410 ILCS 705/35-18: Social equity experience lottery.
Where this section sits in the code
- CHAPTER 410 PUBLIC HEALTH
- Cannabis Regulation and Tax Act.
(a) The Department shall, by rule, develop an application, submission, review, and deficiency process to issue at least 45 infuser licenses by January 1, 2027 and may issue up to 100 additional licenses beginning January 1, 2028. The licenses shall be issued to applicants that are 51% owned by individuals who meet the following social equity criteria:
(1) The applicant must satisfy one of the following geographic criteria:
(A) the individual must have resided for at least 5 of the preceding 10 years in a census tract that has a poverty rate of at least 20% according to the latest 5-year American Community Survey (Table S1701: Poverty Status in the Past 12 Months) that is publicly available at the start of the application submission window;
(B) the individual must have resided for at least 5 of the preceding 10 years in a census tract where at least 20% of the households receive assistance under the Supplemental Nutrition Assistance Program in the latest 5-year American Community Survey (Table S2201: Food Stamps/Supplemental Nutrition Assistance Program (SNAP)) that is publicly available at the start of the application submission;
(C) the individual must have resided for at least 5 of the preceding 10 years in a census tract area classified as "low income and low access" where at least 100 households are more than one-half mile from the nearest supermarket and have no access to a vehicle or a significant number (at least 500 people) or share (at least 33%) of the population is greater than one mile from the nearest supermarket, supercenter, or large grocery store for an urban area or greater than 20 miles for a rural area, as classified by the latest United States Department of Agriculture Economic Research Service's Food Access Research Atlas data set that is publicly available at the start of the application submission window;
(D) the individual must have received Medicaid, Supplemental Security Income, Social Security Disability, or subsidized housing for at least 5 of the preceding 10 years; or
(E) the individual must have resided for at least 5 of the preceding 10 years in a census tract in the top 15th percentile for the percent of residents in the census tract failing to graduate from high school in that state, as classified by the latest 5-year American Community Survey (Table S1501: Educational Attainment) that is publicly available at the start of the application submission window.
The Department may update or adjust the criteria in this paragraph (1) by rule.
(2) The individual must satisfy one of the following social equity criteria:
(A) the individual must have been arrested for, convicted of, or adjudicated delinquent for an offense, or substantially similar offense under federal or State law or under a substantially similar law of another State for possession of not more than 500 grams of cannabis or for manufacture, delivery, or possession with intent to deliver, or manufacture of cannabis up to 60 grams;
(B) the individual must have been a member of a justice-impacted family;
(C) the individual must have been a victim of an injury caused by a firearm, as defined in the Firearm Owners Identification Card Act, as evidenced in public or medical records.
As used in this subparagraph (C), "victim of an injury caused by a firearm" means:
(i) a person injured as a result of a firearm injury perpetrated or attempted against them;
(ii) the spouse, parent, or child of a person killed or injured as a result of a firearm injury perpetrated or attempted against the person, or anyone living in the household of a person killed or injured in a relationship that is substantially similar to that of a parent, spouse, or child;
(iii) a person injured while attempting to assist a person against whom a firearm injury is being perpetrated or attempted, if that attempt of assistance would be expected of a reasonable person under the circumstances;
(iv) a person injured while assisting a law enforcement official apprehend a person who has perpetrated a firearm injury or prevent the perpetration of any such crime if that assistance was in response to the express request of the law enforcement official; or
(v) a person who personally witnessed a firearm injury.
"Victim of an injury caused by a firearm" does not include the offender who committed the criminal act or a person who provoked or incited the crime.
(b) The Department's rules governing the lottery shall include a bonus draw process for hemp business operators who meet any one or more of the following criteria:
(1) The applicant was registered with the Department as an industrial hemp processor under the Industrial Hemp Act on or before May 1, 2026.
(2) The applicant held an industrial hemp cultivation license issued by the Department under the Industrial Hemp Act on or before May 1, 2026.
(3) The applicant demonstrates that, on or before May 1, 2026, it operated a business in Illinois that derived the majority of its gross receipts from the sale or manufacture of products containing hemp or hemp-derived cannabinoids. The Department may establish verification standards by rule.
(c) If the Department receives more than 45 applications, the Department shall conduct a lottery before determining applicant's eligibility for infuser licenses and before issuing the infuser license.
(d) After the Department publishes the official draw results, the Department shall conduct a verification process to confirm that drawn applicants meet the eligibility criteria established by this Section and by rule. Drawn applicants who are unable to provide sufficient documentation of their eligibility may be denied a license, and the Department may offer the next applicant drawn from the official results an opportunity to prove eligibility for licensure.
(e) The Department may also require, by rule, the submission of additional plans and exhibits, including, but not limited to, a security plan, infusing plan, employee training plan, product safety plan, and business plan.
(f) A principal officer may not be on more than one application.
(g) Each applicant shall pay a nonrefundable application fee of $2,500, which shall be deposited into the Cannabis Regulation Fund.
(h) If the Department determines that any information on an application or in supporting documents is not truthful, the applicant associated with the application shall be prohibited from:
(1) participating in the lottery;
(2) being a drawn applicant; and
(3) being issued an infuser license under this Section.
Collected 2026-09-15T04:46:36Z. Source file · JSON