Illinois cannabis craft grow bills move forward
Several “cannabis craft grow” bills that would amend the Cannabis Regulation and Tax Act were re-referred to the Illinois House and Senate Rules Committees March 10. Two House bills would amend premise and square-footage requirements for craft growers, and a set of other bills would amend the amount of licenses craft growers can obtain, issue additional future licenses, and set aside THC oil for infusers.
House Bill 0032, sponsored by Rep. La Shawn K. Ford, “Provides that premises may be shared between up to 3 craft growers, an infuser organization, a cultivation center, a dispensing organization, or any combination thereof, provided that specified requirements are met.”
House Bill 0025, also sponsored by Ford, “Raises specified square footage requirements for craft growers. Removes language allowing the Department of Agriculture to authorize a decrease of flowering stage cultivation space used for cultivating specified plants. Raises the maximum number of craft grower licenses for specified craft growers to 3 (rather than one), 6 (rather than 2), and 10 (rather than 3). Removes language prohibiting craft growers from being located within 1,500 feet of each other. Prohibits cannabis product advertising from describing or referencing a cannabis product as “craft” unless the cannabis product is produced by a craft grower. Provides that the Cannabis Cultivation Privilege Tax shall not be assessed against or collected from specified craft growers until 2 years after the date the craft grower was awarded a license.”
The following set of intertwining bills includes Senate Bill 1723, House Bill 0031, and House Bill 0030. SB1723, sponsored by Sen. Kimberly A. Lightford, and HB0031, sponsored by Ford, have identical wording and are on parallel legislative tracks. Both bills “Removes language providing that any person or entity awarded a craft grower license under specified provisions shall only hold one craft grower license. Requires the Department of Agriculture to issue an additional 30 craft grower licenses on or before May 1, 2023 and an additional 30 craft grower licenses on or before September 1, 2024 under specified conditions. Removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower. Requires each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder that produces THC oil extract to set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations to provide infuser organizations with an adequate supply for their infusion processes. Provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility. Provides that no cannabis business establishment nor any other person or entity shall engage in advertising that contains any statement or illustration that includes a description of or reference to a cannabis product as ‘craft,’ unless that product or the raw material used to create that product is produced by a craft grower. Provides that the tax imposed under the Cannabis Cultivation Privilege Tax Law shall not be assessed against or collected from any craft grower awarded a craft grower license under the Act until 2 years after the date that the license is awarded to the craft grower.”
The other bill is HB0030, also sponsored by Ford. HB0030 “Provides that, as a condition for the renewal of a cultivation center’s license, and until January 1, 2028, 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 2023 through 2027. 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.”
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