With statewide restrictions stalled, City Council committee OKs hemp products ban in two wards near Midway

The sale of delta-8 and other unregulated hemp products would be banned in two Southwest Side wards near Midway Airport under a crackdown advanced Tuesday to fill a void created by a state stalemate.

One day after eleventh-hour opposition from Mayor Brandon Johnson helped kill statewide restrictions championed by Gov. JB Pritzker, the City Council’s License Committee did what Ald. Marty Quinn (13th) and Silvana Tabares (23rd) called the next best thing.

By a voice vote, the committee approved an ordinance that would prohibit the sale of “cannabinoid hemp products” in a “Midway Residential Area” that includes all of Quinn’s and Tabares’ wards.

Pritzker, meanwhile, slammed Illinois House Speaker Emanuel “Chris” Welch for not calling for a full vote on a bill he backed to enact statewide restrictions on those products.

It was one of the biggest legislative losses of his tenure — one Pritzker called “a demonstration, from my perspective, of the power of special interests and the money that they spread around to thwart the health and safety of the public.

“We know that the vast majority of Democrats were in favor of it, and the vast majority of Republicans were in favor of it. So the fact that it didn’t get called — a bipartisan bill to safeguard the people of the state of Illinois — is a tragedy,” a visibly angered Pritzker said at an unrelated news conference in downstate Normal.

About Delta-8

ABOUT DELTA-8

What it is: Derived from hemp, it’s a mind-altering substance federal lawmakers didn’t account for when they legalized sales of hemp derivatives in 2018.

What it’s not: Other derivatives like CBD are used in a wide array of lotions, oils, shampoo and more popular wellness products that don’t have psychoactive effects.

The bill in Springfield that stalled: It would limit sales of most hemp-derived products to licensed cannabis dispensaries. Most hemp product merchants who have proliferated in an estimated $800 million industry would no longer be able to sell delta-8.

The governor described a heated four-hour caucus meeting on Monday at which several of his department heads were brought in to answer questions about the bill but “were berated” by opponents.

“They were called liars. … One of my staff people had to get up and leave because she felt ganged up upon … and pointed at and, I mean, it was frightening for her,” Pritzker said. “To have them treated poorly by elected officials is, frankly, unacceptable, and I told that to the speaker. … They are owed apologies by the people who impugned their honesty.”

Sources close to the governor said they thought the speaker should have stepped in to stop the dressing-down of agency officials.

Welch’s spokesperson said he spoke with “certain members” following the contentious debate, and “at least one member has reached out to offer an apology to the Governor’s staff, and has also apologized to members of the Democratic Caucus.”

Quinn: Don’t put kids at risk ‘to make a quick buck’

Quinn, chief sponsor of the Chicago ordinance, said unregulated smoke shops are “popping up everywhere without any warning or collaboration.

“I fully understand the need for revenue. But we should not be putting kids in harm’s way to make a quick buck,” he said.

His ordinance also would prohibit the commissioner of Business Affairs and Consumer Protection from issuing “any new retail tobacco dealer license” or renewing “any existing tobacco dealer license for a retail tobacco store” within the designated area.

The 13th Ward has the city’s “largest population of Chicago Public School students,” Quinn said. “I’m worried. It’s just a matter of time” before a tragedy occurs.

Johnson took a political beating before the final vote.

Former Finance Committee Chair Scott Waguespack (32nd), deposed by Johnson, accused the mayor of putting the search for a paltry amount of revenue over children’s health and slammed him for sending staffers to Springfield to help kill the bill.

“Shame on Mayor Johnson,” Waguespack said.

“What they’re saying is, it’s OK to market this garbage to my kids at a local shop. And that’s just disgusting. … This is just infuriating to see our mayor going down there and putting a block on Gov. Pritzker and what he was trying to do to regulate something that needs to be regulated.”

Waguespack said the unregulated products being marketed to minors in general and high school kids in particular looks like Halloween candy.

“This isn’t just another faux pas in a … long list of mistakes,” Waguespack said. “I don’t want the revenue from something like this. … I don’t want to see it in the stores in my neighborhood. … We’re supposed to protect kids — not put ’em on the chopping block.”

Downtown Ald. Brendan Reilly (42nd) accused the mayor of “hanging on to this ridiculous pipe dream of getting revenue” from a dangerous and unregulated product that, at best, could generate $600,000 in annual revenue for the city.

“This is not a revenue stream the city needs,” Reilly said, He hopes Springfield will “wake up and do the right thing,” but “in the meantime, we can act now. … The City Council needs to take a hard look at making this a citywide ban.”

Charles Wu, owner of Chi’Tiva, with some of the hemp-derived products available at his Wicker Park location.

Emmanuel Camarillo/Sun-Times

Johnson pleased with bill’s demise

In a statement issued Tuesday, Johnson said he was pleased the Pritzker-endorsed ordinance sponsored by State Sen. Kimberly Lightford “did not move forward during the lame-duck session.”

“Our communities require legislation that addresses concerns related to minor consumption, as well as opportunities for regulation that supports entrepreneurs and municipalities,” the mayor was quoted as saying.

Johnson said he looks forward to helping to forge a compromise between the warring hemp and cannabis industries that can “avoid unintended consequences” — one balancing the need for “safety and economic development” while “preserving local control,” the mayor said.

In an interview with the Sun-Times Tuesday, Johnson said he was “grateful that the Chicago delegation stood firm speaking on behalf of the interests of Chicagoans who understand that our voices matter in this moment… That is my responsibility as the mayor of Chicago: To ensure that the residents of the city of Chicago have a seat at the table.”

Ald. William Hall (6th), appointed by Johnson to chair a revenue sub-committee, plans to hold a hearing this month on his own pending ordinance that would regulate and tax Chicago’s estimated 260 hemp stores.

‘This is going to get done,’ bill’s sponsor says

State Rep. Kam Buckner, the Chicago Democrat who sponsored the bill in the House, said the “robust debate” in their caucus “reflects the high stakes and complexity of the issues we face as legislators.”

“The speaker has a process in place that has served our caucus well, and I am confident that it will work again as we move forward on this issue,” Buckner said in a statement.

Sources in the governor’s office downplayed Johnson’s role in tanking the bill. Pritzker also got in a dig at the mayor’s approach in Springfield, where Johnson has garnered little support for his administration’s priorities.

Johnson’s office never called Pritzker’s about the hemp bill, jumping over the weekend into the lobbying gauntlet that has simmered for two years.

“They don’t reach out very often, and it seems like they don’t have good relationships in Springfield, in part because they don’t do the outreach that’s necessary,” Pritzker said. “He has my direct number. He calls me whenever he needs to. He doesn’t call very often. Maybe in the time that he’s been mayor, he’s called me perhaps five times. ”

State Sen. Kimberly Lightford, Hillside Democrat who championed the stringent regulations on hemp products, was “disappointed the House could not come to an agreement.

“The bill — which passed with bipartisan support in the Senate — was a culmination of dozens of hours of meetings with the hemp industry, cannabis industry and other leaders,” Lightford said in a statement.

West Side Democratic state Rep. La Shawn Ford led the House effort against the bill. He’s pushing legislation to limit hemp product sales to people 21 or older, require manufacturers to undergo product testing to obtain $500 licenses, impose a 10% tax rate on sellers and — most importantly — allow current sellers to stay in the market.

Hemp industry entrepreneurs represented by the Illinois Healthy Alternatives Association joined calls to impose an age restriction of 21 for hemp products and committed to “working alongside policymakers to ensure the hemp industry in Illinois is both responsibly regulated and allowed to thrive.”

Tiffany Chappell Ingram, executive director of the Cannabis Business Association of Illinois, said the bill failure “leaves consumers at risk and undermines the state’s carefully regulated cannabis market, particularly social equity cannabis license holders who face extensive rules and regulations while those selling intoxicating hemp continue to get off easy.”

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