Hemp Consumer Products Act transforms Illinois regulations
The battle over hemp regulations in Illinois shifted significantly today when Senate Amendment 002 was included into unrelated House Bill 4293, which addresses the Massage Licensing Act and the Sex Offender Registration Act. Amendment 002, cited as the Hemp Consumer Products Act, includes new hemp definitions, regulations, taxes, licensing, civil penalties, and provisions that would require hemp and hemp-derived businesses to follow laws set forth in the Compassionate Use of Medical Cannabis Act and the Cannabis Regulation and Tax Act.
Under “Emergency rulemaking,” which allows Illinois departments a fast track to impose and implement temporary rules while working through the law, Amendment 002 would “provide for the expeditious and timely implementation of the Hemp Consumer Products Act” and “is deemed to be necessary for the public interest, safety, and welfare.” The Hemp Consumer Products Act was referred to Executive, where the amendment was recommended for adoption. If passed, the Hemp Consumer Products Act would begin Jan. 1, 2025.
One of the most significant definition changes in the amendment is for Tetrahydrocannabinol (or THC), which would be defined 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.”
Another significant definition addition includes “Industrial hemp processor,” which “means any entity that processes or handles industrial hemp into a final product not intended for human or animal consumption that is registered with the Department. ‘Industrial hemp processor’ includes, until the availability of a hemp consumer product processor license under the Hemp Consumer Product Act, any entity that processes or handles industrial hemp. ‘Industrial Hemp product’ means any finished product made or derived from industrial hemp that is not intended for human or animal consumption by any means.”
New hemp processing provisions include:
(a) A person may not process industrial hemp in this State without registering for a license with the Department on a form prescribed by the Department.
(b) The application for a license shall include:
(1) the name and address of the applicant; and
(2) the address of the location at which hemp will be processed
(c) The Department may determine, by rule, the duration of a hemp processor registration, application, and registration fees, and the requirements for registration renewal.
(d) Beginning January 1, 2025, all active hemp processing registrations that process or manufacture products derived from hemp intended for human or animal consumption shall be regulated under the Hemp Consumer Products Act. Hemp processing shall not be regulated under the Industrial Hemp Act. By January 1, 2025, the Department of Agriculture shall create a process to provide each active hemp processor registrant that processes or produces products intended for human or animal consumption by any means with a Hemp Consumer Products Act hemp consumer product processing license.
(e) The Department may revoke the registration of any industrial hemp processor that processes or manufactures products derived from hemp intended for human or animal consumption and fails to register as a hemp consumer product processor under the Hemp Consumer Products Act by March 1, 2025.
The Hemp Consumer Products Act also adds new provisions for enforcement responsibilities and civil penalties for violating the new hemp regulations. The Department of Financial and Professional Regulation (IDFPR) currently has the authority and power to investigate any and all unlicensed activity. The Hemp Consumer Products Act gives additional authority and power to investigate any and all unlicensed activity to “the Attorney General, any State or local law enforcement agency, or any State’s Attorney.” Although the original bill includes a fine not to exceed $10,000 for each offense as determined by IDFPR, the Hemp Consumer Products Act adds that “Each day a person engages in unlicensed practice in violation of the provisions of this Section constitutes a separate ($10,000) offense.” In addition, “Nothing in this Section prohibits a unit of local government from enacting a local law or ordinance to carry out enforcement activities and assess civil penalties against unlicensed cannabis sales.”
Provisions for civil penalties for violations of unlicensed practices include:
(a) 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 officer, 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 exceed $10,000 for each offense. Each day any person engages in unlicensed practice in violation of the provisions of this Section constitutes a separate offense. The civil penalty shall be assessed by the Department after a hearing is held in accordance with the provisions set forth in this Act regarding hearings for the discipline of a licensee.
(b) The Department, the Attorney General, any State or local law enforcement agency, or any State’s Attorney has the authority and power to investigate any and all unlicensed activity.
(c) The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty or in accordance with the order imposing the civil penalty. The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of this State.
(d) In addition to any other remedies or penalties provided by law, a unit of local government may suspend or revoke any locally established licenses held by the person, and prohibit the person from further operations and seize any cannabis or THC product.
The Hemp Consumer Products Act also includes a provision that states, “cannabis business establishments licensed by the Department of Agriculture for cultivation, growing, processing, manufacturing, or infusing of medical or adult use cannabis products pursuant to this Act or the Compassionate Use of Medical Cannabis Program Act may use industrial hemp as an ingredient in cannabis-infused products offered for sale at licensed dispensaries in Illinois. Hemp flower shall not be sold to dispensaries.” Furthermore, another provision states, “Final products containing hemp or hemp derivatives sold by a cannabis business establishment shall be cannabis-infused products and shall be subject to the requirements of the Compassionate Use of Medical Cannabis Act and the Cannabis Regulation and Tax Act and any applicable administrative rules.”
Opponents of the Hemp Consumer Products Act claim the amendment contains significant technical errors and would create a ban on all non-intoxicating CBD products, animal CBD products, and cosmetic products, such as hand lotions and shampoos, and would regulate the hemp industry out of existence by forcing hundreds of legal businesses to shut down, eliminating thousands of jobs.
The House of Representatives adjourns tomorrow, May 24, but has one more week to finalize Illinois’ budget. For more Illinois cannabis industry news, visit here.
To find cannabis-friendly events in Illinois, visit here.
For Illinois News Joint reviews, visit here.
