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HB1438: ARTICLE 5. AUTHORITY (Illinois Cannabis Regulation & Tax Act)

ARTICLE 5. AUTHORITY

Section 5-5. Sharing of authority.

Notwithstanding any provision or law to the contrary, any authority granted to any State agency or State employees or appointees under the Compassionate Use of Medical Cannabis Pilot Program Act shall be shared by any State agency or State employees or appointees given authority to license, discipline, revoke, regulate, or make rules under this Act.

Section 5-10. Department of Agriculture.

The Department of Agriculture shall administer and enforce provisions of this Act relating to the oversight and registration of cultivation centers, craft growers, infuser organizations, and transporting organizations and agents, including the issuance of identification cards and establishing limits on potency or serving size for cannabis or cannabis products. The Department of Agriculture may suspend or revoke the license of, or impose other penalties upon cultivation centers, craft growers, infuser organizations, transporting organizations, and their principal officers, Agents-in-Charge, and agents for violations of this Act and any rules adopted under this Act.

Section 5-15. Department of Financial and Professional Regulation.

The Department of Financial and Professional Regulation shall enforce the provisions of this Act relating to the oversight and registration of dispensing organizations and agents, including the issuance of identification cards for dispensing organization agents. The Department of Financial and Professional Regulation may suspend or revoke the license of, or impose other penalties upon, dispensing organizations for violations of this Act and any rules adopted under this Act.

Section 5-20. Background checks.

(a) Through the Department of State Police, the licensing or issuing Department shall conduct a criminal history record check of the prospective principal officers, board members, and agents of a cannabis business establishment applying for a license or identification card under this Act.

Each cannabis business establishment prospective principal officer, board member, or agent shall submit his or her fingerprints to the Department of State Police in the form and manner prescribed by the Department of State Police.

Such fingerprints shall be transmitted through a live scan fingerprint vendor licensed by the Department of Financial and Professional Regulation. These fingerprints shall be checked against the fingerprint records now and hereafter filed in the Department of State Police and Federal Bureau of Investigation criminal history records databases. The Department of State Police shall charge a fee for conducting the criminal history record check, which shall be deposited into the State Police Services Fund and shall not exceed the actual cost of the State and national criminal history record check. The Department of State Police shall furnish, pursuant to positive identification, all Illinois conviction information and shall forward the national criminal history record information to:

  • (i) the Department of Agriculture, with respect to a cultivation center, craft grower, infuser organization, or transporting organization; or
  • (ii) the Department of Financial and Professional Regulation, with respect to a dispensing organization.

(b) When applying for the initial license or identification card, the background checks for all prospective principal officers, board members, and agents shall be completed before submitting the application to the licensing or issuing agency.

(c) All applications for licensure under this Act by applicants with criminal convictions shall be subject to Sections 2105-131, 2105-135, and 2105-205 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.

Section 5-25. Department of Public Health to make health warning recommendations.

(a) The Department of Public Health shall make recommendations to the Department of Agriculture and the Department of Financial and Professional Regulation on appropriate health warnings for dispensaries and advertising, which may apply to all cannabis products, including item-type specific labeling or warning requirements, regulate the facility where cannabis-infused products are made, regulate cannabis-infused products as provided in subsection (e) of Section 55-5, and facilitate the Adult Use Cannabis Health Advisory Committee.

(b) An Adult Use Cannabis Health Advisory Committee is hereby created and shall meet at least twice annually. The Chairperson may schedule meetings more frequently upon his or her initiative or upon the request of a Committee member. Meetings may be held in person or by teleconference. The Committee shall discuss and monitor changes in drug use data in Illinois and the emerging science and medical information relevant to the health effects associated with cannabis use and may provide recommendations to the Department of Human Services about public health awareness campaigns and messages. The Committee shall include the following members appointed by the Governor and shall represent the geographic, ethnic, and racial diversity of the State:

  • (1) The Director of Public Health, or his or her designee, who shall serve as the Chairperson.
  • (2) The Secretary of Human Services, or his or her designee, who shall serve as the Co-Chairperson.
  • (3) A representative of the poison control center.
  • (4) A pharmacologist.
  • (5) A pulmonologist.
  • (6) An emergency room physician.
  • (7) An emergency medical technician, paramedic, or other first responder.
  • (8) A nurse practicing in a school-based setting.
  • (9) A psychologist.
  • (10) A neonatologist.
  • (11) An obstetrician-gynecologist.
  • (12) A drug epidemiologist.
  • (13) A medical toxicologist.
  • (14) An addiction psychiatrist.
  • (15) A pediatrician.
  • (16) A representative of a statewide professional public health organization.
  • (17) A representative of a statewide hospital/health system association.
  • (18) An individual registered as a patient in the Compassionate Use of Medical Cannabis Pilot Program.
  • (19) An individual registered as a caregiver in the Compassionate Use of Medical Cannabis Pilot Program.
  • (20) A representative of an organization focusing on cannabis-related policy.
  • (21) A representative of an organization focusing on the civil liberties of individuals who reside in Illinois.
  • (22) A representative of the criminal defense or civil aid community of attorneys serving Disproportionately Impacted Areas.
  • (23) A representative of licensed cannabis business establishments.
  • (24) A Social Equity Applicant.

(c) The Committee shall provide a report by September 30, 2021, and every year thereafter, to the General Assembly. The Department of Public Health shall make the report available on its website.

Section 5-30. Department of Human Services.

The Department of Human Services shall identify evidence-based programs for preventive mental health, the prevention or treatment of alcohol abuse, tobacco use, illegal drug use (including prescription drugs), and cannabis use by pregnant women, and make policy recommendations, as appropriate, to the Adult Use Cannabis Health Advisory Committee. The Department of Human Services shall develop and disseminate educational materials for purchasers based on recommendations received from the Department of Public Health and the Adult Use Cannabis Health Advisory Committee.

Section 5-45. Illinois Cannabis Regulation Oversight Officer.

(a) The position of Illinois Cannabis Regulation Oversight Officer is created within the Department of Financial and Professional Regulation under the Secretary of Financial and Professional Regulation. The Illinois Cannabis Regulation Oversight Officer shall be appointed by the Governor with the advice and consent of the Senate. The term of office of the Officer shall expire on the third Monday of January in odd-numbered years provided that he or she shall hold office until a successor is appointed and qualified. In case of vacancy in office during the recess of the Senate, the Governor shall make a temporary appointment until the next meeting of the Senate, when the Governor shall nominate some person to fill the office, and any person so nominated who is confirmed by the Senate shall hold office during the remainder of the term and until his or her successor is appointed and qualified.

(b) The Illinois Cannabis Regulation Oversight Officer may:

  • (1) maintain a staff;
  • (2) make recommendations for policy, statute, and rule changes;
  • (3) collect data both in Illinois and outside Illinois regarding the regulation of cannabis;
  • (4) compile or assist in the compilation of any reports required by this Act;
  • (5) ensure the coordination of efforts between various State agencies involved in regulating and taxing the sale of cannabis in Illinois; and
  • (6) encourage, promote, suggest, and report best practices for ensuring diversity in the cannabis industry in Illinois.

(c) The Illinois Cannabis Regulation Oversight Officer shall not:

  • (1) participate in the issuance of any business licensing or the making of awards; or
  • (2) participate in any adjudicative decision-making process involving licensing or licensee discipline.

(d) Any funding required for the Illinois Cannabis Regulation Oversight Officer, its staff, or its activities shall be drawn from the Cannabis Regulation Fund.

(e) The Illinois Cannabis Regulation Oversight Officer shall commission and publish a disparity and availability study by March 1, 2021 that: (1) evaluates whether there exists discrimination in the State’s cannabis industry; and (2) if so, evaluates the impact of such discrimination on the State and includes recommendations to the Department of Financial and Professional Regulation and the Department of Agriculture for reducing or eliminating any identified barriers to entry in the cannabis market. The Illinois Cannabis Regulation Oversight Officer shall forward a copy of its findings and recommendations to the Department of Financial and Professional Regulation, the Department of Agriculture, the Department of Commerce and Economic Opportunity, the General Assembly, and the Governor.

(f) The Illinois Cannabis Regulation Oversight Officer may compile, collect, or otherwise gather data necessary for the administration of this Act and to carry out the Officer’s duty relating to the recommendation of policy changes. The Illinois Cannabis Regulation Oversight Officer may direct the Department of Agriculture, Department of Financial and Professional Regulation, Department of Public Health, Department of Human Services, and Department of Commerce and Economic Opportunity to assist in the compilation, collection, and data gathering authorized pursuant to this subsection. The Illinois Cannabis Regulation Oversight Officer shall compile all of the data into a single report and submit the report to the Governor and the General Assembly and publish the report on its website.