Recent discussions took place in the Illinois General Assembly about possibly banning hemp derived THC products and cafes. However, no decisions were made.

What’s at Stake?

• Product Regulation, right now, there aren’t regulations for these products. If banned, cannabis shops and the new THC seltzer industry that uses hemp derived THC would be negatively affected.
• Local Economy, the ban could lead to negative effects for local businesses and job availability in the THC and hemp industry.

The Background

Hemp and marijuana are both types of cannabis with THC content the compound which causes psychoactive effects. Hemp contains less THC than marijuana. Hemp derived THC became legal due to an oversight in the 2018 Farm Bill.

Actions by Legislators

The Senate approved a bill limiting hemp products, but it stalled in The House. Speaker Emanuel “Chris” Welch did not schedule a vote on this bill during their spring session. This proposed law attempted to control synthetic marijuana, such as Delta8 and Delta9, which some believe can be stronger and riskier than their labels indicate.

Industry’s Reactions

• Concerns from Cannabis Industry, the Cannabis Business Association said they were disappointed with inaction from The House. Tiffany Chappell Ingram talked about how synthetic hemp products without regulation are causing harm out of sight.
• Relief for Hemp Industry, conversely, Eric Harper, a co-owner of Blazed Bakery was satisfied with the result. He runs a bakery in Northbrook making items using hemp derived THC and plans to open another store in Logan Square. Harper criticized that bill stating that its science was unreliable and it would harm job chances in the hemp industry.

Equity in the Economy and Society

The law would also have impacted craft breweries. Businesses in Chicago have played a big part in expanding the THC beverage industry. Ed Marszewski from Marz Community Brewing stressed on the need for fair regulations that further social equity without hurting employment.

Future Legislation

Congress is working on updating The Farm Bill which might include a ban on products made from hemp derived THC added by Illinois Rep. Mary Miller. So, federal regulation might see more changes.

Illinois House Bill 4293

This bill, if passed, would make all THC products made from hemp, including Delta8 and Delta9 banned. The supporters of this bill believe these items are risky and marketed to younger people.

Local Business Impact

Nearly 300 vendors selling infused goods in Illinois risk shutting down if this bill becomes law . Charles Wu, owner of Chi’Tiva café, said his livelihood faces a threat because of this legislation. His café sells drinks, pastries, candies infused with Delta9. He worries about potential losses of jobs and financial expenses.

Legal Cannabis Industry Support

The already legal cannabis businesses back this bill as they comply with strict rules which cost them more to operate. Jason Erkes, spokesperson for Cresco Labs’ Sunnyside Dispensaries, pointed out uneven standards between legal cannabis and uncontrolled Delta8 and Delta9 items.

Regulation Requested

Weu along with other owners are asking for standards similar to those applied to legal cannabis. They agree they can maintain regulatory demands but it’s important that everyone is treated fairly. However, Jerk insists Delta8 and Delta9 are uncontrolled and often are dishonestly labeled, leading to safety hazards

Debate Continues

State Rep. LaShawn Ford, D-Chicago, supports regulation of hemp shops. The legislators have been actively debating this law, which didn’t get approved before the spring session ended.

Illinois House Bill 2911

Another bill, House bill 2911 tried to permit cannabis dispensaries to provide drive thru and pickup services. It also wanted to enlarge footprint for breweries with state licenses. Despite complaints about current limit on canopy, this bill also was not approved.

Bill that Restricts Sale of Delta8 and Hemp Made Products is Held Back

The sale of delta8 and other products made from hemp will go on in Illinois despite possible safety worries. The more extreme house Bill 4293 supported by regulated marijuana business would have limited sales to only the places with state licenses. This limitation would likely close down non-cannabis CBD lounges and shops selling smoke related items; thus, many popular CBD drinks and products would not be seen in market anymore.

Proposals from Senate and House

• Senate Bill 3790 / House Bill 5306, Favored by the hemp industry but it didn’t make any progress. It dreamed of making $1.5 billion over four years through taxation and licensing charges.
• Opposition from Cannabis Industry, Companies involved in legal cannabis businesses were against how easily the hemp industry reached market, considering their own high entry blocks.

Oversight Problems

Lack of meaningful measures means no control or necessary testings for hemp items, inspite of research showing majority are wrongly labelled and are stronger than mentioned. Unlike hemp items, cannabis sold in licensed dispensaries go through solid testing and tracking.

Conclusion

The fact that the Illinois General Assembly failed to take action on regulations on THC items made from hemp shows tensions between the legal cannabis industry and the hemp industry. Existing laws and federal edits may make major changes, affecting customers and businesses. Regardless, the debate goes on as stakeholders deal with challenges related to regulation, safety, economic impact.