Illinois Hemp regulation battle continues
Stakeholders’ ongoing battle over hemp regulations in Illinois continued this week. New sponsored legislation from Sen. Kimberly A. Lightford, Senate Bill 3926, which the Cannabis Business Association of Illinois (CannabizIL) presented at a press conference yesterday, sets forth provisions concerning applications, licensure, marketing, sales, labeling, transportation, testing, penalties, and emergency rulemaking by the Department of Agriculture. In a statement also release yesterday, Rep. La Shawn K. Ford and Sen. Lakesia Collins renewed their call to move forward with their proposals for hemp regulations and taxation (House Bill 5306, House Bill 4161, and Senate Bill 3790). Though all these proposals deal with hemp regulations and consumer safety, SB3926 does not align with Ford and Collins’ bills.
Tiffany Chappell Ingram, Executive director of CannabizIL—which mostly represents multi-state licensed cannabis operators—spoke at the press conference about the dangers of hemp consumer products and THC intoxicants and touted SB3926, the Hemp Consumer Products Act. SB3926 broadly defines Tetrahydrocannabinol (or THC) as, “any naturally occurring or synthetic tetrahydrocannabinol, including its salts, isomers, and salts of isomers whenever the existence of such salts, isomers, and salts of isomers is possible within the specific chemical designation and any preparation, mixture, or substance containing, or mixed or infused with, any detectable amount of tetrahydrocannabinol or tetrahydrocannabolic acid, including, but not limited to, delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-10-tetrahydrocannabinol, tetrahydrocannabolic acid, tetrahydrocannabipherol, or hexahydrocannabinol, however derived, or any other substance determined to have similar intoxicating effects on the mind or body by the Department. For the purposes of this definition, “isomer” means the optical, position, and geometric isomers.” Stakeholders in the hemp industry are concerned that SB392’s broad language has been written so poorly that it could ban all hemp products, including CBD.
SB3926 also states, “Hemp and hemp derivatives may not be used to concentrate or to synthesize intoxicating compounds including, but not limited to, delta-9 tetrahydrocannabinol or delta-8 tetrahydrocannabinol, unless permitted by the Department by rule, and shall be subject to the recommendations of the Intoxicating Hemp-Derived THC Consumer Products Safety Committee…Final products containing hemp or hemp derivatives are subject to the requirements of the Compassionate Use of Cannabis Act and the Cannabis Regulation and Tax Act any applicable administrative rules.”
The bill would create the Intoxicating Hemp-Derived THC Consumer Products Safety Committee, which would include 19 committee members, who would issue a consumer-safety standards report on or before Jan. 1, 2025. SB3926 also includes provisions for violation the proposed changes in hemp law, which states, “In addition to any other penalty provided by law, any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a licensed cultivation center, infuser, or craft grower owner, principal, agent-in-charge, or agent or who cultivates, processes, distributes, sells, or offers for sale cannabis, cannabis-infused products, cannabis concentrates, or cannabis flower without being licensed under this Act shall, in addition to any other penalty provided by law, pay a civil penalty to the Department of Agriculture in an amount not to $10,000 for each offense.”
Ford and Collins introduced their respective bills, HB5306 and SB3790, on Feb. 9. HB5306 was referred back to the Rules Committee April 5, and SB3790 has been stuck in Assignments since Feb. 9. The two identical hemp regulation bills would add a plethora of regulatory provisions to the Illinois Industrial Hemp Act and other Acts. One key provision addresses the definition of “THC” and the total concentration level limits of 0.3% or less.
The key definition in HB5306 and SB3790 states, “‘THC’ means delta-9 tetrahydrocannabinol. The definition THC does not include CBD, CBG, CBN, delta-7 THC, delta-8, THC, delta-10 THC, THCa, THCv, THCva, and other yet to be discovered cannabinoids.” HB5306 and SB3790 are in direct conflict with proposed amendments the Illinois Department of Agriculture released in December 2023, which included administrative rules that would add THCa and delta-9 THC to the total concentration level limits of 0.3%.
Other HB5306 and SB3790 provisions include licenses and registration of cultivating industrial hemp, rules, administrative hearings and judicial review, loans and grants, immunity, age verification, packaging and labeling of hemp cannabinoid products, laboratory approvals, testing requirements, violations of State and federal law, licensing and regulation of hemp processors and hemp food establishments, academic research institutions, government demonstration and research entity, and cannabinoid retail tax.
Each bill also includes several new rules and regulations for a cottage hemp food operator, which is defines as, “an individual who produces food or drink, other than foods and drinks listed as prohibited by Section 4 of the Food Handling Regulation Enforcement Act, that incorporate intermediate hemp products.” The new provisions also state, “Hemp retailing organizations that obtain a hemp food establishment license may prepare and sell ready-to-eat hemp-cannabinoid products,” and that “Hemp retailing organizations that maintain a hemp food establishment license may host cottage hemp food operators on the licensed home food establishment premises for special events lasting no longer than 3 days.”
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