By Andi Anderson
Hemp business owners in Illinois are raising concerns over a new rule proposed by the Illinois Department of Agriculture.
If passed, this regulation would significantly change how hemp is sold and transported in the state, impacting both local businesses and social equity initiatives.
Advocates are urging lawmakers on the Joint Committee on Administrative Rules to reject this rule, emphasizing that it threatens the industry and could revive punitive measures reminiscent of the “War on Drugs.”
The proposed rule would require hemp products to be sold only through licensed cannabis dispensaries. Business owners argue that this would harm small businesses, limit consumer access, and place control over hemp entirely in the hands of large, multi-state companies.
In doing so, the regulation could undermine Illinois' social equity goals by making it harder for smaller, independent businesses to compete. Advocates say this would lead to fewer opportunities for entrepreneurs from historically marginalized communities, countering the purpose of Illinois' social equity programs.
In addition, the rule includes provisions that would expand the state’s power to stop, search, and inspect businesses handling hemp. For instance, law enforcement could seize hemp products deemed untested, even if they are still being grown or processed.
This regulatory overreach concerns many business owners who fear these measures could unjustly penalize legal hemp businesses. Owners would face costly inspections, with fees up to $1,500 per product, which could financially strain smaller companies.
Ashraf Hassan, owner of Organic Pharma Techs LLC in Joliet, expressed his concerns, stating, “If this rule goes through, it will devastate my business and force me to move to a different state, taking jobs with me.”
Hassan also warned that the rule would disproportionately impact communities already affected by previous drug laws, as it would grant law enforcement more authority to enforce penalties on legal hemp products.
If approved, industry leaders, including the Illinois Hemp Business Association (IHBA), plan to challenge the rule through legal avenues, citing procedural and legal flaws.
Attorney David Sergi, experienced in hemp and cannabis law, has also criticized the proposed regulation as overstepping federal law and legislative authority. He believes the rule is likely to face strong legal challenges.
As the Joint Committee reviews the proposal, the Illinois hemp industry continues its call for fair, balanced regulations that support small businesses, social equity, and lawful commerce.
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Categories: Illinois, General