HB5858 101ST GENERAL ASSEMBLY

LRB101 22270 CPF 73308 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5858

Introduced 11/10/2020, by Rep. Thaddeus Jones

SYNOPSIS AS INTRODUCED:

410 ILCS 705/15-35

Amends the Cannabis Regulation and Tax Act. After January 1, 2022, requires the Department of Financial and Professional Regulation to adopt rules to issue 100 Adult Use Dispensing Organization Licenses on or before December 31, 2022 to African American-owned businesses, Hispanic-owned businesses, and Social Equity Applicants in specified communities and in specified amounts.

A BILL FOR

AN ACT concerning health.

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

Section 5. The Cannabis Regulation and Tax Act is amended by changing Section 15-35 as follows:

(410 ILCS 705/15-35)

Sec. 15-35. Conditional Adult Use Dispensing Organization License after January 1, 2021.

(a) In addition to any of the licenses issued in Sections 15-15, Section 15-20, or Section 15-25 of this Act, by December 21, 2021, the Department shall issue up to 110 Conditional Adult Use Dispensing Organization Licenses, pursuant to the application process adopted under this Section. Prior to issuing such licenses, the Department may adopt rules through emergency rulemaking in accordance with subsection (gg) of Section 5-45 of the Illinois Administrative Procedure Act. The General Assembly finds that the adoption of rules to regulate cannabis use is deemed an emergency and necessary for the public interest, safety, and welfare. Such rules may:

(1) Modify or change the BLS Regions as they apply to this Article or modify or raise the number of Adult Conditional Use Dispensing Organization Licenses assigned to each region based on the following factors:

(A) Purchaser wait times;

(B) Travel time to the nearest dispensary for potential purchasers;

(C) Percentage of cannabis sales occurring in Illinois not in the regulated market using data from the Substance Abuse and Mental Health Services Administration, National Survey on Drug Use and Health, Illinois Behavioral Risk Factor Surveillance System, and tourism data from the Illinois Office of Tourism to ascertain total cannabis consumption in Illinois compared to the amount of sales in licensed dispensing organizations;

(D) Whether there is an adequate supply of cannabis and cannabis-infused products to serve registered medical cannabis patients;

(E) Population increases or shifts;

(F) Density of dispensing organizations in a region;

(G) The Department's capacity to appropriately regulate additional licenses;

(H) The findings and recommendations from the disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer in subsection (e) of Section 5-45 to reduce or eliminate any identified barriers to entry in the cannabis industry; and

(I) Any other criteria the Department deems relevant.

(2) Modify or change the licensing application process to reduce or eliminate the barriers identified in the disparity and availability study commissioned by the Illinois Cannabis Regulation Oversight Officer and make modifications to remedy evidence of discrimination.

(b) After January 1, 2022, the Department may by rule modify or raise the number of Adult Use Dispensing Organization Licenses assigned to each region, and modify or change the licensing application process to reduce or eliminate barriers based on the criteria in subsection (a). At no time shall the Department issue more than 500 Adult Use Dispensing Organization Licenses.

(c) After January 1, 2022, and in accordance with Section 15-36, the Department shall adopt rules to issue 100 Adult Use Dispensing Organization Licenses on or before December 31, 2022 according to the following:

(1) Forty-five to African American-owned businesses in the following communities and in the following amounts:

(A) 10 in Chicago's Near West Side;

(B) 10 in Chicago's South Side;

(C) 10 in Springfield;

(D) 3 in Carbondale;

(E) one in Harvey;

(F) one in Dixmoor;

(G) one in Robbins;

(H) one in Dolton;

(I) one in Calumet City;

(J) one in Peoria; and

(K) 5 in other communities determined by the Department.

(2) Eleven to Hispanic-owned businesses in the following communities and in the following amounts:

(A) 10 in Chicago; and

(B) one in Aurora.

(3) Forty-four by lottery to Social Equity Applicants.

(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)