HB0147 102ND GENERAL ASSEMBLY

LRB102 04402 CPF 14420 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0147

Introduced 1/14/2021, by Rep. Bob Morgan

SYNOPSIS AS INTRODUCED:

New Act
5 ILCS 100/5-45.8 new
30 ILCS 105/5.935 new

Creates the CBD Safety Act. Prohibits the sale or distribution of a CBD product unless the CBD product has labeling and has undergone lab testing that meet labeling and minimum testing requirements pursuant to rules adopted by the Department of Agriculture. Requires the Department to administer and enforce the Act and to develop rules for the labeling and minimum testing requirements of CBD products using a specified provision of the Illinois Administrative Code as a model. Provides that the Department of Public Health, the Illinois State Police, and the Department of Agriculture may inspect any business that manufactures, processes, transports, or distributes CBD products in the State to ensure compliance with the Act. Provides specified criminal fines, imprisonment, and administrative penalties for violations of the Act and directs that criminal fines collected under the Act shall be deposited into the CBD Safety Fund. Allows the Director to pursue and a court to grant a temporary restraining order or a preliminary or permanent injunction restraining any person from violating the Act. Contains other provisions. Amends the Illinois Administrative Procedure Act. Allows the Department of Agriculture to adopt emergency rules to implement the CBD Safety Act. Amends the State Finance Act. Creates the CBD Safety Fund. Effective 180 days after becoming law.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning health.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the CBD Safety Act.

Section 5. Definitions. In this Act:

"CBD" means cannabidiol derived from cannabis. "CBD" includes resin extracted from any part of a cannabis plant and any compound, manufacture, salt, derivative, mixture, or preparation of such plant, whether produced directly or indirectly by extraction, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. "CBD" does not include any product or substance regulated under the Compassionate Use of Medical Cannabis Program Act, the Cannabis Regulation and Tax Act, or the Industrial Hemp Act.

"CBD product" means a product offered for sale that contains CBD.

"Department" means the Department of Agriculture.

"Director" means the Director of Agriculture.

Section 10. CBD product labeling and testing requirements. No person shall sell or distribute a CBD product unless the CBD product has labeling and has undergone lab testing that meet labeling and minimum testing requirements pursuant to rules adopted by the Department under subsection (b) of Section 15.

Section 15. Administration and enforcement; rules; emergency rules; inspection.

(a) The Department shall administer and enforce this Act and may adopt rules under the Illinois Administrative Procedure Act for the purpose of administering and enforcing this Act.

(b) The Department shall develop rules setting forth labeling and minimum testing requirements of CBD products, using Section 1000.510 of Title 8 of the Illinois Administrative Code as a model.

(c) In order to provide for the expeditious and timely implementation of the provisions of this Act, the Department may adopt emergency rules in accordance with Section 5-45 of the Illinois Administrative Procedure Act to the extent necessary to administer the Department's responsibilities under this Act. The adoption of emergency rules authorized by this subsection (c) is deemed to be necessary for the public interest, safety, and welfare.

(d) The Department of Public Health, the Illinois State Police, and the Department may inspect any business that manufactures, processes, transports, or distributes CBD products in the State to ensure compliance with this Act.

Section 20. Violations; fines.

(a) A person who by himself or herself, by his or her employee or agent, or as the employee or agent of another person violates Section 10 or any rule adopted by the Department under Section 15 is guilty of a business offense and shall be fined not less than $1,000 for the first offense; not less than $1,500 for a second offense; and not less than $2,500 for a third offense.

(b) A person who by himself or herself, by the person's servant or agent, or as a servant or agent of another person commits a fourth or subsequent violation of Section 10 or any rule adopted by the Department under Section 15 is guilty of a Class 3 felony and subject to: (1) a fine of not less than $1,000 and not more than $10,000, or the total amount of any money gained for each day on which a violation has been found, whichever is greater; (2) imprisonment; or (3) both.

(c) Moneys collected under this Section shall be deposited into the CBD Safety Fund.

Section 25. Administrative penalties; judicial review. When an administrative hearing is held, the hearing officer, upon a determination of a violation of Section 10 or any rule adopted by the Department under Section 15, shall levy the following administrative monetary penalties:

(1) A penalty of $500 for a first violation.

(2) A penalty of $1,500 for a second violation at the same location within 2 years of the first violation.

(3) A penalty of $2,500 for a third or subsequent violation at the same location within 2 years of the second violation.

The penalty levied shall be collected by the Department. Any penalty of $2,500 or greater that is not paid within 120 days of issuance of notice from the Department shall be submitted to the Department of Revenue for collection as provided under the Illinois State Collection Act of 1986. The Department may prohibit any person from selling or distributing a CBD product for failure to pay an administrative monetary penalty within 60 days of issuance of notice from the Department.

All final administrative decisions of the Department are subject to judicial review under the Administrative Review Law. The term "administrative decision" has the same meaning as defined in Section 3-101 of the Code of Civil Procedure.

Section 30. Publishing information. The Director or the Director's agent may publish or cause to be published any information pertinent to the issuance of the decision of the court or administrative hearing to such media as the Director may designate.

Section 35. Temporary restraining order or injunction. The Director may file a complaint and apply to the circuit court for, and the court upon hearing and for cause shown may grant, a temporary restraining order or a preliminary or permanent injunction restraining any person from violating this Act.

Section 40. CBD Safety Fund. The CBD Safety Fund is created as a special fund in the State treasury. Moneys in the Fund shall be utilized by the Department for the implementation, administration, and enforcement of this Act.

Section 90. The Illinois Administrative Procedure Act is amended by adding Section 5-45.8 as follows:

(5 ILCS 100/5-45.8 new)

Sec. 5-45.8. Emergency rulemaking; CBD Safety Act. To provide for the expeditious and timely implementation of the CBD Safety Act, emergency rules implementing the CBD Safety Act may be adopted in accordance with Section 5-45 by the Department of Agriculture. The adoption of emergency rules authorized by Section 5-45 and this Section is deemed to be necessary for the public interest, safety, and welfare.

This Section is repealed on January 1, 2027.

Section 95. The State Finance Act is amended by adding Section 5.935 as follows:

(30 ILCS 105/5.935 new)

Sec. 5.935. The CBD Safety Fund.

Section 99. Effective date. This Act takes effect 180 days after becoming law.