Illinois will regulate most hemp-derived THC products like adult-use cannabis.
The Illinois Hemp Act, signed into law last week by Gov. JB Pritzker, folds what’s been an unregulated hemp THC market into the cannabis framework.
While hemp advocates are displeased, the regulation is a step back from the ban that Pritzker had previously threatened if lawmakers failed to establish hemp THC product regulations.
At the same time, the law leaves unclear the fate of hemp-derived THC beverages, such as the drinks sold at Chicago’s Navy Pier and United Center.
What does the Illinois Hemp Act do?
Set to take effect in November, the new rules limit sales of hemp-derived delta-9 THC products, edibles, vapes and THC-infused beverages to state-licensed cannabis retailers.
It also prohibits packaging designed to mimic popular snacks and candy. Non-intoxicating products, including CBD balms, are unaffected.
Sales of intoxicating hemp products to anyone younger than 21 are also prohibited, a provision effective immediately.
“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 said in a statement.
But THC beverages, which have quickly gained popularity, are where the law gets complicated.
In Illinois, hemp-derived THC beverages are available at liquor stores, grocery stores, Target and, since February, the United Center.
The new law does not spell out whether any of those channels survive, according to Axios.
What’s the significance of the legislation’s timing?
The state timeline lines up with a federal ban on hemp edibles and vapes scheduled to take effect in November.
But the change also once again pits Illinois’ $1.5 billion regulated cannabis market, which generated $490 million in tax revenue last year, against the state’s hemp market, now valued at nearly $800 million.
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Craig Katz, president of the Illinois Healthy Alternatives Association that advocates for the hemp industry, said in a statement reported by the Chicago Sun Times that the 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,” he added. “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.”
