101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3492

 

Introduced 2/14/2020, by Sen. Donald P. DeWitte

 

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.


LRB101 20641 CPF 70292 b

 

 

A BILL FOR

 

SB3492LRB101 20641 CPF 70292 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 date
16of this Act, pursuant to this Section.
17    (b) A medical cannabis dispensing organization seeking
18issuance of an Early Approval Adult Use Dispensing Organization
19License to serve purchasers at any medical cannabis dispensing
20location in operation as of the effective date of this Act
21shall submit an application on forms provided by the
22Department. The application must be submitted by the same
23person or entity that holds the medical cannabis dispensing

 

 

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

 

 

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1        is in addition to the fee required by item (7) of this
2        subsection (b);
3            (B) Make a grant of 3% of total sales from June 1,
4        2018 to June 1, 2019, or $100,000, whichever is less,
5        to a cannabis industry training or education program at
6        an Illinois community college as defined in the Public
7        Community College Act;
8            (C) Make a donation of $100,000 or more to a
9        program that provides job training services to persons
10        recently incarcerated or that operates in a
11        Disproportionately Impacted Area;
12            (D) Participate as a host in a cannabis business
13        establishment incubator program approved by the
14        Department of Commerce and Economic Opportunity, and
15        in which an Early Approval Adult Use Dispensing
16        Organization License holder agrees to provide a loan of
17        at least $100,000 and mentorship to incubate, for at
18        least a year, a Social Equity Applicant intending to
19        seek a license or a licensee that qualifies as a Social
20        Equity Applicant. As used in this Section, "incubate"
21        means providing direct financial assistance and
22        training necessary to engage in licensed cannabis
23        industry activity similar to that of the host licensee.
24        The Early Approval Adult Use Dispensing Organization
25        License holder or the same entity holding any other
26        licenses issued pursuant to this Act shall not take an

 

 

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

 

 

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

 

 

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1        (2) The Secretary of Financial and Professional
2    Regulation determines there is reason, based on documented
3    compliance violations, the licensee is not entitled to an
4    Early Approval Adult Use Dispensing Organization License;
5    or
6        (3) Any principal officer fails to register and remain
7    in compliance with this Act or the Compassionate Use of
8    Medical Cannabis Program Act.
9    (g) A registered medical cannabis dispensing organization
10that obtains an Early Approval Adult Use Dispensing
11Organization License may begin selling cannabis,
12cannabis-infused products, paraphernalia, and related items to
13purchasers under the rules of this Act no sooner than January
141, 2020.
15    (h) A dispensing organization holding a medical cannabis
16dispensing organization license issued under the Compassionate
17Use of Medical Cannabis Program Act must maintain an adequate
18supply of cannabis and cannabis-infused products for purchase
19by qualifying patients, caregivers, provisional patients, and
20Opioid Alternative Pilot Program participants. For the
21purposes of this subsection, "adequate supply" means a monthly
22inventory level that is comparable in type and quantity to
23those medical cannabis products provided to patients and
24caregivers on an average monthly basis for the 6 months before
25the effective date of this Act.
26    (i) If there is a shortage of cannabis or cannabis-infused

 

 

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

 

 

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1    and the required nonrefundable renewal fee of $30,000, to
2    be deposited into the Cannabis Regulation Fund;
3        (2) the Department has not suspended or permanently
4    revoked the Early Approval Adult Use Dispensing
5    Organization License or a medical cannabis dispensing
6    organization license on the same premises for violations of
7    this Act, the Compassionate Use of Medical Cannabis Program
8    Act, or rules adopted pursuant to those Acts;
9        (3) the dispensing organization has completed a Social
10    Equity Inclusion Plan as provided by parts (A), (B), and
11    (C) of paragraph (8) of subsection (b) of this Section or
12    has made substantial progress toward completing a Social
13    Equity Inclusion Plan as provided by parts (D) and (E) of
14    paragraph (8) of subsection (b) of this Section; and
15        (4) the dispensing organization is in compliance with
16    this Act and rules.
17    (l) The Early Approval Adult Use Dispensing Organization
18License renewed pursuant to subsection (k) of this Section
19shall expire March 31, 2022. The Early Approval Adult Use
20Dispensing Organization Licensee shall receive written or
21electronic notice 90 days before the expiration of the license
22that the license will expire, and that informs the license
23holder that it may apply for an Adult Use Dispensing
24Organization License on forms provided by the Department. The
25Department shall grant an Adult Use Dispensing Organization
26License within 60 days of an application being deemed complete

 

 

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

 

 

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1specified.
2(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
 
3    Section 99. Effective date. This Act takes effect upon
4becoming law.