Proposed Legislation Would Have Effectively Banned Delta-8 Products Outside Dispensaries
As we have previously covered, there have been increasing pressure from some lawmakers to crack down on Delta-8 and other hemp derived products as they have soared in popularity, particularly amongst teenagers and young adults. In 2018 the federal government unwittingly legalized Delta-8 and other psychoactive products when it legalized the sale of products that contain hemp derivatives, which sought to provide for the legal sale of CBD and other wellness products that do not come with psychoactive effects. Illinois Governor J.B. Pritzker recently weighed in on the matter, coming out in favor of the bill which passed the Illinois Senate 54-1, but was never put to a vote at the Illinois House level. Under the proposed regulation, most hemp derived products would only be available for sale at licensed cannabis dispensaries, other than hemp-based beverages which would be available for alcohol distributors to sell. Under the current law, these products are found in a wide variety of stores, including gas stations and other convenience stores. Governor Pritzker outlined the need for regulation for a variety of reasons at a press conference announcing his support of the bill, at times focusing on the health issues posed under the current law, saying, “As this market has flourished, there have been far too many stories of people, especially children, ingesting intoxicating hemp products and getting sick.” But critics of the bill believe that the proposed regulations are too broad and would place many businesses and jobs at risk in an industry that has grown to an estimated $800 million value, although most concede there should be some laws to rein in industry to some degree. One business owner, Jennifer Weiss worried that if the bill was enacted as is, it would effectively shut down her business and argued for a more measured approach, saying, “Almost every single thing that I sell, due to the various components of the bill, would be banned. I wanted to provide a trustworthy source of these products. We’ve been pushing for thoughtful regulation.” Tiffany Chappell Ingram, director of the Cannabis Business Association of Illinois, said in a statement that “[W]e look forward to working collaboratively to put in place a measure that will empower consumers, protect public health and help ensure our state’s legal cannabis industry can reach its full potential.”
Chicago Mayor Reportedly Worked to Delay Vote
Despite the Governor’s support, the bill failed to receive a vote in the legislation’s lame duck session and will have to be addressed at in the next congressional session, purportedly as Mayor Johnson worked behind the scenes to delay the vote during the current session over concerns about the potential loss in revenue for the city of Chicago that the regulation would have imposed. Johnson’s spokesperson did not respond to a request for comment about his purported support for the more narrowly tailored regulation, but 6th Ward Ald. William Hall, who chaired the City Council’s revenue subcommittee, said that he plans to hold a hearing on his proposed ordinance that would regulate and tax hemp stores in Chicago in a similar manner. “Hemp is legal. What we’re witnessing is a black market that has excluded so many regulation partners as well as revenue partners. Other cities are getting it correct with both regulation as well as revenue” Hall said. Other aldermen are pushing back and are advocating to ban the sale of “cannabinoid hemp products” in designated residential areas, such as 13th Ward Ald. Marty Quinn who bemoans the purported revenue stream from the products, saying, “[I]f [Mayor Johnson] wants to choose revenue over the safety of Chicago kids, that’s his idea. I’m just fighting the good fight to protect my kids against people who want to make a quick buck at their expense.” No matter which side eventually has their respective legislation passed or if some compromise is eventually reached, regulation in some form of the industry is on the horizon and anyone operating in that space should make sure they are not violating the law as it changes. In addition, individuals charged with marijuana related crimes should seek an experienced criminal defense attorney who can potentially challenge the classification of the alleged cannabis and undercut a seemingly unlawful possession or distribution charge.
