Chicago cracks down on hemp-derived THC as federal rules loom
Add Axios as your preferred source to
see more of our stories on Google.
Illustration: Allie Carl/Axios
Chicago's City Council voted 32-16 to prohibit the sale of certain hemp-derived products, claiming that they are being targeted at children.
Why it matters: While several states have prohibited the sale of hemp-derived THC products, Chicago has become one of the first major American cities to enact its own ordinance.
How it works: Any store licensed by the city would be prohibited from selling hemp products like Delta-8 edibles, vapes and flower.
- Hemp-derived THC drinks are not included and can still be sold at stores with licenses to sell liquor, part of a compromise to move the ordinance forward. Some CBD products made from hemp, like creams and ointments, are also exempt.
- Cannabis products can still be sold in state-licensed dispensaries.
Between the lines: Intoxicating hemp products have turned into an unregulated gold rush, with several companies quick to make items from the substance similar to marijuana and sell them at pop-up "dispensaries," convenience stores, gas stations and liquor stores.
- This also created a burgeoning THC drink market and the creation of goods allegedly marketed to kids, says Ald. Marty Quinn (13th).
What they're saying: "It's a good day for children in the city of Chicago," Quinn tells Axios.
Zoom out: The entire industry was born from a loophole in the U.S. Farm Bill that allows hemp production.
Yes, but: In this year's budget, the Trump administration closed that loophole and has given Congress a year to come up with legislation regulating hemp or those products will be outright banned across the country.
- The state is involved, too. In the last two years, Illinois' legislature came very close to voting to regulate the hemp-derived THC industry.
- The legislation never made it to a vote, but lawmakers are optimistic that they could vote on something this spring.
The intrigue: If Congress extends the federal legality of hemp products, it would call into question how state and local laws would interact with federal law.
- "We can always tweak," Quinn says.
The other side: Proponents of the hemp industry dispute the alders' claims that this ordinance is intended to protect children or public safety. Instead, they believe it will shut down hemp stores and shift revenue to liquor stores and cannabis dispensaries.
- They also believe the ordinance will shut down hemp stores and shift revenue to liquor stores and cannabis dispensaries.
- "We have repeatedly tried to talk to Alderman Quinn to work with him to get responsible regulation," the Illinois Healthy Alternatives Association's Craig Katz said in a statement. "He would not talk to representatives from the industry he is destroying, but he has met again and again with the industries that he is enriching."
- Katz also points out that CBD gummies and edibles, used for pain and stress management, will also be outlawed outside of dispensaries.
State of play: It's unclear if Mayor Brandon Johnson will veto this vote.
- "I continue to have concerns about this measure," Johnson said on Wednesday. "When you make something illegal, you create a black market, making the sale completely unregulated and uncontrolled."
The intrigue: While advocates have supported better regulation to prevent "bad actors" from marketing harmful products to children, they believe this ordinance will face litigation.
- The city will also lose out on taxing these products, as customers shop in other municipalities.
The bottom line: The new ordinance goes into effect on April 1.