There’s a new push to regulate the cannabis and hemp industries in Illinois with mere days left in the spring legislative session, and small businesses are very concerned.
However, multiple small businesses have warned the legislation could force them to close.
“We’ve pushing for and advocating for regulation of the hemp industry. But not in a way that wipes it out,” said Jeremy Dedic, co-founder of Cubbington’s Cabinet, a shop that sells CBD products to people and pets in Roscoe Village.
Dedic is concerned about a provision in the bill that would cap the amount of THC his products could have at 0.4 milligrams per container, or 0.3% by dry weight. He pointed out one of his top-selling topical creams, which was 150 times above that limit.
“If (the bill) passes, June 30th would be our last day as it looks right now of being open for operations,” he said.
Rachel Berry, the founder and CEO of the Illinois Hemp Growers Association, noted that it’s similar to legislation introduced during previous sessions but said it’s frustrating to see it pop up in the final week of the session.
“We would see effectively 95% of the hemp products on the shelves be taken off shelves,” Berry said
The bill’s House sponsor, State Rep. Will Guzzardi, believes Illinois needs to take action because the federal government is also taking steps to regulate the hemp and cannabis industries.
“These businesses have operated in a loophole that was created in federal law about 10 years ago. That loophole is being closed,” Guzzardi said.
The THC cap in his bill mirrors a federal ban that goes into effect in November. Hemp growers remain hopeful changes will be made before then but see the state legislation as a one-two punch.
“It also cuts off farmers and businesses who had planned to have that transition time from last November to November 12th to sell products legally and clear out their inventories,” Berry said.
The proposal would create a new regulatory framework requiring businesses that sell CBD products derived from hemp to register with the Illinois Department of Revenue.
In a joint statement, the Illinois Department of Agriculture and Illinois Department of Financial and Professional Regulation told NBC Chicago, they are, “currently opposed to the language in the bill as drafted, but are actively engaging with the General Assembly to reach a workable compromise that provides a viable regulatory framework while protecting Illinois’ position as a nationwide leader in social equity cannabis policy.”
Guzzardi said he’s listening to feedback from businesses and stakeholders, and he’s working on an amended version of the bill. He said the bill makes a host of other changes focused on making the industry more equitable. It would carve out a transition pathway for businesses currently selling intoxicating hemp products to move into the licensed cannabis market. Up to 150 new infuser licenses would be issued in two rounds, with the first reserved exclusively for social equity applicants, according to Senate Majority Leader Kimberly Lightford.
“We want to make sure that there is a reasonable, measured off-ramp for those businesses to adjust to the new federal change. And we’re also offering an on-ramp to those businesses, to participate in legal, regulated Illinois cannabis,” Guzzardi said.
He’s hopeful it will pass both chambers of the Illinois General Assembly in the final days of the legislative session.
