Illinois gives Second Notice for Industrial Hemp Act amendments

The Illinois Department of Agriculture (IDOA) announced today that proposed amendments involving provisions to the Illinois Industrial Hemp Act were moved to a Second Notice this week. The Joint Committee on Administrative Rules (JCAR) proposed the provisions on Dec. 26, 2023. The proposed amendments involve provisions for new hemp regulations, licensing, and testing methods for Illinois academic research institutions, government demonstration and research entities, and licensed hemp farmers. These rulemakings will be considered at the Nov. 12, 2024, meeting in Springfield.

The rulemaking provisions are meant to better define “academic research institutions that are eligible to participate in the industrial hemp program as institutions that offer agricultural programs or degrees; offer in-person programs at a physical location in Illinois; are Illinois non-profit entities; and conduct research on hemp. These may include public or private colleges and universities, community colleges, and public or nonpublic high schools registered with the State Board of Education.”

A few of the new provisions include the following:

The acceptable THC level for commercial hemp and hemp products is no more than 0.3 percent by dry weight. Hemp crops may not be harvested until a sample of the lot (entire quantity of a particular plant variety to be harvested from a single field or farm), gathered at least 30 days prior to the scheduled harvest date, has been laboratory tested to ensure an acceptable THC level. Samples that test higher than 0.3 percent THC may be retested at the licensee’s expense; if the initial test result is between 0.3 and 0.7 percent THC the cultivator may remediate the lot by shredding, blending, or sorting the plant material in a manner that reduces the THC concentration to an acceptable level, and then have it retested. If a sample tests above 0.3 percent THC twice (or once if a retest is not requested), the lot from which the sample came must be disposed of. Applicants for an industrial hemp-growing license may be required to provide additional personal information for background checks if USDA requires a background check.

Academic research institutions must specify which testing laboratory they will use and consent to DOA collecting and forwarding requested data to USDA, which may include background checks, disposal reporting, and real-time information. The existing prohibition against granting a hemp cultivation license to any person convicted of a controlled substance related felony within the previous 10 years is extended to persons with “executive managerial control” of a corporation, partnership or other entity that applies for a license (but not to any non-executive employees).

Processors of industrial hemp may not be located in residentially zoned areas. Industrial hemp cultivators must file their final annual reports by December 1 (currently, February 1) and licensees must also report their hemp cultivation acreage to the Farm Services Administration (FSA) within 30 days after planting.

Other provisions impose an annual licensing fee of $100 on academic research institutions and government demonstration and research entities (commercial growers and processors pay $375 per year, $750 for two years, or $1000 for 3 years); carve out exceptions to certain testing requirements for hemp grown by these institutions and entities; allow DOA to conduct both scheduled and unannounced annual inspections, random inspections, and inspections for the purpose of auditing; and specify how testing samples are to be collected and how hemp is to be transported. Academic, government and commercial institutions that participate in the industrial hemp program are affected.

Further comments concerning these rulemakings should be addressed to JCAR at jcar@ilga.gov. For more Illinois cannabis industry news, subscribe to Illinois News Joint’s newsletter here.

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