Impending Ban on Hemp THC in Illinois Faces Legal Challenge

Illinois is on the verge of banning hemp THC, potentially dismantling an industry that grew from a legal loophole. The ban is set for November 12, unless a legal intervention succeeds. Hemp THC, which induces a high, has been targeted by the state. However, a hemp industry association has filed a lawsuit to prevent the ban, claiming it conflicts with the U.S. Constitution’s commerce clause. This clause grants Congress the power to oversee interstate trade.

The Illinois Healthy Alternatives Association, along with several hemp businesses, submitted the lawsuit on Thursday in a federal court. They seek a temporary restraining order against the ban. Based in Deerfield, the association represents over 250 businesses with more than 5,000 employees. Whitney Economics estimated hemp sales generate $2.7 billion annually in the state, which surpasses revenue from licensed cannabis.

The lawsuit claims the ban will “unconstitutionally slam shut access to Illinois markets by out-of-state companies” and hurt businesses including farmers, infusers, distributors, and retailers in Illinois. The 2018 federal Farm Bill legalized hemp with less than 0.3% delta-9-THC, aiming to promote non-intoxicating substances like CBD. However, producers developed methods to create intoxicating products like delta-8-THC and similarly potent items, filling the market with unregulated goods.

This led to a proliferation of vape shops, convenience stores, and gas stations selling hemp products, without regulations on packaging or consumer age. Many products mimicked candy or snack labels. There have been numerous incidents of minors consuming cannabis, including unidentified hemp products.

Licensed cannabis businesses pushed legislators to close the loophole to stop unregulated competition. A federal ban was scheduled for December 11. Reform advocates hope to delay or contest this ban, proposing regulation of the industry instead.

Illinois Governor J.B. Pritzker signed the state ban into law, effective next week. In a press release, Pritzker emphasized the need to protect consumers, especially children, from deceptive packaging and labeling. He stated that the new law “closes the intoxicating hemp loophole,” strengthens oversight, and improves medical access.