Illinois New Hemp Regs Delayed After Industry Voice Concerns

Illinois hemp growers and advocates have pressed pause on a set of proposed state regulations they say threaten the survival of small and minority-owned businesses in the industry.

The Illinois Department of Agriculture (IDOA) and a legislative committee announced a 45-day delay in finalizing the rules, which were initially set for approval on November 12, reported Illinois Capitol News.

The regulations, which have been in the works for over two years, aim to align Illinois’ hemp program with federal standards under the 2018 Farm Bill.

However, recent changes to the draft, including unannounced inspections, stricter licensing restrictions and the possibility of criminal penalties, have drawn sharp criticism from industry stakeholders.

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A Step Backward For Social Equity?

Norma Fuentes, a lobbyist for the Illinois Hemp Business Association, argues the proposed regulations could undermine the state’s efforts to promote equity in cannabis licensing.

“It kind of fueled a second War on Drugs, disenfranchised social equity licenses, and also financially burdened local businesses through some of the testing that they require,” Fuentes told Capitol News Illinois.

One contentious provision would bar individuals with drug-related felony convictions within the past 10 years from obtaining hemp licenses or holding management roles in hemp businesses. Fuentes pointed out the inconsistency with Illinois’ Cannabis Regulation and Tax Act, which prioritizes cannabis licenses for individuals disproportionately impacted by past drug policies.

Another flashpoint is the provision allowing the IDOA to conduct random, unannounced inspections of hemp facilities. Earlier drafts of the rules required at least five days’ notice before inspections, but the current version removes this safeguard.

Fuentes warned that this change opens the door to over-policing. “It opens the gate for over-policing and criminalization of some of this industry, which is what we believe starts and fuels a second War on Drugs.”

Read Also: Illinois 2024 Cannabis Sales Reach $1B Milestone Faster Than Expected: Are Out-Of-State Consumers Driving The Boom? Where Are Taxes Going?

IDOA Defends Proposed Rules

David Lakeman, manager of the IDOA’s Division of Cannabis Regulation, defended the licensing restrictions as federally mandated. “The federal government and USDA have been extremely rigid on that section, for us and for every other state that is running its own hemp program,” Lakeman said during a recent legislative hearing, as reported Forbes.

Lakeman said the department’s intent is solely to implement federal guidelines.

The proposed regulations also introduce fees of up to $1,500 for testing and sampling – costs that some small businesses say could drive them out of the state.

The delay gives stakeholders additional time to advocate for revisions before the regulations are revisited at the Joint Committee on Administrative Rules (JCAR) meeting on December 10 in Chicago.

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