Illinois – Calls for Sensible Hemp Industry Regulation

Governor Pritzker is scheduled to hold a press conference on Friday to address issues in the hemp industry. The Illinois Healthy Alternatives Association, comprising retailers, growers, manufacturers, and distributors, advocates for smart regulation to protect public safety, ensure consumer access to high-quality wellness products, promote small businesses, and generate tax revenue for the state. The Association urges the Governor and legislators to collaborate with industry stakeholders to safeguard children, consumers, and workers.

The Illinois Healthy Alternatives Association calls on the Governor and the Illinois Legislature to implement sensible regulations, including age-gating and safety measures, to allow the sale of federally compliant products in local businesses rather than unregulated markets.

In the 2024 legislative session, the Senate proposed a bill to regulate the hemp industry that inadvertently favors the billion-dollar Big Marijuana industry over small businesses. This bill has been sent to the House for a concurrence vote. If it passes the House, this legislation will ban federally compliant, non-intoxicating full-spectrum CBD sold at local businesses, which contribute to local economies and provide relief to veterans and seniors. The bill would still permit online, out-of-state, or non-Illinois businesses to sell without restrictions, contributing nothing to local communities.

• Failure to Protect Children: The bill does not adequately prevent children from accessing intoxicating products. A JAMA study found that 11% of teens used delta-8, compared to 30% who used marijuana. The bill focuses on hemp-derived cannabinoids rather than addressing marijuana accessibility.
• Illicit Market Growth: The bill’s failure to regulate online and out-of-state sales could drive the growth of an illicit market, as acknowledged during Senate debates.
• Excessive Penalties: HB 4293 imposes harsh penalties for accidental violations, including $10,000/day fines, loss of licensure, property seizures, and Consumer Fraud Act violations, with no grace period for compliance.
• Flawed Licensing Scheme: The bill’s licensing system, based on the problematic cannabis model, disenfranchises minority and low-income communities.
• Technical and Scientific Flaws: The bill’s errors and unscientific definitions would ban all non-intoxicating CBD products, including those for pets and cosmetics, and prohibit standard CBD processing practices.
• Unworkable Standards: Imposing a 0.3% THC limit on interim products would halt extraction processes in Illinois. The bill’s product standards, limiting THC content to less than 0.5mg per serving or 2mg per package, would outlaw most current hemp products, including non-intoxicating full-spectrum CBD.

Background: The Illinois Healthy Alternatives Association fosters a thriving, sustainable, and equitable hemp industry in Illinois through outreach, education, legislative advocacy, quality standards, compliance efforts, market resources, and economic opportunities. The Association encourages the Governor and the Legislature to work with industry stakeholders to gather all the facts and consider the consequences of proposed regulations before negatively impacting workers, consumers, and the Illinois economy. The goal is to get it right, not just act quickly.

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