New hemp laws stir controversy in Illinois

By Andi Anderson

A legislative committee and the Illinois Department of Agriculture (IDOA) recently postponed finalizing new hemp production regulations following protests from small producers. The proposed rules, developed over two years, introduced unexpected changes in September, including unannounced inspections, stricter licensing criteria, and potential criminal penalties.

These updates have alarmed small and minority-owned hemp businesses. Norma Fuentes, from the Illinois Hemp Business Association, criticized the rules, saying they could harm social equity licenses and financially strain local producers.

Hemp, once a key U.S. crop in the 19th century, was heavily restricted in the 20th century due to its association with marijuana. Federal control began easing with the 2014 Farm Bill, which allowed limited hemp research. The 2018 Farm Bill further legalized commercial hemp production, reclassifying it as a non-controlled substance if THC levels were below 0.3%. This enabled growers to access traditional farm programs like loans and insurance.

Illinois followed suit by passing the Industrial Hemp Act in 2018, empowering IDOA to regulate hemp cultivation. Initial state rules were implemented in 2019, aligning with interim federal guidelines. However, USDA finalized its hemp regulations in 2021, requiring Illinois to update its rules.

The revised regulations introduced in 2022 included stricter compliance measures, such as barring individuals with drug-related felonies in the past decade from managing hemp businesses. Fuentes argued this contradicts Illinois’ cannabis laws, which favor applicants harmed by past drug policies. IDOA countered that the restriction aligns with federal requirements.

The rules also allow unannounced inspections, replacing the prior five-day notice, and introduce administrative penalties or criminal referrals for violations. Critics, like Fuentes, view these measures as overpolicing that could harm small businesses.

In response to industry concerns, the IDOA delayed the rules' approval by 45 days for further discussion. The final decision is expected at the Joint Committee on Administrative Rules meeting on December 10 in Chicago.

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