Record #: R2020-354   
Type: Resolution Status: Failed to Pass
Intro date: 5/20/2020 Current Controlling Legislative Body: Committee on Workforce Development
Final action: 5/24/2023
Title: Call for Illinois General Assembly to pass and Governor JB Pritzker to sign into law House Bill 5545 which amends Cannabis Regulation and Tax Act by including additional testing to verify ownership interest over companies alleged by Social Equity Applicants
Sponsors: Sadlowski Garza, Susan
Attachments: 1. R2020-354.pdf
Related files: R2023-766
RESOLUTION

WHEREAS, the State of Illinois approved the Cannabis Regulation and Tax Act (410 ILCS 705/) (the "Adult Use Cannabis Act"); and

WHEREAS, the City of Chicago ("City") is a home rule municipality as described in Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois; and pursuant to its home rule power, the City may exercise any power and perform any function relating to its government and affairs, including the power to regulate for the protection ofthe public health, safety, morals, and welfare and the Chicago City Council ("City Council") approved the Amendment of Municipal Code Title 17 regarding cannabis-related activities; and

WHEREAS, the Act includes provisions designed to stimulate opportunities for ownership of state-licensed cannabis businesses by people who live within Disproportionately Impacted Areas or who otherwise qualify as Social Equity Applicants (collectively "SEA Individuals");

WHEREAS, at this time, few SEA Individuals or minorities own and operate state-licensed cannabis businesses; and whereas the Act creates incentives to redress this inequity by awarding providing application bonus points to companies that are owned by such SEA Individuals (such companies "SEA Companies");

WHEREAS, certain bad actors may seek to unfairly use SEA Individuals as fronts for purported SEA Companies without providing such SEA Individuals demonstrable genuine ownership or control over the company and with the plan to remove the SEA Individuals from the business when such SEA Individuals are no longer convenient; and whereas such bad actors should be prevented from winning state-licensed cannabis licenses on the basis of participating in an SEA-front Company;

WHEARAAS, House Bill 5545 of the 101st General Assembly amends the Act by adding tests to determine whether SEA Individuals have bona fide actual ownership and control over the SEA Companies with which they are associated;

WHEREAS, amid the economic crisis caused by the...

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