Illinois General Assembly - Full Text of HB5858
Illinois General Assembly

Previous General Assemblies

Full Text of HB5858  101st General Assembly




State of Illinois
2019 and 2020


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


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.

LRB101 22270 CPF 73308 b





HB5858LRB101 22270 CPF 73308 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 15-35 as follows:
6    (410 ILCS 705/15-35)
7    Sec. 15-35. Conditional Adult Use Dispensing Organization
8License after January 1, 2021.
9    (a) In addition to any of the licenses issued in Sections
1015-15, Section 15-20, or Section 15-25 of this Act, by December
1121, 2021, the Department shall issue up to 110 Conditional
12Adult Use Dispensing Organization Licenses, pursuant to the
13application process adopted under this Section. Prior to
14issuing such licenses, the Department may adopt rules through
15emergency rulemaking in accordance with subsection (gg) of
16Section 5-45 of the Illinois Administrative Procedure Act. The
17General Assembly finds that the adoption of rules to regulate
18cannabis use is deemed an emergency and necessary for the
19public interest, safety, and welfare. Such rules may:
20        (1) Modify or change the BLS Regions as they apply to
21    this Article or modify or raise the number of Adult
22    Conditional Use Dispensing Organization Licenses assigned
23    to each region based on the following factors:



HB5858- 2 -LRB101 22270 CPF 73308 b

1            (A) Purchaser wait times;
2            (B) Travel time to the nearest dispensary for
3        potential purchasers;
4            (C) Percentage of cannabis sales occurring in
5        Illinois not in the regulated market using data from
6        the Substance Abuse and Mental Health Services
7        Administration, National Survey on Drug Use and
8        Health, Illinois Behavioral Risk Factor Surveillance
9        System, and tourism data from the Illinois Office of
10        Tourism to ascertain total cannabis consumption in
11        Illinois compared to the amount of sales in licensed
12        dispensing organizations;
13            (D) Whether there is an adequate supply of cannabis
14        and cannabis-infused products to serve registered
15        medical cannabis patients;
16            (E) Population increases or shifts;
17            (F) Density of dispensing organizations in a
18        region;
19            (G) The Department's capacity to appropriately
20        regulate additional licenses;
21            (H) The findings and recommendations from the
22        disparity and availability study commissioned by the
23        Illinois Cannabis Regulation Oversight Officer in
24        subsection (e) of Section 5-45 to reduce or eliminate
25        any identified barriers to entry in the cannabis
26        industry; and



HB5858- 3 -LRB101 22270 CPF 73308 b

1            (I) Any other criteria the Department deems
2        relevant.
3        (2) Modify or change the licensing application process
4    to reduce or eliminate the barriers identified in the
5    disparity and availability study commissioned by the
6    Illinois Cannabis Regulation Oversight Officer and make
7    modifications to remedy evidence of discrimination.
8    (b) After January 1, 2022, the Department may by rule
9modify or raise the number of Adult Use Dispensing Organization
10Licenses assigned to each region, and modify or change the
11licensing application process to reduce or eliminate barriers
12based on the criteria in subsection (a). At no time shall the
13Department issue more than 500 Adult Use Dispensing
14Organization Licenses.
15    (c) After January 1, 2022, and in accordance with Section
1615-36, the Department shall adopt rules to issue 100 Adult Use
17Dispensing Organization Licenses on or before December 31, 2022
18according to the following:
19        (1) Forty-five to African American-owned businesses in
20    the following communities and in the following amounts:
21            (A) 10 in Chicago's Near West Side;
22            (B) 10 in Chicago's South Side;
23            (C) 10 in Springfield;
24            (D) 3 in Carbondale;
25            (E) one in Harvey;
26            (F) one in Dixmoor;



HB5858- 4 -LRB101 22270 CPF 73308 b

1            (G) one in Robbins;
2            (H) one in Dolton;
3            (I) one in Calumet City;
4            (J) one in Peoria; and
5            (K) 5 in other communities determined by the
6        Department.
7        (2) Eleven to Hispanic-owned businesses in the
8    following communities and in the following amounts:
9            (A) 10 in Chicago; and
10            (B) one in Aurora.
11        (3) Forty-four by lottery to Social Equity Applicants.
12(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)