Proposed city ordinance takes aim at unregulated THC sales
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A newly proposed city ordinance looks to do what the state of Illinois has not — regulate the sale of hemp products like Delta-8 joints, baked goods and drinks sold outside of dispensaries.
Why it matters: Hemp-derived THC uses a regulation loophole to get around state cannabis regulations, which include standards for safety.
Driving the news: Ald. William Hall (6th) is proposing an ordinance to regulate the sale of hemp products in Chicago through licensing, age verification and compliance measures for hemp businesses. It would also tax the product.
Yes, but: It doesn't regulate the product itself, which is what some lawmakers and the cannabis industry are pushing for.
What they're saying: "This ordinance will make Chicago a leader in hemp regulation — protecting public health, supporting our communities and creating a fair business environment," Hall said in a statement.
Context: Hemp and marijuana are different types of cannabis. Both have the active ingredient THC, the compound that gets users high. But hemp has much less THC than marijuana.
- Hemp-derived THC is legal because of a loophole in the 2018 Farm Bill.
State of play: Hemp-derived THC businesses selling unregulated products at shops across the state have become a thorn in the side of the regulated cannabis industry.
- This includes Delta-8 marijuana and THC seltzers sold in liquor stores.
Zoom in: Lawmakers and cannabis industry representatives have long complained about unregulated THC products saying they can be more potent than the label advertises, causing danger to customers.
- These products have been outlawed in some Illinois towns, like Waukegan and Rolling Meadows.
The intrigue: Last spring, the Illinois General Assembly came close to passing a law banning hemp-derived products, but the deal fell through at the end of the session.
- One reason the bill stalled was that craft brewers are creating hemp-derived THC drinks to offset the loss of revenue due to a sharp decline in beer sales.
Reality check: Even though Hall's ordinance addresses concerns from both the regulated cannabis industry and the craft brewers, opposition remains.
The other side: "While we appreciate efforts to rein in this gray market, we are concerned the proposal put forth by Ald. Hall would legitimize dangerous products in exchange for a quick cash grab by the city," the Cannabis Business Association of Illinois said in a statement.
- "There is a way to do this correctly. We do not have to sacrifice consumer safety for revenue generation."
Between the lines: Hall leads the mayor's budget subcommittee charged with exploring new revenue sources as the city grapples with a budget crisis.
What's next: It's unclear if this ordinance has the support of the full council, but it's likely the debate over regulating hemp products will resurface in the General Assembly next spring.