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.


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A BILL FOR

 

HB4194LRB102 20931 CPF 29821 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 20-45 as follows:
 
6    (410 ILCS 705/20-45)
7    Sec. 20-45. Renewal of cultivation center licenses and
8agent identification cards.
9    (a) Licenses and identification cards issued under this
10Act shall be renewed annually. A cultivation center shall
11receive written or electronic notice 90 days before the
12expiration of its current license that the license will
13expire. The Department of Agriculture shall grant a renewal
14within 45 days of submission of a renewal application if:
15        (1) the cultivation center submits a renewal
16    application and the required nonrefundable renewal fee of
17    $100,000, or another amount as the Department of
18    Agriculture may set by rule after January 1, 2021, to be
19    deposited into the Cannabis Regulation Fund.
20        (2) the Department of Agriculture has not suspended
21    the license of the cultivation center or suspended or
22    revoked the license for violating this Act or rules
23    adopted under this Act;

 

 

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1        (3) the cultivation center has continued to operate in
2    accordance with all plans submitted as part of its
3    application and approved by the Department of Agriculture
4    or any amendments thereto that have been approved by the
5    Department of Agriculture;
6        (4) the cultivation center has submitted an agent,
7    employee, contracting, and subcontracting diversity report
8    as required by the Department; and
9        (5) the cultivation center has submitted an
10    environmental impact report.
11    (b) If a cultivation center fails to renew its license
12before expiration, it shall cease operations until its license
13is renewed.
14    (c) If a cultivation center agent fails to renew his or her
15identification card before its expiration, he or she shall
16cease to work as an agent of the cultivation center until his
17or her identification card is renewed.
18    (d) Any cultivation center that continues to operate, or
19any cultivation center agent who continues to work as an
20agent, after the applicable license or identification card has
21expired without renewal is subject to the penalties provided
22under Section 45-5.
23    (e) As a condition for the renewal of a cultivation
24center's license, and until January 1, 2027, a cultivation
25center shall set aside and offer wholesale to infuser
26organizations licensed under Article 35 an amount of the

 

 

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1cultivation center's monthly THC oil production. The
2Department of Agriculture shall ensure that for all
3cultivation centers the cumulative monthly amount of THC oil
4that is set aside and made available to infuser organizations
5is no less than the following:
6        (1) For calendar year 2022, 60,000 grams per month.
7        (2) For calendar year 2023, 71,000 grams per month.
8        (3) For calendar year 2024, 82,000 grams per month.
9        (4) For calendar year 2025, 93,000 grams per month.
10        (5) For calendar year 2026, 103,000 grams per month.
11    The Department of Agriculture shall establish a formula to
12establish fair THC oil set aside amount targets for each
13individual cultivation center in proportion to that
14cultivation center's production capacity using, if available,
15production and supply data from the State's seed to sale
16cannabis tracking system.
17    The set aside amount shall first be offered for sale
18exclusively to infuser organizations for a limited time
19determined by the Department of Agriculture. If an infuser
20organization does not purchase the total set aside amount from
21a cultivation center within the allotted time, the cultivation
22center may sell the remaining set aside amount of THC oil at
23its discretion.
24    The Department of Agriculture shall develop a mechanism to
25ensure that the quality of THC oil included in a set aside
26amount is of consistent quality and is sold at market rates or

 

 

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1better.
2    The Department of Agriculture's administrative expenses
3from implementing this Section shall be fully funded from tax
4revenue received by the State under this Act.
5(Source: P.A. 101-27, eff. 6-25-19.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.