* Subscribers know more. Press release…

House and Senate negotiators are preparing to move forward on major cannabis and hemp legislation focused on equity, smart industry reforms, and addressing major shifts in federal policy.

The federal government has recently made dramatic policy changes in the cannabis space, including eliminating the category of “intoxicating hemp” and moving medical cannabis from a Schedule I to a Schedule III narcotic. Additionally, Illinois’s regulated cannabis law contained many stringent provisions that were needed when the law passed in 2019 but no longer suit the current environment.

To respond to these issues, the House and Senate today jointly introduced omnibus cannabis and hemp regulatory reforms in SB 20 SA1
(Lightford) and HB 5784 (Guzzardi - Slaughter - Morgan - Olickal - L. Davis).

The bills contain six major areas of reform:

- Removing Regulatory Barriers to Help Social Equity Operators Thrive;
Criminal Justice Reforms;
- On-Ramps to Legal Status for Hemp Operators;
- Changes to Medical Cannabis Law for Social Equity Licensees and Patients;
- Reforms for Social Equity Transporters; and
-Regulatory and Technical Changes

Without legislative action, social equity cannabis businesses will operate at an even greater disadvantage compared to large, multi-state operators. This bill will offer a vital lifeline by removing unnecessary regulatory burdens from small businesses and providing on-ramps to participate in the regulated cannabis industry.

“From protecting a grandmother buying CBD oil for arthritis, to making sure a social equity transporter can build a real business, to guarding underage youth from harmful products — this bill is simply about people,” said Senate Majority Leader Kimberly Lightford (D-Maywood). “Effective regulation is about safeguarding public health and fostering a sustainable, trustworthy market. I appreciate the passionate conversations I have had with advocates, stakeholders and my colleagues in the House that have led us to file a nation-leading, equitable hemp and cannabis measure.”

“Rumors of the demise of House-Senate collaboration have been greatly exaggerated,” said House Assistant Majority Leader Will Guzzardi (D-Chicago). “I’m proud of the partnership that’s gone into drafting this bill, and I’m proud of the end product — legislation that will help keep our cannabis industry among the most vibrant and diverse in the nation.”

The bills will be heard in committees in their respective chambers in the coming days.

* The Marijuana Herald…

Among the most consequential provisions, HB 5784 would create the CBD Consumer Products Act, establishing new rules for hemp-derived cannabinoid products intended for human or animal consumption. Under the bill, CBD products could only be sold by registered CBD product registrants, with physical and online sellers required to register with the Department of Revenue.

To qualify as a CBD product, an item would need to contain naturally occurring cannabinoids derived from hemp, be intended only for oral ingestion or topical absorption, and contain no more than 0.3% total THC on a dry weight basis. It also could contain no more than 0.4 milligrams of total THC per container. Products exceeding those limits would be regulated as marijuana under the Cannabis Regulation and Tax Act, regardless of whether they were derived from hemp, industrial hemp, natural sources or synthetic sources.

The bill would also impose packaging, labeling, testing and advertising requirements for CBD products, including required warnings and a ban on marketing that appeals to those under 21. Unregistered retailers selling products that meet the CBD definition would face a $500-per-day fine, while registrants could face additional penalties for violations. […]

The legislation would also create a clearer line between low-THC CBD products and intoxicating hemp-derived products. Any product above the bill’s THC limits would be treated as cannabis under state law, regardless of whether it was made from hemp, industrial hemp, natural sources or synthetic sources. The measure would also allow the Department of Agriculture to update its list of cannabinoids it considers THC twice each year, on or before January 1 and July 1. […]

The proposal includes a series of regulatory changes for licensed operators. It would allow dispensaries to offer pickup or drive-through service, increase allowable craft grower canopy from 5,000 square feet to 14,000 square feet, establish transfer site storage endorsements for certain transporters, and make changes related to business development, social equity loans, fee waivers, licensing, relocation, investigations, security and testing.

* Co-founder of Cubbington’s Cabinet Jeremy Dedic…

In response to yesterday’s introduction of HB5784, Jeremy Dedic, Co-Founder of Cubbington’s Cabinet, a specialty hemp and plant-based wellness retailer in Chicago stated, “We are passionate advocates of smart hemp regulation. Unfortunately, that is not what HB5784 is. Contrary to how the bill is described, its language will ban consumer access to the vast majority of non-intoxicating CBD products popular among Illinoisians. Even topical CBD creams and many common pet products will be criminalized. If HB5784 passes as written, our business will be forced to close after six years of serving our community. The city and state will lose tax revenue from responsible businesses like ours, employees will be laid off, storefront vacancies will increase, and — most importantly — Illinoisians will lose access to popular hemp wellness products.”

Thoughts?