Rep. Ford introduces Consumable Hemp Licensing bill
At the end of September, we reported on the intentions of Illinois State Rep. La Shawn Ford to introduce a new bill for regulating hemp and delta-8 products. Last week, Ford introduced House Bill 4161, the Consumable Hemp Licensing bill, which focuses mainly on permits, licensing, testing, taxes, and a new special fund known as the Hemp Social Equity Fund. HB4161 is set for a possible consideration during the fall veto session, Oct. 24-26 and Nov. 7-9.
In his press release, Ford referred to the bill as “a comprehensive plan to strictly regulate, license, and tax delta-8 and other similar intoxicating delta hemp products” and announced that because “hemp-derived substances like delta-8 are legal and loosely regulated under federal law, a strong set of public safety measures to tightly control the delta hemp industry must be enacted at the state level.”
Although not listed in the bill’s summary (below), HB4161 would implement strict testing protocols and labeling requirements for hemp and delta-8 products and set limits on product dosage and potency. The bill provides for a disciplinary system with fines and license revocation for those who break the rules. In addition, HB4161 would:
- Permit the wholesale and retail sale of cannabinoids, hemp concentrate, or any other intermediate hemp cannabinoid products.
- Provide that no person shall offer or sell cannabinoid products, particularly packaged hemp products, to consumers in the State unless the person applies for and holds a hemp retailer license issued by the Department of Financial and Professional Regulation.
- Provide that no person shall sell ready-to-eat hemp products to end consumers without applying for and holding a hemp food establishment license issued by the Department of Public Health.
- Provide that no person shall sell cannabinoid product to any person under the age of 21 unless the person is a medical cardholder registered under the Compassionate Use of Medical Cannabis Program Act.
- Provide that the Department of Agriculture may not limit the number of hemp farm licenses.
- Provide that no person shall cultivate or grow hemp for commercial purposes unless licensed by the Department of Agriculture and subject to the rules of the Department.
- Provide that hemp farms may not create hemp extractions without a processor license.
- Provide that hemp farms may not engage in retail sales without a hemp retailer license.
- Provide that hemp farms may not create hemp extractions without a processor license.
- Provide that hemp farms may not engage in retail sales without a hemp retailer license.
- Create in the State treasury a special fund known as the Hemp Social Equity Fund.
- Provide that 25% of all moneys deposited into the Hemp Regulatory Fund shall be transferred into the Hemp Social Equity Fund.
- Provide that, beginning on July 1, 2024, a tax is imposed upon purchases of all hemp cannabinoid products (hemp cannabinoid products for inhalation, hemp cannabinoid products for ingestion, and ready-to-eat hemp cannabinoid products) at a rate of 5% of the purchase price of the cannabinoid products.
- Change the short title of the Act to the Hemp Act.
- Define terms.
“Public safety is paramount,” said Ford. “That’s a given. But delta hemp is a popular product that should be regulated rather than eliminated or put under the exclusive control of a few Big Cannabis corporations. We know that prohibition doesn’t work. Perpetuating the racist war on drugs reflexively will only encourage the black market and hurt public safety. I think this bill provides a path where we can protect public health and safety, preserve adult consumers’ access to products of their choice, and bring millions of dollars in new tax revenue into state coffers.”
These changes in HB4161 would amend the Industrial Hemp Act, State Finance Act, Cannabis Regulation and Tax Act, the Illinois Noxious Weed Law, the Cannabis Control Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers’ Occupation Tax Act.
“We are seeing unregulated smoke shops that sell delta hemp products popping up in communities across the state and it’s our responsibility as state officials to get this industry under control,” said Ford. “We must move quickly to protect kids and consumers. The legitimate people in this industry actually welcome strict regulation because their businesses can prosper under a stable regulatory framework, while the bad actors are put out of business. For the last several months, I have been gathering input from various stakeholders, and I think this bill strikes the right balance between our public safety needs and the American free enterprise system.”
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