The Illinois House of Representatives recently passed amendments to Senate Bill 1557, which made some material changes to Illinois’ Adult-Use Cannabis Laws. The bill is now on its way to the governor for his signature and will not be effective until then. However, it is crucial to get ahead of these material changes so you can plan accordingly.
Below are some key changes to Senate Bill 1557 from the recently approved House Floor Amendments No. 1 and 2.
Municipality Taxes
- Cities and counties can begin collecting cannabis taxes on July 2020 rather than September 2020. (55 ILCS 5/5-1006.8)
Banking
- The Secretary of the Department of Finance and Professional Regulations cannot take any actions against savings banks or holding companies that provide financial services or loans to cannabis-related businesses or individuals solely because they offer those services to the cannabis industry. (205 ILCS 205/9002)
Consumption Areas
- Limited cannabis consumption areas to tobacco retailers and cannabis dispensaries (with municipal authorization). Bars and restaurants are no longer allowed to provide cannabis consumption areas. (410 ILCS 82/35)
Licensed Activities
- Allows Early Approval Adult Use Cultivation License holders to process and transport cannabis-infused products. (410 ILCS 705/1-10)
- Allows Early Approval Adult Use Dispensing License holder to sell cannabis-infused products. (410 ILCS 705/1-10)
- A licensed dispensing organization must contract with a licensed private security contractor to provide on-site security at all hours of operation. (410 ILCS/15-70)
- Medical cannabis cultivation centers, dispensary organization, and their officers and agents cannot make political contributions. (10 ILCS 5/9-45)
License Applications
- Principal Officers are not required to submit to a fingerprint and background check when applying for an Early Approval Adult Use Dispensing Organization License at a secondary site. (410 ILCS 705/15-20)
- After receiving a Conditional Adult Use Dispensing Organization License, the organization must be able to show it continues to meet all requirements for holding such license; rather than just proof it meets the financial requirements. (410 ILCS 705/15-25)
- An individual or entity cannot hold more than 10 adult-use dispensing license. This includes all types of adult-use dispensing licenses. (410 ILCS 705/15-36)
- Lowered the required score to receive a transporting organization license from 85% to 75%. (410 ILCS 705/40-15)
- An applicant’s tax records, in addition to one of the previously required documents, can now establish proof of an individual’s primary residence. (410 ILCS 705/1-10)
- Proof of residency to show Illinois ownership can now be established with either 5 years of tax records or two of the following: 1) a signed lease with the applicant’s name; 2) property deed that include the applicant’s name; 3) school records; 4) a voter registration card; 5) an Illinois driver’s license, an Illinois ID card, or an Illinois Person with a Disability ID card; 6) a paycheck stub; 7) utility bill; or 8) any other proof of residency or other information necessary to establish residence. (410 ILCS 705/15-30)
- If an applicant cannot locate a secondary site in the initial approved region within 360 days, because of local bans, the geographic restrictions may be waived and a new region may be recommended. (410 ILCS 705/15-20)
- Social Equity Incubation commitments must be for a minimum of 1 year. (410 ILCS 705/15-15)
Expungements and Criminal Activities
- All existing notations on individuals driving records regarding that person’s registration as a qualified person or caregiver will be removed. (410 ILCS 130/60)
- Individuals can receive DUIs for operating a watercraft or snowmobile while operating under the influence of cannabis. (410 ILCS 705/10-35)
- A person can no longer be considered an unlawful user or addicted to narcotics solely as a result of possession or use of cannabis or cannabis paraphernalia in accordance with the Illinois Cannabis Laws. (410 ILCS 705/1-7)
- The definition of a Minor Cannabis Offenses was changed to include violations of the Cannabis Control Act concerning no more than 30 grams of cannabis or cannabis products. Those offenses shall automatically be expunged if committed prior to June 25, 2019 and if the conviction was not associated with an arrest for a violent crime. (20 ILCS 2630/5.2)
Anti-Revolving Door Policies
- No officer or member, or spouse or immediate family member may hold an ownership interest in a licensed cannabis business establishment while in office or within a period of 2 years immediately after leaving office. This does not include owning a passive interest in a publicly trading company. (5 ILCS 430/5-45)
- No State employee who works for any State agency that regulates cannabis license holders and who participated personally and substantially in the award of licenses cannot hold an ownership interest in any cannabis license during State employment or within a period of 2 years immediately after termination of State employment. (5 ILCS 430/5-45)
- No officer of the executive branch or State employee of the executive branch with regulatory or licensing authority shall within a period of 1 year immediately after termination of State employment, accept employment or receive compensation from a person or entity if that State employee participated personally or substantially in regulating or licensing of such individual or entity. (5 ILCS 430/5-45)
- No State employee who personally or substantially participated in the award of State contracts or State contract change orders in excess of $25,000 cannot accept employment or receive compensation from an individual or entity who received such contract within 2 years immediately after termination of State employment. (5 ILCS 430/5-45)
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