Senate Bill 1723 moves to Subcommittee on Cannabis
Senate Bill 1723, which deals with several provisions for craft growers, recently moved from Executive to the Subcommittee on Cannabis. Sen. Kimberly A. Lightford originally proposed the bill that amends the Cannabis Regulation and Tax Act on Feb. 9, 2023.
SB1723 incorporates craft grow amendments dealing with licenses, production of THC oil, transporting organizations, advertising, and taxes. SB1723 deletes the provision that states any person or entity awarded a craft grower license under specified provisions “shall only hold one craft grower license” and removes language providing that a craft grower shall not be located within 1,500 feet of another craft grower but leaves in the restriction for “a cultivation center.” Another provision requires the Illinois 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.
SB1723 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 with the following wording:
Each adult use cultivation center or Early Approval Adult Use Cultivation Center License holder licensed under Article 20 that produces THC oil extract shall set aside a portion of its total monthly production of THC oil extract to sell to infuser organizations at market price, quality, and variety to provide infuser organizations with an adequate for their infusion processes. The portion set aside by each cultivation center or Early Approval Adult Use Cultivation Center License holder shall be on a proportionate, rata basis and based upon its total monthly production compared to the industry total monthly production in the year as determined by the Department of Agriculture. The total monthly portion of THC oil extract set aside by all cultivation centers and Early Approval Adult Use Cultivation Center License holders shall be as follows:
(1) During calendar year 2023, 50,000 grams per month.
(2) During calendar year 2024, 60,000 grams per month.
(3) During calendar year 2025, 70,000 grams per month.
(4) During calendar year 2026, 80,000 grams per month.
(5) During calendar year 2027, 90,000 grams per month
The price of THC oil extract shall be the average fair market price as determined quarterly by the Department of Agriculture or an amount equal to 900% of the U.S. Cannabis Index’s price for cannabis flower if, during any quarter, the Department fails to establish a fair market price based upon quality and variety. After January 1, 2024, the monthly portion of THC oil extract may be adjusted by the Department of Agriculture based upon market assessments as provided in subsections (c) and (d).
SB1723 also provides that a transporting organization may transport cannabis or cannabis-infused products to a transporting organization depot or other transporting organization transfer facility by adding that “a transporting organization depot or other transporting organization transfer facility, or as otherwise authorized by rule. A transporting organization shall be specifically allowed to use the same transport vehicle to pick up or deliver cannabis products from and to multiple craft growers, processors, and dispensaries the transporting organization’s pick up and delivery process.”
In addition, SB1723 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. Finally, SB1723 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. For more Illinois cannabis industry news, visit here.
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