A sweeping cannabis and hemp reform bill headed to Illinois Gov. J.B. Pritzker would allow adult-use-only cannabis operators to obtain medical cannabis licenses.
Senate Bill 3222, which passed both chambers of the Illinois General Assembly, also makes a range of other adjustments to laws governing the state’s $1.5 billion cannabis industry, including regulating intoxicating hemp.
“This bill is designed to help the cannabis industry, clean up some things and make things clearer,” Irina Dashevsky, a partner with GreenspoonMarder in Chicago, told MJBizDaily.
The change to allow adult-use retailers to add medical marijuana to their offerings carries implications beyond the state’s borders as federal cannabis policy continues to evolve following the reclassification of medical cannabis to Schedule 3, industry observers said.
For businesses that hold adult-use-only licenses, obtaining a medical license would change their regulatory status and allow them to register with the U.S. Drug Enforcement Administration.
“I think that’s part of where the legislature was going with this change,” Dashevsky said.
Will this help operators with DEA registration?
When Illinois first launched adult-use sales in 2020, it awarded companion adult-use licenses to operators who already held medical cannabis licenses under the Compassionate Use of Medical Cannabis Program Act.
However, subsequent licensing rounds under the Cannabis Regulation and Tax Act awarded many licenses to businesses with no medical component.
SB 3222 appears designed to let those operators close the gap. If Pritzker signs the bill, adult-use licensees could seek companion medical licenses and be eligible to register with the DEA. That registration is a requirement for businesses that want to position themselves for federal-level commerce, including potential interstate activity.
How are craft growers affected?
Craft growers operating under adult-use licenses also stand to benefit. The bill would allow them to increase their canopy space from 5,000 square feet to 14,000 square feet.
Previous adjustments to Illinois’ regulations allowed craft growers to sell their products to medical marijuana dispensaries. Dashevsky said it’s unclear whether craft growers would be able to obtain medical marijuana licenses under the new bill.
“If the state gave them the opportunity to have a medical companion license if they wanted to register with the DEA, that would close the loop,” Dashevsky said.
What else does the bill do?
The bill also establishes a regulatory framework for the Illinois hemp market, bringing licensing, testing and product standards more in line with federal hemp laws set to take effect Nov. 12.
It would cap hemp cannabinoid products at 0.4 milligrams of THC per container and establish mandatory licensing and uniform standards for CBD manufacturers. It also creates a path for hemp businesses to transition to the licensed cannabis market.
“It really closes the door on intoxicating hemp existing independently,” Dashevsky said. “You can’t sell it at a gas station. Now you have to register for a license.”
Other provisions in the bill would:
- Permit drive-through and curbside cannabis pickup
- Allow hemp license holders to enter the state-regulated cannabis market
- Waive or reduce renewal fees for small cannabis operators
- Require social equity transporters to handle 50% of cannabis transport
“Together, these changes formalize the hemp market, modernize cannabis operations and lower barriers for both patients and smaller operators,” Illinois Senate Majority Leader Kimberly Lightford said in a statement.
Margaret Jackson can be reached at margaret.jackson@mjbizdaily.com.
