- Dec 2019
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www.ilga.gov www.ilga.gov
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There is created in the State treasury a special fund, which shall be held separate and apart from all other State moneys, to be known as the Cannabis Business Development Fund. The Cannabis Business Development Fund shall be exclusively used for the following purposes: (1) to provide low-interest rate loans to Qualified Social Equity Applicants to pay for ordinary and necessary expenses to start and operate a cannabis business establishment permitted by this Act; (2) to provide grants to Qualified Social Equity Applicants to pay for ordinary and necessary expenses to start and operate a cannabis business establishment permitted by this Act; (3) to compensate the Department of Commerce and Economic Opportunity for any costs related to the provision of low-interest loans and grants to Qualified Social Equity Applicants; (4) to pay for outreach that may be provided or targeted to attract and support Social Equity Applicants and Qualified Social Equity Applicants; (5) (blank); (6) to conduct any study or research concerning the participation of minorities, women, veterans, or people with disabilities in the cannabis industry, including, without limitation, barriers to such individuals entering the industry as equity owners of cannabis business establishments; (7) (blank); and (8) to assist with job training and technical assistance for residents in Disproportionately Impacted Areas.
The Cannabis Business Development Fund is a unique aspect of Illinois' marijuana law establishing a fund to be exclusively used for providing low interest loans and grants for qualified social equity applicants designed to help them start and operate a business.
Funds will also go towards advertisement to attract applicants, conduct research on participation numbers and assistance with job training.
The fund will hold money collected from early approval licenses issued before January 2021 and from license transfers from qualified social equity applicants.
An additional $12 million dollars is in the fund from medicinal pilot program.
The funds can not be transferred from the fund, according to the law.
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"Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria
Applicants for social equity measures must be majority owners or employ at least full-time employs that qualify. Qualifications include living in an area that was over policed during the war on drugs. Family members of those incarcerated for a marijuana offense are also eligible, along with the individual.
Social equity applicants will receive extra points on their application. Money is set aside in a special fund to provide grants and loans for theses applicants.
The City Council's Black Caucus pushed to halt sales in Chicago for six months saying the legislation did not go far enough to ensure equity.
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In the interest of allowing law enforcement to focus on violent and property crimes, generating revenue for education, substance abuse prevention and treatment, freeing public resources to invest in communities and other public purposes, and individual freedom, the General Assembly finds and declares that the use of cannabis should be legal for persons 21 years of age or older and should be taxed in a manner similar to alcohol.
By legalizing cannabis, the state frees up law enforcement to focus on violent crimes and theft. Legalization will also make money for education and substance abuse treatment. You must be at least 21 years old to purchase and it will be taxed like alcohol.
Legalization was a major issue in the gubernatorial and state's attorney's race.
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"Social Equity Applicant" means an applicant that is an Illinois resident that meets one of the following criteria: (1) an applicant with at least 51% ownership and control by one or more individuals who have resided for at least 5 of the preceding 10 years in a Disproportionately Impacted Area; (2) an applicant with at least 51% ownership and control by one or more individuals who: (i) have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act; or (ii) is a member of an impacted family; (3) for applicants with a minimum of 10 full-time employees, an applicant with at least 51% of current employees who: (i) currently reside in a Disproportionately Impacted Area; or (ii) have been arrested for, convicted of, or adjudicated delinquent for any offense that is eligible for expungement under this Act or member of an impacted family.
Applicants for social equity measures must be majority owners or employ at least 10 full-time employs that qualify. Qualifications include living in an area that was over policed during the war on drugs. Family members of those incarcerated for a marijuana offense are also eligible, along with the individual.
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Sec. 7-30. Reporting. By January 1, 2021, and on January 1 of every year thereafter, or upon request by the Illinois Cannabis Regulation Oversight Officer, each cannabis business establishment licensed under this Act shall report to the Illinois Cannabis Regulation Oversight Officer, on a form to be provided by the Illinois Cannabis Regulation Oversight Officer, information that will allow it to assess the extent of diversity in the medical and adult use cannabis industry and methods for reducing or eliminating any identified barriers to entry, including access to capital. The information to be collected shall be designed to identify the following: (1) the number and percentage of licenses provided to Social Equity Applicants and to businesses owned by minorities, women, veterans, and people with disabilities; (2) the total number and percentage of employees in the cannabis industry who meet the criteria in (3)(i) or (3)(ii) in the definition of Social Equity Applicant or who are minorities, women, veterans, or people with disabilities; (3) the total number and percentage of contractors and subcontractors in the cannabis industry that meet the definition of a Social Equity Applicant or who are owned by minorities, women, veterans, or people with disabilities, if known to the cannabis business establishment; and (4) recommendations on reducing or eliminating any identified barriers to entry, including access to capital, in the cannabis industry.
Each year, the Illinois Cannabis Regulation Oversight Officer, currently former State Sen. Toi Hutchinson, shall receive a report from each business allowing the office to assess diversity in the recreational and medicinal industry.
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Sec. 7-25. Transfer of license awarded to Qualified Social Equity Applicant. (a) In the event a Qualified Social Equity Applicant seeks to transfer, sell, or grant a cannabis business establishment license within 5 years after it was issued to a person or entity that does not qualify as a Social Equity Applicant, the transfer agreement shall require the new license holder to pay the Cannabis Business Development Fund an amount equal to: (1) any fees that were waived by any State agency based on the applicant's status as a Social Equity Applicant, if applicable; (2) any outstanding amount owed by the Qualified Social Equity Applicant for a loan through the Cannabis Business Development Fund, if applicable; and (3) the full amount of any grants that the Qualified Social Equity Applicant received from the Department of Commerce and Economic Opportunity, if applicable. (b) Transfers of cannabis business establishment licenses awarded to a Social Equity Applicant are subject to all other provisions of this Act, the Compassionate Use of Medical Cannabis Program Act, and rules regarding transfers. (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
All fees waived for qualified social equity applicants must be paid back before the license can be transferred to a new license holder. That money would go towards the Cannabis Business Development Fund.
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(410 ILCS 705/55-30) Sec. 55-30. Confidentiality. (a) Information provided by the cannabis business establishment licensees or applicants to the Department of Agriculture, the Department of Public Health, the Department of Financial and Professional Regulation, the Department of Commerce and Economic Opportunity, or other agency shall be limited to information necessary for the purposes of administering this Act. The information is subject to the provisions and limitations contained in the Freedom of Information Act and may be disclosed in accordance with Section 55-65. (b) The following information received and records kept by the Department of Agriculture, the Department of Public Health, the Department of State Police, and the Department of Financial and Professional Regulation for purposes of administering this Article are subject to all applicable federal privacy laws, are confidential and exempt from disclosure under the Freedom of Information Act, except as provided in this Act, and not subject to disclosure to any individual or public or private entity, except to the Department of Financial and Professional Regulation, the Department of Agriculture, the Department of Public Health, and the Department of State Police as necessary to perform official duties under this Article and to the Attorney General as necessary to enforce the provisions of this Act. The following information received and kept by the Department of Financial and Professional Regulation or the Department of Agriculture may be disclosed to the Department of Public Health, the Department of Agriculture, the Department of Revenue, the Department of State Police, or the Attorney General upon proper request: (1) Applications and renewals, their contents, and supporting information submitted by or on behalf of dispensing organizations in compliance with this Article, including their physical addresses; (2) Any plans, procedures, policies, or other records relating to dispensing organization security; and (3) Information otherwise exempt from disclosure by State or federal law. Illinois or national criminal history record information, or the nonexistence or lack of such information, may not be disclosed by the Department of Financial and Professional Regulation or the Department of Agriculture, except as necessary to the Attorney General to enforce this Act. (c) The name and address of a dispensing organization licensed under this Act shall be subject to disclosure under the Freedom of Information Act. The name and cannabis business establishment address of the person or entity holding each cannabis business establishment license shall be subject to disclosure. (d) All information collected by the Department of Financial and Professional Regulation in the course of an examination, inspection, or investigation of a licensee or applicant, including, but not limited to, any complaint against a licensee or applicant filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed, except as otherwise provided in this Act. A formal complaint against a licensee by the Department or any disciplinary order issued by the Department against a licensee or applicant shall be a public record, except as otherwise provided by law. Complaints from consumers or members of the general public received regarding a specific, named licensee or complaints regarding conduct by unlicensed entities shall be subject to disclosure under the Freedom of Information Act. (e) The Department of Agriculture, the Department of State Police, and the Department of Financial and Professional Regulation shall not share or disclose any Illinois or national criminal history record information, or the nonexistence or lack of such information, to any person or entity not expressly authorized by this Act. (f) Each Department responsible for licensure under this Act shall publish on the Department's website a list of the ownership information of cannabis business establishment licensees under the Department's jurisdiction. The list shall include, but is not limited to: the name of the person or entity holding each cannabis business establishment license; and the address at which the entity is operating under this Act. This list shall be published and updated monthly. (Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
This section includes what aspects of the licensing process are exempt from FOIA including applications and supporting information, security records, and other normally exempt information.
Investigative records collected by the Department of Financial and Professional Regulation concerning complaints are collected, but also not subject to FOIA.
Each department shall also disclose ownership information on its website monthly.
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All cannabis byproduct, scrap, and harvested cannabis not intended for distribution to a dispensing organization must be destroyed and disposed of under rules adopted by the Department of Agriculture under this Act. Documentation of destruction and disposal shall be retained at the cultivation center, craft grower, infuser organization, transporter, or testing facility as applicable for a period of not less than 5 years. (b) A cultivation center, craft grower, or infuser organization shall, before destruction, notify the Department of Agriculture and the Department of State Police. A dispensing organization shall, before destruction, notify the Department of Financial and Professional Regulation and the Department of State Police. The Department of Agriculture may by rule require that an employee of the Department of Agriculture or the Department of Financial and Professional Regulation be present during the destruction of any cannabis byproduct, scrap, and harvested cannabis, as applicable. (c) The cultivation center, craft grower, infuser organization, or dispensing organization shall keep a record of the date of destruction and how much was destroyed. (d) A dispensing organization shall destroy all cannabis, including cannabis-infused products, not sold to purchasers. Documentation of destruction and disposal shall be retained at the dispensing organization for a period of not less than 5 years.
This section covers destruction of cannabis. All products not intended to be sold by a dispensary must be destroyed and exposed of. Documentation of destruction including the amount destroyed must be kept for at least 5 years.
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Maintenance of inventory. All dispensing organizations authorized to serve both registered qualifying patients and caregivers and purchasers are required to report which cannabis and cannabis-infused products are purchased for sale under the Compassionate Use of Medical Cannabis Program Act, and which cannabis and cannabis-infused products are purchased under this Act. Nothing in this Section prohibits a registered qualifying patient under the Compassionate Use of Medical Cannabis Program Act from purchasing cannabis as a purchaser under this Act.
Dispensaries must keep records of products bought under the medicinal pilot program and under this new law.
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The General Assembly also finds and declares that individuals who have been arrested or incarcerated due to drug laws suffer long-lasting negative consequences, including impacts to employment, business ownership, housing, health, and long-term financial well-being. (d) The General Assembly also finds and declares that family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws, suffer from emotional, psychological, and financial harms as a result of such arrests or incarcerations.
The war on drugs had wide-ranging implications that not only negatively effected the incarcerated, but also family of the incarcerated and the community.
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The General Assembly finds that the medical cannabis industry, established in 2014 through the Compassionate Use of Medical Cannabis Pilot Program Act, has shown that additional efforts are needed to reduce barriers to ownership. Through that program, 55 licenses for dispensing organizations and 20 licenses for cultivation centers have been issued. Those licenses are held by only a small number of businesses, the ownership of which does not sufficiently meet the General Assembly's interest in business ownership that reflects the population of the State of Illinois and that demonstrates the need to reduce barriers to entry for individuals and communities most adversely impacted by the enforcement of cannabis-related laws.
Since the legalization of medicinal cannabis, 55 dispensary licenses and 20 cultivation center licenses have been awarded creating an overwhelmingly white-owned market. The social equity measures aim to reduce barriers to ownership. Still, only those with licenses from the medicinal program will be eligible to sell on Jan. 1.
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