HB5731 104TH GENERAL ASSEMBLY

LRB104 21046 BDA 35016 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5731

Introduced 3/20/2026, by Rep. Jawaharial Williams

SYNOPSIS AS INTRODUCED:

New Act
410 ILCS 82/35

Creates the On-Premise Cannabis Consumption Act. Provides that a county or municipality may issue licenses for temporary events and cannabis hospitality venues that will allow for the consumption of cannabis or cannabis-infused products and for the sale of cannabis paraphernalia at such temporary events or venues. Requires ordinances with specified requirements for such temporary events and cannabis hospitality venues before any licenses are issued. Limits home rule powers. Makes conforming changes in the Smoke Free Illinois Act. Effective immediately.

A BILL FOR

AN ACT concerning health.

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

Section 1. Short title. This Act may be cited as the On-Premise Cannabis Consumption Act.

Section 5. Definitions. As used in this Act:

"Cannabis" has the meaning given to that term in Section 1-10 of the Cannabis Regulation and Tax Act.

"Cannabis business establishment" has the meaning given to that term in Section 1-10 of the Cannabis Regulation and Tax Act.

"Cannabis hospitality venue" means a public or private restaurant, bar, or other business licensed under Section 15 that allows communal consumption of cannabis or cannabis-infused products on premises.

"Cannabis-infused product" has the meaning given to that term in Section 1-10 of the Cannabis Regulation and Tax Act.

"Cannabis paraphernalia" has the meaning given to that term in Section 1-10 of the Cannabis Regulation and Tax Act.

"Governmental unit" means a county or municipality.

"Venue" means any business establishment licensed by a governmental unit for hospitality-related business.

Section 10. Temporary event permits.

(a) The hosting of a temporary event for the consumption of cannabis or cannabis-infused products at a venue not licensed as a cannabis hospitality venue is subject to regulation by a municipality for events within the municipality and by a county for events outside of a municipality.

(b) A temporary event including the consumption of cannabis or cannabis-infused products must hold a temporary event permit issued by the governmental unit for the premises at which the temporary event is conducted.

(c) An applicant for a temporary event permit under this Section and the premises where it shall be conducted must meet the requirements of any ordinance passed or adopted by the governmental unit under this subsection.

(1) Before a governmental unit may issue any temporary event permits under this Section, the governmental unit must adopt an ordinance that includes all of the following:

(A) the application and permit fees for a permit issued under this Section;

(B) the maximum term of a permit issued under this Section; and

(C) a requirement that each permit application includes plans detailing:

(i) the date, time of operation, and address of the location hosting the consumption event;

(ii) a description of how smoke, aerosols, and vapors from cannabis consumption will be ventilated in indoor consumption spaces;

(iii) a description of how consumption will be obscured from view by opaque or translucent walls, fences, hedges, or other barriers in outdoor spaces; and

(iv) a description of how individuals under 21 will be prevented from entering the consumption space.

(2) The governmental unit may not adopt an ordinance or rule that:

(A) prohibits a person who holds a permit issued under this Section from adopting policies that allow attendees of temporary events to bring their own cannabis, cannabis-infused products, or cannabis paraphernalia into a temporary event;

(B) prohibits the preparation and sale of food and non-alcoholic beverages at venues already licensed for such sales by the governmental unit; or

(C) imposes public health or safety standards if those standards serve no purpose other than deterring the organization and execution of temporary events.

(d) The premises at which an applicant intends to conduct the event may not be located within 500 feet of a primary or secondary school.

(e) An applicant for a temporary event permit under this Section must apply for the permit in the manner required by ordinance of the governmental unit.

(f) Permit fees assessed under this Section must be reasonably related to the cost of inspecting and regulating the temporary event.

Section 15. Cannabis hospitality venues.

(a) The consumption of cannabis or cannabis-infused products at a cannabis hospitality venue is subject to regulation by a municipality for cannabis hospitality venues within the municipality and by a county for cannabis hospitality venues outside of a municipality.

(b) A person operating a cannabis hospitality venue must hold a cannabis hospitality venue license issued by the governmental unit for the premises at which the consumption occurs.

(c) The premises at which an applicant intends to have a cannabis hospitality venue may not be located within 500 feet of a public or private elementary or secondary school.

(d) An applicant for a cannabis hospitality venue license under this Section and the premises at which the cannabis hospitality venue is to be located must meet the requirements of any ordinance adopted by the governmental unit under this subsection.

(1) The ordinance must include all of the following:

(A) a requirement that a person who holds a license must renew the license annually;

(B) a description of the fees for the application, licensure, and renewal of licensure for a license under this Section;

(C) a restriction on the consumption of cannabis or cannabis-infused products to designated areas of a premises for which a license has been issued under this Section;

(D) a requirement that each portion of a premises for which a license has been issued under this Section where cannabis or cannabis-infused products are smoked, aerosolized, or vaporized must:

(i) have a ventilation system for any indoor consumption areas that exhausts smoke, aerosols, and vapors from that portion of the premises;

(ii) be designed and terminated in accordance with building code standards for the applicable occupancy classification; and

(iii) for any outdoor consumption area, be surrounded by a sight-obscuring wall, fence, hedge, or other opaque or translucent barrier; the outdoor consumption space may be located closer than 15 feet from an entrance or exit of the cannabis hospitality venue so long as the outdoor consumption space is not obstructing the venue's primary public entry point or is located on a public way;

(E) a requirement that a premises for which a license has been issued under this Section must meet any public health and safety standards and industry best practices established by the governmental unit by rule or ordinance;

(F) a requirement that premises for which this license is issued have a designated smoke-free area so employees of the facility can be isolated from cannabis smoke, vapor, and aerosols;

(G) a requirement that premises for which this license be issued have a plan in place to prevent patrons under the age of 21 from accessing the consumption space; and

(H) a requirement that licensees which qualify for Social Equity Applicant status found in the Cannabis Regulation and Tax Act have their licensing costs refunded.

(2) The governmental unit may not adopt an ordinance or rule that:

(A) prohibits a person who holds a license issued under this Section from adopting policies that allow persons attending the cannabis hospitality venue to bring cannabis, cannabis-infused products, or cannabis paraphernalia into the club;

(B) imposes public health or safety standards on cannabis hospitality venues if those standards serve no purpose other than deterring the consumption of cannabis or cannabis-infused products at the cannabis hospitality venue; or

(C) prohibits the lawful preparation and sale of food and beverage or the lawful sale or rental of cannabis related paraphernalia so long as the cannabis hospitality venue is appropriately licensed and in compliance for such activities.

(e) License fees assessed under this Section must be reasonably related to the cost of inspecting and regulating the cannabis hospitality venue.

(f) Municipalities may choose to prohibit cannabis hospitality venues from serving alcoholic beverages.

(g) Outside of areas defined by Section 10 and Section 15 of this Act, a municipality may allow the use of cannabis in places tobacco use is permitted by the Smoke Free Illinois Act.

Section 20. Home rule. A home rule unit may not regulate or license temporary events or cannabis hospitality venues in a manner inconsistent with this Act. This Act is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 90. The Smoke Free Illinois Act is amended by changing Section 35 as follows:

(410 ILCS 82/35)

Sec. 35. Exemptions. Notwithstanding any other provision of this Act, smoking is allowed in the following areas:

(1) Private residences or dwelling places, except when used as a child care, adult day care, or healthcare facility or any other home-based business open to the public.

(2) Retail tobacco stores as defined in Section 10 of this Act in operation prior to January 1, 2008 (the effective date of Public Act 95-17). The retail tobacco store shall annually file with the Department by January 31st an affidavit stating the percentage of its gross income during the prior calendar year that was derived from the sale of loose tobacco, plants, or herbs and cigars, cigarettes, pipes, or other smoking devices for smoking tobacco and related smoking accessories. Any retail tobacco store that begins operation after January 1, 2008 (the effective date of Public Act 95-17) may only qualify for an exemption if located in a freestanding structure occupied solely by the business and smoke from the business does not migrate into an enclosed area where smoking is prohibited. A retail tobacco store that derives at least 80% of its gross revenue from the sale of electronic cigarettes and electronic cigarette equipment and accessories in operation before January 1, 2024 (the effective date of Public Act 103-272) qualifies for this exemption for electronic cigarettes only. A retail tobacco store claiming an exemption for electronic cigarettes shall annually file with the Department by January 31 an affidavit stating the percentage of its gross income during the prior calendar year that was derived from the sale of electronic cigarettes. A retail tobacco store may, with authorization or permission from a unit of local government, including a home rule unit, or any non-home rule county within the unincorporated territory of the county, allow the on-premises consumption of cannabis in specially designated areas.

(3) (Blank).

(4) Hotel and motel sleeping rooms that are rented to guests and are designated as smoking rooms, provided that all smoking rooms on the same floor must be contiguous and smoke from these rooms must not infiltrate into nonsmoking rooms or other areas where smoking is prohibited. Not more than 25% of the rooms rented to guests in a hotel or motel may be designated as rooms where smoking is allowed. The status of rooms as smoking or nonsmoking may not be changed, except to permanently add additional nonsmoking rooms. Hotel and motel establishments may also apply and be licensed under the provisions of the On-Premise Cannabis Consumption Act and may host consumption events as detailed in that Act.

(5) Enclosed laboratories that are excluded from the definition of "place of employment" in Section 10 of this Act. Rulemaking authority to implement Public Act 95-1029, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(6) Common smoking rooms in long-term care facilities operated under the authority of the Illinois Department of Veterans Affairs or licensed under the Nursing Home Care Act that are accessible only to residents who are smokers and have requested in writing to have access to the common smoking room where smoking is permitted and the smoke shall not infiltrate other areas of the long-term care facility. Rulemaking authority to implement Public Act 95-1029, if any, is conditioned on the rules being adopted in accordance with all provisions of the Illinois Administrative Procedure Act and all rules and procedures of the Joint Committee on Administrative Rules; any purported rule not so adopted, for whatever reason, is unauthorized.

(7) A convention hall of the Donald E. Stephens Convention Center where a meeting or trade show for manufacturers and suppliers of tobacco and tobacco products and accessories is being held, during the time the meeting or trade show is occurring, if the meeting or trade show:

(i) is a trade-only event and not open to the public;

(ii) is limited to attendees and exhibitors that are 21 years of age or older;

(iii) is being produced or organized by a business relating to tobacco or a professional association for convenience stores; and

(iv) involves the display of tobacco products.

Smoking is not allowed in any public area outside of the hall designated for the meeting or trade show.

This paragraph (7) is inoperative on and after October 1, 2015.

(8) A dispensing organization, as defined in the Cannabis Regulation and Tax Act, authorized or permitted by a unit of local government to allow on-site consumption of cannabis, if the establishment: (1) maintains a specially designated area or areas for the purpose of heating, burning, smoking, or lighting cannabis; (2) is limited to individuals 21 or older; and (3) maintains a locked door or barrier to any specially designated areas for the purpose of heating, burning, smoking, or lighting cannabis.

(9) Temporary events or cannabis hospitality venues licensed under the On-Premise Cannabis Consumption Act.

(Source: P.A. 103-272, eff. 1-1-24; 103-605, eff. 7-1-24; 104-234, eff. 8-15-25.)

Section 99. Effective date. This Act takes effect upon becoming law.