Section 1291.340 Onsite Consumption Lounges

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Illinois Administrative Code › Title 68 PROFESSIONS AND OCCUPATIONS › CHAPTER VII: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION › Part 1291 CANNABIS REGULATION AND TAX ACT › Section 1291.340 Onsite Consumption Lounges

This text was captured on Aug 14, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

Section 1291.340  Onsite Consumption Lounges

a)         Dispensing

organizations may operate an onsite consumption lounge within its dispensary

only if its unit of local government has authorized it to do so pursuant to

Section 55-25 of the Act.  Proof of authorization must be submitted to the

Department.

b)         Dispensing

organizations may only operate an onsite consumption lounge at the dispensary's

address or in a building contiguous to the dispensary.  If the dispensary's onsite

consumption lounge is within the dispensary, the dispensary shall maintain a

designated area for the purpose of the heating, burning, smoking, or consuming

activities that is separate from the remainder of the dispensary.

c)         If

specially authorized by its unit of local government, dispensaries may operate

an outdoor onsite consumption lounge.  Outdoor consumption shall not be visible

to the public (high fences, shrubs, etc., are permissible); and the interior of

the onsite consumption lounge and dispensary shall be separated from the

outdoor onsite consumption lounge by a locked and secured door. Patrons of the

outdoor onsite consumption lounge may re-enter the interior onsite consumption

lounge and dispensary's limited access area and bathrooms for the duration of

their visit so long as a security guard, licensed agent, AIC or principal

officer is stationed at the point of re-entry during all hours of the lounge's

hours of operation. Onsite consumption lounge and dispensary staff may enter

and exit all sections of the facility.

d)         Dispensaries

which are authorized by their unit of local government to operate an onsite consumption

lounge at its dispensary shall abide by all local rules, regulations, and

ordinances, including, but not limited to:  zoning regulations, local health

and safety standards, and fire safety regulations

ption lounge and dispensary staff may enter

and exit all sections of the facility.

d)         Dispensaries

which are authorized by their unit of local government to operate an onsite consumption

lounge at its dispensary shall abide by all local rules, regulations, and

ordinances, including, but not limited to:  zoning regulations, local health

and safety standards, and fire safety regulations.

e)         Dispensaries

seeking to operate an onsite consumption lounge at its dispensary must be

approved by the Department in a form or manner prescribed by the Department.

In seeking approval, the dispensary shall submit, at a minimum, the following:

1)         A

copy of the unit of local government's authorization to operate an onsite consumption

lounge and any supporting documents thereof;

2)         A copy

of the proposed floor plan of the onsite consumption lounge;

3)         Identification

of all staff who will work at the onsite consumption lounge;

4)         A

copy of the dispensary's policies and procedures for the onsite consumption lounge,

including, but not limited to, any policies and procedures regarding pricing,

security measures, staffing plans, hours of operation, etc. and those required

by subsection (g)(9);

5)         A copy

of the security plan of the onsite consumption lounge;

6)         A

copy of the lease or landlord consent to operate an onsite consumption lounge

or proof of ownership of the land the onsite consumption lounge is located; and

7)         A

copy of the policies and procedures of the onsite consumption including all

information required by Sections 15-65 and 15-110 of the Act.

f)         Dispensaries

are prohibited from initiating any material changes to the consumption lounge

without prior approval by the unit of local government and the Department

f ownership of the land the onsite consumption lounge is located; and

7)         A

copy of the policies and procedures of the onsite consumption including all

information required by Sections 15-65 and 15-110 of the Act.

f)         Dispensaries

are prohibited from initiating any material changes to the consumption lounge

without prior approval by the unit of local government and the Department.

g)         A dispensary

may operate an onsite consumption lounge subject to the following conditions:

1)         All

employees of an onsite consumption lounge shall be a licensed agent or agent-in-charge

of the dispensary;

2)         Dispensaries

shall verify all individuals entering an onsite consumption lounge are in

compliance with Section 10-20 of the Act;

3)         Cannabis

and cannabis infused products shall not be dispensed in the onsite consumption lounge

unless in accordance with 410 ILCS 705/15-100(c)(5);

4)         Onsite

consumption lounges must be separate and distinct from the remainder of the dispensary,

including the public access area, the limited access area, and the restricted

access area, and is separated from the remainder of the dispensary by a door

capable of being locked;

5)         Onsite

consumption lounges shall not be publicly accessible (except as otherwise

permitted as a point of re-entry under subsection (c)), unless the, entrance

also includes its own public access area and security guard during all hours of

operation;

6)         Onsite

consumption lounges shall not hold any liquor license issued under 235 ILCS

5/5-1 or any gaming license issued under 230 ILCS 40/90;

7)         Onsite

consumption lounges are permitted to serve food and drinks so long as the

following conditions are met:

A)        The onsite

consumption lounge has obtained the necessary certifications or licenses to

serve food, other than cannabis-infused products, that are required by the unit

of local government and State law;

B)        The onsite

consumption lounge complies with the Illinois Foo

Onsite

consumption lounges are permitted to serve food and drinks so long as the

following conditions are met:

A)        The onsite

consumption lounge has obtained the necessary certifications or licenses to

serve food, other than cannabis-infused products, that are required by the unit

of local government and State law;

B)        The onsite

consumption lounge complies with the Illinois Food Code (77 Ill. Adm. Code 750)

and the Food Handling Regulation Enforcement Act [410 ILCS 625]; and

C)        Such

food or drink qualifies as a "related supply" as that term is defined

in Section 1291.335.

8)         The onsite

consumption lounge shall have security cameras, which comply with Section

15-100(i)(2) of the Act, facing any areas of ingress or egress.  Cameras are

not required to record those consuming products, only those entering and

leaving through areas of ingress or egress;

9)         All

cash and currency collected at the onsite consumption lounge shall be treated

the same as cash and currency collected by the dispensary and shall be stored

securely in compliance with Section 15-100 of the Act;

10)       Copy

of internal policies shall be kept onsite within the onsite consumption lounge

that shall include, at a minimum:

A)        A

business plan that includes a description of the proposed hours of operation;

B)        A

responsible operations plan that includes a detailed explanation of how

employees will monitor and prevent over-intoxication, underage access to the onsite

consumption lounge, the illegal sale or distribution of cannabis or

cannabis-infused products within the onsite consumption lounge, and any other

potential criminal activity on the premises

n of the proposed hours of operation;

B)        A

responsible operations plan that includes a detailed explanation of how

employees will monitor and prevent over-intoxication, underage access to the onsite

consumption lounge, the illegal sale or distribution of cannabis or

cannabis-infused products within the onsite consumption lounge, and any other

potential criminal activity on the premises.  Operation plans may also identify

how to best prevent impaired driving by encouraging consumers to consider

alternative transportation options;

C)        A

documented employee training plan that addresses all components of the

responsible operations plan; and

D)        A

cannabis product destruction and waste management plan that meets the

requirements of this Part, as applicable, for destroying and disposing of

cannabis waste left at the onsite consumption lounge.

11)       Only

persons 21 years of age or older shall be permitted access to onsite consumption

lounges;

12)       The onsite

consumption lounge shall have a smoke-free area for both employees and the

Department to monitor the onsite consumption lounge;

13)       The onsite

consumption lounge shall have a ventilation system that directs air from the

consumption area to the outside of the building through a filtration system

sufficient to remove visible smoke, consistent with all applicable building

codes and ordinances, and adequate to eliminate odor at the property line, if

consumption by inhalation is permitted;

14)       If

cannabis is abandoned in the consumption lounge, it must be destroyed in

compliance with Section 1291.325;

15)       Dispensaries

may charge a fee for entrance and usage of onsite consumption lounges; and

16)       Any

other requirements that the Department deems necessary based on local zoning

authorities or unique security concerns.

h)         Onsite

consumption lounges remain subject to random inspections by the Department

mption lounge, it must be destroyed in

compliance with Section 1291.325;

15)       Dispensaries

may charge a fee for entrance and usage of onsite consumption lounges; and

16)       Any

other requirements that the Department deems necessary based on local zoning

authorities or unique security concerns.

h)         Onsite

consumption lounges remain subject to random inspections by the Department.

i)          If

Department inspectors or emergency personnel enter the onsite consumption

lounge and upon the inspector's or emergency personnel's direction, a dispensary

is responsible for ensuring that all consumption and other activities,

including sales within the dispensary, cease until the personnel have completed

their investigation or services and have left the premises.

j)          State

standards and requirements.  Any standards, requirements, and rules regarding

the health and safety, environmental protection, testing, security, food

safety, and worker protections established by the State shall be the minimum

standards for all licensees with onsite consumption lounges under the Act

statewide, where applicable.  Knowing violations of any State or local law,

ordinance, or rule conferring worker protections or legal rights on the

employees of a licensee may be grounds for disciplinary action under the Act,

in addition to

any penalties established by another unit of government.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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Section 1291.340 Onsite Consumption Lounges · 68 Ill. Adm. Code 1291.340 | Frix