Illinois Enacts Hemp Regulations After Years of Legislative Failure
Delta-8 products are known for their intoxicating effects similar to marijuana. When we last covered Illinois’ efforts to regulate Delta-8 after its widening popularity and ubiquitousness across the state, Governor Pritzker had thrown his support behind sweeping legislation that would have effectively moved Delta-8 and other intoxicating hemp-derived products out of gas stations and convenience stores and into licensed cannabis dispensaries. That bill passed the Illinois Senate in a 54-1 vote but never received a vote in the House during the lame-duck session, killed in part by behind-the-scenes maneuvering attributed to Mayor Brandon Johnson over concerns about lost city revenue. However, even at the time, regulation of some kind seemed inevitable, but questions remained as to exactly how sweeping any regulation would be on the growing $800 million industry. This week, Governor Pritzker answered that question when he signed into law legislation that will effectively treat Delta-8 and other intoxicating hemp-derived products under the same regulatory umbrella as recreational marijuana. The new law is largely set to take effect this fall, timed to coincide with a federal ban on hemp edibles, vapes, beverages, and related products that Congress passed last fall, with the notable exception to an immediate ban that will now restrict the sales of hemp-derived products to only those who are 21 and older. The new Illinois law will subject hemp-derived intoxicating products to the same licensing requirements as cannabis dispensaries, while also impacting the marijuana industry in the state by raising cannabis possession limits for Illinois residents to 60 grams of marijuana flower, 1,000 mg of edibles, and 10 grams of concentrate and permitting dispensaries to operate until 2 a.m.
What Will Change with New Law?
While this may seem on its face to be largely a concern for businesses, this change in regulation will have significant practical consequences for individuals wishing to engage with these businesses or those who run them themselves. First, the law expands and will provide for additional criminal offenses which could ensnare businesses and customers alike. Under the prior regulatory landscape, Delta-8 products were legal to sell in a wide range of retail environments without a cannabis license, which included a large amount of gas stations and other sellers near schools, a primary concern for those pushing regulation. Once the new law takes effect this fall, retailers who continue selling intoxicating hemp products without proper licensure will be operating outside the law and subjecting themselves to possible criminal charges and civil penalties. These changes could be confusing, as opponents of the imminent changes have complained. Craig Katz, president of the Illinois Healthy Alternatives Association, was blunt in his assessment of the new law, saying it is, “neither fair nor equitable, not to mention clear or concise,” and questions, “whether it can survive Constitutional muster is a question that will inevitably be answered” in predicting that court challenges will be forthcoming. Others worry it may not be clear what products will be affected by the change in law. Jeremy Dedic, cofounder of Cubbington’s Cabinet, a hemp retailer in Logan Square, estimated that 95% of his products will be banned under the new law and worries that the bill “does not create a viable, long-term path for responsible hemp businesses” to remain in operation, and warns that, “many wellness products will simply vanish from accessible retail, since marijuana dispensaries do not specialize in CBD wellness, minor cannabinoids, pet products, or the kind of consultative retail experience our customers prefer.” The inevitable confusion regarding prohibitions and the new regulatory structure might simply push customers and sellers into the black market. Regardless of enforcement at the state level, the changes will coincide with the federal ban taking effect in November which will independently criminalize certain hemp-derived products at the federal level, creating exposure for conduct that until recently was considered lawful.
Anyone who currently operates in the hemp space in Illinois, or who is charged with a cannabis or hemp-related offense, faces a rapidly shifting legal landscape. Businesses that believe they are operating within the law today may find themselves on the wrong side of it this fall without taking the necessary steps to obtain proper licensure or discontinue certain product lines. For defendants already charged or soon to be charged in connection with hemp or marijuana products, experienced criminal defense counsel remains essential. As has always been the case in drug prosecutions, the classification of the alleged substance is a critical issue that can be challenged and certainly the way in which the alleged evidence was obtained. If you or someone you know faces criminal charges related to cannabis, hemp, or marijuana, contact an experienced criminal defense attorney who can provide the best available defenses in this changing landscape.
