102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0619

 

Introduced 2/8/2021, by Rep. Daniel Didech - Jonathan Carroll

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/15-15

    Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding any restrictions on relocation otherwise set forth in the Act, an Early Approval Adult Use Dispensing Organization License holder shall be permitted, upon application to the Department of Financial and Professional Regulation, to relocate within the same medical district as its existing location under specified circumstances. Effective immediately.


LRB102 10409 CPF 15736 b

 

 

A BILL FOR

 

HB0619LRB102 10409 CPF 15736 b

1    AN ACT concerning health.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Cannabis Regulation and Tax Act is amended
5by changing Section 15-15 as follows:
 
6    (410 ILCS 705/15-15)
7    Sec. 15-15. Early Approval Adult Use Dispensing
8Organization License.
9    (a) Any medical cannabis dispensing organization holding a
10valid registration under the Compassionate Use of Medical
11Cannabis Program Act as of the effective date of this Act may,
12within 60 days of the effective date of this Act, apply to the
13Department for an Early Approval Adult Use Dispensing
14Organization License to serve purchasers at any medical
15cannabis dispensing location in operation on the effective
16date of this Act, pursuant to this Section.
17    (b) A medical cannabis dispensing organization seeking
18issuance of an Early Approval Adult Use Dispensing
19Organization License to serve purchasers at any medical
20cannabis dispensing location in operation as of the effective
21date of this Act shall submit an application on forms provided
22by the Department. The application must be submitted by the
23same person or entity that holds the medical cannabis

 

 

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1dispensing organization registration and include the
2following:
3        (1) Payment of a nonrefundable fee of $30,000 to be
4    deposited into the Cannabis Regulation Fund;
5        (2) Proof of registration as a medical cannabis
6    dispensing organization that is in good standing;
7        (3) Certification that the applicant will comply with
8    the requirements contained in the Compassionate Use of
9    Medical Cannabis Program Act except as provided in this
10    Act;
11        (4) The legal name of the dispensing organization;
12        (5) The physical address of the dispensing
13    organization;
14        (6) The name, address, social security number, and
15    date of birth of each principal officer and board member
16    of the dispensing organization, each of whom must be at
17    least 21 years of age;
18        (7) A nonrefundable Cannabis Business Development Fee
19    equal to 3% of the dispensing organization's total sales
20    between June 1, 2018 to June 1, 2019, or $100,000,
21    whichever is less, to be deposited into the Cannabis
22    Business Development Fund; and
23        (8) Identification of one of the following Social
24    Equity Inclusion Plans to be completed by March 31, 2021:
25            (A) Make a contribution of 3% of total sales from
26        June 1, 2018 to June 1, 2019, or $100,000, whichever is

 

 

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1        less, to the Cannabis Business Development Fund. This
2        is in addition to the fee required by item (7) of this
3        subsection (b);
4            (B) Make a grant of 3% of total sales from June 1,
5        2018 to June 1, 2019, or $100,000, whichever is less,
6        to a cannabis industry training or education program
7        at an Illinois community college as defined in the
8        Public Community College Act;
9            (C) Make a donation of $100,000 or more to a
10        program that provides job training services to persons
11        recently incarcerated or that operates in a
12        Disproportionately Impacted Area;
13            (D) Participate as a host in a cannabis business
14        establishment incubator program approved by the
15        Department of Commerce and Economic Opportunity, and
16        in which an Early Approval Adult Use Dispensing
17        Organization License holder agrees to provide a loan
18        of at least $100,000 and mentorship to incubate, for
19        at least a year, a Social Equity Applicant intending
20        to seek a license or a licensee that qualifies as a
21        Social Equity Applicant. As used in this Section,
22        "incubate" means providing direct financial assistance
23        and training necessary to engage in licensed cannabis
24        industry activity similar to that of the host
25        licensee. The Early Approval Adult Use Dispensing
26        Organization License holder or the same entity holding

 

 

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1        any other licenses issued pursuant to this Act shall
2        not take an ownership stake of greater than 10% in any
3        business receiving incubation services to comply with
4        this subsection. If an Early Approval Adult Use
5        Dispensing Organization License holder fails to find a
6        business to incubate to comply with this subsection
7        before its Early Approval Adult Use Dispensing
8        Organization License expires, it may opt to meet the
9        requirement of this subsection by completing another
10        item from this subsection; or
11            (E) Participate in a sponsorship program for at
12        least 2 years approved by the Department of Commerce
13        and Economic Opportunity in which an Early Approval
14        Adult Use Dispensing Organization License holder
15        agrees to provide an interest-free loan of at least
16        $200,000 to a Social Equity Applicant. The sponsor
17        shall not take an ownership stake in any cannabis
18        business establishment receiving sponsorship services
19        to comply with this subsection.
20    (b-5) Notwithstanding any restrictions on relocation
21otherwise set forth in this Act, an Early Approval Adult Use
22Dispensing Organization License holder shall be permitted,
23upon application to the Department, to relocate within the
24same medical district as its existing location if:
25        (1) it is located within the boundaries of a unit of
26    local government that prohibited the sale of adult use

 

 

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1    cannabis; or
2        (2) it has obtained the approval of the unit of local
3    government where it is located to move to another location
4    within that unit of local government.
5    (c) The license fee required by paragraph (1) of
6subsection (b) of this Section shall be in addition to any
7license fee required for the renewal of a registered medical
8cannabis dispensing organization license.
9    (d) Applicants must submit all required information,
10including the requirements in subsection (b) of this Section,
11to the Department. Failure by an applicant to submit all
12required information may result in the application being
13disqualified.
14    (e) If the Department receives an application that fails
15to provide the required elements contained in subsection (b),
16the Department shall issue a deficiency notice to the
17applicant. The applicant shall have 10 calendar days from the
18date of the deficiency notice to submit complete information.
19Applications that are still incomplete after this opportunity
20to cure may be disqualified.
21    (f) If an applicant meets all the requirements of
22subsection (b) of this Section, the Department shall issue the
23Early Approval Adult Use Dispensing Organization License
24within 14 days of receiving a completed application unless:
25        (1) The licensee or a principal officer is delinquent
26    in filing any required tax returns or paying any amounts

 

 

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1    owed to the State of Illinois;
2        (2) The Secretary of Financial and Professional
3    Regulation determines there is reason, based on documented
4    compliance violations, the licensee is not entitled to an
5    Early Approval Adult Use Dispensing Organization License;
6    or
7        (3) Any principal officer fails to register and remain
8    in compliance with this Act or the Compassionate Use of
9    Medical Cannabis Program Act.
10    (g) A registered medical cannabis dispensing organization
11that obtains an Early Approval Adult Use Dispensing
12Organization License may begin selling cannabis,
13cannabis-infused products, paraphernalia, and related items to
14purchasers under the rules of this Act no sooner than January
151, 2020.
16    (h) A dispensing organization holding a medical cannabis
17dispensing organization license issued under the Compassionate
18Use of Medical Cannabis Program Act must maintain an adequate
19supply of cannabis and cannabis-infused products for purchase
20by qualifying patients, caregivers, provisional patients, and
21Opioid Alternative Pilot Program participants. For the
22purposes of this subsection, "adequate supply" means a monthly
23inventory level that is comparable in type and quantity to
24those medical cannabis products provided to patients and
25caregivers on an average monthly basis for the 6 months before
26the effective date of this Act.

 

 

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1    (i) If there is a shortage of cannabis or cannabis-infused
2products, a dispensing organization holding both a dispensing
3organization license under the Compassionate Use of Medical
4Cannabis Program Act and this Act shall prioritize serving
5qualifying patients, caregivers, provisional patients, and
6Opioid Alternative Pilot Program participants before serving
7purchasers.
8    (j) Notwithstanding any law or rule to the contrary, a
9person that holds a medical cannabis dispensing organization
10license issued under the Compassionate Use of Medical Cannabis
11Program Act and an Early Approval Adult Use Dispensing
12Organization License may permit purchasers into a limited
13access area as that term is defined in administrative rules
14made under the authority in the Compassionate Use of Medical
15Cannabis Program Act.
16    (k) An Early Approval Adult Use Dispensing Organization
17License is valid until March 31, 2021. A dispensing
18organization that obtains an Early Approval Adult Use
19Dispensing Organization License shall receive written or
20electronic notice 90 days before the expiration of the license
21that the license will expire, and that informs the license
22holder that it may apply to renew its Early Approval Adult Use
23Dispensing Organization License on forms provided by the
24Department. The Department shall renew the Early Approval
25Adult Use Dispensing Organization License within 60 days of
26the renewal application being deemed complete if:

 

 

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1        (1) the dispensing organization submits an application
2    and the required nonrefundable renewal fee of $30,000, to
3    be deposited into the Cannabis Regulation Fund;
4        (2) the Department has not suspended or permanently
5    revoked the Early Approval Adult Use Dispensing
6    Organization License or a medical cannabis dispensing
7    organization license on the same premises for violations
8    of this Act, the Compassionate Use of Medical Cannabis
9    Program Act, or rules adopted pursuant to those Acts;
10        (3) the dispensing organization has completed a Social
11    Equity Inclusion Plan as provided by parts (A), (B), and
12    (C) of paragraph (8) of subsection (b) of this Section or
13    has made substantial progress toward completing a Social
14    Equity Inclusion Plan as provided by parts (D) and (E) of
15    paragraph (8) of subsection (b) of this Section; and
16        (4) the dispensing organization is in compliance with
17    this Act and rules.
18    (l) The Early Approval Adult Use Dispensing Organization
19License renewed pursuant to subsection (k) of this Section
20shall expire March 31, 2022. The Early Approval Adult Use
21Dispensing Organization Licensee shall receive written or
22electronic notice 90 days before the expiration of the license
23that the license will expire, and that informs the license
24holder that it may apply for an Adult Use Dispensing
25Organization License on forms provided by the Department. The
26Department shall grant an Adult Use Dispensing Organization

 

 

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1License within 60 days of an application being deemed complete
2if the applicant has met all of the criteria in Section 15-36.
3    (m) If a dispensing organization fails to submit an
4application for renewal of an Early Approval Adult Use
5Dispensing Organization License or for an Adult Use Dispensing
6Organization License before the expiration dates provided in
7subsections (k) and (l) of this Section, the dispensing
8organization shall cease serving purchasers and cease all
9operations until it receives a renewal or an Adult Use
10Dispensing Organization License, as the case may be.
11    (n) A dispensing organization agent who holds a valid
12dispensing organization agent identification card issued under
13the Compassionate Use of Medical Cannabis Program Act and is
14an officer, director, manager, or employee of the dispensing
15organization licensed under this Section may engage in all
16activities authorized by this Article to be performed by a
17dispensing organization agent.
18    (o) If the Department suspends, permanently revokes, or
19otherwise disciplines the Early Approval Adult Use Dispensing
20Organization License of a dispensing organization that also
21holds a medical cannabis dispensing organization license
22issued under the Compassionate Use of Medical Cannabis Program
23Act, the Department may consider the suspension, permanent
24revocation, or other discipline of the medical cannabis
25dispensing organization license.
26    (p) All fees collected pursuant to this Section shall be

 

 

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1deposited into the Cannabis Regulation Fund, unless otherwise
2specified.
3(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.