HB0147ham002 102ND GENERAL ASSEMBLY

Rep. Bob Morgan

Filed: 3/23/2021

10200HB0147ham002 LRB102 04402 CPF 23870 a

AMENDMENT TO HOUSE BILL 147

AMENDMENT NO. ______. Amend House Bill 147, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the CBD Safety Act.

Section 5. Definitions. In this Act:

"Cannabinoid product" means a product offered for sale that contains cannabinoids and is not regulated under the Compassionate Use of Medical Cannabis Program Act or the Cannabis Regulation and Tax Act. "Cannabinoid product" includes foods, and only foods, containing cannabinoids and that are not time/temperature control for safety foods, as defined in Section 1-201.10 of the Food Code 2017 Recommendations of the United States Public Health Service Food and Drug Administration.

"Department" means the Department of Agriculture.

"Director" means the Director of Agriculture.

Section 10. Cannabinoid product labeling, packaging, and testing requirements. No person shall manufacture, process, or offer for sale a cannabinoid product unless the cannabinoid product has labeling and packaging and has undergone lab testing that meet labeling, packaging, and minimum testing requirements pursuant to rules adopted by the Department under subsection (b) of Section 15.

Section 15. Administration and enforcement; rules; emergency rules; inspection.

(a) The Department shall administer and enforce this Act and may adopt rules under the Illinois Administrative Procedure Act for the purpose of administering and enforcing this Act.

(b) The Department shall develop rules setting forth labeling, packaging, and minimum testing requirements of cannabinoid products.

(c) In order to provide for the expeditious and timely implementation of the provisions of this Act, the Department may adopt emergency rules in accordance with Section 5-45 of the Illinois Administrative Procedure Act to the extent necessary to administer the Department's responsibilities under this Act. The adoption of emergency rules authorized by this subsection (c) is deemed to be necessary for the public interest, safety, and welfare.

(d) The Department of Public Health, local health departments, the Illinois State Police, local sheriff's departments, municipal police departments, the Department of Revenue, and the Department may inspect any business that manufactures, processes, or offers for sale cannabinoid products in the State to ensure compliance with this Act.

Section 20. Administrative penalties; judicial review. The following administrative fines may be imposed by the Department upon any person or entity who violates any provision of this Act or any rule adopted by the Department under this Act:

(1) A penalty of $500 for a first violation.

(2) A penalty of $1,500 for a second violation at the same location within 2 years of the first violation.

(3) A penalty of $2,500 for a third or subsequent violation at the same location within 2 years of the second violation.

Moneys collected by the Department under this Section shall be deposited into the CBD Safety Fund. Any penalty of $2,500 or greater that is not paid within 120 days of issuance of notice from the Department shall be submitted to the Department of Revenue for collection as provided under the Illinois State Collection Act of 1986. The Department may prohibit any person from selling or distributing a cannabinoid product for failure to pay an administrative monetary penalty within 60 days of issuance of notice from the Department.

All final administrative decisions of the Department are subject to judicial review under the Administrative Review Law. The term "administrative decision" has the meaning ascribed to that term in Section 3-101 of the Code of Civil Procedure.

Section 25. Publishing information. The Department shall make available to the public complaints about cannabinoid products, information regarding a pending administrative hearing or court case under this Act, or any disciplinary action taken against a cannabinoid product manufacturer, processor, or seller.

Section 30. Temporary restraining order or injunction. The Director, through the Attorney General, may file a complaint and apply to the circuit court for, and the court upon hearing and for cause shown may grant, a temporary restraining order or a preliminary or permanent injunction restraining any person from violating this Act.

Section 35. CBD Safety Fund. The CBD Safety Fund is created as a special fund in the State treasury. Moneys in the Fund shall be utilized, subject to appropriation, by the Department for the implementation, administration, and enforcement of this Act.

Section 40. Federal law; preemption. Notwithstanding any other provision of this Act, the State may not regulate the safety of cannabinoid products in a way that is inconsistent with a federal law, rule, or regulation that regulates the safety of cannabinoid products and is in effect on or after the effective date of this Act.

Section 90. The Illinois Administrative Procedure Act is amended by adding Section 5-45.8 as follows:

(5 ILCS 100/5-45.8 new)

Sec. 5-45.8. Emergency rulemaking; CBD Safety Act. To provide for the expeditious and timely implementation of the CBD Safety Act, emergency rules implementing the CBD Safety Act may be adopted in accordance with Section 5-45 by the Department of Agriculture. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed on January 1, 2027.

Section 95. The State Finance Act is amended by adding Section 5.935 as follows:

(30 ILCS 105/5.935 new)

Sec. 5.935. The CBD Safety Fund.

Section 99. Effective date. This Act takes effect 180 days after becoming law.".