Illinois General Assembly - Full Text of SB0089
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Full Text of SB0089  102nd General Assembly

SB0089 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0089

 

Introduced 2/3/2021, by Sen. Donald P. DeWitte

 

SYNOPSIS AS INTRODUCED:
 
410 ILCS 705/15-15

    Amends the Cannabis Regulation and Tax Act. Provides that, notwithstanding specified provisions, any medical cannabis dispensing organization holding a valid registration on June 25, 2019 under the Compassionate Use of Medical Cannabis Program Act that has been awarded an Early Approval Adult Use Dispensing Organization License may apply to the Department to change its location subject to specified conditions. Requires holders of Early Approval Adult Use Dispensing Organization Licenses applying to change locations to submit specified materials to the Department of Financial and Professional Regulation. Requires the Department to any application to change locations upon receipt by the Department of the specified materials. Contains other provisions. Effective immediately.


LRB102 10432 CPF 15760 b

 

 

A BILL FOR

 

SB0089LRB102 10432 CPF 15760 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    (c) The license fee required by paragraph (1) of
21subsection (b) of this Section shall be in addition to any
22license fee required for the renewal of a registered medical
23cannabis dispensing organization license.
24    (d) Applicants must submit all required information,
25including the requirements in subsection (b) of this Section,
26to the Department. Failure by an applicant to submit all

 

 

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1required information may result in the application being
2disqualified.
3    (e) If the Department receives an application that fails
4to provide the required elements contained in subsection (b),
5the Department shall issue a deficiency notice to the
6applicant. The applicant shall have 10 calendar days from the
7date of the deficiency notice to submit complete information.
8Applications that are still incomplete after this opportunity
9to cure may be disqualified.
10    (f) If an applicant meets all the requirements of
11subsection (b) of this Section, the Department shall issue the
12Early Approval Adult Use Dispensing Organization License
13within 14 days of receiving a completed application unless:
14        (1) The licensee or a principal officer is delinquent
15    in filing any required tax returns or paying any amounts
16    owed to the State of Illinois;
17        (2) The Secretary of Financial and Professional
18    Regulation determines there is reason, based on documented
19    compliance violations, the licensee is not entitled to an
20    Early Approval Adult Use Dispensing Organization License;
21    or
22        (3) Any principal officer fails to register and remain
23    in compliance with this Act or the Compassionate Use of
24    Medical Cannabis Program Act.
25    (g) A registered medical cannabis dispensing organization
26that obtains an Early Approval Adult Use Dispensing

 

 

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1Organization License may begin selling cannabis,
2cannabis-infused products, paraphernalia, and related items to
3purchasers under the rules of this Act no sooner than January
41, 2020.
5    (h) A dispensing organization holding a medical cannabis
6dispensing organization license issued under the Compassionate
7Use of Medical Cannabis Program Act must maintain an adequate
8supply of cannabis and cannabis-infused products for purchase
9by qualifying patients, caregivers, provisional patients, and
10Opioid Alternative Pilot Program participants. For the
11purposes of this subsection, "adequate supply" means a monthly
12inventory level that is comparable in type and quantity to
13those medical cannabis products provided to patients and
14caregivers on an average monthly basis for the 6 months before
15the effective date of this Act.
16    (i) If there is a shortage of cannabis or cannabis-infused
17products, a dispensing organization holding both a dispensing
18organization license under the Compassionate Use of Medical
19Cannabis Program Act and this Act shall prioritize serving
20qualifying patients, caregivers, provisional patients, and
21Opioid Alternative Pilot Program participants before serving
22purchasers.
23    (j) Notwithstanding any law or rule to the contrary, a
24person that holds a medical cannabis dispensing organization
25license issued under the Compassionate Use of Medical Cannabis
26Program Act and an Early Approval Adult Use Dispensing

 

 

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1Organization License may permit purchasers into a limited
2access area as that term is defined in administrative rules
3made under the authority in the Compassionate Use of Medical
4Cannabis Program Act.
5    (k) An Early Approval Adult Use Dispensing Organization
6License is valid until March 31, 2021. A dispensing
7organization that obtains an Early Approval Adult Use
8Dispensing Organization License shall receive written or
9electronic notice 90 days before the expiration of the license
10that the license will expire, and that informs the license
11holder that it may apply to renew its Early Approval Adult Use
12Dispensing Organization License on forms provided by the
13Department. The Department shall renew the Early Approval
14Adult Use Dispensing Organization License within 60 days of
15the renewal application being deemed complete if:
16        (1) the dispensing organization submits an application
17    and the required nonrefundable renewal fee of $30,000, to
18    be deposited into the Cannabis Regulation Fund;
19        (2) the Department has not suspended or permanently
20    revoked the Early Approval Adult Use Dispensing
21    Organization License or a medical cannabis dispensing
22    organization license on the same premises for violations
23    of this Act, the Compassionate Use of Medical Cannabis
24    Program Act, or rules adopted pursuant to those Acts;
25        (3) the dispensing organization has completed a Social
26    Equity Inclusion Plan as provided by parts (A), (B), and

 

 

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1    (C) of paragraph (8) of subsection (b) of this Section or
2    has made substantial progress toward completing a Social
3    Equity Inclusion Plan as provided by parts (D) and (E) of
4    paragraph (8) of subsection (b) of this Section; and
5        (4) the dispensing organization is in compliance with
6    this Act and rules.
7    (l) The Early Approval Adult Use Dispensing Organization
8License renewed pursuant to subsection (k) of this Section
9shall expire March 31, 2022. The Early Approval Adult Use
10Dispensing Organization Licensee shall receive written or
11electronic notice 90 days before the expiration of the license
12that the license will expire, and that informs the license
13holder that it may apply for an Adult Use Dispensing
14Organization License on forms provided by the Department. The
15Department shall grant an Adult Use Dispensing Organization
16License within 60 days of an application being deemed complete
17if the applicant has met all of the criteria in Section 15-36.
18    (m) If a dispensing organization fails to submit an
19application for renewal of an Early Approval Adult Use
20Dispensing Organization License or for an Adult Use Dispensing
21Organization License before the expiration dates provided in
22subsections (k) and (l) of this Section, the dispensing
23organization shall cease serving purchasers and cease all
24operations until it receives a renewal or an Adult Use
25Dispensing Organization License, as the case may be.
26    (n) A dispensing organization agent who holds a valid

 

 

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1dispensing organization agent identification card issued under
2the Compassionate Use of Medical Cannabis Program Act and is
3an officer, director, manager, or employee of the dispensing
4organization licensed under this Section may engage in all
5activities authorized by this Article to be performed by a
6dispensing organization agent.
7    (o) If the Department suspends, permanently revokes, or
8otherwise disciplines the Early Approval Adult Use Dispensing
9Organization License of a dispensing organization that also
10holds a medical cannabis dispensing organization license
11issued under the Compassionate Use of Medical Cannabis Program
12Act, the Department may consider the suspension, permanent
13revocation, or other discipline of the medical cannabis
14dispensing organization license.
15    (p) All fees collected pursuant to this Section shall be
16deposited into the Cannabis Regulation Fund, unless otherwise
17specified.
18    (q) Notwithstanding any limitation set forth in
19subsections (a) and (b) of this Section, any medical cannabis
20dispensing organization holding a valid registration on June
2125, 2019 under the Compassionate Use of Medical Cannabis
22Program Act that has been awarded an Early Approval Adult Use
23Dispensing Organization License may apply to the Department to
24change its location. The new location must be located within
25the same medical district and BLS Region as the location of the
26existing registered medical cannabis dispensary associated

 

 

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1with the Early Approval Adult Use Dispensing Organization
2License. The Early Approval Adult Use Dispensing Organization
3may only apply to relocate under this subsection (q) if one of
4the following conditions applies:
5        (1) The registered medical cannabis dispensing
6    organization is located in a unit of local government that
7    has restricted the sale of adult use cannabis pursuant to
8    paragraph (5) of Section 55-25 or Section 55-28.
9        (2) The unit of local government in which the Early
10    Approval Adult Use Dispensing Organization is located
11    requests, pursuant to local zoning approval and local
12    authority, that the State allow the Early Approval Adult
13    Use Dispensing Organization to move to a different
14    location within the same unit of local government due to
15    local zoning concerns or the inability of the Early
16    Approval Adult Use Dispensing Organization to service both
17    medical cannabis patients and adult use customers in an
18    orderly and safe manner.
19    (r) A holder of an Early Approval Adult Use Dispensing
20Organization License applying to change locations under
21subsection (q) of this Section shall submit the following to
22the Department:
23        (1) A copy of the unit of local government's
24    ordinance, resolution, or other official document
25    demonstrating that the Early Approval Adult Use Dispensing
26    Organization meets the requirements of either paragraph

 

 

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1    (1) or (2) of subsection (q).
2        (2) Proof of registration as a medical cannabis
3    dispensing organization that is in good standing.
4        (3) Submission of the application by the same person
5    or entity that holds the medical cannabis dispensing
6    organization registration.
7        (4) The legal name of the medical cannabis dispensing
8    organization.
9        (5) The physical address of the medical cannabis
10    dispensing organization and the proposed physical address
11    of the proposed new site.
12        (6) A copy of the current local zoning ordinance
13    provisions relevant to dispensary operations and
14    documentation of the approval or the conditional approval
15    of the status of a request for zoning approval from the
16    local zoning office that the proposed dispensary location
17    is in compliance with the local zoning rules.
18        (7) A plot plan of the dispensary drawn to scale. The
19    applicant shall submit general specifications of the
20    building exterior and interior layout.
21        (8) A statement that the medical cannabis dispensing
22    organization agrees to respond to the Department's
23    supplemental requests for information.
24        (9) For the building or land to be used as the proposed
25    dispensary:
26            (A) if the property is not owned by the applicant,

 

 

SB0089- 12 -LRB102 10432 CPF 15760 b

1        a written statement from the property owner and
2        landlord, if any, certifying consent that the
3        applicant may operate a dispensary on the premises; or
4            (B) if the property is owned by the applicant,
5        confirmation of ownership and a copy of the proposed
6        operating bylaws.
7        (10) A copy of the proposed business plan that
8    complies with the requirements of this Act, including, at
9    a minimum, the following:
10            (A) a description of services to be offered; and
11            (B) a description of the process of dispensing
12        cannabis.
13        (11) A copy of the proposed security plan that
14    complies with the requirements of this Article, including:
15            (A) a description of the delivery process by which
16        cannabis will be received from a transporting
17        organization, including receipt of manifests and
18        protocols that will be used to avoid diversion, theft,
19        or loss at the dispensary acceptance point;
20            (B) the process or controls that will be
21        implemented to monitor the dispensary, secure the
22        premises, agents, patients, and currency, and prevent
23        the diversion, theft, or loss of cannabis; and
24            (C) the process to ensure that access to the
25        restricted access areas is restricted to registered
26        agents, service professionals, transporting

 

 

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1        organization agents, Department inspectors, and
2        security personnel.
3        (12) A proposed inventory control plan that complies
4    with this Section.
5        (13) The name, address, social security number, and
6    date of birth of each principal officer and board member
7    of the medical cannabis dispensing organization. Each of
8    those individuals must be at least 21 years of age.
9    (s) The Department shall approve any application provided
10under subsection (q) of this Section upon receipt by the
11Department of the materials that meet the requirements
12outlined under subsection (r).
13    (t) An Early Approval Adult Use Dispensing Organization
14License that has been approved for relocation pursuant to
15subsection (q) of this Section may begin selling cannabis and
16cannabis-infused products to purchasers at the approved
17location and shall be subject to the renewal process under
18subsections (k) and (l) of this Section.
19    (u) Relocation of an Early Approval Adult Use Dispensing
20Organization License under subsection (q) shall not occur any
21sooner than 90 days after awarding the first Conditional Adult
22Use Dispensing Organization Licenses under Section 15-25.
23    (v) The new location of an Early Approval Adult Use
24Dispensing Organization relocated under subsection (q) shall
25comply with paragraph (5) of Section 55-25 and Section 55-28.
26(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.