.

18  (m) A dispensing organization shall maintain a security

19 guard or security guards to provide on-site security must

20 contract with a private security contractor that is licensed

21 under Section 10-5 of the Private Detective, Private Alarm,

22 Private Security, Fingerprint Vendor, and Locksmith Act of

23 2004 to provide on-site security at all hours of the

24 dispensary's operation.

25  (n) A dispensing organization shall ensure that any

26 building or equipment used by a dispensing organization for
    SB3222 Enrolled            - 508 - LRB104 19119 AAS 32564 b

1 the storage or sale of cannabis is maintained in a clean and

2 sanitary condition.

3   (o) The dispensary shall be free from infestation by

4 insects, rodents, or pests.

5   (p) A dispensing organization shall not:

6   (1) Produce or manufacture cannabis;

7   (2) Accept a cannabis product from an adult use

8   cultivation center, craft grower, infuser, dispensing

9   organization, or transporting organization unless it is

10  pre-packaged and labeled in accordance with this Act and

11  any rules that may be adopted pursuant to this Act;

12  (3) Obtain cannabis or cannabis-infused products from

13  outside the State of Illinois;

14  (4) Sell cannabis or cannabis-infused products to a

15  purchaser unless the dispensing organization is licensed

16  under the Compassionate Use of Medical Cannabis Program

17  Act, and the individual is registered under the

18  Compassionate Use of Medical Cannabis Program or the

19  purchaser has been verified to be 21 years of age or older;

20  (5) Enter into an exclusive agreement with any adult

21  use cultivation center, craft grower, or infuser.

22  Dispensaries shall provide consumers an assortment of

23  products from various cannabis business establishment

24  licensees such that the inventory available for sale at

25  any dispensary from any single cultivation center, craft

26  grower, processor, transporter, or infuser entity shall
    SB3222 Enrolled  - 509 - LRB104 19119 AAS 32564 b

1   not be more than 40% of the total inventory available for

2   sale. For the purpose of this subsection, a cultivation

3   center, craft grower, processor, or infuser shall be

4   considered part of the same entity if the licensees share

5   at least one principal officer. The Department may request

6   that a dispensary diversify its products as needed or

7   otherwise discipline a dispensing organization for

8   violating this requirement;

9   (6) Refuse to conduct business with an adult use

10  cultivation center, craft grower, transporting

11  organization, or infuser that has the ability to properly

12  deliver the product and is permitted by the Department of

13  Agriculture, on the same terms as other adult use

14  cultivation centers, craft growers, infusers, or

15  transporters with whom it is dealing;

16  (7) (Blank); Operate drive-through windows;

17  (7.5) Separate an Adult Use Dispensing Organization

18  License from a Medical Cannabis Dispensing Organization

19  License issued under Section 15-37;

20  (8) Allow for the dispensing of cannabis or

21  cannabis-infused products in vending machines;

22  (9) Transport cannabis to residences or transport

23  cannabis to other locations where purchasers may be for

24  delivery, except for the limited circumstances provided in

25  paragraph (5.5) of subsection (c) of Section 15-100;

26  (10) Enter into agreements to allow persons who are
    SB3222 Enrolled  - 510 - LRB104 19119 AAS 32564 b

1   not dispensing organization agents to deliver cannabis or

2   to transport cannabis to purchasers;

3   (11) Operate a dispensary if its video surveillance

4   equipment is inoperative;

5   (12) Operate a dispensary if the point-of-sale

6   equipment is inoperative;

7   (13) Operate a dispensary if the State's cannabis

8   electronic verification system is inoperative;

9   (14) Have fewer than 2 people working at the

10  dispensary at any time while the dispensary is open;

11  (15) Be located within 1,500 feet of the property line

12  of a pre-existing dispensing organization, unless the

13  applicant is a Social Equity Applicant or Social Equity

14  Justice Involved Applicant located or seeking to locate

15  within 1,500 feet of a dispensing organization licensed

16  under Section 15-15 or Section 15-20;

17  (16) Sell seed clones or any other live plant

18  material, except to a qualifying medical patient,

19  designated caregiver, provisional patient, or Opioid

20  Alternative Patient Program participant;

21  (17) Sell cannabis, cannabis concentrate, or

22  cannabis-infused products in combination or bundled with

23  each other or any other items for one price, and each item

24  of cannabis, concentrate, or cannabis-infused product must

25  be separately identified by quantity and price on the

26  receipt; or
    SB3222 Enrolled            - 511 - LRB104 19119 AAS 32564 b

1   (18) Sell cannabis, cannabis concentrate, or

2   cannabis-infused products to a registered qualifying

3   patient, provisional patient, designated caregiver, or an

4   Opioid Alternative Patient Program participant without

5   first affixing any warning label required under any State

6   or federal law, rule, or regulation. Violate any other

7   requirements or prohibitions set by Department rules.

8   (q) It is unlawful for any person having an Early Approval

9 Adult Use Dispensing Organization License, a Conditional Adult

10 Use Dispensing Organization License, an Adult Use Dispensing

11 Organization License, or a medical cannabis dispensing

12 organization license issued under the Compassionate Use of

13 Medical Cannabis Program Act or any officer, associate,

14 member, representative, or agent of such licensee to accept,

15 receive, or borrow money or anything else of value or accept or

16 receive credit (other than merchandising credit in the

17 ordinary course of business for a period not to exceed 30 days)

18 directly or indirectly from any adult use cultivation center,

19 craft grower, infuser, or transporting organization in

20 exchange for preferential placement on the dispensing

21 organization's shelves, display cases, or website. This

22 includes anything received or borrowed or from any

23 stockholders, officers, agents, or persons connected with an

24 adult use cultivation center, craft grower, infuser, or

25 transporting organization.

26  (r) It is unlawful for any person having an Early Approval
    SB3222 Enrolled       - 512 - LRB104 19119 AAS 32564 b

 1 Adult Use Dispensing Organization License, a Conditional Adult
 2 Use Dispensing Organization License, an Adult Use Dispensing
 3 Organization License, or a medical cannabis dispensing
 4 organization license issued under the Compassionate Use of
 5 Medical Cannabis Program to enter into any contract with any
 6 person licensed to cultivate, process, or transport cannabis
 7 whereby such dispensing organization agrees not to sell any
 8 cannabis cultivated, processed, transported, manufactured, or
 9 distributed by any other cultivator, transporter, or infuser,
10 and any provision in any contract violative of this Section
11 shall render the whole of such contract void and no action
12 shall be brought thereon in any court.
13 (Source: P.A. 104-417, eff. 8-15-25.)

14  (410 ILCS 705/15-85)

15  Sec. 15-85. Dispensing cannabis.

16  (a) Before a dispensing organization agent dispenses

17 cannabis to a purchaser, the agent shall:

18  (1) Verify the age of the purchaser by checking a

19  government-issued identification card by use of an

20  electronic reader or electronic scanning device to scan a

21  purchaser's government-issued identification, if

22  applicable, to determine the purchaser's age and the

23  validity of the identification;

24  (2) Verify the validity of the government-issued

25  identification card by use of an electronic reader or
    SB3222 Enrolled     - 513 - LRB104 19119 AAS 32564 b

1   electronic scanning device to scan a purchaser's

2   government-issued identification, if applicable, to

3   determine the purchaser's age and the validity of the

4   identification;

5   (3) Offer any appropriate purchaser education or

6   support materials;

7   (4) Enter the following information into the State's

8   cannabis electronic verification system:

9   (i) The dispensing organization agent's

10  identification number, or if the agent's card

11  application is pending the Department's approval, a

12  temporary and unique identifier until the agent's card

13  application is approved or denied by the Department;

14  (ii) The dispensing organization's identification

15  number;

16  (iii) The amount, type (including strain, if

17  applicable) of cannabis or cannabis-infused product

18  dispensed;

19  (iv) The date and time the cannabis was dispensed.

20  (b) A dispensing organization shall refuse to sell

21 cannabis or cannabis-infused products to any person unless the

22 person produces a valid identification showing that the person

23 is 21 years of age or older. A medical cannabis dispensing

24 organization may sell cannabis or cannabis-infused products to

25 a person who is under 21 years of age if the sale complies with

26 the provisions of the Compassionate Use of Medical Cannabis
    SB3222 Enrolled            - 514 - LRB104 19119 AAS 32564 b

1 Program Act and rules.

2   (c) For the purposes of this Section, valid identification

3 must:

4        (1) Be valid and unexpired;

5        (2) Contain a photograph and the date of birth of the

6   person.

7   (d) In accordance with this amendatory Act of the 104th

8 General Assembly, a dispensing organization may offer pickup

9 or drive-through locations for cannabis, cannabis concentrate,

10 or cannabis-infused products.

11  (e) Notwithstanding Sections 11-502.1 and 11-502.15 of the

12 Illinois Vehicle Code, the requirement that cannabis be

13 inaccessible shall not apply to adult-use cannabis or medical

14 cannabis lawfully purchased from a licensed dispensing

15 organization if the cannabis is transported in a secured,

16 sealed, odor-proof, child-resistant cannabis container that is

17 in its original packaging.

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

19 102-98, eff. 7-15-21.)

20  (410 ILCS 705/15-100)

21  Sec. 15-100. Security.

22  (a) A dispensing organization shall implement security

23 measures to deter and prevent entry into and theft of cannabis

24 or currency.

25  (b) A dispensing organization shall submit any changes to
    SB3222 Enrolled        - 515 - LRB104 19119 AAS 32564 b

1 the floor plan or security plan to the Department for

2 pre-approval. All cannabis shall be maintained and stored in a

3 restricted access area during construction.

4   (c) The dispensing organization shall implement security

5 measures to protect the premises, purchasers, and dispensing

6 organization agents including, but not limited to the

7 following:

8   (1) Establish a locked door or barrier between the

9   facility's entrance and the limited access area;

10  (2) Prevent individuals from remaining on the premises

11  if they are not engaging in activity permitted by this Act

12  or rules;

13  (3) Develop a policy that addresses the maximum

14  capacity and purchaser flow in the waiting rooms and

15  limited access areas;

16  (4) Dispose of cannabis in accordance with this Act

17  and rules;

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

19  cannabis in from the restricted access area. During

20  operational hours, cannabis shall be stored in an enclosed

21  locked room or cabinet and accessible only to specifically

22  authorized dispensing organization agents;

23  (5.5) During hours of operation, dispense all cannabis

24  from the restricted access area, including a drive-through

25  window, or from a pickup location in close proximity to

26  the restricted access area. The dispensing organization
    SB3222 Enrolled  - 516 - LRB104 19119 AAS 32564 b

1   shall, prior to dispensing the cannabis, confirm

2   compliance with Section 15-85 of this Act. As used in this

3   paragraph, "pickup location in close proximity" means an

4   area contiguous to the real property of the dispensary,

5   such as a sidewalk or parking lot;

6   (6) When the dispensary is closed, store all cannabis

7   and currency in a reinforced vault room in the restricted

8   access area and in a manner as to prevent diversion,

9   theft, or loss;

10  (7) Keep the reinforced vault room and any other

11  equipment or cannabis storage areas securely locked and

12  protected from unauthorized entry;

13  (8) Keep an electronic daily log of dispensing

14  organization agents with access to the reinforced vault

15  room and knowledge of the access code or combination;

16  (9) Keep all locks and security equipment in good

17  working order;

18  (10) Maintain an operational security and alarm system

19  at all times;

20  (11) Prohibit keys, if applicable, from being left in

21  the locks, or stored or placed in a location accessible to

22  persons other than specifically authorized personnel;

23  (12) Prohibit accessibility of security measures,

24  including combination numbers, passwords, or electronic or

25  biometric security systems to persons other than

26  specifically authorized dispensing organization agents;
    SB3222 Enrolled     - 517 - LRB104 19119 AAS 32564 b

1   (13) Ensure that the dispensary interior and exterior

2   premises are sufficiently lit to facilitate surveillance;

3   (14) Ensure that trees, bushes, and other foliage

4   outside of the dispensary premises do not allow for a

5   person or persons to conceal themselves from sight;

6   (15) Develop emergency policies and procedures for

7   securing all product and currency following any instance

8   of diversion, theft, or loss of cannabis, and conduct an

9   assessment to determine whether additional safeguards are

10  necessary; and

11  (16) Develop sufficient additional safeguards in

12  response to any special security concerns, or as required

13  by the Department.

14  (d) The Department may request or approve alternative

15 security provisions that it determines are an adequate

16 substitute for a security requirement specified in this

17 Article. Any additional protections may be considered by the

18 Department in evaluating overall security measures.

19  (e) A dispensing organization may share premises with a

20 craft grower or an infuser organization, or both, provided

21 each licensee stores currency and cannabis or cannabis-infused

22 products in a separate secured vault to which the other

23 licensee does not have access or all licensees sharing a vault

24 share more than 50% of the same ownership.

25  (f) A dispensing organization shall provide additional

26 security as needed and in a manner appropriate for the
    SB3222 Enrolled           - 518 - LRB104 19119 AAS 32564 b

1 community where it operates.

2   (g) Restricted access areas.

3   (1) All restricted access areas must be identified by

4   the posting of a sign that is a minimum of 12 inches by 12

5   inches and that states "Do Not Enter - Restricted Access

6   Area - Authorized Personnel Only" in lettering no smaller

7   than one inch in height.

8   (2) All restricted access areas shall be clearly

9   described in the floor plan of the premises, in the form

10  and manner determined by the Department, reflecting walls,

11  partitions, counters, and all areas of entry and exit. The

12  floor plan shall show all storage, disposal, and retail

13  sales areas.

14  (3) All restricted access areas must be secure, with

15  locking devices that prevent access from the limited

16  access areas.

17  (h) Security and alarm.

18  (1) A dispensing organization shall have an adequate

19  security plan and security system to prevent and detect

20  diversion, theft, or loss of cannabis, currency, or

21  unauthorized intrusion using commercial grade equipment

22  installed by an Illinois licensed private alarm contractor

23  or private alarm contractor agency that shall, at a

24  minimum, include:

25  (i) A perimeter alarm on all entry points and

26  glass break protection on perimeter windows;
    SB3222 Enrolled  - 519 - LRB104 19119 AAS 32564 b

1   (ii) Security shatterproof tinted film on exterior

2   windows;

3   (iii) A failure notification system that provides

4   an audible, text, or visual notification of any

5   failure in the surveillance system, including, but not

6   limited to, panic buttons, alarms, and video

7   monitoring system. The failure notification system

8   shall provide an alert to designated dispensing

9   organization agents within 5 minutes after the

10  failure, either by telephone or text message;

11  (iv) A duress alarm, panic button, and alarm, or

12  holdup alarm and after-hours intrusion detection alarm

13  that by design and purpose will directly or indirectly

14  notify, by the most efficient means, the Public Safety

15  Answering Point for the law enforcement agency having

16  primary jurisdiction;

17  (v) Security equipment to deter and prevent

18  unauthorized entrance into the dispensary, including

19  electronic door locks on the limited and restricted

20  access areas that include devices or a series of

21  devices to detect unauthorized intrusion that may

22  include a signal system interconnected with a radio

23  frequency method, cellular, private radio signals or

24  other mechanical or electronic device.

25  (2) All security system equipment and recordings shall

26  be maintained in good working order, in a secure location
    SB3222 Enrolled          - 520 - LRB104 19119 AAS 32564 b

1   so as to prevent theft, loss, destruction, or alterations.

2   (3) Access to surveillance monitoring recording

3   equipment shall be limited to persons who are essential to

4   surveillance operations, law enforcement authorities

5   acting within their jurisdiction, security system service

6   personnel, and the Department. A current list of

7   authorized dispensing organization agents and service

8   personnel that have access to the surveillance equipment

9   must be available to the Department upon request.

10  (4) All security equipment shall be inspected and

11  tested at regular intervals, not to exceed one month from

12  the previous inspection, and tested to ensure the systems

13  remain functional.

14  (5) The security system shall provide protection

15  against theft and diversion that is facilitated or hidden

16  by tampering with computers or electronic records.

17  (6) The dispensary shall ensure all access doors are

18  not solely controlled by an electronic access panel to

19  ensure that locks are not released during a power outage.

20  (i) To monitor the dispensary, the dispensing organization

21 shall incorporate continuous electronic video monitoring

22 including the following:

23  (1) All monitors must be 19 inches or greater;

24  (2) Unobstructed video surveillance of all enclosed

25  dispensary areas, unless prohibited by law, including all

26  points of entry and exit that shall be appropriate for the
    SB3222 Enrolled         - 521 - LRB104 19119 AAS 32564 b

1   normal lighting conditions of the area under surveillance.

2   The cameras shall be directed so all areas are captured,

3   including, but not limited to, safes, vaults, sales areas,

4   and areas where cannabis is stored, handled, dispensed, or

5   destroyed. Cameras shall be angled to allow for facial

6   recognition, the capture of clear and certain

7   identification of any person entering or exiting the

8   dispensary area and in lighting sufficient during all

9   times of night or day;

10  (3) Unobstructed video surveillance of outside areas,

11  the storefront, and the parking lot, that shall be

12  appropriate for the normal lighting conditions of the area

13  under surveillance. Cameras shall be angled so as to allow

14  for the capture of facial recognition, clear and certain

15  identification of any person entering or exiting the

16  dispensary and the immediate surrounding area, and license

17  plates of vehicles in the parking lot;

18  (4) 24-hour recordings from all video cameras

19  available for immediate viewing by the Department upon

20  request. Recordings shall not be destroyed or altered and

21  shall be retained for at least 60 90 days. Recordings

22  shall be retained as long as necessary if the dispensing

23  organization is aware of the loss or theft of cannabis or a

24  pending criminal, civil, or administrative investigation

25  or legal proceeding for which the recording may contain

26  relevant information;
    SB3222 Enrolled       - 522 - LRB104 19119 AAS 32564 b

1   (5) The ability to immediately produce a clear, color

2   still photo from the surveillance video, either live or

3   recorded;

4   (6) A date and time stamp embedded on all video

5   surveillance recordings. The date and time shall be

6   synchronized and set correctly and shall not significantly

7   obscure the picture;

8   (7) The ability to remain operational during a power

9   outage and ensure all access doors are not solely

10  controlled by an electronic access panel to ensure that

11  locks are not released during a power outage;

12  (8) All video surveillance equipment shall allow for

13  the exporting of still images in an industry standard

14  image format, including .jpg, .bmp, and .gif. Exported

15  video shall have the ability to be archived in a

16  proprietary format that ensures authentication of the

17  video and guarantees that no alteration of the recorded

18  image has taken place. Exported video shall also have the

19  ability to be saved in an industry standard file format

20  that can be played on a standard computer operating

21  system. All recordings shall be erased or destroyed before

22  disposal;

23  (9) The video surveillance system shall be operational

24  during a power outage with a 4-hour minimum battery

25  backup;

26  (10) A video camera or cameras recording at each
    SB3222 Enrolled         - 523 - LRB104 19119 AAS 32564 b

1   point-of-sale location allowing for the identification of

2   the dispensing organization agent distributing the

3   cannabis and any purchaser. The camera or cameras shall

4   capture the sale, the individuals and the computer

5   monitors used for the sale;

6   (11) A failure notification system that provides an

7   audible and visual notification of any failure in the

8   electronic video monitoring system; and

9   (12) All electronic video surveillance monitoring must

10  record at least the equivalent of 8 frames per second and

11  be available as recordings to the Department and the

12  Illinois State Police 24 hours a day via a secure

13  web-based portal with reverse functionality.

14  (j) The requirements contained in this Act are minimum

15 requirements for operating a dispensing organization. The

16 Department may establish additional requirements by rule.

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

18 102-538, eff. 8-20-21.)

19  (410 ILCS 705/15-135)

20  Sec. 15-135. Investigations.

21  (a) Dispensing organizations are subject to random and

22 unannounced dispensary inspections and cannabis testing by the

23 Department, the Department of Agriculture, the Department of

24 Revenue, the Department of Public Health, the Illinois State

25 Police, local law enforcement, local health officials, or as
    SB3222 Enrolled      - 524 - LRB104 19119 AAS 32564 b

1 provided by rule. Inspections shall be:

2   (1) standard to each agency's requirements pursuant to

3   this Act and any administrative rules; and

4   (2) conducted using standardized inspection protocols,

5   including uniform inspection checklists and evaluation

6   criteria statewide.

7   Current inspection checklists shall be made available to

8 licensees upon request. A written report summarizing the

9 inspection shall be issued to the licensee within 45 calendar

10 days of the inspection being completed. Any violation shall

11 reference the specific provision violated in statute or

12 administrative rule.

13  (b) The Department and its authorized representatives may

14 enter any place, including a vehicle, in which cannabis is

15 held, stored, dispensed, sold, produced, delivered,

16 transported, manufactured, or disposed of and inspect, in a

17 reasonable manner, the place and all pertinent equipment,

18 containers and labeling, and all things including records,

19 files, financial data, sales data, shipping data, pricing

20 data, personnel data, research, papers, processes, controls,

21 and facility, and inventory any stock of cannabis and obtain

22 samples of any cannabis or cannabis-infused product, any

23 labels or containers for cannabis, or paraphernalia.

24  (c) The Department may conduct an investigation of an

25 applicant, application, dispensing organization, principal

26 officer, dispensary agent, third party vendor, or any other
    SB3222 Enrolled        - 525 - LRB104 19119 AAS 32564 b

1 party associated with a dispensing organization for an alleged

2 violation of this Act or rules or to determine qualifications

3 to be granted a registration by the Department.

4   (d) The Department may require an applicant or holder of

5 any license issued pursuant to this Article to produce

6 documents, records, or any other material pertinent to the

7 investigation of an application or alleged violations of this

8 Act or rules. Failure to provide the required material may be

9 grounds for denial or discipline.

10  (e) Every person charged with preparation, obtaining, or

11 keeping records, logs, reports, or other documents in

12 connection with this Act and rules and every person in charge,

13 or having custody, of those documents shall, upon request by

14 the Department, make the documents immediately available for

15 inspection and copying by the Department, the Department's

16 authorized representative, or others authorized by law to

17 review the documents.

18 (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;

19 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

20  (410 ILCS 705/15-145)

21  Sec. 15-145. Grounds for discipline.

22  (a) The Department may deny issuance, refuse to renew or

23 restore, or may reprimand, place on probation, suspend,

24 revoke, or take other disciplinary or nondisciplinary action

25 against any license or agent identification card or may impose
    SB3222 Enrolled     - 526 - LRB104 19119 AAS 32564 b

1 a fine for any of the following:

2   (1) Material misstatement in furnishing information to

3   the Department;

4   (2) Violations of this Act or rules;

5   (3) Obtaining an authorization or license by fraud or

6   misrepresentation;

7   (4) A pattern of conduct that demonstrates

8   incompetence or that the applicant has engaged in conduct

9   or actions that would constitute grounds for discipline

10  under this Act;

11  (5) Aiding or assisting another person in violating

12  any provision of this Act or rules;

13  (6) Failing to respond to a written request for

14  information by the Department within 30 days;

15  (7) Engaging in unprofessional, dishonorable, or

16  unethical conduct of a character likely to deceive,

17  defraud, or harm the public;

18  (8) Adverse action by another United States

19  jurisdiction or foreign nation;

20  (9) A finding by the Department that the licensee,

21  after having his or her license placed on suspended or

22  probationary status, has violated the terms of the

23  suspension or probation;

24  (10) Conviction, entry of a plea of guilty, nolo

25  contendere, or the equivalent in a State or federal court

26  of a principal officer or agent-in-charge of a felony
    SB3222 Enrolled  - 527 - LRB104 19119 AAS 32564 b

1   offense in accordance with Sections 2105-131, 2105-135,

2   and 2105-205 of the Department of Professional Regulation

3   Law of the Civil Administrative Code of Illinois;

4   (11) Excessive use of or addiction to alcohol,

5   narcotics, stimulants, or any other chemical agent or

6   drug;

7   (12) A finding by the Department of a discrepancy in a

8   Department audit of cannabis;

9   (13) A finding by the Department of a discrepancy in a

10  Department audit of capital or funds;

11  (14) A finding by the Department of acceptance of

12  cannabis from a source other than an Adult Use Cultivation

13  Center, craft grower, infuser, or transporting

14  organization licensed by the Department of Agriculture, or

15  a dispensing organization licensed by the Department;

16  (15) An inability to operate using reasonable

17  judgment, skill, or safety due to physical or mental

18  illness or other impairment or disability, including,

19  without limitation, deterioration through the aging

20  process or loss of motor skills or mental incompetence;

21  (16) Failing to report to the Department within the

22  time frames established, or if not identified, 14 days, of

23  any adverse action taken against the dispensing

24  organization or an agent by a licensing jurisdiction in

25  any state or any territory of the United States or any

26  foreign jurisdiction, any governmental agency, any law
    SB3222 Enrolled          - 528 - LRB104 19119 AAS 32564 b

1   enforcement agency or any court defined in this Section;

2   (17) Any violation of the dispensing organization's

3   policies and procedures submitted to the Department

4   annually as a condition for licensure;

5   (18) Failure to inform the Department of any change of

6   address within 10 business days;

7   (19) Disclosing customer names, personal information,

8   or protected health information in violation of any State

9   or federal law;

10  (20) Operating a dispensary before obtaining a license

11  from the Department;

12  (21) Performing duties authorized by this Act prior to

13  receiving a license to perform such duties;

14  (22) Dispensing cannabis when prohibited by this Act

15  or rules;

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

17  the time of the original application for the license,

18  would have warranted the denial of the license;

19  (24) Permitting a person without a valid agent

20  identification card to perform licensed activities under

21  this Act;

22  (25) Failure to assign an agent-in-charge as required

23  by this Article;

24  (26) Failure to provide the training required by

25  paragraph (3) of subsection (i) of Section 15-40 within

26  the provided timeframe;
    SB3222 Enrolled          - 529 - LRB104 19119 AAS 32564 b

1   (27) Personnel insufficient in number or unqualified

2   in training or experience to properly operate the

3   dispensary business;

4   (28) Any pattern of activity that causes a harmful

5   impact on the community; and

6   (29) Failing to prevent diversion, theft, or loss of

7   cannabis;.

8   (30) Engaging in a pattern of nonpayment or late

9   payment for goods or services to a cannabis business

10  establishment; or

11  (31) Engaging in predatory financial practices or

12  financial collusion, including, but not limited to,

13  bid-rigging and market allocation schemes.

14  (b) All fines and fees imposed under this Section shall be

15 paid within 60 days after the effective date of the order

16 imposing the fine or as otherwise specified in the order.

17  (c) A circuit court order establishing that an

18 agent-in-charge or principal officer holding an agent

19 identification card is subject to involuntary admission as

20 that term is defined in Section 1-119 or 1-119.1 of the Mental

21 Health and Developmental Disabilities Code shall operate as a

22 suspension of that card.

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

24  (410 ILCS 705/15-155)

25  Sec. 15-155. Unlicensed practice; violation; civil
    SB3222 Enrolled         - 530 - LRB104 19119 AAS 32564 b

1 penalty; cease and desist order.

2   (a) In addition to any other penalty provided by law, any

3 person who practices, offers to practice, attempts to

4 practice, or holds oneself out to practice as a licensed

5 dispensing organization owner, principal officer,

6 agent-in-charge, or agent sells or offers for sale cannabis,

7 cannabis-infused products, cannabis concentrates, or cannabis

8 flower without being licensed under this Act shall, in

9 addition to any other penalty provided by law, pay a civil

10 penalty to the Department of Financial and Professional

11 Regulation in an amount not to exceed $10,000 for each offense

12 as determined by the Department. Each day a person engages in

13 unlicensed practice in violation of this Section constitutes a

14 separate violation. The civil penalty shall be assessed by the

15 Department after a hearing is held in accordance with the

16 provisions set forth in this Act regarding the provision of a

17 hearing for the discipline of a licensee.

18  (a-5) Procedures for cease and desist orders under this

19 Section are as follows:

20  (1) The Secretary of the Department of Financial and

21  Professional Regulation may issue a cease and desist order

22  to any person doing business without the required license,

23  when, in the opinion of the Secretary, the person is

24  violating or is about to violate any provision of this Act

25  or any rule or requirement imposed in writing by the

26  Department as a condition of granting any authorization
    SB3222 Enrolled     - 531 - LRB104 19119 AAS 32564 b

1   permitted by this Act. The cease and desist order under

2   this Section may be issued before a hearing.

3   (2) The Secretary shall serve notice of the

4   Secretary's action, including, but not limited to, a

5   statement of the reasons for the action, either personally

6   or by certified mail. Service by certified mail shall be

7   deemed completed when the notice is deposited in the U.S.

8   Mail.

9   (3) Within 10 days after service of the cease and

10  desist order, the licensee or other person may request a

11  hearing in writing. The Secretary shall schedule a hearing

12  within 90 days after the request for a hearing unless

13  otherwise agreed to by the parties.

14  (4) The Secretary may withdraw a cease and desist

15  order at any time.

16  (5) The powers vested in the Secretary by this Section

17  are in addition to any and all other powers and remedies

18  vested in the Secretary by law, and nothing in this

19  Section shall be construed as requiring that the Secretary

20  shall employ the power conferred in this Section instead

21  of or as a condition precedent to the exercise of any other

22  power or remedy vested in the Secretary.

23  (6) The Secretary may seek to compel compliance with

24  the cease and desist order in the circuit court through

25  the Attorney General. Any person in violation of a cease

26  and desist order issued by the Department is subject to
    SB3222 Enrolled          - 532 - LRB104 19119 AAS 32564 b

1   all penalties provided by law.

2   (b) The Department, the Attorney General, any State or

3 local law enforcement agency, or any State's Attorney has the

4 authority and power to investigate any and all unlicensed

5 activity.

6   (c) The civil penalty shall be paid within 60 days after

7 the effective date of the order imposing the civil penalty or

8 in accordance with the order imposing the civil penalty. The

9 order shall constitute a judgment and may be filed and

10 execution had thereon in the same manner as any judgment from

11 any court of this State.

12  (d) A violation of subsection (a) is an unlawful practice

13 under Section 2 of the Consumer Fraud and Deceptive Business

14 Practices Act. All remedies, penalties, and authority granted

15 to the Attorney General under that Act shall be available for

16 the enforcement of this Act.

17  (e) Nothing in this Section prohibits a unit of local

18 government from enacting a local law or ordinance to carry out

19 enforcement activities and assess civil penalties against

20 unlicensed cannabis activities.

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

22  (410 ILCS 705/20-15)

23  Sec. 20-15. Conditional Adult Use Cultivation Center

24 application.

25  (a) If the Department of Agriculture makes available
    SB3222 Enrolled  - 533 - LRB104 19119 AAS 32564 b

1 additional cultivation center licenses pursuant to Section

2 20-5, applicants for a Conditional Adult Use Cultivation

3 Center License shall electronically submit the following in

4 such form as the Department of Agriculture may direct:

5   (1) the nonrefundable application fee set by rule by

6   the Department of Agriculture, to be deposited into the

7   Cannabis Regulation Fund;

8   (2) the legal name of the cultivation center;

9   (3) the proposed physical address of the cultivation

10  center;

11  (4) the name, address, social security number, and

12  date of birth of each principal officer and board member

13  of the cultivation center; each principal officer and

14  board member shall be at least 21 years of age;

15  (5) the details of any administrative or judicial

16  proceeding in which any of the principal officers or board

17  members of the cultivation center (i) pled guilty, were

18  convicted, were fined, or had a registration or license

19  suspended or revoked, or (ii) managed or served on the

20  board of a business or non-profit organization that pled

21  guilty, was convicted, was fined, or had a registration or

22  license suspended or revoked;

23  (6) proposed operating bylaws that include procedures

24  for the oversight of the cultivation center, including the

25  development and implementation of a plant monitoring

26  system, accurate recordkeeping, staffing plan, and
    SB3222 Enrolled  - 534 - LRB104 19119 AAS 32564 b

1   security plan approved by the Illinois State Police that

2   are in accordance with the rules issued by the Department

3   of Agriculture under this Act. A physical inventory shall

4   be performed of all plants and cannabis on a weekly basis

5   by the cultivation center;

6   (7) verification from the Illinois State Police that

7   all background checks of the prospective principal

8   officers, board members, and agents of the cannabis

9   business establishment have been conducted;

10  (8) a copy of the current local zoning ordinance or

11  permit and verification that the proposed cultivation

12  center is in compliance with the local zoning rules and

13  distance limitations established by the local

14  jurisdiction;

15  (9) proposed employment practices, in which the

16  applicant must demonstrate a plan of action to inform,

17  hire, and educate minorities, women, veterans, and persons

18  with disabilities, engage in fair labor practices, and

19  provide worker protections;

20  (10) whether an applicant can demonstrate experience

21  in or business practices that promote economic empowerment

22  in Disproportionately Impacted Areas;

23  (11) experience with the cultivation of agricultural

24  or horticultural products, operating an agriculturally

25  related business, or operating a horticultural business;

26  (12) a description of the enclosed, locked facility
    SB3222 Enrolled  - 535 - LRB104 19119 AAS 32564 b

1   where cannabis will be grown, harvested, manufactured,

2   processed, packaged, or otherwise prepared for

3   distribution to a dispensing organization;

4   (13) a survey of the enclosed, locked facility,

5   including the space used for cultivation;

6   (14) cultivation, processing, inventory, and packaging

7   plans;

8   (15) a description of the applicant's experience with

9   agricultural cultivation techniques and industry

10  standards;

11  (16) a list of any academic degrees, certifications,

12  or relevant experience of all prospective principal

13  officers, board members, and agents of the related

14  business;

15  (17) the identity of every person having a financial

16  or voting interest of 5% or greater in the cultivation

17  center operation with respect to which the license is

18  sought, whether a trust, corporation, partnership, limited

19  liability company, or sole proprietorship, including the

20  name and address of each person;

21  (18) a plan describing how the cultivation center will

22  address each of the following:

23          (i) energy needs, including estimates of monthly

24  electricity and gas usage, to what extent it will

25  procure energy from a local utility or from on-site

26  generation, and if it has or will adopt a sustainable
    SB3222 Enrolled  - 536 - LRB104 19119 AAS 32564 b

1   energy use and energy conservation policy;

2   (ii) water needs, including estimated water draw

3   and if it has or will adopt a sustainable water use and

4   water conservation policy; and

5   (iii) waste management, including if it has or

6   will adopt a waste reduction policy;

7   (19) a diversity plan that includes a narrative of not

8   more than 2,500 words that establishes a goal of diversity

9   in ownership, management, employment, and contracting to

10  ensure that diverse participants and groups are afforded

11  equality of opportunity;

12  (20) any other information required by rule;

13  (21) a recycling plan:

14  (A) Purchaser packaging, including cartridges,

15  shall be accepted by the applicant and recycled.

16  (B) Any recyclable waste generated by the cannabis

17  cultivation facility shall be recycled per applicable

18  State and local laws, ordinances, and rules.

19  (C) Any cannabis waste, liquid waste, or hazardous

20  waste shall be disposed of in accordance with 8 Ill.

21  Adm. Code 1000.460, except, to the greatest extent

22  feasible, all cannabis plant waste will be rendered

23  unusable by grinding and incorporating the cannabis

24  plant waste with compostable mixed waste to be

25  disposed of in accordance with 8 Ill. Adm. Code

26  1000.460(g)(1);
    SB3222 Enrolled    - 537 - LRB104 19119 AAS 32564 b

1   (22) commitment to comply with local waste provisions:

2   a cultivation facility must remain in compliance with

3   applicable State and federal environmental requirements,

4   including, but not limited to:

5   (A) storing, securing, and managing all

6   recyclables and waste, including organic waste

7   composed of or containing finished cannabis and

8   cannabis products, in accordance with applicable State

9   and local laws, ordinances, and rules; and

10  (B) disposing liquid waste containing cannabis or

11  byproducts of cannabis processing in compliance with

12  all applicable State and federal requirements,

13  including, but not limited to, the cannabis

14  cultivation facility's permits under Title X of the

15  Environmental Protection Act; and

16  (23) a commitment to a technology standard for

17  resource efficiency of the cultivation center facility.

18  (A) A cannabis cultivation facility commits to use

19  resources efficiently, including energy and water. For

20  the following, a cannabis cultivation facility commits

21  to meet or exceed the technology standard identified

22  in items (i), (ii), (iii), and (iv), which may be

23  modified by rule:

24                   (i) lighting systems, including light bulbs;

25                   (ii) HVAC system;

26                   (iii) water application system to the crop;
    SB3222 Enrolled  - 538 - LRB104 19119 AAS 32564 b

1   and

2                    (iv) filtration system for removing

3   contaminants from wastewater.

4   (B) Lighting. The Lighting Power Densities (LPD)

5   for cultivation space commits to not exceed an average

6   of 36 watts per gross square foot of active and growing

7   space canopy, or all installed lighting technology

8   shall meet a photosynthetic photon efficacy (PPE) of

9   no less than 2.2 micromoles per joule fixture and

10  shall be featured on the DesignLights Consortium (DLC)

11  Horticultural Specification Qualified Products List

12  (QPL). In the event that DLC requirement for minimum

13  efficacy exceeds 2.2 micromoles per joule fixture,

14  that PPE shall become the new standard.

15  (C) HVAC.

16                   (i) The For cannabis grow operations with less

17  than 6,000 square feet of canopy, the licensee

18  commits that all HVAC units will be

19  high-efficiency ductless split HVAC units, or

20  other more energy efficient equipment.

21                   (ii) (Blank). For cannabis grow operations

22  with 6,000 square feet of canopy or more, the

23  licensee commits that all HVAC units will be

24  variable refrigerant flow HVAC units, or other

25  more energy efficient equipment.

26  (D) Water application.
    SB3222 Enrolled    - 539 - LRB104 19119 AAS 32564 b

1                    (i) The cannabis cultivation facility commits

2   to use automated watering systems, including, but

3   not limited to, drip irrigation and flood tables,

4   to irrigate cannabis crop.

5                    (ii) The cannabis cultivation facility commits

6   to measure runoff from watering events and report

7   this volume in its water usage plan, and that on

8   average, watering events shall have no more than

9   20% of runoff of water.

10  (E) Filtration. The cultivator commits that HVAC

11  condensate, dehumidification water, excess runoff, and

12  other wastewater produced by the cannabis cultivation

13  facility shall be captured and filtered to the best of

14  the facility's ability to achieve the quality needed

15  to be reused in subsequent watering rounds.

16  (F) Reporting energy use and efficiency as

17  required by rule.

18  (b) Applicants must submit all required information,

19 including the information required in Section 20-10, to the

20 Department of Agriculture. Failure by an applicant to submit

21 all required information may result in the application being

22 disqualified.

23  (c) If the Department of Agriculture receives an

24 application with missing information, the Department of

25 Agriculture may issue a deficiency notice to the applicant.

26 The applicant shall have 10 calendar days from the date of the
    SB3222 Enrolled       - 540 - LRB104 19119 AAS 32564 b

1 deficiency notice to resubmit the incomplete information.

2 Applications that are still incomplete after this opportunity

3 to cure will not be scored and will be disqualified.

4   (d) (Blank).

5   (e) A cultivation center that is awarded a Conditional

6 Adult Use Cultivation Center License pursuant to the criteria

7 in Section 20-20 shall not grow, purchase, possess, or sell

8 cannabis or cannabis-infused products until the person has

9 received an Adult Use Cultivation Center License issued by the

10 Department of Agriculture pursuant to Section 20-21 of this

11 Act.

12 (Source: P.A. 104-417, eff. 8-15-25.)

13  (410 ILCS 705/20-30)

14  Sec. 20-30. Cultivation center requirements; prohibitions.

15  (a) The operating documents of a cultivation center shall

16 include procedures for the oversight of the cultivation

17 center, a cannabis plant monitoring system including a

18 physical inventory recorded weekly, accurate recordkeeping,

19 and a staffing plan.

20  (b) A cultivation center shall implement a security plan

21 reviewed by the Illinois State Police that includes, but is

22 not limited to: facility access controls, perimeter intrusion

23 detection systems, personnel identification systems, 24-hour

24 surveillance system to monitor the interior and exterior of

25 the cultivation center facility and accessibility to
    SB3222 Enrolled          - 541 - LRB104 19119 AAS 32564 b

1 authorized law enforcement, the Department of Public Health

2 where processing takes place, and the Department of

3 Agriculture in real time.

4   (c) All cultivation of cannabis by a cultivation center

5 must take place in an enclosed, locked facility at the

6 physical address provided to the Department of Agriculture

7 during the licensing process. The cultivation center location

8 shall only be accessed by the agents working for the

9 cultivation center, the Department of Agriculture staff

10 performing inspections, the Department of Public Health staff

11 performing inspections, local and State law enforcement or

12 other emergency personnel, contractors working on jobs

13 unrelated to cannabis, such as installing or maintaining

14 security devices or performing electrical wiring, transporting

15 organization agents as provided in this Act, individuals in a

16 mentoring or educational program approved by the State, or

17 other individuals as provided by rule.

18  (d) A cultivation center may not sell or distribute any

19 cannabis or cannabis-infused products to any person other than

20 a dispensing organization, craft grower, infuser organization,

21 transporter, or as otherwise authorized by rule.

22  (e) A cultivation center may not either directly or

23 indirectly discriminate in price between different dispensing

24 organizations, craft growers, or infuser organizations that

25 are purchasing a like grade, strain, brand, and quality of

26 cannabis or cannabis-infused product. Nothing in this
    SB3222 Enrolled  - 542 - LRB104 19119 AAS 32564 b

1 subsection (e) prevents a cultivation center from pricing

2 cannabis differently based on differences in the cost of

3 manufacturing or processing, the quantities sold, such as

4 volume discounts, or the way the products are delivered.

5   (f) All cannabis harvested by a cultivation center and

6 intended for distribution to a dispensing organization must be

7 entered into a data collection system, packaged and labeled

8 under Section 55-21, and placed into a cannabis container for

9 transport. All cannabis harvested by a cultivation center and

10 intended for distribution to a craft grower or infuser

11 organization must be packaged in a labeled cannabis container

12 and entered into a data collection system before transport.

13  (g) Cultivation centers are subject to random inspections

14 by the Department of Agriculture, the Department of Public

15 Health, local safety or health inspectors, the Illinois State

16 Police, or as provided by rule.

17  (h) A cultivation center agent shall notify local law

18 enforcement, the Illinois State Police, and the Department of

19 Agriculture within 24 hours of the discovery of any loss or

20 theft. Notification shall be made by phone or in person, or by

21 written or electronic communication.

22  (i) A cultivation center shall comply with all State and

23 any applicable federal rules and regulations regarding the use

24 of pesticides on cannabis plants.

25  (j) No person or entity shall hold any legal, equitable,

26 ownership, or beneficial interest, directly or indirectly, of
    SB3222 Enrolled  - 543 - LRB104 19119 AAS 32564 b

1 more than 3 cultivation centers licensed under this Article.

2 Further, no person or entity that is employed by, an agent of,

3 has a contract to receive payment in any form from a

4 cultivation center, is a principal officer of a cultivation

5 center, or entity controlled by or affiliated with a principal

6 officer of a cultivation center shall hold any legal,

7 equitable, ownership, or beneficial interest, directly or

8 indirectly, in a cultivation that would result in the person

9 or entity owning or controlling in combination with any

10 cultivation center, principal officer of a cultivation center,

11 or entity controlled or affiliated with a principal officer of

12 a cultivation center by which he, she, or it is employed, is an

13 agent of, or participates in the management of, more than 3

14 cultivation center licenses.

15  (k) A cultivation center may not contain more than 210,000

16 square feet of canopy space for plants in the flowering stage

17 for cultivation of adult use cannabis as provided in this Act.

18  (l) A cultivation center may process cannabis, cannabis

19 concentrates, and cannabis-infused products.

20  (m) Beginning July 1, 2020, a cultivation center shall not

21 transport cannabis or cannabis-infused products to a craft

22 grower, dispensing organization, infuser organization, or

23 laboratory licensed under this Act, unless it has obtained a

24 transporting organization license.

25  (n) It is unlawful for any person having a cultivation

26 center license or any officer, associate, member,
    SB3222 Enrolled  - 544 - LRB104 19119 AAS 32564 b

1 representative, or agent of such licensee to offer or deliver

2 money, or anything else of value, directly or indirectly to

3 any person having an Early Approval Adult Use Dispensing

4 Organization License, a Conditional Adult Use Dispensing

5 Organization License, an Adult Use Dispensing Organization

6 License, or a medical cannabis dispensing organization license

7 issued under the Compassionate Use of Medical Cannabis Program

8 Act, or to any person connected with or in any way

9 representing, or to any member of the family of, such person

10 holding an Early Approval Adult Use Dispensing Organization

11 License, a Conditional Adult Use Dispensing Organization

12 License, an Adult Use Dispensing Organization License, or a

13 medical cannabis dispensing organization license issued under

14 the Compassionate Use of Medical Cannabis Program Act, or to

15 any stockholders in any corporation engaged in the retail sale

16 of cannabis, or to any officer, manager, agent, or

17 representative of the Early Approval Adult Use Dispensing

18 Organization License, a Conditional Adult Use Dispensing

19 Organization License, an Adult Use Dispensing Organization

20 License, or a medical cannabis dispensing organization license

21 issued under the Compassionate Use of Medical Cannabis Program

22 Act to obtain preferential placement within the dispensing

23 organization, including, without limitation, on shelves and in

24 display cases where purchasers can view products, or on the

25 dispensing organization's website.

26  (o) A cultivation center must comply with any other
    SB3222 Enrolled           - 545 - LRB104 19119 AAS 32564 b

1 requirements or prohibitions set by administrative rule of the

2 Department of Agriculture.

3   (p) Cultivation centers shall retain at least 60 days of

4 camera storage in any location or otherwise provided by rule.

5 The Department may require footage to be maintained for

6 purposes of an investigation.

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

8 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

9 5-13-22.)

10  (410 ILCS 705/20-35)

11  Sec. 20-35. Cultivation center agent identification card.

12  (a) The Department of Agriculture shall:

13  (1) establish by rule the information required in an

14  initial application or renewal application for an agent

15  identification card submitted under this Act and the

16  nonrefundable fee to accompany the initial application or

17  renewal application;

18  (2) verify the information contained in an initial

19  application or renewal application for an agent

20  identification card submitted under this Act, and approve

21  or deny an application within 30 days of receiving a

22  completed initial application or renewal application and

23  all supporting documentation required by rule;

24  (3) issue an agent identification card to a qualifying

25  agent within 15 business days of approving the initial
    SB3222 Enrolled       - 546 - LRB104 19119 AAS 32564 b

1   application or renewal application;

2   (4) enter the license number of the cultivation center

3   where the agent works; and

4   (5) allow for an electronic initial application and

5   renewal application process, and provide a confirmation by

6   electronic or other methods that an application has been

7   submitted. The Department of Agriculture may by rule

8   require prospective agents to file their applications by

9   electronic means and provide notices to the agents by

10  electronic means.

11  (b) An agent must keep his or her identification card

12 visible at all times when on the property of the cultivation

13 center at which the agent is employed.

14  (c) The agent identification cards shall contain the

15 following:

16  (1) the name of the cardholder;

17  (2) the date of issuance and expiration date of the

18  identification card;

19  (3) a random 10-digit alphanumeric identification

20  number containing at least 4 numbers and at least 4

21  letters that is unique to the holder;

22  (4) a photograph of the cardholder; and

23  (5) the legal name of the cultivation center employing

24  the agent.

25  (d) An agent identification card shall be immediately

26 returned to the cultivation center of the agent upon
    SB3222 Enrolled       - 547 - LRB104 19119 AAS 32564 b

1 termination of his or her employment.

2   (e) Any agent identification card lost by a cultivation

3 center agent shall be reported to the Illinois State Police

4 and the Department of Agriculture immediately upon discovery

5 of the loss.

6   (f) The Department of Agriculture shall not issue an agent

7 identification card if the applicant is delinquent in filing

8 any required tax returns or paying any amounts owed to the

9 State of Illinois.

10  (f-5) An agent applicant may begin employment at a

11 cultivation center while the agent applicant's identification

12 card application is pending. Upon approval, the Department

13 shall issue the agent's identification card to the agent. If

14 denied, the cultivation center and the agent applicant shall

15 be notified and the agent applicant must cease all activity at

16 the infuser organization immediately.

17  (g) The Department and the Department of Financial and

18 Professional Regulation may develop and implement an

19 integrated system to issue an agent identification card that

20 identifies a cultivation center agent licensed by the

21 Department, as well as any craft grower, transporter,

22 dispensing organization, community college program, or infuser

23 license or registration the agent may simultaneously hold.

24 (Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)

25  (410 ILCS 705/20-45)
    SB3222 Enrolled            - 548 - LRB104 19119 AAS 32564 b

1   Sec. 20-45. Renewal of cultivation center licenses and

2 agent identification cards.

3   (a) Licenses and identification cards issued under this

4 Act shall be renewed annually. A cultivation center shall

5 receive written or electronic notice 90 days before the

6 expiration of its current license that the license will

7 expire. The Department of Agriculture shall grant a renewal

8 within 45 days of submission of a renewal application if:

9   (1) the cultivation center submits a renewal

10  application and the required nonrefundable renewal fee of

11  $100,000, or another amount as the Department of

12  Agriculture may set by rule after January 1, 2021, to be

13  deposited into the Cannabis Regulation Fund.

14  (2) the Department of Agriculture has not suspended

15  the license of the cultivation center or suspended or

16  revoked the license for violating this Act or rules

17  adopted under this Act;

18  (3) the cultivation center has continued to operate in

19  accordance with all plans submitted as part of its

20  application and approved by the Department of Agriculture

21  or any amendments thereto that have been approved by the

22  Department of Agriculture;

23  (4) the cultivation center has submitted an agent,

24  employee, contracting, and subcontracting diversity report

25  as required by the Department; and

26  (5) the cultivation center has submitted an
    SB3222 Enrolled     - 549 - LRB104 19119 AAS 32564 b

1   environmental impact report.

2   (b) If a cultivation center fails to renew its license

3 before expiration, it shall cease operations until its license

4 is renewed.

5   (c) If a cultivation center agent fails to renew his or her

6 identification card before its expiration, he or she shall

7 cease to work as an agent of the cultivation center until his

8 or her identification card is renewed.

9   (d) Any cultivation center that continues to operate, or

10 any cultivation center agent who continues to work as an

11 agent, after the applicable license or identification card has

12 expired without renewal is subject to the penalties provided

13 under Section 45-5.

14  (e) The Department of Agriculture shall not renew a

15 license or an agent identification card if the applicant is

16 delinquent in filing any required tax returns or paying any

17 amounts owed to the State of Illinois.

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

19  (410 ILCS 705/20-60 new)

20  Sec. 20-60. Unlicensed practice; violation; civil penalty.

21  (a) In addition to any other penalty provided by law, any

22 person who practices, offers to practice, attempts to

23 practice, or holds oneself out to practice as a cultivation

24 center, infuser, or craft grower, principal officer,

25 agent-in-charge, or agent or who cultivates, processes,
    SB3222 Enrolled          - 550 - LRB104 19119 AAS 32564 b

1 distributes, sells, or offers for sale cannabis,

2 cannabis-infused products, cannabis concentrates, or cannabis

3 flower without being licensed under this Act shall, in

4 addition to any other penalty provided by law, pay a civil

5 penalty to the Department of Agriculture in an amount not to

6 exceed $10,000 for each offense. Each day any person engages

7 in unlicensed practice in violation of the provisions of this

8 Section constitutes a separate offense. The civil penalty

9 shall be assessed by the Department after a hearing is held in

10 accordance with the provisions set forth in this Act regarding

11 hearings for the discipline of a licensee.

12  (b) The Department, the Attorney General, any State or

13 local law enforcement agency, or any State's Attorney has the

14 authority and power to investigate any and all unlicensed

15 activity described under this Section.

16  (c) The civil penalty shall be paid within 60 days after

17 the effective date of the order imposing the civil penalty or

18 in accordance with the order imposing the civil penalty. The

19 order shall constitute a judgment and may be filed and

20 execution had thereon in the same manner as any judgment from

21 any court of this State.

22  (d) In addition to any other remedies or penalties

23 provided by law, a unit of local government may suspend or

24 revoke any locally established licenses held by the person,

25 prohibit the person from further operations, and seize any

26 cannabis or THC product.
    SB3222 Enrolled           - 551 - LRB104 19119 AAS 32564 b

1   (e) A violation of subsection (a) is an unlawful practice

2 under Section 2 of the Consumer Fraud and Deceptive Business

3 Practices Act. All remedies, penalties, and authority granted

4 to the Attorney General under that Act shall be available for

5 the enforcement of this Act.

6   (f) Nothing in this Section prohibits a unit of local

7 government from enacting a local law or ordinance to carry out

8 enforcement activities and assess civil penalties against

9 unlicensed cannabis sales.

10  (410 ILCS 705/25-35)

11  (Section scheduled to be repealed on July 1, 2026)

12  Sec. 25-35. Community College Cannabis Vocational Training

13 Pilot Program faculty participant agent identification card.

14  (a) The Department shall:

15  (1) establish by rule the information required in an

16  initial application or renewal application for an agent

17  identification card submitted under this Article and the

18  nonrefundable fee to accompany the initial application or

19  renewal application;

20  (2) verify the information contained in an initial

21  application or renewal application for an agent

22  identification card submitted under this Article, and

23  approve or deny an application within 30 days of receiving

24  a completed initial application or renewal application and

25  all supporting documentation required by rule;
    SB3222 Enrolled       - 552 - LRB104 19119 AAS 32564 b

1   (3) issue an agent identification card to a qualifying

2   agent within 15 business days of approving the initial

3   application or renewal application;

4   (4) enter the license number of the community college

5   where the agent works; and

6   (5) allow for an electronic initial application and

7   renewal application process, and provide a confirmation by

8   electronic or other methods that an application has been

9   submitted. Each Department may by rule require prospective

10  agents to file their applications by electronic means and

11  to provide notices to the agents by electronic means.

12  (b) An agent must keep his or her identification card

13 visible at all times when in the enclosed, locked facility, or

14 facilities for which he or she is an agent.

15  (c) The agent identification cards shall contain the

16 following:

17  (1) the name of the cardholder;

18  (2) the date of issuance and expiration date of the

19  identification card;

20  (3) a random 10-digit alphanumeric identification

21  number containing at least 4 numbers and at least 4

22  letters that is unique to the holder;

23  (4) a photograph of the cardholder; and

24  (5) the legal name of the community college employing

25  the agent.

26  (d) An agent identification card shall be immediately
    SB3222 Enrolled       - 553 - LRB104 19119 AAS 32564 b

1 returned to the community college of the agent upon

2 termination of his or her employment.

3   (e) Any agent identification card lost shall be reported

4 to the Illinois State Police and the Department of Agriculture

5 immediately upon discovery of the loss.

6   (f) An agent applicant may begin employment at a Community

7 College Cannabis Vocational Training Pilot Program while the

8 agent applicant's identification card application is pending.

9 Upon approval, the Department shall issue the agent's

10 identification card to the agent. If denied, the Community

11 College Cannabis Vocational Training Pilot Program and the

12 agent applicant shall be notified and the agent applicant must

13 cease all activity at the Community College Cannabis

14 Vocational Training Pilot Program immediately.

15  (g) The Department of Agriculture shall not issue an agent

16 identification card if the applicant is delinquent in filing

17 any required tax returns or paying any amounts owed to the

18 State of Illinois.

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

20 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

21  (410 ILCS 705/30-10)

22  Sec. 30-10. Application.

23  (a) When applying for a license, the applicant shall

24 electronically submit the following in such form as the

25 Department of Agriculture may direct:
    SB3222 Enrolled         - 554 - LRB104 19119 AAS 32564 b

1   (1) the nonrefundable application fee of $5,000 to be

2   deposited into the Cannabis Regulation Fund, or another

3   amount as the Department of Agriculture may set by rule

4   after January 1, 2021;

5   (2) the legal name of the craft grower;

6   (3) the proposed physical address of the craft grower;

7   (4) the name, address, social security number, and

8   date of birth of each principal officer and board member

9   of the craft grower; each principal officer and board

10  member shall be at least 21 years of age;

11  (5) the details of any administrative or judicial

12  proceeding in which any of the principal officers or board

13  members of the craft grower (i) pled guilty, were

14  convicted, were fined, or had a registration or license

15  suspended or revoked or (ii) managed or served on the

16  board of a business or non-profit organization that pled

17  guilty, was convicted, was fined, or had a registration or

18  license suspended or revoked;

19  (6) proposed operating bylaws that include procedures

20  for the oversight of the craft grower, including the

21  development and implementation of a plant monitoring

22  system, accurate recordkeeping, staffing plan, and

23  security plan approved by the Illinois State Police that

24  are in accordance with the rules issued by the Department

25  of Agriculture under this Act; a physical inventory shall

26  be performed of all plants and on a weekly basis by the
    SB3222 Enrolled  - 555 - LRB104 19119 AAS 32564 b

1   craft grower;

2   (7) verification from the Illinois State Police that

3   all background checks of the prospective principal

4   officers, board members, and agents of the cannabis

5   business establishment have been conducted;

6   (8) a copy of the current local zoning ordinance or

7   permit and verification that the proposed craft grower is

8   in compliance with the local zoning rules and distance

9   limitations established by the local jurisdiction;

10  (9) proposed employment practices, in which the

11  applicant must demonstrate a plan of action to inform,

12  hire, and educate minorities, women, veterans, and persons

13  with disabilities, engage in fair labor practices, and

14  provide worker protections;

15  (10) whether an applicant can demonstrate experience

16  in or business practices that promote economic empowerment

17  in Disproportionately Impacted Areas;

18  (11) experience with the cultivation of agricultural

19  or horticultural products, operating an agriculturally

20  related business, or operating a horticultural business;

21  (12) a description of the enclosed, locked facility

22  where cannabis will be grown, harvested, manufactured,

23  packaged, or otherwise prepared for distribution to a

24  dispensing organization or other cannabis business

25  establishment;

26  (13) a survey of the enclosed, locked facility,
    SB3222 Enrolled  - 556 - LRB104 19119 AAS 32564 b

1   including the space used for cultivation;

2   (14) cultivation, processing, inventory, and packaging

3   plans;

4   (15) a description of the applicant's experience with

5   agricultural cultivation techniques and industry

6   standards;

7   (16) a list of any academic degrees, certifications,

8   or relevant experience of all prospective principal

9   officers, board members, and agents of the related

10  business;

11  (17) the identity of every person having a financial

12  or voting interest of 5% or greater in the craft grower

13  operation, whether a trust, corporation, partnership,

14  limited liability company, or sole proprietorship,

15  including the name and address of each person;

16  (18) a plan describing how the craft grower will

17  address each of the following:

18          (i) energy needs, including estimates of monthly

19  electricity and gas usage, to what extent it will

20  procure energy from a local utility or from on-site

21  generation, and if it has or will adopt a sustainable

22  energy use and energy conservation policy;

23          (ii) water needs, including estimated water draw

24  and if it has or will adopt a sustainable water use and

25  water conservation policy; and

26          (iii) waste management, including if it has or
    SB3222 Enrolled  - 557 - LRB104 19119 AAS 32564 b

1   will adopt a waste reduction policy;

2   (19) a recycling plan:

3   (A) Purchaser packaging, including cartridges,

4   shall be accepted by the applicant and recycled.

5   (B) Any recyclable waste generated by the craft

6   grower facility shall be recycled per applicable State

7   and local laws, ordinances, and rules.

8   (C) Any cannabis waste, liquid waste, or hazardous

9   waste shall be disposed of in accordance with 8 Ill.

10  Adm. Code 1000.460, except, to the greatest extent

11  feasible, all cannabis plant waste will be rendered

12  unusable by grinding and incorporating the cannabis

13  plant waste with compostable mixed waste to be

14  disposed of in accordance with 8 Ill. Adm. Code

15  1000.460(g)(1);

16  (20) a commitment to comply with local waste

17  provisions: a craft grower facility must remain in

18  compliance with applicable State and federal environmental

19  requirements, including, but not limited to:

20  (A) storing, securing, and managing all

21  recyclables and waste, including organic waste

22  composed of or containing finished cannabis and

23  cannabis products, in accordance with applicable State

24  and local laws, ordinances, and rules; and

25  (B) disposing liquid waste containing cannabis or

26  byproducts of cannabis processing in compliance with
    SB3222 Enrolled  - 558 - LRB104 19119 AAS 32564 b

1   all applicable State and federal requirements,

2   including, but not limited to, the cannabis

3   cultivation facility's permits under Title X of the

4   Environmental Protection Act;

5   (21) a commitment to a technology standard for

6   resource efficiency of the craft grower facility.

7   (A) A craft grower facility commits to use

8   resources efficiently, including energy and water. For

9   the following, a craft grower cannabis cultivation

10  facility commits to meet or exceed the technology

11  standard identified in paragraphs (i), (ii), (iii),

12  and (iv), which may be modified by rule:

13                   (i) lighting systems, including light bulbs;

14                   (ii) HVAC system;

15                   (iii) water application system to the crop;

16  and

17                   (iv) filtration system for removing

18  contaminants from wastewater.

19  (B) Lighting. The Lighting Power Densities (LPD)

20  for cultivation space commits to not exceed an average

21  of 36 watts per gross square foot of active and growing

22  space canopy, or all installed lighting technology

23  shall meet a photosynthetic photon efficacy (PPE) of

24  no less than 2.2 micromoles per joule fixture and

25  shall be featured on the DesignLights Consortium (DLC)

26  Horticultural Specification Qualified Products List
    SB3222 Enrolled  - 559 - LRB104 19119 AAS 32564 b

1   (QPL). In the event that DLC requirement for minimum

2   efficacy exceeds 2.2 micromoles per joule fixture,

3   that PPE shall become the new standard.

4   (C) HVAC.

5                    (i) The For cannabis grow operations with less

6   than 6,000 square feet of canopy, the licensee

7   commits that all HVAC units will be

8   high-efficiency ductless split HVAC units, or

9   other more energy efficient equipment.

10                   (ii) (Blank). For cannabis grow operations

11  with 6,000 square feet of canopy or more, the

12  licensee commits that all HVAC units will be

13  variable refrigerant flow HVAC units, or other

14  more energy efficient equipment.

15  (D) Water application.

16                   (i) The craft grower facility commits to use

17  automated watering systems, including, but not

18  limited to, drip irrigation and flood tables, to

19  irrigate cannabis crop.

20                   (ii) The craft grower facility commits to

21  measure runoff from watering events and report

22  this volume in its water usage plan, and that on

23  average, watering events shall have no more than

24  20% of runoff of water.

25  (E) Filtration. The craft grower commits that HVAC

26  condensate, dehumidification water, excess runoff, and
    SB3222 Enrolled         - 560 - LRB104 19119 AAS 32564 b

1   other wastewater produced by the craft grower facility

2   shall be captured and filtered to the best of the

3   facility's ability to achieve the quality needed to be

4   reused in subsequent watering rounds.

5   (F) Reporting energy use and efficiency as

6   required by rule; and

7   (22) any other information required by rule.

8   (b) Applicants must submit all required information,

9 including the information required in Section 30-15, to the

10 Department of Agriculture. Failure by an applicant to submit

11 all required information may result in the application being

12 disqualified.

13  (c) If the Department of Agriculture receives an

14 application with missing information, the Department of

15 Agriculture may issue a deficiency notice to the applicant.

16 The applicant shall have 10 calendar days from the date of the

17 deficiency notice to resubmit the incomplete information.

18 Applications that are still incomplete after this opportunity

19 to cure will not be scored and will be disqualified.

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

21 102-538, eff. 8-20-21.)

22  (410 ILCS 705/30-30)

23  Sec. 30-30. Craft grower requirements; prohibitions.

24  (a) The operating documents of a craft grower shall

25 include procedures for the oversight of the craft grower, a
    SB3222 Enrolled           - 561 - LRB104 19119 AAS 32564 b

1 cannabis plant monitoring system including a physical

2 inventory recorded weekly, accurate recordkeeping, and a

3 staffing plan.

4   (b) A craft grower shall implement a security plan

5 reviewed by the Illinois State Police that includes, but is

6 not limited to: facility access controls, perimeter intrusion

7 detection systems, personnel identification systems, and a

8 24-hour surveillance system to monitor the interior and

9 exterior of the craft grower facility and that is accessible

10 to authorized law enforcement and the Department of

11 Agriculture in real time.

12  (c) All cultivation of cannabis by a craft grower must

13 take place in an enclosed, locked facility at the physical

14 address provided to the Department of Agriculture during the

15 licensing process. The craft grower location shall only be

16 accessed by the agents working for the craft grower, the

17 Department of Agriculture staff performing inspections, the

18 Department of Public Health staff performing inspections,

19 State and local law enforcement or other emergency personnel,

20 contractors working on jobs unrelated to cannabis, such as

21 installing or maintaining security devices or performing

22 electrical wiring, transporting organization agents as

23 provided in this Act, or participants in the incubator

24 program, individuals in a mentoring or educational program

25 approved by the State, or other individuals as provided by

26 rule. However, if a craft grower shares a premises with an
    SB3222 Enrolled  - 562 - LRB104 19119 AAS 32564 b

1 infuser or dispensing organization, agents from those other

2 licensees may access the craft grower portion of the premises

3 if that is the location of common bathrooms, lunchrooms,

4 locker rooms, or other areas of the building where work or

5 cultivation of cannabis is not performed. At no time may an

6 infuser or dispensing organization agent perform work at a

7 craft grower without being a registered agent of the craft

8 grower.

9   (d) A craft grower may not sell or distribute any cannabis

10 to any person other than a cultivation center, a craft grower,

11 an infuser organization, a dispensing organization, or as

12 otherwise authorized by rule.

13  (e) A craft grower may not be located in an area zoned for

14 residential use.

15  (f) A craft grower may not either directly or indirectly

16 discriminate in price between different cannabis business

17 establishments that are purchasing a like grade, strain,

18 brand, and quality of cannabis or cannabis-infused product.

19 Nothing in this subsection (f) prevents a craft grower from

20 pricing cannabis differently based on differences in the cost

21 of manufacturing or processing, the quantities sold, such as

22 volume discounts, or the way the products are delivered.

23  (g) All cannabis harvested by a craft grower and intended

24 for distribution to a dispensing organization must be entered

25 into a data collection system, packaged and labeled under

26 Section 55-21, and, if distribution is to a dispensing
    SB3222 Enrolled         - 563 - LRB104 19119 AAS 32564 b

1 organization that does not share a premises with the

2 dispensing organization receiving the cannabis, placed into a

3 cannabis container for transport. All cannabis harvested by a

4 craft grower and intended for distribution to a cultivation

5 center, to an infuser organization, or to a craft grower with

6 which it does not share a premises, must be packaged in a

7 labeled cannabis container and entered into a data collection

8 system before transport.

9   (h) Craft growers are subject to random inspections by the

10 Department of Agriculture, local safety or health inspectors,

11 the Illinois State Police, or as provided by rule.

12  (i) A craft grower agent shall notify local law

13 enforcement, the Illinois State Police, and the Department of

14 Agriculture within 24 hours of the discovery of any loss or

15 theft. Notification shall be made by phone, in person, or

16 written or electronic communication.

17  (j) A craft grower shall comply with all State and any

18 applicable federal rules and regulations regarding the use of

19 pesticides.

20  (k) A craft grower or craft grower agent shall not

21 transport cannabis or cannabis-infused products to any other

22 cannabis business establishment without a transport

23 organization license unless:

24  (i) If the craft grower is located in a county with a

25  population of 3,000,000 or more, the cannabis business

26  establishment receiving the cannabis is within 2,000 feet
    SB3222 Enrolled    - 564 - LRB104 19119 AAS 32564 b

1   of the property line of the craft grower;

2   (ii) If the craft grower is located in a county with a

3   population of more than 700,000 but fewer than 3,000,000,

4   the cannabis business establishment receiving the cannabis

5   is within 2 miles of the craft grower; or

6   (iii) If the craft grower is located in a county with a

7   population of fewer than 700,000, the cannabis business

8   establishment receiving the cannabis is within 15 miles of

9   the craft grower.

10  (l) A craft grower may enter into a contract with a

11 transporting organization to transport cannabis to a

12 cultivation center, a craft grower, an infuser organization, a

13 dispensing organization, or a laboratory.

14  (m) No person or entity shall hold any legal, equitable,

15 ownership, or beneficial interest, directly or indirectly, of

16 more than 3 craft grower licenses. Further, no person or

17 entity that is employed by, an agent of, or has a contract to

18 receive payment from or participate in the management of a

19 craft grower, is a principal officer of a craft grower, or

20 entity controlled by or affiliated with a principal officer of

21 a craft grower shall hold any legal, equitable, ownership, or

22 beneficial interest, directly or indirectly, in a craft grower

23 license that would result in the person or entity owning or

24 controlling in combination with any craft grower, principal

25 officer of a craft grower, or entity controlled or affiliated

26 with a principal officer of a craft grower by which he, she, or
   SB3222 Enrolled  - 565 - LRB104 19119 AAS 32564 b

1 it is employed, is an agent of, or participates in the

2 management of more than 3 craft grower licenses.

3  (n) It is unlawful for any person having a craft grower

4 license or any officer, associate, member, representative, or

5 agent of the licensee to offer or deliver money, or anything

6 else of value, directly or indirectly, to any person having an

7 Early Approval Adult Use Dispensing Organization License, a

8 Conditional Adult Use Dispensing Organization License, an

9 Adult Use Dispensing Organization License, or a medical

10 cannabis dispensing organization license issued under the

11 Compassionate Use of Medical Cannabis Program Act, or to any

12 person connected with or in any way representing, or to any

13 member of the family of, the person holding an Early Approval

14 Adult Use Dispensing Organization License, a Conditional Adult

15 Use Dispensing Organization License, an Adult Use Dispensing

16 Organization License, or a medical cannabis dispensing

17 organization license issued under the Compassionate Use of

18 Medical Cannabis Program Act, or to any stockholders in any

19 corporation engaged in the retail sale of cannabis, or to any

20 officer, manager, agent, or representative of the Early

21 Approval Adult Use Dispensing Organization License, a

22 Conditional Adult Use Dispensing Organization License, an

23 Adult Use Dispensing Organization License, or a medical

24 cannabis dispensing organization license issued under the

25 Compassionate Use of Medical Cannabis Program Act to obtain

26 preferential placement within the dispensing organization,
    SB3222 Enrolled        - 566 - LRB104 19119 AAS 32564 b

1 including, without limitation, on shelves and in display cases

2 where purchasers can view products, or on the dispensing

3 organization's website.

4   (o) A craft grower shall not be located within 1,500 feet

5 of another craft grower or a cultivation center.

6   (p) A craft grower may process cannabis, cannabis

7 concentrates, and cannabis-infused products.

8   (q) A craft grower must comply with any other requirements

9 or prohibitions set by administrative rule of the Department

10 of Agriculture.

11  (r) Craft growers shall retain at least 60 days of camera

12 storage in any location or otherwise provided by rule. The

13 Department may require footage to be maintained for purposes

14 of an investigation.

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

16 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

17 5-13-22.)

18  (410 ILCS 705/30-35)

19  Sec. 30-35. Craft grower agent identification card.

20  (a) The Department of Agriculture shall:

21  (1) establish by rule the information required in an

22  initial application or renewal application for an agent

23  identification card submitted under this Act and the

24  nonrefundable fee to accompany the initial application or

25  renewal application;
    SB3222 Enrolled       - 567 - LRB104 19119 AAS 32564 b

1   (2) verify the information contained in an initial

2   application or renewal application for an agent

3   identification card submitted under this Act and approve

4   or deny an application within 30 days of receiving a

5   completed initial application or renewal application and

6   all supporting documentation required by rule;

7   (3) issue an agent identification card to a qualifying

8   agent within 15 business days of approving the initial

9   application or renewal application;

10  (4) enter the license number of the craft grower where

11  the agent works; and

12  (5) allow for an electronic initial application and

13  renewal application process, and provide a confirmation by

14  electronic or other methods that an application has been

15  submitted. The Department of Agriculture may by rule

16  require prospective agents to file their applications by

17  electronic means and provide notices to the agents by

18  electronic means.

19  (b) An agent must keep his or her identification card

20 visible at all times when on the property of a cannabis

21 business establishment, including the craft grower

22 organization for which he or she is an agent.

23  (c) The agent identification cards shall contain the

24 following:

25  (1) the name of the cardholder;

26  (2) the date of issuance and expiration date of the
    SB3222 Enrolled           - 568 - LRB104 19119 AAS 32564 b

1   identification card;

2         (3) a random 10-digit alphanumeric identification

3   number containing at least 4 numbers and at least 4

4   letters that is unique to the holder;

5         (4) a photograph of the cardholder; and

6         (5) the legal name of the craft grower organization

7   employing the agent.

8   (d) An agent identification card shall be immediately

9 returned to the cannabis business establishment of the agent

10 upon termination of his or her employment.

11  (e) Any agent identification card lost by a craft grower

12 agent shall be reported to the Illinois State Police and the

13 Department of Agriculture immediately upon discovery of the

14 loss.

15  (f) The Department of Agriculture shall not issue an agent

16 identification card if the applicant is delinquent in filing

17 any required tax returns or paying any amounts owed to the

18 State of Illinois.

19  (f-5) An agent applicant may begin employment at a craft

20 grower while the agent applicant's identification card

21 application is pending. Upon approval, the Department shall

22 issue the agent's identification card to the agent. If denied,

23 the craft grower and the agent applicant shall be notified and

24 the agent applicant must cease all activity at the infuser

25 organization immediately.

26  (g) The Department and the Department of Financial and
    SB3222 Enrolled       - 569 - LRB104 19119 AAS 32564 b

1 Professional Regulation may develop and implement an
2 integrated system to issue an agent identification card that
3 identifies a craft grower agent licensed by the Department as
4 well as any cultivator, dispensary, transporter, community
5 college program, or infuser license or registration the agent
6 may simultaneously hold.
7 (Source: P.A. 101-27, eff. 6-25-19; 102-538, eff. 8-20-21.)

8   (410 ILCS 705/30-45)

9   Sec. 30-45. Renewal of craft grower licenses and agent

10 identification cards.

11  (a) Licenses and identification cards issued under this

12 Act shall be renewed annually. A craft grower shall receive

13 written or electronic notice 90 days before the expiration of

14 its current license that the license will expire. The

15 Department of Agriculture shall grant a renewal within 45 days

16 of submission of a renewal application if:

17  (1) the craft grower submits a renewal application and

18  the required nonrefundable renewal fee of $40,000, or

19  another amount as the Department of Agriculture may set by

20  rule after January 1, 2021;

21  (2) the Department of Agriculture has not suspended

22  the license of the craft grower or suspended or revoked

23  the license for violating this Act or rules adopted under

24  this Act;

25  (3) the craft grower has continued to operate in
    SB3222 Enrolled  - 570 - LRB104 19119 AAS 32564 b

1   accordance with all plans submitted as part of its

2   application and approved by the Department of Agriculture

3   or any amendments thereto that have been approved by the

4   Department of Agriculture;

5         (4) the craft grower has submitted an agent, employee,

6   contracting, and subcontracting diversity report as

7   required by the Department; and

8         (5) the craft grower has submitted an environmental

9   impact report.

10  (b) If a craft grower fails to renew its license before

11 expiration, it shall cease operations until its license is

12 renewed.

13  (c) If a craft grower agent fails to renew his or her

14 identification card before its expiration, he or she shall

15 cease to work as an agent of the craft grower organization

16 until his or her identification card is renewed.

17  (d) Any craft grower that continues to operate, or any

18 craft grower agent who continues to work as an agent, after the

19 applicable license or identification card has expired without

20 renewal is subject to the penalties provided under Section

21 45-5.

22  (e) All fees or fines collected from the renewal of a craft

23 grower license shall be deposited into the Cannabis Regulation

24 Fund.

25  (f) The Department of Agriculture shall not renew a

26 license or an agent identification card if the applicant is
    SB3222 Enrolled       - 571 - LRB104 19119 AAS 32564 b

1 delinquent in filing any required tax returns or paying any
2 amounts owed to the State of Illinois.
3 (Source: P.A. 101-27, eff. 6-25-19.)

4   (410 ILCS 705/35-18 new)

5   Sec. 35-18. Social equity experience lottery.

6   (a) The Department shall, by rule, develop an application,

7 submission, review, and deficiency process to issue at least

8 45 infuser licenses by January 1, 2027 and may issue up to 100

9 additional licenses beginning January 1, 2028. The licenses

10 shall be issued to applicants that are 51% owned by

11 individuals who meet the following social equity criteria:

12  (1) The applicant must satisfy one of the following

13  geographic criteria:

14  (A) the individual must have resided for at least

15  5 of the preceding 10 years in a census tract that has

16  a poverty rate of at least 20% according to the latest

17  5-year American Community Survey (Table S1701: Poverty

18  Status in the Past 12 Months) that is publicly

19  available at the start of the application submission

20  window;

21  (B) the individual must have resided for at least

22  5 of the preceding 10 years in a census tract where at

23  least 20% of the households receive assistance under

24  the Supplemental Nutrition Assistance Program in the

25  latest 5-year American Community Survey (Table S2201:
    SB3222 Enrolled  - 572 - LRB104 19119 AAS 32564 b

1   Food Stamps/Supplemental Nutrition Assistance Program

2   (SNAP)) that is publicly available at the start of the

3   application submission;

4   (C) the individual must have resided for at least

5   5 of the preceding 10 years in a census tract area

6   classified as "low income and low access" where at

7   least 100 households are more than one-half mile from

8   the nearest supermarket and have no access to a

9   vehicle or a significant number (at least 500 people)

10  or share (at least 33%) of the population is greater

11  than one mile from the nearest supermarket,

12  supercenter, or large grocery store for an urban area

13  or greater than 20 miles for a rural area, as

14  classified by the latest United States Department of

15  Agriculture Economic Research Service's Food Access

16  Research Atlas data set that is publicly available at

17  the start of the application submission window;

18  (D) the individual must have received Medicaid,

19  Supplemental Security Income, Social Security

20  Disability, or subsidized housing for at least 5 of

21  the preceding 10 years; or

22  (E) the individual must have resided for at least

23  5 of the preceding 10 years in a census tract in the

24  top 15th percentile for the percent of residents in

25  the census tract failing to graduate from high school

26  in that state, as classified by the latest 5-year
    SB3222 Enrolled          - 573 - LRB104 19119 AAS 32564 b

1   American Community Survey (Table S1501: Educational

2   Attainment) that is publicly available at the start of

3   the application submission window.

4   The Department may update or adjust the criteria in

5   this paragraph (1) by rule.

6   (2) The individual must satisfy one of the following

7   social equity criteria:

8   (A) the individual must have been arrested for,

9   convicted of, or adjudicated delinquent for an

10  offense, or substantially similar offense under

11  federal or State law or under a substantially similar

12  law of another State for possession of not more than

13  500 grams of cannabis or for manufacture, delivery, or

14  possession with intent to deliver, or manufacture of

15  cannabis up to 60 grams;

16  (B) the individual must have been a member of a

17  justice-impacted family;

18  (C) the individual must have been a victim of an

19  injury caused by a firearm, as defined in the Firearm

20  Owners Identification Card Act, as evidenced in public

21  or medical records.

22  As used in this subparagraph (C), "victim of an

23  injury caused by a firearm" means:

24                   (i) a person injured as a result of a firearm

25  injury perpetrated or attempted against them;

26                   (ii) the spouse, parent, or child of a person
    SB3222 Enrolled  - 574 - LRB104 19119 AAS 32564 b

1   killed or injured as a result of a firearm injury

2   perpetrated or attempted against the person, or

3   anyone living in the household of a person killed

4   or injured in a relationship that is substantially

5   similar to that of a parent, spouse, or child;

6                    (iii) a person injured while attempting to

7   assist a person against whom a firearm injury is

8   being perpetrated or attempted, if that attempt of

9   assistance would be expected of a reasonable

10  person under the circumstances;

11                   (iv) a person injured while assisting a law

12  enforcement official apprehend a person who has

13  perpetrated a firearm injury or prevent the

14  perpetration of any such crime if that assistance

15  was in response to the express request of the law

16  enforcement official; or

17                   (v) a person who personally witnessed a

18  firearm injury.

19  "Victim of an injury caused by a firearm" does not

20  include the offender who committed the criminal act or

21  a person who provoked or incited the crime.

22  (b) The Department's rules governing the lottery shall

23 include a bonus draw process for hemp business operators who

24 meet any one or more of the following criteria:

25  (1) The applicant was registered with the Department

26  as an industrial hemp processor under the Industrial Hemp
    SB3222 Enrolled     - 575 - LRB104 19119 AAS 32564 b

1   Act on or before May 1, 2026.

2   (2) The applicant held an industrial hemp cultivation

3   license issued by the Department under the Industrial Hemp

4   Act on or before May 1, 2026.

5   (3) The applicant demonstrates that, on or before May

6   1, 2026, it operated a business in Illinois that derived

7   the majority of its gross receipts from the sale or

8   manufacture of products containing hemp or hemp-derived

9   cannabinoids. The Department may establish verification

10  standards by rule.

11  (c) If the Department receives more than 45 applications,

12 the Department shall conduct a lottery before determining

13 applicant's eligibility for infuser licenses and before

14 issuing the infuser license.

15  (d) After the Department publishes the official draw

16 results, the Department shall conduct a verification process

17 to confirm that drawn applicants meet the eligibility criteria

18 established by this Section and by rule. Drawn applicants who

19 are unable to provide sufficient documentation of their

20 eligibility may be denied a license, and the Department may

21 offer the next applicant drawn from the official results an

22 opportunity to prove eligibility for licensure.

23  (e) The Department may also require, by rule, the

24 submission of additional plans and exhibits, including, but

25 not limited to, a security plan, infusing plan, employee

26 training plan, product safety plan, and business plan.
    SB3222 Enrolled       - 576 - LRB104 19119 AAS 32564 b

1   (f) A principal officer may not be on more than one

2 application.

3   (g) Each applicant shall pay a nonrefundable application

4 fee of $2,500, which shall be deposited into the Cannabis

5 Regulation Fund.

6   (h) If the Department determines that any information on

7 an application or in supporting documents is not truthful, the

8 applicant associated with the application shall be prohibited

9 from:

10       (1) participating in the lottery;

11       (2) being a drawn applicant; and

12       (3) being issued an infuser license under this

13  Section.

14  (410 ILCS 705/35-25)

15  Sec. 35-25. Infuser organization requirements;

16 prohibitions.

17  (a) The operating documents of an infuser shall include

18 procedures for the oversight of the infuser, an inventory

19 monitoring system including a physical inventory recorded

20 weekly, accurate recordkeeping, and a staffing plan.

21  (b) An infuser shall implement a security plan reviewed by

22 the Illinois State Police that includes, but is not limited

23 to: facility access controls, perimeter intrusion detection

24 systems, personnel identification systems, and a 24-hour

25 surveillance system to monitor the interior and exterior of
    SB3222 Enrolled  - 577 - LRB104 19119 AAS 32564 b

1 the infuser facility and that is accessible to authorized law

2 enforcement, the Department of Public Health, and the

3 Department of Agriculture in real time.

4   (c) All processing of cannabis by an infuser must take

5 place in an enclosed, locked facility at the physical address

6 provided to the Department of Agriculture during the licensing

7 process. The infuser location shall only be accessed by the

8 agents working for the infuser, the Department of Agriculture

9 staff performing inspections, the Department of Public Health

10 staff performing inspections, State and local law enforcement

11 or other emergency personnel, contractors working on jobs

12 unrelated to cannabis, such as installing or maintaining

13 security devices or performing electrical wiring, transporting

14 organization agents as provided in this Act, participants in

15 the incubator program, individuals in a mentoring or

16 educational program approved by the State, local safety or

17 health inspectors, or other individuals as provided by rule.

18 However, if an infuser shares a premises with a craft grower or

19 dispensing organization, agents from these other licensees may

20 access the infuser portion of the premises if that is the

21 location of common bathrooms, lunchrooms, locker rooms, or

22 other areas of the building where processing of cannabis is

23 not performed. At no time may a craft grower or dispensing

24 organization agent perform work at an infuser without being a

25 registered agent of the infuser.

26  (d) An infuser may not sell or distribute any cannabis to
    SB3222 Enrolled   - 578 - LRB104 19119 AAS 32564 b

1 any person other than a dispensing organization, or as

2 otherwise authorized by rule.

3   (e) An infuser may not either directly or indirectly

4 discriminate in price between different cannabis business

5 establishments that are purchasing a like grade, strain,

6 brand, and quality of cannabis or cannabis-infused product.

7 Nothing in this subsection (e) prevents an infuser from

8 pricing cannabis differently based on differences in the cost

9 of manufacturing or processing, the quantities sold, such

10 volume discounts, or the way the products are delivered.

11  (f) All cannabis infused by an infuser and intended for

12 distribution to a dispensing organization must be entered into

13 a data collection system, packaged and labeled under Section

14 55-21, and, if distribution is to a dispensing organization

15 that does not share a premises with the infuser, placed into a

16 cannabis container for transport. All cannabis produced by an

17 infuser and intended for distribution to a cultivation center,

18 infuser organization, or craft grower with which it does not

19 share a premises, must be packaged in a labeled cannabis

20 container and entered into a data collection system before

21 transport.

22  (g) Infusers are subject to random inspections by the

23 Department of Agriculture, the Department of Public Health,

24 the Illinois State Police, local law enforcement, or as

25 provided by rule.

26  (h) An infuser agent shall notify local law enforcement,
    SB3222 Enrolled           - 579 - LRB104 19119 AAS 32564 b

1 the Illinois State Police, and the Department of Agriculture

2 within 24 hours of the discovery of any loss or theft.

3 Notification shall be made by phone, in person, or by written

4 or electronic communication.

5   (i) An infuser organization may not be located in an area

6 zoned for residential use.

7   (j) An infuser or infuser agent shall not transport

8 cannabis or cannabis-infused products to any other cannabis

9 business establishment without a transport organization

10 license unless:

11  (i) If the infuser is located in a county with a

12  population of 3,000,000 or more, the cannabis business

13  establishment receiving the cannabis or cannabis-infused

14  product is within 2,000 feet of the property line of the

15  infuser;

16  (ii) If the infuser is located in a county with a

17  population of more than 700,000 but fewer than 3,000,000,

18  the cannabis business establishment receiving the cannabis

19  or cannabis-infused product is within 2 miles of the

20  infuser; or

21  (iii) If the infuser is located in a county with a

22  population of fewer than 700,000, the cannabis business

23  establishment receiving the cannabis or cannabis-infused

24  product is within 15 miles of the infuser.

25  (k) An infuser may enter into a contract with a

26 transporting organization to transport cannabis to a
   SB3222 Enrolled  - 580 - LRB104 19119 AAS 32564 b

1 dispensing organization or a laboratory.

2  (l) An infuser organization may share premises with a

3 craft grower or a dispensing organization, or both, provided

4 each licensee stores currency and cannabis or cannabis-infused

5 products in a separate secured vault to which the other

6 licensee does not have access or all licensees sharing a vault

7 share more than 50% of the same ownership.

8  (m) It is unlawful for any person or entity having an

9 infuser organization license or any officer, associate,

10 member, representative or agent of such licensee to offer or

11 deliver money, or anything else of value, directly or

12 indirectly to any person having an Early Approval Adult Use

13 Dispensing Organization License, a Conditional Adult Use

14 Dispensing Organization License, an Adult Use Dispensing

15 Organization License, or a medical cannabis dispensing

16 organization license issued under the Compassionate Use of

17 Medical Cannabis Program Act, or to any person connected with

18 or in any way representing, or to any member of the family of,

19 such person holding an Early Approval Adult Use Dispensing

20 Organization License, a Conditional Adult Use Dispensing

21 Organization License, an Adult Use Dispensing Organization

22 License, or a medical cannabis dispensing organization license

23 issued under the Compassionate Use of Medical Cannabis Program

24 Act, or to any stockholders in any corporation engaged in the

25 retail sales of cannabis, or to any officer, manager, agent,

26 or representative of the Early Approval Adult Use Dispensing
    SB3222 Enrolled       - 581 - LRB104 19119 AAS 32564 b

1 Organization License, a Conditional Adult Use Dispensing

2 Organization License, an Adult Use Dispensing Organization

3 License, or a medical cannabis dispensing organization license

4 issued under the Compassionate Use of Medical Cannabis Program

5 Act to obtain preferential placement within the dispensing

6 organization, including, without limitation, on shelves and in

7 display cases where purchasers can view products, or on the

8 dispensing organization's website.

9   (n) At no time shall an infuser organization or an infuser

10 agent perform the extraction of cannabis concentrate from

11 cannabis flower, except if the infuser organization has also

12 been issued a processor license under subsection (f) of

13 Section 35-31.

14  (o) Infusing organizations shall retain at least 60 days

15 of camera storage in any location or otherwise provided by

16 rule. The Department may require footage to be maintained for

17 purposes of an investigation.

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

19 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

20 5-13-22.)

21  (410 ILCS 705/35-30)

22  Sec. 35-30. Infuser agent identification card.

23  (a) The Department of Agriculture shall:

24  (1) establish by rule the information required in an

25  initial application or renewal application for an agent
    SB3222 Enrolled       - 582 - LRB104 19119 AAS 32564 b

1   identification card submitted under this Act and the

2   nonrefundable fee to accompany the initial application or

3   renewal application;

4   (2) verify the information contained in an initial

5   application or renewal application for an agent

6   identification card submitted under this Act, and approve

7   or deny an application within 30 days of receiving a

8   completed initial application or renewal application and

9   all supporting documentation required by rule;

10  (3) issue an agent identification card to a qualifying

11  agent within 15 business days of approving the initial

12  application or renewal application;

13  (4) enter the license number of the infuser where the

14  agent works; and

15  (5) allow for an electronic initial application and

16  renewal application process, and provide a confirmation by

17  electronic or other methods that an application has been

18  submitted. The Department of Agriculture may by rule

19  require prospective agents to file their applications by

20  electronic means and provide notices to the agents by

21  electronic means.

22  (b) An agent must keep his or her identification card

23 visible at all times when on the property of a cannabis

24 business establishment including the cannabis business

25 establishment for which he or she is an agent.

26  (c) The agent identification cards shall contain the
    SB3222 Enrolled        - 583 - LRB104 19119 AAS 32564 b

1 following:

2   (1) the name of the cardholder;

3   (2) the date of issuance and expiration date of the

4   identification card;

5   (3) a random 10-digit alphanumeric identification

6   number containing at least 4 numbers and at least 4

7   letters that is unique to the holder;

8   (4) a photograph of the cardholder; and

9   (5) the legal name of the infuser organization

10  employing the agent.

11  (d) An agent identification card shall be immediately

12 returned to the infuser organization of the agent upon

13 termination of his or her employment.

14  (e) Any agent identification card lost by an infuser a

15 transporting agent shall be reported to the Illinois State

16 Police and the Department of Agriculture immediately upon

17 discovery of the loss.

18  (f) An agent applicant may begin employment at an infuser

19 organization while the agent applicant's identification card

20 application is pending. Upon approval, the Department shall

21 issue the agent's identification card to the agent. If denied,

22 the infuser organization and the agent applicant shall be

23 notified and the agent applicant must cease all activity at

24 the infuser organization immediately.

25  (g) The Department of Agriculture shall not issue an agent

26 identification card if the applicant is delinquent in filing
    SB3222 Enrolled             - 584 - LRB104 19119 AAS 32564 b

1 any required tax returns or paying any amounts owed to the

2 State of Illinois.

3   (h) The Department and the Department of Financial and

4 Professional Regulation may develop and implement an

5 integrated system to issue an agent identification card that

6 identifies an infuser agent licensed by the Department as well

7 as any cultivation center, craft grower, dispensary,

8 transporter, or community college program license or

9 registration the agent may simultaneously hold.

10 (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;

11 102-538, eff. 8-20-21; 102-813, eff. 5-13-22.)

12  (410 ILCS 705/35-40)

13  Sec. 35-40. Renewal of infuser organization licenses and

14 agent identification cards.

15  (a) Licenses and identification cards issued under this

16 Act shall be renewed annually. An infuser organization shall

17 receive written or electronic notice 90 days before the

18 expiration of its current license that the license will

19 expire. The Department of Agriculture shall grant a renewal

20 within 45 days of submission of a renewal application if:

21  (1) the infuser organization submits a renewal

22  application and the required nonrefundable renewal fee of

23  $20,000, or, after January 1, 2021, another amount set by

24  rule by the Department of Agriculture, to be deposited

25  into the Cannabis Regulation Fund;
    SB3222 Enrolled      - 585 - LRB104 19119 AAS 32564 b

1   (2) the Department of Agriculture has not suspended or

2   revoked the license of the infuser organization for

3   violating this Act or rules adopted under this Act;

4   (3) the infuser organization has continued to operate

5   in accordance with all plans submitted as part of its

6   application and approved by the Department of Agriculture

7   or any amendments thereto that have been approved by the

8   Department of Agriculture;

9   (4) The infuser has submitted an agent, employee,

10  contracting, and subcontracting diversity report as

11  required by the Department; and

12  (5) The infuser has submitted an environmental impact

13  report.

14  (b) If an infuser organization fails to renew its license

15 before expiration, it shall cease operations until its license

16 is renewed.

17  (c) If an infuser organization agent fails to renew his or

18 her identification card before its expiration, he or she shall

19 cease to work as an agent of the infuser organization until his

20 or her identification card is renewed.

21  (d) Any infuser organization that continues to operate, or

22 any infuser organization agent who continues to work as an

23 agent, after the applicable license or identification card has

24 expired without renewal is subject to the penalties provided

25 under Section 35-25.

26  (e) The Department shall not renew a license or an agent
    SB3222 Enrolled       - 586 - LRB104 19119 AAS 32564 b

1 identification card if the applicant is delinquent in filing
2 any required tax returns or paying any amounts owed to the
3 State of Illinois.
4 (Source: P.A. 101-27, eff. 6-25-19.)

5   (410 ILCS 705/40-5)

6   Sec. 40-5. Issuance of licenses.

7   (a) The Department shall issue transporting licenses

8 through a process provided for in this Article no later than

9 July 1, 2020.

10  (b) The Department shall make the application for

11 transporting organization licenses available on January 7,

12 2020 and shall receive such applications no later than March

13 15, 2020.

14  (c) Entities awarded a license under this Article shall

15 not be required to pay any fee required under Section 40-10 of

16 this Article, the nonrefundable renewal fee required under

17 Section 40-40 of this Article, or any other license fee

18 required under this Article or by rule from January 1, 2024 to

19 January 1, 2028 2027.

20  (d) From January 1, 2023 through January 1, 2028 2027, the

21 Department shall not make the application available for

22 transporting organization licenses.

23  (e) Upon completion of the disparity and availability

24 study published by the Illinois Cannabis Regulation Oversight

25 Officer under subsection (e) of Section 5-45, the Department
    SB3222 Enrolled       - 587 - LRB104 19119 AAS 32564 b

 1 may modify or change the licensing application process to
 2 reduce or eliminate barriers and remedy discrimination
 3 identified in the study. Beginning January 1, 2028 2027, the
 4 Department of Agriculture shall make the applications
 5 available on every January 7 thereafter or, if that date falls
 6 on a weekend or holiday, the business day immediately
 7 succeeding the weekend or holiday and shall receive the
 8 applications no later than March 15 or the succeeding business
 9 day thereafter.
10 (Source: P.A. 103-578, eff. 12-8-23.)

11  (410 ILCS 705/40-25)

12  Sec. 40-25. Transporting organization requirements;

13 prohibitions.

14  (a) The operating documents of a transporting organization

15 shall include procedures for the oversight of the transporter,

16 an inventory monitoring system including a physical inventory

17 recorded weekly, accurate recordkeeping, and a staffing plan.

18  (b) A transporting organization may not transport cannabis

19 or cannabis-infused products to any person other than a

20 cultivation center, a craft grower, an infuser organization, a

21 dispensing organization, a testing facility, transfer site,

22 storage site, or as otherwise authorized by rule.

23  (c) All cannabis transported by a transporting

24 organization must be entered into a data collection system and

25 placed into a cannabis container for transport.
    SB3222 Enrolled  - 588 - LRB104 19119 AAS 32564 b

1   (d) Transporters are subject to random inspections by the

2 Department of Agriculture, the Department of Public Health,

3 the Illinois State Police, or as provided by rule.

4   (e) A transporting organization agent shall notify local

5 law enforcement, the Illinois State Police, and the Department

6 of Agriculture within 24 hours of the discovery of any loss or

7 theft. Notification shall be made by phone, in person, or by

8 written or electronic communication.

9   (f) No person under the age of 21 years shall be in a

10 commercial vehicle or trailer transporting cannabis goods.

11  (g) No person or individual who is not a transporting

12 organization agent shall be in a vehicle while transporting

13 cannabis goods.

14  (h) Transporters may not use commercial motor vehicles

15 with a weight rating of over 10,001 pounds.

16  (i) It is unlawful for any person to offer or deliver

17 money, or anything else of value, directly or indirectly, to

18 any of the following persons to obtain preferential placement

19 within the dispensing organization, including, without

20 limitation, on shelves and in display cases where purchasers

21 can view products, or on the dispensing organization's

22 website:

23  (1) a person having a transporting organization

24  license, or any officer, associate, member,

25  representative, or agent of the licensee;

26  (2) a person having an Early Applicant Adult Use
    SB3222 Enrolled        - 589 - LRB104 19119 AAS 32564 b

1   Dispensing Organization License, an Adult Use Dispensing

2   Organization License, or a medical cannabis dispensing

3   organization license issued under the Compassionate Use of

4   Medical Cannabis Program Act;

5   (3) a person connected with or in any way

6   representing, or a member of the family of, a person

7   holding an Early Applicant Adult Use Dispensing

8   Organization License, an Adult Use Dispensing Organization

9   License, or a medical cannabis dispensing organization

10  license issued under the Compassionate Use of Medical

11  Cannabis Program Act; or

12  (4) a stockholder, officer, manager, agent, or

13  representative of a corporation engaged in the retail sale

14  of cannabis, an Early Applicant Adult Use Dispensing

15  Organization License, an Adult Use Dispensing Organization

16  License, or a medical cannabis dispensing organization

17  license issued under the Compassionate Use of Medical

18  Cannabis Program Act.

19  (j) A transporting organization agent must keep his or her

20 identification card visible at all times when on the property

21 of a cannabis business establishment and during the

22 transporting of cannabis when acting under his or her duties

23 as a transportation organization agent. During these times,

24 the transporting organization agent must also provide the

25 identification card upon request of any law enforcement

26 officer engaged in his or her official duties.
    SB3222 Enrolled       - 590 - LRB104 19119 AAS 32564 b

1   (k) A copy of the transporting organization's registration

2 and a manifest for the delivery shall be present in any vehicle

3 transporting cannabis.

4   (l) Cannabis shall be transported so it is not visible or

5 recognizable from outside the vehicle.

6   (m) A vehicle transporting cannabis must not bear any

7 markings to indicate the vehicle contains cannabis or bear the

8 name or logo of the cannabis business establishment.

9   (n) Cannabis must be transported in an enclosed, locked

10 storage compartment that is secured or affixed to the vehicle.

11  (o) The Department of Agriculture may, by rule, impose any

12 other requirements or prohibitions on the transportation of

13 cannabis.

14  (p) A transporting organization may begin a delivery to a

15 cannabis business establishment at any time during the day. A

16 transporting organization may not be restricted from beginning

17 a delivery based on a cannabis business establishment's listed

18 business hours.

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

20 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.

21 5-13-22.)

22  (410 ILCS 705/40-50 new)

23  Sec. 40-50. Cannabis transporter storage site.

24  (a) The Department of Agriculture shall establish a

25 cannabis transporter storage site program for licensed
    SB3222 Enrolled  - 591 - LRB104 19119 AAS 32564 b

1 cannabis transporters that are not affiliated with a

2 cultivation center, craft grower, or infuser. An eligible

3 transporter may submit an application for modification to

4 operate a cannabis transporter storage site. The Department

5 shall review and approve the plans for a cannabis transporter

6 storage site. Transporters shall not conduct operations at a

7 cannabis transporter storage site until approved by the

8 Department.

9   (b) A cannabis transporter storage site shall be used

10 solely for:

11  (1) temporary storage of packaged, final form cannabis

12  or cannabis-infused products for a period not to exceed 7

13  calendar days;

14  (2) consolidation or aggregation of cannabis or

15  cannabis-infused products from multiple licensed

16  cultivation centers, craft growers, infusers, or

17  transporters into compliant outbound shipments; and

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

19  products rejected by a dispensing organization or other

20  licensee, pending lawful return, redistribution, or other

21  disposition as authorized by rule.

22  (c) All cannabis or cannabis-infused products received,

23 stored, or dispatched at a cannabis transporter storage site

24 shall remain subject to full seed-to-sale tracking

25 requirements and shall be logged in the State's cannabis

26 tracking system at receipt and dispatch.
    SB3222 Enrolled           - 592 - LRB104 19119 AAS 32564 b

1   (d) A cannabis transporter storage site does not authorize

2 retail sales, processing, repackaging, relabeling, or

3 alteration of cannabis or cannabis-infused products.

4   (e) A transporter may operate up to 5 cannabis transporter

5 storage sites statewide.

6   (f) A cannabis transporter storage site shall be limited

7 to transporting organizations that do not have a principal

8 officer that is also a principal officer of a cultivation

9 center, craft grower, or infuser.

10  (g) A transporter operating a cannabis transporter storage

11 site may allow other transporters that are not affiliated with

12 a cultivation center, craft grower or infuser and that do not

13 operate their own cannabis transporter storage site to utilize

14 the storage site and store product, subject to approval by the

15 Department via an application for alteration. The transporter

16 operating the storage site may charge a reasonable fee to

17 recover associated costs.

18  (h) A cannabis transporter storage site facility shall:

19  (1) be fully enclosed from the outdoors, with locks or

20  other security devices that permit access only by

21  authorized individuals;

22  (2) be large enough to allow for 2 of the largest

23  vehicles used by the transporter to have all doors and

24  trunk or hatch open, sufficient room for an individual to

25  walk around each vehicle without encumbrance, and transfer

26  to take place out of ordinary public view;
    SB3222 Enrolled      - 593 - LRB104 19119 AAS 32564 b

1          (3) be separate from any other cannabis business

2   establishment; and

3          (4) be equipped with a surveillance system which

4   visually records and monitors all building entrances and

5   exits, all parking lot areas, and rear alley areas

6   immediately adjacent to the building, and covers the

7   entire inside of the facility.

8   (i) All cannabis and cannabis products shall be stored in

9 a vault that meets the standards of 68 Ill. Adm. Code

10 1291.300(g) or as otherwise set by rule by the Department.

11  (j) The Department may adopt rules regarding facility

12 specifications and operations of cannabis transporter storage

13 sites.

14  (410 ILCS 705/45-5)

15  Sec. 45-5. License suspension; revocation; other

16 penalties.

17  (a) Notwithstanding any other criminal penalties related

18 to the unlawful possession of cannabis, the Department of

19 Financial and Professional Regulation and the Department of

20 Agriculture may revoke, suspend, place on probation,

21 reprimand, issue cease and desist orders, refuse to issue or

22 renew a license, or take any other disciplinary or

23 nondisciplinary action as each department may deem proper with

24 regard to a cannabis business establishment or cannabis

25 business establishment agent, including fines not to exceed:
    SB3222 Enrolled  - 594 - LRB104 19119 AAS 32564 b

1   (1) $50,000 for each violation of this Act or rules

2   adopted under this Act by a cultivation center or

3   cultivation center agent;

4   (2) $20,000 for each violation of this Act or rules

5   adopted under this Act by a dispensing organization or

6   dispensing organization agent;

7   (3) $15,000 for each violation of this Act or rules

8   adopted under this Act by a craft grower or craft grower

9   agent;

10  (4) $10,000 for each violation of this Act or rules

11  adopted under this Act by an infuser organization or

12  infuser organization agent; and

13  (5) $10,000 for each violation of this Act or rules

14  adopted under this Act by a transporting organization or

15  transporting organization agent; and .

16  (6) $15,000 for each violation of this Act or rules

17  adopted under this Act by a cannabis testing facility.

18  (b) The Department of Financial and Professional

19 Regulation and the Department of Agriculture, as the case may

20 be, shall consider licensee cooperation in any agency or other

21 investigation in its determination of penalties imposed under

22 this Section.

23  (c) The procedures for disciplining a cannabis business

24 establishment or cannabis business establishment agent and for

25 administrative hearings shall be determined by rule, and shall

26 provide for the review of final decisions under the
    SB3222 Enrolled           - 595 - LRB104 19119 AAS 32564 b

1 Administrative Review Law.

2   (d) The Attorney General may also enforce a violation of

3 Section 55-20, Section 55-21, and Section 15-155 as an

4 unlawful practice under the Consumer Fraud and Deceptive

5 Business Practices Act.

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

7   (410 ILCS 705/50-5)

8   Sec. 50-5. Laboratory testing.

9   (a) Notwithstanding any other provision of law, the

10 following acts, when performed by a cannabis testing facility

11 with a current, valid license registration, or a person 21

12 years of age or older who is acting in his or her capacity as

13 an owner, employee, or agent of a cannabis testing facility,

14 are not unlawful and shall not be an offense under Illinois law

15 or be a basis for seizure or forfeiture of assets under

16 Illinois law:

17  (1) possessing, repackaging, transporting, storing, or

18  displaying cannabis or cannabis-infused products;

19  (2) receiving or transporting cannabis or

20  cannabis-infused products from a cannabis business

21  establishment, a community college licensed under the

22  Community College Cannabis Vocational Training Pilot

23  Program, or a person 21 years of age or older; and

24  (3) returning or transporting cannabis or

25  cannabis-infused products to a cannabis business
    SB3222 Enrolled  - 596 - LRB104 19119 AAS 32564 b

1   establishment, a community college licensed under the

2   Community College Cannabis Vocational Training Pilot

3   Program, or a person 21 years of age or older.

4   (b)(1) No laboratory shall handle, test, or analyze

5 cannabis unless approved by the Department of Agriculture in

6 accordance with this Section.

7   (2) No laboratory shall be approved to handle, test, or

8 analyze cannabis unless the laboratory:

9   (A) is licensed by the Department of Agriculture;

10  (A-5) is accredited by a private laboratory

11  accrediting organization;

12  (B) is independent from all other persons involved in

13  the cannabis industry in Illinois and no person with a

14  direct or indirect interest in the laboratory has a direct

15  or indirect financial, management, or other interest in an

16  Illinois cultivation center, craft grower, dispensary,

17  infuser, transporter, certifying physician, or any other

18  entity in the State that may benefit from the production,

19  manufacture, dispensing, sale, purchase, or use of

20  cannabis; and

21  (C) has employed at least one person to oversee and be

22  responsible for the laboratory testing who has earned,

23  from a college or university accredited by a national or

24  regional certifying authority, at least:

25  (i) a master's level degree in chemical or

26  biological sciences and a minimum of 2 years'
    SB3222 Enrolled  - 597 - LRB104 19119 AAS 32564 b

1   post-degree laboratory experience; or

2   (ii) a bachelor's degree in chemical or biological

3   sciences and a minimum of 4 years' post-degree

4   laboratory experience.

5   (3) Each independent testing laboratory that claims to be

6 accredited must provide the Department of Agriculture with a

7 copy of the most recent annual inspection report granting

8 accreditation and every annual report thereafter.

9   (c) Immediately before manufacturing or natural processing

10 of any cannabis or cannabis-infused product or packaging

11 cannabis for sale to a dispensary, each batch shall be made

12 available by the cultivation center, craft grower, or infuser

13 for an employee of an approved laboratory to select a random

14 sample, which shall be tested by the approved laboratory for:

15  (1) microbiological contaminants;

16  (2) mycotoxins;

17  (3) pesticide active ingredients;

18  (4) residual solvent; and

19  (5) an active ingredient analysis.

20  (d) The Department of Agriculture may select a random

21 sample that shall, for the purposes of conducting an active

22 ingredient analysis, be tested by the Department of

23 Agriculture for verification of label information and any

24 other testing deemed necessary by the Department.

25  (e) A laboratory shall immediately return or dispose of

26 any cannabis upon the completion of any testing, use, or
    SB3222 Enrolled  - 598 - LRB104 19119 AAS 32564 b

1 research. If cannabis is disposed of, it shall be done in

2 compliance with Department of Agriculture rule.

3   (f) If a sample of cannabis does not pass the

4 microbiological, mycotoxin, pesticide chemical residue, or

5 solvent residue test, based on the standards established by

6 the Department of Agriculture, the following shall apply:

7   (1) If the sample failed the pesticide chemical

8   residue test, the entire batch from which the sample was

9   taken shall, if applicable, be recalled as provided by

10  rule.

11  (2) If the sample failed any other test, the batch may

12  be used to make a CO2-based or solvent based extract. After

13  processing, the CO2-based or solvent based extract must

14  still pass all required tests.

15  (g) The Department of Agriculture shall establish, and,

16 from time to time, revise, standards for microbial, mycotoxin,

17 pesticide residue, solvent residue, or other standards for the

18 presence of possible contaminants, in addition to labeling

19 requirements for contents and potency.

20  (h) The laboratory shall file with the Department of

21 Agriculture an electronic copy of each laboratory test result

22 for any batch that does not pass the microbiological,

23 mycotoxin, or pesticide chemical residue test, at the same

24 time that it transmits those results to the cultivation

25 center. In addition, the laboratory shall maintain the

26 laboratory test results for at least 5 years and make them
    SB3222 Enrolled       - 599 - LRB104 19119 AAS 32564 b

1 available at the Department of Agriculture's request.

2   (i) A cultivation center, craft grower, and infuser shall

3 provide to a dispensing organization the laboratory test

4 results for each batch of cannabis product purchased by the

5 dispensing organization, if sampled. Each dispensing

6 organization must have those laboratory results available upon

7 request to purchasers.

8   (j) The Department of Agriculture may adopt rules related

9 to testing and licensing of laboratories in furtherance of

10 this Act.

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

12  (410 ILCS 705/55-5)

13  Sec. 55-5. Preparation of cannabis-infused products.

14  (a) The Department of Agriculture may regulate the

15 production of cannabis-infused products by a cultivation

16 center, a craft grower, an infuser organization, or a

17 dispensing organization and establish rules related to

18 refrigeration, hot-holding, and handling of cannabis-infused

19 products. All cannabis-infused products shall meet the

20 packaging and labeling requirements contained in Section

21 55-21.

22  (b) Cannabis-infused products for sale or distribution at

23 a dispensing organization must be prepared by an approved

24 agent of a cultivation center, craft grower, or infuser

25 organization.
    SB3222 Enrolled  - 600 - LRB104 19119 AAS 32564 b

1   (c) A cultivation center, craft grower, or infuser

2 organization that prepares cannabis-infused products for sale

3 or distribution by a dispensing organization shall be under

4 the operational supervision of a Department of Public Health

5 certified food service sanitation manager.

6   (d) Dispensing organizations may not manufacture, process,

7 or produce cannabis-infused products.

8   (e) The Department of Public Health shall adopt and

9 enforce rules for the manufacture and processing of

10 cannabis-infused products, and for that purpose it may at all

11 times enter every building, room, basement, enclosure, or

12 premises occupied or used, or suspected of being occupied or

13 used, for the production, preparation, manufacture for sale,

14 storage, sale, processing, distribution, or transportation of

15 cannabis-infused products, and to inspect the premises

16 together with all utensils, fixtures, furniture, and machinery

17 used for the preparation of these products.

18  (f) The Department of Agriculture shall by rule establish

19 a maximum level of THC that may be contained in each serving of

20 cannabis-infused product, and within the product package.

21  (g) If a local public health agency has a reasonable

22 belief that a cannabis-infused product poses a public health

23 hazard, it may refer the cultivation center, craft grower, or

24 infuser that manufactured or processed the cannabis-infused

25 product to the Department of Public Health. If the Department

26 of Public Health finds that a cannabis-infused product poses a
    SB3222 Enrolled        - 601 - LRB104 19119 AAS 32564 b

1 health hazard, it may bring an action for immediate injunctive
2 relief to require that action be taken as the court may deem
3 necessary to meet the hazard of the cultivation facility or
4 seek other relief as provided by rule.
5 (Source: P.A. 101-27, eff. 6-25-19.)

6   (410 ILCS 705/55-21)

7   Sec. 55-21. Cannabis product packaging and labeling.

8   (a) Each cannabis product produced for sale shall be

9 registered with the Department of Agriculture on forms

10 provided by the Department of Agriculture. Each product

11 registration shall include a label and the required

12 registration fee at the rate established by the Department of

13 Agriculture for a comparable medical cannabis product, or as

14 established by rule. The registration fee is for the name of

15 the product offered for sale and one fee shall be sufficient

16 for all package sizes.

17  (b) All harvested cannabis intended for distribution to a

18 cannabis enterprise must be packaged in a sealed, labeled

19 container.

20  (c) Any product containing cannabis shall be sold in a

21 sealed, odor-proof, and child-resistant cannabis container

22 consistent with current standards, including the Consumer

23 Product Safety Commission standards referenced by the Poison

24 Prevention Act unless the sale is between or among a craft

25 grower, infuser, or cultivation center.
    SB3222 Enrolled            - 602 - LRB104 19119 AAS 32564 b

1   (d) All cannabis-infused products shall be individually

2 wrapped or packaged at the original point of preparation. The

3 packaging of the cannabis-infused product shall conform to the

4 labeling requirements of the Illinois Food, Drug and Cosmetic

5 Act, in addition to the other requirements set forth in this

6 Section.

7   (e) Each cannabis product shall be labeled before sale and

8 each label shall be securely affixed to the package and shall

9 state in legible English and any languages required by the

10 Department of Agriculture:

11  (1) the name and post office box of the registered

12  cultivation center or craft grower where the item was

13  manufactured;

14  (2) the common or usual name of the item and the

15  registered name of the cannabis product that was

16  registered with the Department of Agriculture under

17  subsection (a);

18  (3) a unique serial number that will match the product

19  with a cultivation center or craft grower batch and lot

20  number to facilitate any warnings or recalls the

21  Department of Agriculture, cultivation center, or craft

22  grower deems appropriate;

23  (4) the date of final testing and packaging, if

24  sampled, and the identification of the independent testing

25  laboratory;

26  (5) the date of harvest and "use by" date;
    SB3222 Enrolled    - 603 - LRB104 19119 AAS 32564 b

1   (6) the quantity (in ounces or grams) of cannabis

2   contained in the product;

3   (7) a pass/fail rating based on the laboratory's

4   microbiological, mycotoxins, and pesticide and solvent

5   residue analyses, if sampled;

6   (8) content list.

7   (A) A list of the following, including the minimum

8   and maximum percentage content by weight for

9   subdivisions (e)(8)(A)(i) through (iv):

10                   (i) delta-9-tetrahydrocannabinol (THC);

11                   (ii) tetrahydrocannabinolic acid (THCA);

12                   (iii) cannabidiol (CBD);

13                   (iv) cannabidiolic acid (CBDA); and

14                   (v) all other ingredients of the item,

15  including any colors, artificial flavors, and

16  preservatives, listed in descending order by

17  predominance of weight shown with common or usual

18  names.

19  (B) The acceptable tolerances for the minimum

20  percentage printed on the label for any of

21  subdivisions (e)(8)(A)(i) through (iv) shall not be

22  below 85% or above 115% of the labeled amount.

23  (f) Packaging must not contain information that:

24  (1) is false or misleading;

25  (2) promotes excessive consumption;

26  (3) depicts a person under 21 years of age consuming
    SB3222 Enrolled  - 604 - LRB104 19119 AAS 32564 b

1   cannabis;

2   (4) includes the image of a cannabis leaf;

3   (5) includes any image designed or likely to appeal to

4   minors, including cartoons, toys, animals, or children, or

5   any other likeness to images, characters, or phrases that

6   are popularly used to advertise to children, or any

7   packaging or labeling that bears reasonable resemblance to

8   any product available for consumption as a commercially

9   available candy, or that promotes consumption of cannabis;

10  (6) contains any seal, flag, crest, coat of arms, or

11  other insignia likely to mislead the purchaser to believe

12  that the product has been endorsed, made, or used by the

13  State of Illinois or any of its representatives except

14  where authorized by this Act.

15  (g) Cannabis products produced by concentrating or

16 extracting ingredients from the cannabis plant shall contain

17 the following information, where applicable:

18  (1) If solvents were used to create the concentrate or

19  extract, a statement that discloses the type of extraction

20  method, including any solvents or gases used to create the

21  concentrate or extract; and

22  (2) Any other chemicals or compounds used to produce

23  or were added to the concentrate or extract.

24  (h) All cannabis products must contain warning statements

25 established for purchasers, of a size that is legible and

26 readily visible to a consumer inspecting a package, which may
    SB3222 Enrolled  - 605 - LRB104 19119 AAS 32564 b

1 not be covered or obscured in any way. The Department of Public

2 Health shall define and update appropriate health warnings for

3 packages including specific labeling or warning requirements

4 for specific cannabis products.

5   (i) Unless modified by rule to strengthen or respond to

6 new evidence and science, the following warnings shall apply

7 to all cannabis products unless modified by rule: "This

8 product contains cannabis and is intended for use by adults 21

9 and over. Its use can impair cognition and may be habit

10 forming. This product should not be used by pregnant or

11 breastfeeding women. It is unlawful to sell or provide this

12 item to any individual, and it may not be transported outside

13 the State of Illinois. It is illegal to operate a motor vehicle

14 while under the influence of cannabis. Possession or use of

15 this product may carry significant legal penalties in some

16 jurisdictions and under federal law.".

17  (j) Warnings for each of the following product types must

18 be present on labels when offered for sale to a purchaser:

19  (1) Cannabis that may be smoked must contain a

20  statement that "Smoking is hazardous to your health.".

21  (2) Cannabis-infused products (other than those

22  intended for topical application) must contain a statement

23  "CAUTION: This product contains cannabis, and intoxication

24  following use may be delayed 2 or more hours. This product

25  was produced in a facility that cultivates cannabis, and

26  that may also process common food allergens.".
    SB3222 Enrolled         - 606 - LRB104 19119 AAS 32564 b

1   (3) Cannabis-infused products intended for topical

2   application must contain a statement "DO NOT EAT" in bold,

3   capital letters.

4   (k) Each cannabis-infused product intended for consumption

5 must be individually packaged, must include the total

6 milligram content of THC and CBD, and may not include more than

7 a total of 100 milligrams of THC per package. A package may

8 contain multiple servings of 10 milligrams of THC, indicated

9 by scoring, wrapping, or by other indicators designating

10 individual serving sizes. The Department of Agriculture may

11 change the total amount of THC allowed for each package, or the

12 total amount of THC allowed for each serving size, by rule.

13  (l) No individual other than the purchaser may alter or

14 destroy any labeling affixed to the primary packaging of

15 cannabis or cannabis-infused products.

16  (m) For each commercial weighing and measuring device used

17 at a facility, the cultivation center or craft grower must:

18  (1) Ensure that the commercial device is licensed

19  under the Weights and Measures Act and the associated

20  administrative rules (8 Ill. Adm. Code 600);

21  (2) Maintain documentation of the licensure of the

22  commercial device; and

23  (3) Provide a copy of the license of the commercial

24  device to the Department of Agriculture for review upon

25  request.

26  (n) It is the responsibility of the Department to ensure
    SB3222 Enrolled            - 607 - LRB104 19119 AAS 32564 b

1 that packaging and labeling requirements, including product

2 warnings, are enforced at all times for products provided to

3 purchasers. Product registration requirements and container

4 requirements may be modified by rule by the Department of

5 Agriculture.

6   (o) Labeling under this Section, including warning labels,

7 may be modified by rule by the Department of Agriculture.

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

9 102-98, eff. 7-15-21.)

10  (410 ILCS 705/55-22 new)

11  Sec. 55-22. Dispensing organization warning labels for

12 medical cannabis.

13  (a) Prior to dispensing any cannabis, cannabis

14 concentrate, or cannabis-infused products to a registered

15 qualifying patient, provisional patient, designated caregiver,

16 or an Opioid Alternative Patient Program participant, a

17 dispensing organization shall affix to the outside of the

18 product in a clear and visible manner a warning label

19 specifically targeted to medical patients.

20  (b) The warning label required under this Section shall

21 not cover or restrict in any manner the requirements under

22 Section 55-21 of this Act.

23  (c) The warning label required under this Section shall be

24 the same as or substantially similar to any language required

25 for the same or similar purpose under federal law or federal
         SB3222 Enrolled  - 608 - LRB104 19119 AAS 32564 b
1 regulations.

2   (410 ILCS 705/55-30)

3   Sec. 55-30. Confidentiality.

4   (a) Information provided by the cannabis business

5 establishment licensees or applicants to the Department of

6 Agriculture, the Department of Public Health, the Department

7 of Financial and Professional Regulation, the Department of

8 Commerce and Economic Opportunity, or other agency shall be

9 limited to information necessary for the purposes of

10 administering this Act. The information is subject to the

11 provisions and limitations contained in the Freedom of

12 Information Act and may be disclosed in accordance with

13 Section 55-65.

14  (b) The following information received and records kept by

15 the Department of Agriculture, the Department of Public

16 Health, the Illinois State Police, and the Department of

17 Financial and Professional Regulation for purposes of

18 administering this Article are subject to all applicable

19 federal privacy laws, are confidential and exempt from

20 disclosure under the Freedom of Information Act, except as

21 provided in this Act, and not subject to disclosure to any

22 individual or public or private entity, except to the

23 Department of Financial and Professional Regulation, the

24 Department of Agriculture, the Department of Public Health,

25 the Department of Commerce and Economic Opportunity, the
    SB3222 Enrolled      - 609 - LRB104 19119 AAS 32564 b

1 Office of the Executive Inspector General, and the Illinois

2 State Police as necessary to perform official duties under

3 this Article and to the Attorney General as necessary to

4 enforce the provisions of this Act, and except as necessary to

5 those involved in enforcing the State Officials and Employees

6 Ethics Act. The following information received and kept by the

7 Department of Financial and Professional Regulation or the

8 Department of Agriculture may be disclosed to the Department

9 of Public Health, the Department of Agriculture, the

10 Department of Commerce and Economic Opportunity, the

11 Department of Revenue, the Illinois State Police, the Office

12 of the Executive Inspector General, or the Attorney General

13 upon proper request:

14  (1) Applications and renewals, their contents, and

15  supporting information submitted by or on behalf of

16  dispensing           organizations,  cannabis  business

17  establishments, or Community College Cannabis Vocational

18  Program licensees, in compliance with this Article,

19  including their physical addresses; however, this does not

20  preclude the release of ownership information about

21  cannabis business establishment licenses, or information

22  submitted with an application required to be disclosed

23  pursuant to subsection (f);

24  (2) Any plans, procedures, policies, or other records

25  relating to cannabis business establishment security; and

26  (3) Information otherwise exempt from disclosure by
    SB3222 Enrolled  - 610 - LRB104 19119 AAS 32564 b

1   State or federal law; and.

2   (4) Information from 3 or fewer cannabis business

3   establishments about plant, packaging, transfer, and sales

4   information reported for purposes of the cannabis plant

5   monitoring system; however, this does not preclude the

6   release of such data aggregated to 4 or more businesses.

7   Illinois or national criminal history record information,

8 or the nonexistence or lack of such information, may not be

9 disclosed by the Department of Financial and Professional

10 Regulation or the Department of Agriculture, except as

11 necessary to the Attorney General to enforce this Act.

12  (c) The name and address of a dispensing organization

13 licensed under this Act shall be subject to disclosure under

14 the Freedom of Information Act. The name and cannabis business

15 establishment address of the person or entity holding each

16 cannabis business establishment license shall be subject to

17 disclosure.

18  (d) All information collected by the Department of

19 Financial and Professional Regulation or the Department of

20 Agriculture in the course of an examination, inspection, or

21 investigation of a licensee or applicant, including, but not

22 limited to, any complaint against a licensee or applicant

23 filed with the Department of Financial and Professional

24 Regulation or the Department of Agriculture and information

25 collected to investigate any such complaint, shall be

26 maintained for the confidential use of the Department of
    SB3222 Enrolled             - 611 - LRB104 19119 AAS 32564 b

1 Financial and Professional Regulation or the Department of

2 Agriculture and shall not be disclosed, except to those

3 involved in enforcing the State Officials and Employees Ethics

4 Act and as otherwise provided in this Act. A formal complaint

5 against a licensee by the Department of Financial and

6 Professional Regulation or the Department of Agriculture or

7 any disciplinary order issued by the Department of Financial

8 and Professional Regulation or the Department of Agriculture

9 against a licensee or applicant shall be a public record,

10 except as otherwise provided by law. Complaints from consumers

11 or members of the general public received regarding a

12 specific, named licensee or complaints regarding conduct by

13 unlicensed entities shall be subject to disclosure under the

14 Freedom of Information Act.

15  (e) The Department of Agriculture, the Illinois State

16 Police, and the Department of Financial and Professional

17 Regulation shall not share or disclose any Illinois or

18 national criminal history record information, or the

19 nonexistence or lack of such information, to any person or

20 entity not expressly authorized by this Act.

21  (f) Each Department responsible for licensure under this

22 Act shall publish on the Department's website a list of the

23 ownership information of cannabis business establishment

24 licensees under the Department's jurisdiction. The list shall

25 include, but is not limited to: the name of the person or

26 entity holding each cannabis business establishment license;
    SB3222 Enrolled        - 612 - LRB104 19119 AAS 32564 b

1 and the address at which the entity is operating under this
2 Act. This list shall be published and updated monthly.
3 (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19;
4 102-98, eff. 7-15-21; 102-538, eff. 8-20-21; 102-813, eff.
5 5-13-22.)

6   (410 ILCS 705/55-65)

7   Sec. 55-65. Financial institutions.

8   (a) A financial institution that provides financial

9 services customarily provided by financial institutions to a

10 cannabis business establishment authorized under this Act or

11 the Compassionate Use of Medical Cannabis Program Act, or to a

12 person that is affiliated with such cannabis business

13 establishment, is exempt from any criminal law of this State

14 as it relates to cannabis-related conduct authorized under

15 State law.

16  (b) Upon request of a financial institution, a cannabis

17 business establishment or proposed cannabis business

18 establishment may provide to the financial institution the

19 following information:

20  (1) Whether a cannabis business establishment with

21  which the financial institution is doing or is considering

22  doing business holds a license under this Act or the

23  Compassionate Use of Medical Cannabis Program Act;

24  (2) The name of any other business or individual

25  affiliate with the cannabis business establishment;
    SB3222 Enrolled  - 613 - LRB104 19119 AAS 32564 b

1   (3) A copy of the application, and any supporting

2   documentation submitted with the application, for a

3   license or a permit submitted on behalf of the proposed

4   cannabis business establishment;

5   (4) If applicable, data relating to sales and the

6   volume of product sold by the cannabis business

7   establishment;

8   (5) Any past or pending violation by the person of

9   this Act, the Compassionate Use of Medical Cannabis

10  Program Act, or the rules adopted under these Acts where

11  applicable; and

12  (6) Any penalty imposed upon the person for violating

13  this Act, the Compassionate Use of Medical Cannabis

14  Program Act, or the rules adopted under these Acts.

15  (c) (Blank).

16  (d) (Blank).

17  (e) Information received by a financial institution under

18 this Section is confidential. Except as otherwise required or

19 permitted by this Act, State law or rule, or federal law or

20 regulation, a financial institution may not make the

21 information available to any person other than:

22  (1) the customer to whom the information applies;

23  (2) a trustee, conservator, guardian, personal

24  representative, or agent of the customer to whom the

25  information applies; a federal or State regulator when

26  requested in connection with an examination of the
    SB3222 Enrolled        - 614 - LRB104 19119 AAS 32564 b

1   financial institution or if otherwise necessary for

2   complying with federal or State law;

3   (3) a federal or State regulator when requested in

4   connection with an examination of the financial

5   institution or if otherwise necessary for complying with

6   federal or State law; and

7   (4) a third party performing services for the

8   financial institution, provided the third party is

9   performing such services under a written agreement that

10  expressly or by operation of law prohibits the third

11  party's sharing and use of such confidential information

12  for any purpose other than as provided in its agreement to

13  provide services to the financial institution; and .

14  (5) the Office of the Executive Inspector General

15  pursuant to an investigation under the State Officials and

16  Employees Ethics Act.

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

18  (410 ILCS 705/55-85)

19  Sec. 55-85. Medical cannabis.

20  (a) Nothing in this Act shall be construed to limit any

21 privileges or rights of a qualifying medical cannabis patient

22 including minor patients, designated primary caregiver,

23 medical cannabis cultivation center, provisional patient and

24 Opioid Alternative Patient Program participant or medical

25 cannabis dispensing organization under the Compassionate Use
    SB3222 Enrolled       - 615 - LRB104 19119 AAS 32564 b

1 of Medical Cannabis Program Act, and where there is conflict

2 between this Act and the Compassionate Use of Medical Cannabis

3 Program Act as they relate to medical cannabis patients, the

4 Compassionate Use of Medical Cannabis Program Act shall

5 prevail.

6   (b) Dispensary locations that obtain an Early Approval

7 Adult Use Dispensary Organization License or an Adult Use

8 Dispensary Organization License in accordance with this Act at

9 the same location as a medical cannabis dispensing

10 organization registered under the Compassionate Use of Medical

11 Cannabis Program Act shall maintain an inventory of medical

12 cannabis and medical cannabis products on a monthly basis that

13 is substantially similar in variety and quantity to the

14 products offered at the dispensary during the 6-month period

15 immediately before the effective date of this Act.

16  (c) Beginning June 30, 2020, the Department of Agriculture

17 shall make a quarterly determination whether inventory

18 requirements established for dispensaries in subsection (b)

19 should be adjusted due to changing patient need.

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

21  (410 ILCS 705/60-10)

22  Sec. 60-10. Tax imposed.

23  (a) Beginning September 1, 2019, a tax is imposed upon the

24 privilege of cultivating cannabis at the rate of 7% of the

25 gross receipts from the first sale of cannabis by a
    SB3222 Enrolled             - 616 - LRB104 19119 AAS 32564 b

1 cultivator. The sale of any product that contains any amount

2 of cannabis or any derivative thereof is subject to the tax

3 under this Section on the full selling price of the product.

4 The Department may determine the selling price of the cannabis

5 when the seller and purchaser are affiliated persons, when the

6 sale and purchase of cannabis is not an arm's length

7 transaction, or when cannabis is transferred by a craft grower

8 to the craft grower's dispensing organization or infuser or

9 processing organization and a value is not established for the

10 cannabis. The value determined by the Department shall be

11 commensurate with the actual price received for products of

12 like quality, character, and use in the area. If there are no

13 sales of cannabis of like quality, character, and use in the

14 same area, then the Department shall establish a reasonable

15 value based on sales of products of like quality, character,

16 and use in other areas of the State, taking into consideration

17 any other relevant factors.

18  (b) The Cannabis Cultivation Privilege Tax imposed under

19 this Article is solely the responsibility of the cultivator

20 who makes the first sale and is not the responsibility of a

21 subsequent purchaser, a dispensing organization, or an

22 infuser. Persons subject to the tax imposed under this Article

23 may, however, reimburse themselves for their tax liability

24 hereunder by separately stating reimbursement for their tax

25 liability as an additional charge.

26  (c) The tax imposed under this Article shall be in
    SB3222 Enrolled        - 617 - LRB104 19119 AAS 32564 b

1 addition to all other occupation, privilege, or excise taxes
2 imposed by the State of Illinois or by any unit of local
3 government.
4 (Source: P.A. 101-27, eff. 6-25-19.)

5   (410 ILCS 705/65-5)

6   Sec. 65-5. Definitions. In this Article:

7   "Adjusted delta-9-tetrahydrocannabinol level" means, for a

8 delta-9-tetrahydrocannabinol dominant product, the sum of the

9 percentage of delta-9-tetrahydrocannabinol plus .877

10 multiplied by the percentage of tetrahydrocannabinolic acid.

11  "Cannabis" has the meaning given to that term in Article 1

12 of this Act, except that it does not include cannabis that is

13 subject to tax under the Compassionate Use of Medical Cannabis

14 Program Act.

15  "Cannabis-infused product" means a beverage, food, oils,

16 ointments, tincture, topical formulation, or another product

17 containing cannabis that is not intended to be smoked.

18  "Cannabis retailer" means a dispensing organization that

19 sells cannabis for use and not for resale.

20  "Craft grower" has the meaning given to that term in

21 Article 1 of this Act.

22  "Department" means the Department of Revenue.

23  "Director" means the Director of Revenue.

24  "Dispensing organization" or "dispensary" has the meaning

25 given to that term in Article 1 of this Act.
    SB3222 Enrolled             - 618 - LRB104 19119 AAS 32564 b

1   "Person" means a natural individual, firm, partnership,

2 association, joint stock company, joint adventure, public or

3 private corporation, limited liability company, or a receiver,

4 executor, trustee, guardian, or other representative appointed

5 by order of any court.

6   "Infuser organization" or "infuser" means a facility

7 operated by an organization or business that is licensed by

8 the Department of Agriculture to directly incorporate cannabis

9 or cannabis concentrate into a product formulation to produce

10 a cannabis-infused product.

11  "Purchase price" means the consideration paid for a

12 purchase of cannabis, valued in money, whether received in

13 money or otherwise, including cash, gift cards, credits, and

14 property and shall be determined without any deduction on

15 account of the cost of materials used, labor or service costs,

16 or any other expense whatsoever. However, "purchase price"

17 does not include consideration paid for:

18  (1) any charge for a payment that is not honored by a

19  financial institution;

20  (2) any finance or credit charge, penalty or charge

21  for delayed payment, or discount for prompt payment; and

22  (3) any amounts added to a purchaser's bill because of

23  charges made under the tax imposed by this Article, the

24  Municipal Cannabis Retailers' Occupation Tax Law, the

25  County Cannabis Retailers' Occupation Tax Law, the

26  Retailers' Occupation Tax Act, the Use Tax Act, the
    SB3222 Enrolled        - 619 - LRB104 19119 AAS 32564 b

1   Service Occupation Tax Act, the Service Use Tax Act, or

2   any locally imposed occupation or use tax.

3   "Purchaser" means a person who acquires cannabis for a

4 valuable consideration.

5   "Qualifying patient" or "qualified patient" means a person

6 who has been diagnosed by a certifying health care

7 professional as having a debilitating medical condition as

8 defined under the Compassionate Use of Medical Cannabis

9 Program Act.

10  "Taxpayer" means a cannabis retailer who is required to

11 collect the tax imposed under this Article.

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

13  (410 ILCS 705/65-10)

14  Sec. 65-10. Tax imposed.

15  (a) Beginning January 1, 2020, a tax is imposed upon

16 purchasers for the privilege of using cannabis, and not for

17 the purpose of resale, at the following rates:

18  (1) Any cannabis, other than a cannabis-infused

19  product, with an adjusted delta-9-tetrahydrocannabinol

20  level at or below 35% shall be taxed at a rate of 10% of

21  the purchase price;

22  (2) Any cannabis, other than a cannabis-infused

23  product, with an adjusted delta-9-tetrahydrocannabinol

24  level above 35% shall be taxed at a rate of 25% of the

25  purchase price; and
    SB3222 Enrolled      - 620 - LRB104 19119 AAS 32564 b

1   (3) A cannabis-infused product shall be taxed at a

2   rate of 20% of the purchase price.

3   (b) The purchase of any product that contains any amount

4 of cannabis or any derivative thereof is subject to the tax

5 under subsection (a) of this Section on the full purchase

6 price of the product.

7   (c) The tax imposed under this Section is not imposed on

8 cannabis that is subject to tax under the Compassionate Use of

9 Medical Cannabis Program Act. The tax imposed by this Section

10 is not imposed with respect to any transaction in interstate

11 commerce, to the extent the transaction may not, under the

12 Constitution and statutes of the United States, be made the

13 subject of taxation by this State. Beginning 90 days after the

14 effective date of this amendatory Act of the 104th General

15 Assembly, the tax imposed under this Section shall not be

16 imposed on cannabis or cannabis-infused products purchased by

17 a qualified patient, designated caregiver, Opioid Alternative

18 Patient Program participant, or provisional patient when

19 purchasing cannabis or cannabis-infused products under this

20 Act as part of that individual's adequate medical supply from

21 a Medical Cannabis Dispensing Organization licensee, as these

22 terms are defined under Section 1-10 of this Act of the 104th

23 General Assembly.

24  (d) The tax imposed under this Article shall be in

25 addition to all other occupation, privilege, or excise taxes

26 imposed by the State of Illinois or by any municipal
    SB3222 Enrolled            - 621 - LRB104 19119 AAS 32564 b

1 corporation or political subdivision thereof.

2   (e) The tax imposed under this Article shall not be

3 imposed on any purchase by a purchaser if the cannabis

4 retailer is prohibited by federal or State Constitution,

5 treaty, convention, statute, or court decision from collecting

6 the tax from the purchaser.

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

8   (410 ILCS 705/65-30)

9   Sec. 65-30. Return and payment of tax by cannabis

10 retailer. Each cannabis retailer that is required or

11 authorized to collect the tax imposed by this Article shall

12 make a return to the Department, by electronic means, on or

13 before the 20th day of each month for the preceding calendar

14 month stating the following:

15  (1) the cannabis retailer's name;

16  (2) the address of the cannabis retailer's principal

17  place of business and the address of the principal place

18  of business (if that is a different address) from which

19  the cannabis retailer is engaged in the business of

20  selling cannabis subject to tax under this Article;

21  (3) the total purchase price received by the cannabis

22  retailer for cannabis subject to tax under this Article;

23  (4) the amount of tax due at each rate;

24  (5) the signature of the cannabis retailer; and

25  (6) any other information as the Department may
    SB3222 Enrolled      - 622 - LRB104 19119 AAS 32564 b

1   reasonably require.

2   All returns required to be filed and payments required to

3 be made under this Article shall be by electronic means.

4 Cannabis retailers who demonstrate hardship in paying

5 electronically may petition the Department to waive the

6 electronic payment requirement.

7   Any amount that is required to be shown or reported on any

8 return or other document under this Article shall, if the

9 amount is not a whole-dollar amount, be increased to the

10 nearest whole-dollar amount if the fractional part of a dollar

11 is $0.50 or more and decreased to the nearest whole-dollar

12 amount if the fractional part of a dollar is less than $0.50.

13 If a total amount of less than $1 is payable, refundable, or

14 creditable, the amount shall be disregarded if it is less than

15 $0.50 and shall be increased to $1 if it is $0.50 or more.

16  The cannabis retailer making the return provided for in

17 this Section shall also pay to the Department, in accordance

18 with this Section, the amount of tax imposed by this Article,

19 less a discount of 1.75%, but not to exceed $1,000 per return

20 period, which is allowed to reimburse the cannabis retailer

21 for the expenses incurred in keeping records, collecting tax,

22 preparing and filing returns, remitting the tax, and supplying

23 data to the Department upon request. No discount may be

24 claimed by a cannabis retailer on returns not timely filed and

25 for taxes not timely remitted. No discount may be claimed by a

26 taxpayer for any return that is not filed electronically. No
    SB3222 Enrolled             - 623 - LRB104 19119 AAS 32564 b

1 discount may be claimed by a taxpayer for any payment that is

2 not made electronically, unless a waiver has been granted

3 under this Section.

4   Notwithstanding any other provision of this Article

5 concerning the time within which a cannabis retailer may file

6 a return, any such cannabis retailer who ceases to engage in

7 the kind of business that makes the person responsible for

8 filing returns under this Article shall file a final return

9 under this Article with the Department within one month after

10 discontinuing the business.

11  Each cannabis retailer shall make estimated payments to

12 the Department on or before the 7th, 15th, 22nd, and last day

13 of the month during which tax liability to the Department is

14 incurred. The payments shall be in an amount not less than the

15 lower of either 22.5% of the cannabis retailer's actual tax

16 liability for the month or 25% of the cannabis retailer's

17 actual tax liability for the same calendar month of the

18 preceding year. The amount of the quarter-monthly payments

19 shall be credited against the final tax liability of the

20 cannabis retailer's return for that month. If any such

21 quarter-monthly payment is not paid at the time or in the

22 amount required by this Section, then the cannabis retailer

23 shall be liable for penalties and interest on the difference

24 between the minimum amount due as a payment and the amount of

25 the quarter-monthly payment actually and timely paid, except

26 insofar as the cannabis retailer has previously made payments
   SB3222 Enrolled  - 624 - LRB104 19119 AAS 32564 b

1 for that month to the Department in excess of the minimum

2 payments previously due as provided in this Section.

3  If any payment provided for in this Section exceeds the

4 taxpayer's liabilities under this Article, as shown on an

5 original monthly return, the Department shall, if requested by

6 the taxpayer, issue to the taxpayer a credit memorandum no

7 later than 30 days after the date of payment. The credit

8 evidenced by the credit memorandum may be assigned by the

9 taxpayer to a similar taxpayer under this Article, in

10 accordance with reasonable rules to be prescribed by the

11 Department. If no such request is made, the taxpayer may

12 credit the excess payment against tax liability subsequently

13 to be remitted to the Department under this Article, in

14 accordance with reasonable rules prescribed by the Department.

15 If the Department subsequently determines that all or any part

16 of the credit taken was not actually due to the taxpayer, the

17 taxpayer's discount shall be reduced, if necessary, to reflect

18 the difference between the credit taken and that actually due,

19 and that taxpayer shall be liable for penalties and interest

20 on the difference. If a cannabis retailer fails to sign a

21 return within 30 days after the proper notice and demand for

22 signature by the Department is received by the cannabis

23 retailer, the return shall be considered valid and any amount

24 shown to be due on the return shall be deemed assessed.

25 (Source: P.A. 101-27, eff. 6-25-19.)
    SB3222 Enrolled       - 625 - LRB104 19119 AAS 32564 b

1   (410 ILCS 705/65-38)

2   Sec. 65-38. Violations and penalties.

3   (a) When the amount due is under $300, any retailer of

4 cannabis who fails to file a return, willfully fails or

5 refuses to make any payment to the Department of the tax

6 imposed by this Article, or files a fraudulent return, or any

7 officer or agent of a corporation engaged in the business of

8 selling cannabis to purchasers located in this State who signs

9 a fraudulent return filed on behalf of the corporation, or any

10 accountant or other agent who knowingly enters false

11 information on the return of any taxpayer under this Article

12 is guilty of a Class 4 felony.

13  (b) When the amount due is $300 or more, any retailer of

14 cannabis who fails to file a return, willfully fails or

15 refuses to make any payment to the Department of the tax

16 imposed by this Article, files, or causes to be filed, a

17 fraudulent return, or any officer or agent of a corporation

18 engaged in the business of selling cannabis to purchasers

19 located in this State who files or causes to be filed or signs

20 or causes to be signed a fraudulent return filed on behalf of

21 the corporation, or any accountant or other agent who

22 knowingly enters false information on the return of any

23 taxpayer under this Article is guilty of a Class 3 felony.

24  (c) Any person who violates any provision of Section

25 65-20, or fails to keep books and records as required under

26 this Article, or willfully violates a rule of the Department
    SB3222 Enrolled  - 626 - LRB104 19119 AAS 32564 b

1 for the administration and enforcement of this Article is

2 guilty of a Class 4 felony. A person commits a separate offense

3 on each day that he or she engages in business in violation of

4 Section 65-20 or a rule of the Department for the

5 administration and enforcement of this Article. If a person

6 fails to produce the books and records for inspection by the

7 Department upon request, a prima facie presumption shall arise

8 that the person has failed to keep books and records as

9 required under this Article. A person who is unable to rebut

10 this presumption is in violation of this Article and is

11 subject to the penalties provided in this Section.

12  (d) Any person who violates any provision of Sections

13 65-20, fails to keep books and records as required under this

14 Article, or willfully violates a rule of the Department for

15 the administration and enforcement of this Article, is guilty

16 of a business offense and may be fined up to $5,000. If a

17 person fails to produce books and records for inspection by

18 the Department upon request, a prima facie presumption shall

19 arise that the person has failed to keep books and records as

20 required under this Article. A person who is unable to rebut

21 this presumption is in violation of this Article and is

22 subject to the penalties provided in this Section. A person

23 commits a separate offense on each day that he or she engages

24 in business in violation of a rule of the Department for the

25 administration and enforcement of this Article Section 65-20.

26  (e) Any taxpayer or agent of a taxpayer who with the intent
    SB3222 Enrolled  - 627 - LRB104 19119 AAS 32564 b

1 to defraud purports to make a payment due to the Department by

2 issuing or delivering a check or other order upon a real or

3 fictitious depository for the payment of money, knowing that

4 it will not be paid by the depository, is guilty of a deceptive

5 practice in violation of Section 17-1 of the Criminal Code of

6 2012.

7   (f) Any person who fails to keep books and records or fails

8 to produce books and records for inspection, as required by

9 Section 65-36, is liable to pay to the Department, for deposit

10 in the Tax Compliance and Administration Fund, a penalty of

11 $1,000 for the first failure to keep books and records or

12 failure to produce books and records for inspection, as

13 required by Section 65-36, and $3,000 for each subsequent

14 failure to keep books and records or failure to produce books

15 and records for inspection, as required by Section 65-36.

16  (g) Any person who knowingly acts as a retailer of

17 cannabis in this State without first having obtained a

18 certificate of registration to do so in compliance with

19 Section 65-20 of this Article shall be guilty of a Class 4

20 felony.

21  (h) A person commits the offense of tax evasion under this

22 Article when he or she knowingly attempts in any manner to

23 evade or defeat the tax imposed on him or her or on any other

24 person, or the payment thereof, and he or she commits an

25 affirmative act in furtherance of the evasion. As used in this

26 Section, "affirmative act in furtherance of the evasion" means
    SB3222 Enrolled      - 628 - LRB104 19119 AAS 32564 b

1 an act designed in whole or in part to (i) conceal,

2 misrepresent, falsify, or manipulate any material fact or (ii)

3 tamper with or destroy documents or materials related to a

4 person's tax liability under this Article. Two or more acts of

5 sales tax evasion may be charged as a single count in any

6 indictment, information, or complaint and the amount of tax

7 deficiency may be aggregated for purposes of determining the

8 amount of tax that is attempted to be or is evaded and the

9 period between the first and last acts may be alleged as the

10 date of the offense.

11  (1) When the amount of tax, the assessment or payment

12  of which is attempted to be or is evaded is less than $500,

13  a person is guilty of a Class 4 felony.

14  (2) When the amount of tax, the assessment or payment

15  of which is attempted to be or is evaded is $500 or more

16  but less than $10,000, a person is guilty of a Class 3

17  felony.

18  (3) When the amount of tax, the assessment or payment

19  of which is attempted to be or is evaded is $10,000 or more

20  but less than $100,000, a person is guilty of a Class 2

21  felony.

22  (4) When the amount of tax, the assessment or payment

23  of which is attempted to be or is evaded is $100,000 or

24  more, a person is guilty of a Class 1 felony.

25  Any person who knowingly sells, purchases, installs,

26 transfers, possesses, uses, or accesses any automated sales
    SB3222 Enrolled            - 629 - LRB104 19119 AAS 32564 b

1 suppression device, zapper, or phantom-ware in this State is

2 guilty of a Class 3 felony.

3   As used in this Section:

4   "Automated sales suppression device" or "zapper" means a

5 software program that falsifies the electronic records of an

6 electronic cash register or other point-of-sale system,

7 including, but not limited to, transaction data and

8 transaction reports. The term includes the software program,

9 any device that carries the software program, or an Internet

10 link to the software program.

11  "Phantom-ware" means a hidden programming option embedded

12 in the operating system of an electronic cash register or

13 hardwired into an electronic cash register that can be used to

14 create a second set of records or that can eliminate or

15 manipulate transaction records in an electronic cash register.

16  "Electronic cash register" means a device that keeps a

17 register or supporting documents through the use of an

18 electronic device or computer system designed to record

19 transaction data for the purpose of computing, compiling, or

20 processing retail sales transaction data in any manner.

21  "Transaction data" includes: items purchased by a

22 purchaser; the price of each item; a taxability determination

23 for each item; a segregated tax amount for each taxed item; the

24 amount of cash or credit tendered; the net amount returned to

25 the customer in change; the date and time of the purchase; the

26 name, address, and identification number of the vendor; and
    SB3222 Enrolled             - 630 - LRB104 19119 AAS 32564 b

1 the receipt or invoice number of the transaction.

2   "Transaction report" means a report that documents,

3 without limitation, the sales, taxes, or fees collected, media

4 totals, and discount voids at an electronic cash register and

5 that is printed on a cash register tape at the end of a day or

6 shift, or a report that documents every action at an

7 electronic cash register and is stored electronically.

8   A prosecution for any act in violation of this Section may

9 be commenced at any time within 5 years of the commission of

10 that act.

11  (i) The Department may adopt rules to administer the

12 penalties under this Section.

13  (j) Any person whose principal place of business is in

14 this State and who is charged with a violation under this

15 Section shall be tried in the county where his or her principal

16 place of business is located unless he or she asserts a right

17 to be tried in another venue.

18  (k) Except as otherwise provided in subsection (h), a

19 prosecution for a violation described in this Section may be

20 commenced within 3 years after the commission of the act

21 constituting the violation.

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

23  (410 ILCS 705/65-42)

24  Sec. 65-42. Seizure and forfeiture. After seizing any

25 cannabis as provided in Section 65-41, the Department must
    SB3222 Enrolled  - 631 - LRB104 19119 AAS 32564 b

1 hold a hearing and determine whether (i) the retailer was

2 properly registered to sell the cannabis; (ii) the retailer

3 possessed the cannabis in violation of this Act; (iii) the

4 retailer possessed the cannabis in violation of any reasonable

5 rule or regulation adopted by the Department for the

6 enforcement of this Act; or (iv) the tax imposed by Article 60

7 had been paid on the cannabis at the time of its seizure by the

8 Department. The Department is not required to hold such a

9 hearing if a waiver and consent to forfeiture has been

10 executed by the owner of the cannabis, if the owner is known,

11 and by the person in whose possession the cannabis so taken was

12 found, if that person is known and if that person is not the

13 owner of said cannabis. The Department shall give not less

14 than 20 days' notice of the time and place of the hearing to

15 the owner of the cannabis, if the owner is known, and also to

16 the person in whose possession the cannabis was found, if that

17 person is known and if the person in possession is not the

18 owner of the cannabis. If neither the owner nor the person in

19 possession of the cannabis is known, the Department must cause

20 publication of the time and place of the hearing to be made at

21 least once in each week for 3 weeks successively in a newspaper

22 of general circulation in the county where the hearing is to be

23 held.

24  If, as the result of the hearing, the Department makes any

25 of the findings listed in items (i) through (iv) determines

26 that the retailer was not properly registered at the time the
    SB3222 Enrolled   - 632 - LRB104 19119 AAS 32564 b

 1 cannabis was seized, or upon receipt of a properly executed
 2 waiver and consent to forfeiture as provided in this Section,
 3 the Department must enter an order declaring the cannabis
 4 confiscated and forfeited to the State, to be held by the
 5 Department for disposal by it as provided in Section 65-43.
 6 The Department must give notice of the order to the owner of
 7 the cannabis, if the owner is known, and also to the person in
 8 whose possession the cannabis was found, if that person is
 9 known and if the person in possession is not the owner of the
10 cannabis. If neither the owner nor the person in possession of
11 the cannabis is known, the Department must cause publication
12 of the order to be made at least once in each week for 3 weeks
13 successively in a newspaper of general circulation in the
14 county where the hearing was held.
15 (Source: P.A. 103-1001, eff. 8-9-24.)

16  (410 ILCS 705/20-50 rep.)

17  (410 ILCS 705/25-45 rep.)

18  (410 ILCS 705/30-50 rep.)

19  Section 170. The Cannabis Regulation and Tax Act is

20 amended by repealing Sections 20-50, 25-45, and 30-50.

21  Section 175. The Industrial Hemp Act is amended by

22 changing Section 20 as follows:

23  (505 ILCS 89/20)
    SB3222 Enrolled          - 633 - LRB104 19119 AAS 32564 b

1   Sec. 20. Hemp products.

2   (a) A person shall not sell, offer for sale, give, or

3 deliver a hemp-derived product to a person under 21 years of

4 age unless the product is a consumable or topical hemp-derived

5 cannabinoid product that does not contain:

6       (1) any cannabinoids that are incapable of being

7   naturally produced by a Cannabis sativa L. plant;

8       (2) any cannabinoids that are capable of being

9   naturally produced by a Cannabis sativa L. plant but that

10  were synthesized or manufactured outside of the Cannabis

11  sativa L. plant; or

12      (3) more than a per-container total of 0.4 milligrams

13  of               tetrahydrocannabinols,            including

14  tetrahydrocannabinolic acid, or any other cannabinoids

15  that have similar effects or are marketed to have similar

16  effects on humans or animals as a tetrahydrocannabinol.

17  (b) A retailer shall verify the age of each purchaser of a

18 hemp-derived product by examining the purchaser's valid

19 government-issued photo identification. Verification shall be

20 required for any purchaser who appears under 30 years of age.

21  (c) (Blank).

22  (d) Every hemp-derived product offered for sale in this

23 State shall bear a label containing, at minimum:

24      (1) the product name;

25      (2) the net weight or volume of the product;

26      (3) a complete and accurate list of all ingredients in
    SB3222 Enrolled         - 634 - LRB104 19119 AAS 32564 b

1   the product in descending order of predominance;

2   (4) the identity and quantity of each cannabinoid

3   present in the product, expressed in milligrams per

4   serving and per container, including total THC;

5   (5) the number of servings per container;

6   (6) the batch or lot number of the product;

7   (7) the name, business address, and contact

8   information of the manufacturer or distributor of the

9   product; and

10  (8) an expiration or use by date for the product.

11  (e) The label and packaging of a hemp-derived product

12 shall not contain:

13  (1) any information that is false or misleading,

14  including a representation that the product is a cannabis

15  product;

16  (2) any image designed or likely to appeal to minors,

17  including cartoons, toys, animals, or children, or any

18  other likeness to images, characters, or phrases used to

19  advertise to children;

20  (3) any information that imitates the trade dress,

21  name, or packaging of any commercial non-cannabis or

22  non-hemp food, candy, beverage, or product primarily

23  marketed to children;

24  (4) any seal, flag, crest, coat of arms, or other

25  insignia likely to mislead a purchaser into believing the

26  product has been endorsed, made, or used by the State of
    SB3222 Enrolled          - 635 - LRB104 19119 AAS 32564 b

1   Illinois or any of its representatives, except where

2   authorized by this Act;

3   (5) any health claim; or

4   (6) any information that misstates or omits

5   cannabinoid content or ingredients.

6   (f) The Attorney General may enforce a violation of this

7 Section 20 as an unlawful practice under the Consumer Fraud

8 and Deceptive Business Practices Act.

9   Nothing in this Act shall alter the legality of hemp or

10 hemp products that are presently legal to possess or own.

11 (Source: P.A. 100-1091, eff. 8-26-18.)

12  (505 ILCS 89/Act rep.)

13  Section 180. The Industrial Hemp Act is repealed on

14 November 12, 2026.

15  Section 185. The Illinois Vehicle Code is amended by

16 changing Sections 11-502.1 and 11-502.15 as follows:

17  (625 ILCS 5/11-502.1)

18  Sec. 11-502.1. Possession of medical cannabis in a motor

19 vehicle.

20  (a) No driver, who is a medical cannabis cardholder, may

21 use medical cannabis within the passenger area of any motor

22 vehicle upon a highway in this State.

23  (b) No driver, who is a medical cannabis cardholder, a
    SB3222 Enrolled        - 636 - LRB104 19119 AAS 32564 b

1 medical cannabis designated caregiver, medical cannabis

2 cultivation center agent, or dispensing organization agent may

3 possess medical cannabis within any area of any motor vehicle

4 upon a highway in this State except in a secured, sealed or

5 resealable, odor-proof, and child-resistant medical cannabis

6 container that is inaccessible, unless subsection (e) of

7 Section 15-85 of the Cannabis Regulation and Tax Act applies.

8   (c) No passenger, who is a medical cannabis card holder, a

9 medical cannabis designated caregiver, or medical cannabis

10 dispensing organization agent may possess medical cannabis

11 within any passenger area of any motor vehicle upon a highway

12 in this State except in a secured, sealed or resealable,

13 odor-proof, and child-resistant medical cannabis container

14 that is inaccessible, unless subsection (e) of Section 15-85

15 of the Cannabis Regulation and Tax Act applies.

16  (d) Any person who violates subsections (a) through (c) of

17 this Section:

18  (1) commits a Class A misdemeanor;

19  (2) shall be subject to revocation of his or her

20  medical cannabis card for a period of 2 years from the end

21  of the sentence imposed; and

22  (3) shall be subject to revocation of his or her

23  status as a medical cannabis caregiver, medical cannabis

24  cultivation center agent, or medical cannabis dispensing

25  organization agent for a period of 2 years from the end of

26  the sentence imposed.
    SB3222 Enrolled         - 637 - LRB104 19119 AAS 32564 b

1 (Source: P.A. 101-27, eff. 6-25-19; 102-98, eff. 7-15-21;
2 102-558, eff. 8-20-21.)

3   (625 ILCS 5/11-502.15)

4   Sec. 11-502.15. Possession of adult use cannabis in a

5 motor vehicle.

6   (a) No driver may use cannabis within the passenger area

7 of any motor vehicle upon a highway in this State.

8   (b) No driver may possess cannabis within any area of any

9 motor vehicle upon a highway in this State except in a secured,

10 sealed or resealable, odor-proof, child-resistant cannabis

11 container that is inaccessible, unless subsection (e) of

12 Section 15-85 of the Cannabis Regulation and Tax Act applies.

13  (c) No passenger may possess cannabis within any passenger

14 area of any motor vehicle upon a highway in this State except

15 in a secured, sealed or resealable, odor-proof,

16 child-resistant cannabis container that is inaccessible,

17 unless subsection (e) of Section 15-85 of the Cannabis

18 Regulation and Tax Act applies.

19  (d) Any person who knowingly violates subsection (a), (b),

20 or (c) of this Section commits a Class A misdemeanor.

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

22  Section 190. The Cannabis Control Act is amended by

23 changing Sections 4, 5, and 5.1 as follows:
    SB3222 Enrolled      - 638 - LRB104 19119 AAS 32564 b

1   (720 ILCS 550/4) (from Ch. 56 1/2, par. 704)

2   Sec. 4. Except as otherwise provided in the Cannabis

3 Regulation and Tax Act, and the Industrial Hemp Act, and the

4 Illinois Hemp Act, it is unlawful for any person knowingly to

5 possess cannabis.

6   Any person who violates this Section with respect to:

7   (a) not more than 10 grams of any substance containing

8   cannabis is guilty of a civil law violation punishable by

9   a minimum fine of $100 and a maximum fine of $200. The

10  proceeds of the fine shall be payable to the clerk of the

11  circuit court. Within 30 days after the deposit of the

12  fine, the clerk shall distribute the proceeds of the fine

13  as follows:

14  (1) $10 of the fine to the circuit clerk and $10 of

15  the fine to the law enforcement agency that issued the

16  citation; the proceeds of each $10 fine distributed to

17  the circuit clerk and each $10 fine distributed to the

18  law enforcement agency that issued the citation for

19  the violation shall be used to defer the cost of

20  automatic expungements under paragraph (2.5) of

21  subsection (a) of Section 5.2 of the Criminal

22  Identification Act;

23  (2) $15 to the county to fund drug addiction

24  services;

25  (3) $10 to the Office of the State's Attorneys

26  Appellate Prosecutor for use in training programs;
    SB3222 Enrolled       - 639 - LRB104 19119 AAS 32564 b

1   (4) $10 to the State's Attorney; and

2   (5) any remainder of the fine to the law

3   enforcement agency that issued the citation for the

4   violation.

5   With respect to funds designated for the Illinois

6   State Police, the moneys shall be remitted by the circuit

7   court clerk to the Illinois State Police within one month

8   after receipt for deposit into the State Police Operations

9   Assistance Fund. With respect to funds designated for the

10  Department of Natural Resources, the Department of Natural

11  Resources shall deposit the moneys into the Conservation

12  Police Operations Assistance Fund;

13  (b) more than 10 grams but not more than 60 30 grams of

14  any substance containing cannabis is guilty of a Class B

15  misdemeanor;

16  (c) more than 60 30 grams but not more than 100 grams

17  of any substance containing cannabis is guilty of a Class

18  A misdemeanor; provided, that if any offense under this

19  subsection (c) is a subsequent offense, the offender shall

20  be guilty of a Class 4 felony;

21  (d) more than 100 grams but not more than 500 grams of

22  any substance containing cannabis is guilty of a Class 4

23  felony; provided that if any offense under this subsection

24  (d) is a subsequent offense, the offender shall be guilty

25  of a Class 3 felony;

26  (e) more than 500 grams but not more than 2,000 grams
    SB3222 Enrolled  - 640 - LRB104 19119 AAS 32564 b

1   of any substance containing cannabis is guilty of a Class

2   3 felony;

3   (f) more than 2,000 grams but not more than 5,000

4   grams of any substance containing cannabis is guilty of a

5   Class 2 felony;

6   (g) more than 5,000 grams of any substance containing

7   cannabis is guilty of a Class 1 felony.

8   Fines and assessments, such as fees or administrative

9 costs, authorized under this Section shall not be ordered or

10 imposed against a minor subject to Article III, IV, or V of the

11 Juvenile Court Act of 1987, or a minor under the age of 18

12 transferred to adult court or excluded from juvenile court

13 jurisdiction under Article V of the Juvenile Court Act of

14 1987, or the minor's parent, guardian, or legal custodian.

15 (Source: P.A. 102-538, eff. 8-20-21; 103-379, eff. 7-28-23.)

16  (720 ILCS 550/5) (from Ch. 56 1/2, par. 705)

17  Sec. 5. Except as otherwise provided in the Cannabis

18 Regulation and Tax Act, and the Industrial Hemp Act, and the

19 Illinois Hemp Act, it is unlawful for any person knowingly to

20 manufacture, deliver, or possess with intent to deliver, or

21 manufacture, cannabis. Any person who violates this Section

22 with respect to:

23  (a) not more than 2.5 grams of any substance

24  containing cannabis is guilty of a Class B misdemeanor;

25  (b) more than 2.5 grams but not more than 10 grams of
    SB3222 Enrolled  - 641 - LRB104 19119 AAS 32564 b

1   any substance containing cannabis is guilty of a Class A

2   misdemeanor;

3   (c) more than 10 grams but not more than 60 30 grams of

4   any substance containing cannabis is guilty of a Class 4

5   felony;

6   (d) more than 60 30 grams but not more than 500 grams

7   of any substance containing cannabis is guilty of a Class

8   3 felony for which a fine not to exceed $50,000 may be

9   imposed;

10  (e) more than 500 grams but not more than 2,000 grams

11  of any substance containing cannabis is guilty of a Class

12  2 felony for which a fine not to exceed $100,000 may be

13  imposed;

14  (f) more than 2,000 grams but not more than 5,000

15  grams of any substance containing cannabis is guilty of a

16  Class 1 felony for which a fine not to exceed $150,000 may

17  be imposed;

18  (g) more than 5,000 grams of any substance containing

19  cannabis is guilty of a Class X felony for which a fine not

20  to exceed $200,000 may be imposed.

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

22  (720 ILCS 550/5.1) (from Ch. 56 1/2, par. 705.1)

23  Sec. 5.1. Cannabis trafficking.

24  (a) Except for purposes authorized by this Act, the

25 Industrial Hemp Act, the Illinois Hemp Act, or the Cannabis
    SB3222 Enrolled         - 642 - LRB104 19119 AAS 32564 b

1 Regulation and Tax Act, any person who knowingly brings or

2 causes to be brought into this State for the purpose of

3 manufacture or delivery or with the intent to manufacture or

4 deliver 2,500 grams or more of cannabis in this State or any

5 other state or country is guilty of cannabis trafficking.

6   (b) A person convicted of cannabis trafficking shall be

7 sentenced to a term of imprisonment not less than twice the

8 minimum term and fined an amount as authorized by subsection

9 (f) or (g) of Section 5 of this Act, based upon the amount of

10 cannabis brought or caused to be brought into this State, and

11 not more than twice the maximum term of imprisonment and fined

12 twice the amount as authorized by subsection (f) or (g) of

13 Section 5 of this Act, based upon the amount of cannabis

14 brought or caused to be brought into this State.

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

16  (720 ILCS 550/15.2 rep.)

17  Section 195. The Cannabis Control Act is amended by

18 repealing Section 15.2.

19  Section 200. The Tobacco Accessories and Smoking Herbs

20 Control Act is amended by changing Section 2 as follows:

21  (720 ILCS 685/2) (from Ch. 23, par. 2358-2)

22  Sec. 2. Purpose. The sale and possession of marijuana,

23 hashish, cocaine, opium, and their derivatives, is not only
    SB3222 Enrolled  - 643 - LRB104 19119 AAS 32564 b

1 prohibited by Illinois Law, but the use of these substances

2 has been deemed injurious to the health of the user.

3   It has further been determined by the Surgeon General of

4 the United States that the use of tobacco is hazardous to human

5 health.

6   The ready availability of smoking herbs to persons under

7 21 years of age could lead to the use of tobacco and illegal

8 drugs.

9   It is in the best interests of the citizens of the State of

10 Illinois to seek to prohibit the spread of illegal drugs,

11 tobacco or smoking materials to persons under 21 years of age.

12 The prohibition of the sale of tobacco and snuff accessories

13 and smoking herbs to persons under 21 years of age would help

14 to curb the usage of illegal drugs and tobacco products, among

15 our youth.

16 (Source: P.A. 101-2, eff. 7-1-19.)

17  Section 205. The Consumer Fraud and Deceptive Business

18 Practices Act is amended by adding Section 2MMMM as follows:

19  (815 ILCS 505/2MMMM new)

20  Sec. 2MMMM. Violations of the Industrial Hemp Act, the

21 Illinois Hemp Act, and Sections 15-155 and 20-60 of the

22 Cannabis Regulation and Tax Act. A person commits an unlawful

23 practice within the meaning of this Act when the person

24 violates the Illinois Hemp Act, Section 20 of the Industrial
    SB3222 Enrolled  - 644 - LRB104 19119 AAS 32564 b

1 Hemp Act, subsection (a) of Section 15-155 or subsection (a)
2 of Section 20-60 of the Cannabis Regulation and Tax Act.

3   Section 995. No acceleration or delay. Where this Act

4 makes changes in a statute that is represented in this Act by

5 text that is not yet or no longer in effect (for example, a

6 Section represented by multiple versions), the use of that

7 text does not accelerate or delay the taking effect of (i) the

8 changes made by this Act or (ii) provisions derived from any

9 other Public Act.

10  Section 997. Severability. The provisions of this Act are

11 severable under Section 1.31 of the Statute on Statutes.

12  Section 999. Effective date. This Act takes effect upon

13 becoming law, except that Sections 1 through 70 and Section

14 160 take effect on November 12, 2026.
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