The long-running tug-of-war between Illinois’ licensed cannabis and unregulated hemp industries reached a head at the end of the legislative session in Springfield, where lawmakers approved sweeping reforms to regulate delta-8 and other intoxicating, hemp-derived products in the same manner as recreational marijuana.
With a new federal ban looming this November on hemp edibles, vapes, beverages and other products that have been marketed in a legal gray area since 2018, state lawmakers passed a bill to license the goods that affect people like weed but technically aren’t.
Gov. JB Pritzker signed his long-sought crackdown into law Friday, declaring that instead “of letting an ambiguous marketplace keep putting people at risk, Illinois is taking action to protect consumers of all ages, especially children, from misleading packaging and labeling.”
Pritzker’s legislative allies called it “a responsible transition path” for entrepreneurs from the hemp industry that flourished unchecked for almost a decade, into the legal marijuana industry that faces more extensive and expensive barriers to entry.
But opponents from the nearly billion-dollar hemp industry that’s staring into the abyss warn it’ll wipe out scores of businesses, many minority-owned, along with thousands of jobs, at the benefit of massive weed corporations.
The new state regulations, which take effect this fall along with the federal ban, were approved as part of an omnibus bill that also increased cannabis possession limits up to 60 grams of marijuana flower for Illinois residents, along with 1,000 mg of edibles and 10 grams of cannabis concentrate.
Lawmakers also voted to extend dispensaries’ operating hours up to 2 a.m. and to allow all dispensaries to sell cannabis for medical purposes. Those sales, limited to customers who are designated as patients, are taxed at a lower rate but currently are only available at certain dispensaries.
“For years, I have fought to bring order, equity and common sense to these markets — and today, working hand in hand with our colleagues in the House, we delivered,” Senate Majority Leader Kimberly Lightford, a Maywood Democrat who has pushed for more stringent hemp regulation, said in a statement. “This bill is about protecting people, keeping promises and making sure Illinois remains a national leader.”
The delta-8 debate revealed divisions in Illinois’ Democratic supermajorities in Springfield, where lawmakers failed to implement any regulation despite widespread agreement that age limits should be imposed on products that have grown ubiquitous at gas stations and convenience stores. A provision in the law restricting sales to people 21 or older takes effect immediately.
Hemp leaders have argued the $800 million industry paved a vital economic avenue for people who weren’t able to snag coveted social-equity pot dispensary licenses in the state’s troubled licensing rollout. Cannabis leaders, meanwhile, have argued that unregulated delta-8 sales undercut the legal weed industry, which generated $490 million in tax revenue last year.
Craig Katz, president of the Illinois Healthy Alternatives Association that advocates for hemp entrepreneurs, said Lightford’s legislation “is neither fair nor equitable, not to mention clear or concise. Whether it can survive Constitutional muster is a question that will inevitably be answered.”
“It favors one industry over another and will likely make it tough for thousands of small businesses to continue to employ Illinoisans and pay taxes,” Katz said in a statement. “The hemp industry favors legislation that will protect children and consumers, clarify labeling and testing but not put us out of business. This bill as passed makes it even tougher for Illinois hemp growers and farmers and hemp retailers who specialize in hemp products that are wellness based.”
The Chicago City Council passed a ban on intoxicating hemp product sales earlier this year, but the measure was vetoed by Mayor Brandon Johnson, and sponsoring Ald. Marty Quinn (13th) couldn’t muster the votes to override it. Several wards have outlawed sales, as have several suburbs across Illinois.
The federal ban — tucked at the last minute into legislation to reopen the government last fall — rendered much of the state-level debate moot. Hemp advocates are holding out hope Congress will act again to delay or avert the ban altogether.
Either way, Illinois’ new law goes too far, according to Jeremy Dedic, cofounder of Cubbington’s Cabinet, which sells hemp products in Logan Square.
“The fundamental problem remains: This bill does not create a viable, long-term path for responsible hemp businesses like Cubbington’s Cabinet to remain in business or protect consumer access to the kinds of wellness products we sell,” Dedic said in an email, estimating that 95% of his products will be banned.
“Contrary to how it’s described, the bill does not create a viable pathway for existing, responsible businesses like us,” Dedic said. “As a result, many wellness products will simply vanish from accessible retail, since marijuana dispensaries do not specialize in CBD wellness, minor cannabinoids, pet products, or the kind of consultative retail experience our customers prefer. Consumers will lose access, businesses like ours will not survive, tax revenue and jobs will be lost, and the broader Illinois hemp ecosystem will be devastated.”