HB4194 102ND GENERAL ASSEMBLY

LRB102 20931 CPF 29821 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4194

Introduced 10/26/2021, by Rep. La Shawn K. Ford

SYNOPSIS AS INTRODUCED:

410 ILCS 705/20-45

Amends the Cannabis Regulation and Tax Act. Provides that, as a condition for the renewal of a cultivation center's license, and until January 1, 2027, a cultivation center shall set aside and offer wholesale to infuser organizations an amount of the cultivation center's monthly THC oil production. Requires the Department of Agriculture to ensure that for all cultivation centers the cumulative monthly amount of THC oil that is set aside and made available to infuser organizations is no less than specified amounts for calendar years 2022 through 2026. Requires the Department to establish a formula to establish fair THC oil set aside amount targets for each individual cultivation center in proportion to that cultivation center's production capacity. Provides that the set aside amount shall first be offered for sale exclusively to infuser organizations for a limited time. Provides that the Department shall develop a mechanism to ensure that the quality of THC oil included in a set aside amount is of consistent quality and is sold at market rates or better. Provides that the Department's administrative expenses from implementing the provisions shall be fully funded from tax revenue received by the State under the Act. Contains other provisions. Effective immediately.

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 20-45 as follows:

(410 ILCS 705/20-45)

Sec. 20-45. Renewal of cultivation center licenses and agent identification cards.

(a) Licenses and identification cards issued under this Act shall be renewed annually. A cultivation center shall receive written or electronic notice 90 days before the expiration of its current license that the license will expire. The Department of Agriculture shall grant a renewal within 45 days of submission of a renewal application if:

(1) the cultivation center submits a renewal application and the required nonrefundable renewal fee of $100,000, or another amount as the Department of Agriculture may set by rule after January 1, 2021, to be deposited into the Cannabis Regulation Fund.

(2) the Department of Agriculture has not suspended the license of the cultivation center or suspended or revoked the license for violating this Act or rules adopted under this Act;

(3) the cultivation center has continued to operate in accordance with all plans submitted as part of its application and approved by the Department of Agriculture or any amendments thereto that have been approved by the Department of Agriculture;

(4) the cultivation center has submitted an agent, employee, contracting, and subcontracting diversity report as required by the Department; and

(5) the cultivation center has submitted an environmental impact report.

(b) If a cultivation center fails to renew its license before expiration, it shall cease operations until its license is renewed.

(c) If a cultivation center agent fails to renew his or her identification card before its expiration, he or she shall cease to work as an agent of the cultivation center until his or her identification card is renewed.

(d) Any cultivation center that continues to operate, or any cultivation center agent who continues to work as an agent, after the applicable license or identification card has expired without renewal is subject to the penalties provided under Section 45-5.

(e) As a condition for the renewal of a cultivation center's license, and until January 1, 2027, a cultivation center shall set aside and offer wholesale to infuser organizations licensed under Article 35 an amount of the cultivation center's monthly THC oil production. The Department of Agriculture shall ensure that for all cultivation centers the cumulative monthly amount of THC oil that is set aside and made available to infuser organizations is no less than the following:

(1) For calendar year 2022, 60,000 grams per month.

(2) For calendar year 2023, 71,000 grams per month.

(3) For calendar year 2024, 82,000 grams per month.

(4) For calendar year 2025, 93,000 grams per month.

(5) For calendar year 2026, 103,000 grams per month.

The Department of Agriculture shall establish a formula to establish fair THC oil set aside amount targets for each individual cultivation center in proportion to that cultivation center's production capacity using, if available, production and supply data from the State's seed to sale cannabis tracking system.

The set aside amount shall first be offered for sale exclusively to infuser organizations for a limited time determined by the Department of Agriculture. If an infuser organization does not purchase the total set aside amount from a cultivation center within the allotted time, the cultivation center may sell the remaining set aside amount of THC oil at its discretion.

The Department of Agriculture shall develop a mechanism to ensure that the quality of THC oil included in a set aside amount is of consistent quality and is sold at market rates or better.

The Department of Agriculture's administrative expenses from implementing this Section shall be fully funded from tax revenue received by the State under this Act.

(Source: P.A. 101-27, eff. 6-25-19.)

Section 99. Effective date. This Act takes effect upon becoming law.