Chicago Mayor Brandon Johnson on Friday vetoed a controversial ban on hemp-derived THC products in the city.
That means hemp-derived THC products, including the popular beverages that will be sold at United Center this year, will remain legal in Chicago at least until a federal ban takes effect later this year, according to the Chicago Sun Times.
Sponsored by Alderman Marty Quinn, the proposed law sought to restrict the sale of intoxicating hemp products to licensed cannabis dispensaries and liquor-licensed establishments.
Critics argued that the measure would have effectively shut down many small hemp retailers, disproportionately impacting Black- and brown-owned businesses that have turned to hemp as a more accessible entry point into the THC market.
Johnson calls for regulation, not prohibition, to protect small hemp THC retailers
In his veto statement, Johnson called for balanced regulation over prohibition.
He also said the ordinance had the potential to dismantle neighborhood businesses that have been operating legally and responsibly.
“We cannot claim to support equitable economic development while advancing policies that concentrate the market in the hands of a few large entities,” Johnson said in the statement.
That’s been interpreted as a dig at the large cannabis multistate operators – some of which are headquartered in Chicago – that seized early control of the state’s cannabis market.
Illinois’ cannabis licensing process has faced criticism for high barriers to entry.
Hemp retailers drive millions in revenue for Chicago
Hemp retailers in Chicago generate an estimated $475 million in annual sales, contributing about $30 million in sales tax revenue to the city. Licensing fees add another $5 million to $7.5 million to municipal coffers, according to the Illinois Healthy Alternatives Association, a hemp advocacy group.
“We know that there is still much work to do, and we look forward to working with the mayor and City Council to craft responsible regulations that protect consumers and children,” association President Craig Katz said in a statement.
But hemp still has powerful foes.
Subscribe to the MJBiz Factbook
Exclusive industry data and analysis to help you make informed business decisions and avoid costly missteps. All the facts, none of the hype.
What you will get:
- Monthly and quarterly updates, with new data & insights
- Financial forecasts + capital investment trends
- State-by-state guide to regulations, taxes & market opportunities
- Annual survey of cannabis businesses
- Consumer insights
- And more!
After several attempts to pass restrictions on hemp THC failed in Springfield, Illinois Gov. JB Pritzker signaled his willingness to impose statewide restrictions on hemp-derived THC products through executive action.
He dropped the issue after the federal spending bill that President Donald Trump signed into law last fall included a revision of the definition of hemp under the 2018 Farm Bill to outlaw most hemp-derived THC products.
