Illinois hemp business owners support legislative effort to regulate, not ban delta-8

The trio of bills, House Bill 4193, House Bill 5306 and Senate Bill 3790, from of Rep. La Shawn Ford, D-Chicago, and Sen. Lakesia Collins, D-Chicago, would address the growing proliferation of unregulated hemp products.

Their efforts stand in contrast to legislation filed last month by Senate Majority Leader Kimberly Lightford, D-Maywood, that would also regulate hemp but take it a step further by temporarily banning delta-8 until further study and review of the product’s safety. That bill is supported by the Cannabis Business Association of Illinois, which represents the interests of the operators of the state’s heavily taxed and regulated dispensaries.

The popularity of hemp products and the need to address them is a result of the federal government’s 2018 Farm Bill — a bill that legalized hemp, defined it as a product separate from cannabis and removed it from the controlled substances list. 

Erik Carlson, general counsel for the Bucky Weed Co.in Rockford, said in a Capitol press conference Tuesday that he operates a hemp-infused bakery and coffee shop and has people coming in every day looking for something that could help with functional pain relief. 

“That is what hemp really means for people,” Carlson said. “It means an ability to go out and take a natural, holistic, plant-based medicine that will help you get through the day without haziness, without being confused, and actually complete the job that you want to complete.”

Despite the hemp business owners who have been responsible with their approaches to these products, the lack of regulation in Illinois means these delta-8 products can be sold anywhere with no age restrictions, and many have witnessed some of the “bad actors” within the industry. 

This is where Ford’s and Collins’ bills would address these issues. Their proposals would put safety regulations in place for these products, including raising the purchase age to 21; implementing strict licensing, testing, labeling and taxing regulations; and prohibiting look-alikes that resemble candy and snack products, such as Airheads, Skittles and Fritos. 

“One thing that I think is important to point out … is that, right now, we’re trying to really level the playing space,” Carlson said. “There’s taxes right now in the cannabis industry that are too high, and there’s no taxes at all in the hemp industry.”

“I’m particularly pleased that (Ford and Collins) have been listening to us on this issue and recognizing the importance of including our voice in what any regulation and taxation would look like,” said Jennifer Weiss, founder and CEO of Cubbington’s Cabinet, a Chicago-based health and wellness company. “Their proposed framework will protect public health, ensure consumer accessibility to quality wellness products, promote small businesses and bring in new state revenue while codifying age minimums, quality controls and standards for labeling and testing.”

Weiss continued, “In contrast, (Lightford’s bill) would literally put my business out. We would have to shut our doors, as well as hundreds of other Illinois companies. Instead of just regulating hemp, that bill, intentionally or not, would outright outlaw all manufactured hemp products.”

If these bills passed, Glenn McElfresh, CEO of Perfectly Dosed, a hemp-based ingredient company in Illinois, said regulating and taxing hemp and delta-8 would bring in at least $1.5 billion in revenue for the state over the next four years. This would come in the form of retail, excise taxes, licensing fees and other penalties collected by various state departments.

“Hemp is a once-in-a-generation opportunity to create over $1.5 billion in tax revenue, tens of thousands of high-paying jobs and thousands of new businesses across the state of Illinois,” McElfresh said. 

McElfresh said the projection is based on what hemp industry experts have seen in other states that have regulated the products. McElfresh said hemp is a $20 billion industry, and many operating within it believe this is just the start of what it could be down the line. 

All the bills in question are either in the gatekeeping House Rules Committee or Senate Assignments Committee. Despite the bills still waiting to be assigned to committees, state Rep. Theresa Mah, D-Chicago, said she believes Ford’s and Collins’ legislation is the right thing to do, and that many of the small businesses in her district support the regulations being discussed. 

“I’m product to stand here with this coalition in support of thoughtful regulation,” Mah said. “I commend all the parties (and) all the stakeholders around the room, and the conversations that they have had so that we can arrive at something that is workable, supports small businesses and ensures safety as well as the ability of businesses to thrive, and to protect the general public as well.”

The House and Senate are scheduled to adjourn their spring legislative session May 24.